RFID chips aren’t a new technology anymore, but there are still countless businesses that have failed to adopt them. In the logistics world, RFID technology is incredibly beneficial, and any business not leveraging them is at a distinct disadvantage.
But how exactly does RFID technology work in the logistics field? And how can you take advantage of it?
How RFID Technology Is Used in Logistics
RFID technology utilizes small, electronic tags, which can be attached to a variety of items, including products, packages, and general equipment. These tags utilize radio waves as a form of transmission, communicating important information about your logistics operations.
Logistics businesses use RFID tags for inventory management, so they can have much more precise inventory tracking and visibility. They use them for superior asset tracking, so they can keep tabs on their equipment as well as products they ship. They also use them for overall supply chain visibility, as well as transportation and routing.
The Benefits of RFIDs in Logistics
These are some of the greatest benefits of using RFID technology in logistics:
- Superior tracking. RFID tags can help you track just about anything. Once you integrate an RFID tag, you’ll be able to know its exact location indefinitely. You can also use RFID tags for better inventory management, and if you ever have a question about where something is, you’ll be able to answer it almost instantaneously.
- Faster scanning and counting. Logistics businesses also appreciate RFID technology for faster scanning and counting. If you want your inventory management processes to remain optimal, you need a reliable system that can help you count and organize your products effectively. With RFID tags, you can greatly expedite matters and avoid wasting any time.
- Fewer errors. Human error is an unfortunate sunk cost in logistics and warehouse management. As long as humans are working for your organization, they’re going to make occasional mistakes. As a business owner, you know it’s important to keep these mistakes to a minimum, both to reduce costs and to improve your operational abilities. RFID chips can occasionally encounter technical glitches, but they can greatly reduce your error rate when it comes to supply chain tracking, inventory management, and other matters. RFID tags send information automatically and can be automatically scanned, taking human beings out of the equation.
- Less manual labor. In line with this idea, RFID technology allows you to use less manual labor. This can save you a lot of money and allow your team to focus on higher level, more important matters.
- Optimal inventory management. Inventory management is a crucial area for your business to master. Making sure you have sufficient inventory to accomplish your goals is vital, as is avoiding excessive inventory and the issues associated with it. RFID technology isn’t going to help you with high-level strategy or planning, but it will quickly and effectively give you the information you need to make the right decisions.
- Better routing and scheduling. Similarly, RFID tech can help you with better routing and scheduling. You can avoid wasting time, take more efficient routes, and resolve some of the logistical issues that might be holding your business back.
- Processing and delivery improvements. RFID tags assist with processing and delivery improvements as well. When a shipment is delivered, you can quickly scan all the items, verify their presence, and move on to the next task. It saves time for both you and the customers to whom you deliver.
- Thorough asset tracking. Many logistics businesses appreciate how thorough RFID technology is when it comes to asset tracking. If you use RFID tags on your most important pieces of equipment, you’ll always know where they are, and you can improve both loss prevention and security.
- Transparency for customers. Your customers will appreciate your renewed transparency. With RFID chips, there’s no ambiguity as to where your shipments are or when they’re going to arrive. Customers, too, may be able to track their shipments independently, so they can see exactly how the supply chain is flowing.
- Improved product availability. Your business doesn’t exist unless you can get your products into the hands of your customers. Because of the efficiency improvements that RFID tags can bring, logistics businesses benefit from improved product availability when integrating this technology.
- Long-term efficiency and profitability. For all these reasons and more, RFID technology can help your business master its long-term efficiency and iteratively grow more profitable.
Making the Investment
Creating and implementing a total RFID system is an investment of time and money, but it’s one that you’ll need to make if you want to stay competitive in today’s fast-paced and demanding logistics industry. The right technologies and an appropriate strategy to back them can make your organization much leaner, more efficient, and eventually more profitable.
