4 RFID Statistics That Every Manufacturer Should Know
The manufacturing industry is among the biggest sectors in the world since nearly every other industry depends on it. The industry plays an essential role in the growth of countries, and every manufacturing unit comes with plenty of equipment and assets that are valuable to the organisation. However, despite the importance of their operations, many manufacturing units do not keep track of their assets.
As a consequence, the assets of these manufacturing units are susceptible to being lost, and their operations are prone to frequent delays. Failing to track assets also increases unnecessary purchasing in business. For this reason, the use of RFID is crucial in the manufacturing industry. RFID is one of the most widely used asset tracking systems in the world. It has already revolutionised the operations of different sectors, such as retail, logistics, IT, and manufacturing.
Read on to learn some RFID statistics that everyone in the manufacturing industry should know.
1. Manufacturers and distributors who use RFID see an 80% increase in shipping and picking accuracy
One of the best benefits that RFID has for manufacturers as well as for managers of distribution centres and warehouses is the increase in shipping and picking accuracy by up to 80%. This benefit directly impacts the financial position of manufacturers since a principal concern that they have is reducing shipping errors to minimise chargeback penalties.
Chargebacks usually cost hundreds and thousands of dollars. With the right combination of RFID software and hardware, manufacturers will be able to confirm and authenticate outbound shipments at extremely high rates. And by reducing chargebacks, the adoption of RFID by manufacturers can immediately pay for itself.
2. Manufacturers and distributors who use RFID see a 90% improvement in receiving time
RFID can help manufacturers automate their receiving processes, significantly reducing the time and energy required for receiving. When that happens, receiving costs will naturally decrease as well. Manually scanning each barcode, checking inbound items, and inputting data are very time-consuming. RFID diminishes these constraints by automating the processes of scanning and data entry, which then increases operational speed while improving data accuracy.
3. RFID increases inventory visibility and availability in warehouses from 2% to 20%
Amazing things can happen to warehouses that see an improvement in their inventory visibility. The main problem with not having enough warehouse visibility is that it can result in a loss of sales. For instance, if a company with no inventory visibility has both an online shop and a showroom, and its customers ask for a specific product that they have seen online, the company could have a hard time finding the exact product that the customer is looking for, especially if its warehouse is huge.
Investing in simple item or asset location technology, such as RFID inventory management, can change everything. With the help of RFID, warehouses can enhance the visibility and accuracy of their inventory and speed up the retrieval of their products. As a result, customer satisfaction will also improve since the right items can be found faster, and employees can become way more efficient at inventory cycles and item retrieval.
4. Businesses that adopt RFID notice their inventory count accuracy go from 63% to 95%
If a business has a large warehouse, a large inventory, or its supply chain is moving quickly, it will likely need help maintaining an accurate inventory count. While this is understandable, it does not eliminate the fact that having erroneous inventory data can significantly slow down business operations. Inaccurate inventory data hinders a business’s ability to make wise purchasing decisions. Luckily, it has become easier for businesses to achieve accurate inventory counts with the help of RFID, which can increase accuracy by up to 95%.
Conclusion
There is no denying the benefits of RFID for manufacturers, as proven by the statistics mentioned in this article. Aside from increasing accuracy in shipping, picking, and inventory count, using RFID in retail and manufacturing can also help businesses enhance their receiving time, inventory visibility, and product availability. All these advantages are necessary to improve the operational efficiency of manufacturers. Ultimately, they are proof that RFID is fully worth the investment.
