3 RFID Applications in Supply Chain Management & Logistics

3 RFID Applications in Supply Chain Management & Logistics


RFID has become a mainstay in the retail industry for several years now. Due to its myriad benefits to companies that deal in tangible goods, especially in inventory management, it was necessary to incorporate it in order to get ahead or be on equal footing with the competition.

Along the way, businesses also started to apply this system in their supply chains and logistics operations. Enterprises have had to acquire the necessary equipment from RFID companies to enhance the quality of their supply chains by boosting visibility  and lowering operational costs of supply chains from the point of manufacturing.

Let’s take a look at the significant parts of the business process and discover how RFID improves the business.

Inventory management

The RFID system enhances a business’s supply chain in various ways, primarily in ensuring that raw materials arrive at the right time, place, and quantity.

By tagging shipments of these materials, manufacturing plants can eliminate wastages in time, manpower, and warehouse space. Having everything ready and in ample quantity allows management to streamline the manufacturing of products and eliminate costly disruptions that could delay or, at worst, halt operations.

Every asset in a manufacturing plant, has an operating cost. Thus, by incorporating RFID, top management can ensure that each part of the process within its operations is efficient and utilised to its maximum capacity.

Warehouse management

Once the products are completed in the plants, they will then be transported to warehouses or distributing centres, before making their final destination to retail stores. Even something as basic as storing products can incur hefty fees to a business if not properly managed.

With the implementation of RFID in warehouse management systems, a whole area of outdated processes become automated and, as a result, increases efficiency. For instance, receiving and sending shipments becomes more straightforward, efficient, and most importantly, error-free.

Apart from that, RFID allows identification and tracking of specific shipments to be swift and uncomplicated, with no delay when it’s time to move them to the necessary location. RFID offers many benefits, with the increased flow of information throughout the supply chain, this saves businesses in the wastage of resources, especially in the monetary aspect.


At the last point of the journey, RFID serves both retail workers and customers in a similar way. Knowing what’s in stock on the shop floor and in the store inventory is crucial to meet customers’ demands.

Apart from having full knowledge of inventory accuracy to serve customers quickly, RFID can enhance customer experiences to greater heights and making stock checks virtually continuous.

This can be achieved by implementing quality-of-life improvements to customers shopping experience, such as retrieving details about a product’s journey thru its RFID tag and allowing customers to scan them to reveal its data. This provides total inventory visibility for retail managers.

The implementation of RFID on all stages of a business’s operations, starting from the supply chain and down to the retail end, benefits the company in many ways, especially in reducing operating costs. With RFID technology implemented, it can help enable your company to be on equal footing with the competition.