RFID is a very adaptable technology, with uses at every stage of the supply chain. RFID stands for Radio Frequency Identification, and these tags and readers use radio waves to store and send information about an object, like its product number, expiration date, date of production, temperature, and other details.
Since the technology’s initial use many years ago, it has seen significant development. RFID tags are being used by well-known companies and stores including Walmart, Amazon, H&M, and Nike to track inventory and improve customer service.
An RFID tag or label, along with an RFID antenna and transceiver, make up an RFID system. An RFID reader is frequently created by combining the antenna and transceiver.
Here are some advantages of RFID and how it improves businesses from start to finish.
What Advantages Do RFID Offer in businesses?
Here is a longer list of advantages that this technology brings to organizations before going over how it is employed in the business at various phases.
Keeping track of assets and managing inventory
For many firms, it can be challenging to keep track of materials and assets, including those that are in the production queue, finished goods that need to be shipped out, tools, containers that are returning to the location, technology equipment, and other priceless objects.
However, if you have an RFID system in place, you can track all of your things quickly and accurately without having to physically count them.
An RFID system can also display information about a specific item’s identification number, supply chain stage, and location. RFID can be used to find misplaced goods on the property.
Simply put, you can keep track of your items from the time they are purchased until they are used in final goods or issued for manufacture. With this organized system in place, it is simple to monitor inventory, reduce theft, conduct audits, and check stock.
With today’s highly developed RFID technology, you may follow your products’ movement automatically across the supply chain and pass that data to an ERP or financial management system. This eliminates the need for obsolete spreadsheets and the manual filling out of information into forms.
Fixed readers positioned in key areas assist reduce waiting times and eliminate the need for human interaction.
Enhanced Data Accuracy and Availability
Information is gathered and uploaded electronically thanks to the automation enabled by RFID technology. When transferring big amounts of data electronically, you can avoid mistakes like data duplication, transcription mistakes, and missed entries.
Additionally, RFID can be combined with cloud technology to provide everyone in the business with real-time updates on the status and location of each item. All employees, including those who are not in the office, like field staff, can access information that is stored in the cloud.
You may access your data from anywhere using any device of your choosing, independent of the operating system, thanks to the interoperability of cloud services with many devices. Additionally, using cloud technology, sharing RFID data with customers is simple.
Enhanced Health and Safety
RFID systems can also be used to check whether your vehicles and other equipment have been inspected or to keep track of when they were last tested, which is another advantage. It helps to prevent the usage of your company’s cars and equipment prior to complying with specific safety requirements by keeping thorough records of the inspections.
A good system can aid in reporting and inspection, assist in providing information to governmental agencies and insurance companies, and show that safety precautions are followed. Some safety insurers may inquire as to whether or not a piece of equipment was properly maintained in the event of a breakdown.
More effective production control
Complex production processes can be customized thanks to RFID because it makes it simple to identify particular objects and components. For instance, in manufacturing, you can monitor your machinery to make sure that specific molds are filled with the right amount of liquid and heated for the right period of time. RFID can also be used to track the movement of parts to make sure they end up in the right production line. This level of accuracy will greatly reduce the likelihood of waste and raise efficiency.
A further benefit of an RFID system is that it may be used to verify that each item has successfully completed all required inspections and processes. For instance, using an RFID, you may confirm that a boiler has been correctly installed, inspected, and approved before it is delivered to a client.
You can make sure that only goods that adhere to quality standards are distributed from your company by putting such strict controls in place. Quality is preserved as a result, and the quantity of returned goods is decreased.
Increases revenue for businesses
You can reduce production expenses thanks to RFID technology’s effectiveness in controlling production. Consequently, profit margins increase. Additionally, having high-quality goods can provide you with a competitive edge and boost your sales as a result of happy customers. More sales mean higher revenues for your company.
Lower Production Time
Other manufacturing and supply chain technologies, like automated pallet handling systems or stock-picking systems, can be combined with RFID systems. This lessens the number of production-related procedures you must follow. Production processes that are shortened can produce more. As a result, when there is mass production, your business can gain from increased sales.
Better Management of Information
Real-time data may be efficiently collected with RFID technology at every stage of a product’s lifecycle. For improved operational and planning needs, this data can be used. Additionally, forecasting may be done with this data, which improves efficiency even more.
Excellent Returns on Investment (ROI)
The RFID application is affordable, especially if your business is very active or has a lot of production-related procedures. As this article lists, the RFID system also offers a number of advantages. These features taken together make it a worthwhile investment.
For many businesses, RFID technology has completely changed how their supply chains operate. Whether your company is a business-to-business (B2B) or business-to-consumer organization, implementing an RFID system can have a positive impact. This article can serve as your guide on the advantages of this technology whether you’re debating whether to get an RFID system.