RFID has been evolving for almost a century, but only recently have companies recognized the full potential of this tech. Radio frequency identification (RFID) takes advantage of magnetic fields to wirelessly transmit information. Most often, RFID utilizes tags that are attached to specific objects and that contain specific information about those objects. The tags are scanned by special devices that organize information in tracking systems.
By 2023, some of the largest companies in the world have been utilizing RFID for decades to manage inventory, equipment, employees and clients. The tech has become so widespread that small businesses can no longer ignore the call to adopt RFID to improve operations. Here are a few simple ways small businesses can begin integrating RFID to gain competitive advantages in their marketplace.
Gaining Access to Real-time Data
Knowledge has always been power, but these days, data in the hands of business leaders can also translate into money. The Big Data revolution demonstrated to leaders at all levels that information can provide insights that allow for more impactful business growth, so the more data that business leaders can access, the better.
RFID systems provide real-time data that leaders can use to improve their decision-making. As RFID tags collect and transmit data, RFID software can help leaders analyze the data and drive business performance in key ways, specifically in regards to asset optimization.
Optimizing Asset Utilization
Small businesses with limited resources need to be able to utilize those resources to maximum effect. Many small businesses invest in assets like vehicles, equipment, tools and inventory to facilitate productivity and increase revenues, but managing all those assets can be an overwhelming task. Enter: RFID.
RFID allows a relatively significant amount of data to be stored and transmitted from tags attached to the assets themselves. Thus, businesses can perform useful tasks, like monitoring maintenance cycles, reviewing asset availability and analyzing various costs, using a single simple technology. All this data can help employees within the company better manage their performance, and it ensures that business leaders have access to information that can guide their decision-making regarding assets into the future.
Preventing Errors
Manual asset tracking systems — those that do not rely on RFID tags and scanners — require the diligent attention of human workers, and human workers are notoriously fallible. A careless or lazy employee might fail to note a change in an asset’s location or neglect to update a maintenance log, leading to confusion and higher costs down the road. In contrast, RFID systems are much less prone to errors, given that they operate automatically based on rules created by the company. Thus, unless the system is misconfigured or requires maintenance, leaders can trust in the information provided by RFID.
Enhancing Employee Productivity
Another negative of manual asset tracking systems is the time required from employees to maintain them. Even if manual systems are not resulting in abundant errors, they are demanding an immense amount of labor — which might involve tallying inventory or searching for lost tools. When the task of tracking assets is reassigned to RFID, these employees will have more time and energy to devote to more productive tasks, which can improve small business performance overall.
Promoting Accountability in Corporate Culture
RFID gives small business leaders more visibility over their entire organization and specifically over how assets are used — and abused. Thus, many small businesses that implement RFID see a rise in accountability taken by employees with regards to how they use assets. Knowing that the system will track the location of assets as well as its maintenance needs, most employees will behave more responsibly with company equipment and tools to avoid damaging or misplacing assets. This sense of accountability might transfer into other aspects of corporate culture, ensuring a stronger sense of community and much improved communication which can lead to enhanced success for all.
Small businesses are not always capable of adopting cutting-edge technologies with high costs and limited applications. Fortunately, RFID has been proven an exceedingly effective tool with relatively low costs of operation and wondrously broad potential for use. The sooner small business leaders explore their RFID options, the more competitive their businesses can become in coming years.
