RFID In Logistics: Implementation Practices & Benefits
The ease of fixing RFID tags on different items makes the technology very convenient to implement. The constant and convenient flow of data that occurs due to the use of RFID is particularly useful in logistics – because retailers and warehouse officials can conveniently track the exact location of the items within the supply chain in real-time.
This helps reduce costs, besides improving efficiency.
Compared to traditional inventory control methods, an all-new asset tracking system like RFID is the improved method for monitoring goods. So, read on to find out how to integrate RFID into an existing logistics plans, and why it benefits business operations.
Following the right practices
Before we expand on the benefits of RFID for businesses in the logistics sector, one must first understand how to integrate RFID into the logistics business.
– Know the expectations from the use of RFID: Understand and determine what the business is trying to achieve – is it to help boost staff productivity, improve the customer experience, or minimise inventory losses? Either way, determining the measurable goals before the implementation of RFID is crucial to leverage this technology.
– Create a comprehensive list of every requirement: The list should cover security analysis, regulatory compliance matters, type of tags, access privileges, data storage methodology (in-house, in-tag or cloud-based) as well as maintenance needs.
– Carry out a thorough facility analysis: Find out if there are any other technologies currently in use that may affect the signal frequency transmission. Afterwards, consider where the antenna should be installed for excellent reception and if RFID readers can operate at its best regardless of the location. Be mindful of environmental conditions like humidity and temperature as they may also interfere with tag reliability and performance as well.
– Understand what exact RFID technology the business needs: Sometimes, a combination of RFID technologies is needed to ensure maximum efficiency and returns, such as RFID barcode, chips, and print tags.
– Decide in advance where the information will be kept: Consider different options like an in-chip or cloud data storage. Likewise, think about any security or compliance issues that may be involved.
– Ensure the RFID is in tip-top condition: This means ensuring that the entire logistics team understand how to use it, also making sure that the RFID antennas and readers are functioning properly in any type of work conditions. Use the technology in different kinds of scenarios – be it for heavy workloads or rush projects.
Benefits of RFID in logistics
Ensures real-time updates
The use of RFID retail aside, it is generally known that the main purpose of the RFID technology is to get real-time updates on the location and status of items – this is vital in logistics.
Scanning of items and control of inventory is a lot faster when using RFID than it is using other forms such as barcodes. With RFID, getting an exact inventory count right away is possible, rather than waiting several days or weeks to get an accurate number. As such, the business will understand what needs restocking, and which items need to reach the customers.
Unique tracking of goods
As RFID tags have a microchip or other type of storage device, it can store a large amount of data. As such, attaching individual identifiers on the goods is possible, instead of using one barcode for an entire set of inventory.
This also helps to keep track of each item across the logistics chain, without having to extrapolate that information from inventory numbers. At the same time, if met with a defective asset – RFID technology can track the inventory back to its source a lot more easily compared to other tracking methods.
Make sure to integrate it with other systems
RFID is not going to work single-handedly. For one, it is connected to the central management system that records all the information from different items in the warehouse.
Besides, the use of RFID technology is broad. Therefore, it is not only limited to items and products, but can also work for humans. For instance, RFID can be used to track employee attendance within the facility, and incorporating access control to restrict movement in certain parts of the warehouse.
All in all, before the business can enjoy the benefits of RFID – one must know how to incorporate the technology first. Then, it is possible to take full advantage of RFID. Meanwhile, even if a business is working in a different industry – all sorts of technology from aerospace to military RFID are available to help the business meet its goals.