The Effectiveness Of RFID In Supply Chain Management
Supply chain, in simpler terms, is the flow of products from the manufacturer, through suppliers, to the retailer, and finally to the customer. There is a lot involved in this process, but RFID technology is present to make it simpler and more efficient.
Supply chain management is crucial to the commerce sector, whether in conventional retail or digital e-commerce. It makes it easier for clients to shop and get the products they want faster. Quick delivery resulting in shorter turnaround time is an important factor in retail, and RFID is able to deliver accordingly. One such technology that has been able to attest to that is RFID asset tracking, which has boosted operations in retail stores and many other business sectors.
Here are some of the other ways that the effectiveness and efficiency of RFID technology are beneficial in the supply chain management sector:
Order and inventory management
Getting a hold of inventory management was not so easy or efficient before the inception of RFID. Initially, the process was manual. Several setbacks of a manual system included human error and delayed management of inventory. Customers had to endure long waiting periods before they could receive their products, possibly due to picking and sorting issues.
However, today, RFID has made everything easier for the supply chain management. Tracking inventory is seamless, as businesses can easily tell what products get into the store, and which ones are delivered. Besides, it is possible to know the exact products a business needs to restock and the ones that are not moving.
Another vital process is order management, which has become much easier thanks to RFID. When a client orders a product, it can be easy to retrieve it and track it till it reaches the client’s location. Besides, RFID helps to make sure that the right items are delivered to the customers.
Product forecasting management
Real-time data helps in product forecasting management. Through sales and monitoring the flow of inventory, retailers are able to forecast on inventory projections, thus, making the right business decisions.
Specifically, with improved inventory visibility, this has an immediate impact regarding top-line revenue through maintaining lower lost sales possibilities. This will also let supply chain businesses address and sort out problems caused by misplaced stock or materials, poor organisational process, oversight and errors committed in manual processes. In addition, it helps in making decisions quickly and accurately, allowing quick management correction by rerouting items swiftly.
Shipping and receiving
Product shipping is equally a sector that encounters many possible issues in the midst of processing before the inception of the RFID system.
Today, products have tags before being shipped, which helps in recording all necessary information within the system. This can help in tracking the items to ensure that they reach the proper destination. This system is not only cost-effective, but also time-savvy and reduces possible human errors.
Asset tracking and management
In huge retail stores with a high number of items, tracking assets can often become a challenge to the management and staff. Through the attachment of RFID tags on products and items, tracking can be done seamlessly and accurately. This helps to cut down on labour time and costs.
This system equally enhances the security of assets, as supervisors can be alerted when there is any attempt to remove a restricted asset from its area.
All in all, these are the benefits supply chain businesses can enjoy by using RFID technology. Get in touch with e-Tag RFID for RFID solutions that will help in boosting productivity, speed up processes, and increase profits.
