RFID In Supply Chain Management: 4 Environmental Benefits

RFID In Supply Chain Management: 4 Environmental Benefits

RFID In Supply Chain Management: 4 Environmental Benefits

Radiofrequency Identification (RFID) is a breakthrough technology that is becoming increasingly prominent within the manufacturing supply chain for managing inventory, assets, and material transportation. RFID inventory tracking and asset tracking systems have become integral components of numerous warehouses operations  nowadays. This is not a surprise since the use of RFID has many benefits.

The numerous benefits of RFID tagging include improving changeover times, reducing cycle times, and more efficient management of stock levels. Aside from these procedural and operational benefits, RFID technology also brings several environmental benefits.

Read on to discover the best environmental benefits of using RFID in supply chain management.

1. Enhances waste management

RFID has a lot of benefits during waste management operations. Because RFID systems make it possible to control the location of assets and vehicles, identify task completion, and detect accidents before they occur, RFID devices are installed in waste containers and utilised for optimising waste operation. The gathered data can then be transmitted and stored in a display dashboard listing accurate and real time information.

With RFID, managers will have complete control over waste management operations. Tracking assets and vehicles become effortless since each RFID tag will be identified to a container, and the information of each container will be transmitted accurately to the dashboard. Additionally, RFID systems can provide almost real-time data that can minimise common types of manufacturing waste, such as defective and unused materials.

2. Promotes sustainability

The use of RFID in warehouse operations promotes sustainability by preventing overstocking. Overproduction of goods that results in overstocking, increased waste, with product depreciation, it is a common problem in the manufacturing industry. RFID inventory management can enable manufacturers to manage their inventory in real-time to match market demands better, minimise waste and reduce cost.

Moreover, using RFID can also help manufacturers identify reduction, reuse, and recycling opportunities. Some products expire in the warehouse before any purchase, and others go back through reverse logistics. Fortunately, RFID tags can provide businesses with the real-time data needed to determine opportunities to reuse or recycle those products in order to minimise waste when necessary.

3. Improves transportation efficiency

Among the cornerstones of sustainability is the reduction of CO2 emissions. An efficient warehouse can attain this objective by enhancing visibility throughout the supply chain using RFID tags. Because RFID allows more accurate tracking of inventory, the technology can be utilised to minimise unnecessary truck deliveries, which lower CO2 emissions. It can also increase the ability of businesses to repair and reuse shipping containers that come back through the supply chain.

4. Helps monitor the environmental policies and practices of suppliers

RFID tags allow manufacturers to monitor and track materials and suppliers throughout the supply chain. As a result, businesses can trace exactly what goes into their products, where it is acquired, how it is transported, and how the recycling process is handled. Ultimately, this enables businesses to accurately monitor their suppliers’ policies and practices to ensure compliance with environmental regulations.


There are a lot of different benefits that come with using RFID systems in supply chain management. This makes RFID a breakthrough technology for the industry since an eco-friendly supply chain can provide an array of green benefits and offer numerous tangible business advantages, such as improved competitiveness, strengthened resilience, increased profitability, and better customer service.

As the world currently faces an increasing number of environmental issues, it is critical for businesses today to adopt as many processes and technologies as possible to lay the foundation for a sustainable future. Fortunately, technologies like RFID are constantly being developed to achieve this goal.