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How can RFID technology be used to speed up order fulfillment?

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Order fulfillment is a crucial process for any business that sells physical products. It involves picking, packing, and shipping the items to the customers in a timely and accurate manner. However, many challenges can arise in this process, such as human errors, inventory discrepancies, mislabeled products, and delays. How can RFID technology be used to speed up order fulfillment and overcome these challenges?

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Mayank Chauhan

Making fashion sustainable and affordable through redesigned supply chain
Jordan-John Karambelas

OMS Nerd | Partnerships @ OneStock | MACH Alliance | Unified Commerce & Supply Chain

1 What is RFID?

RFID stands for radio frequency identification, a technology that uses electromagnetic waves to transmit data between a tag and a reader. A tag is a small device that can be attached to an item and contains a unique identifier and other information. A reader is a device that can scan the tag and retrieve the data. RFID tags can be passive, active, or semi-passive, depending on their power source and range.

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Mayank Chauhan

Making fashion sustainable and affordable through redesigned supply chain
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RFID's role in order fulfilment goes beyond simple automation—it revolutionizes the supply chain by providing businesses with a granular understanding of their inventory in real-time. This heightened visibility translates into operational excellence, shorter lead times, and an improved overall customer experience. As a result, RFID stands as a cornerstone technology in the modernization and optimization of order fulfilment processes, which is also affordable.

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2 How does RFID improve order fulfillment?

RFID can improve order fulfillment in several ways. First, it can reduce human errors and increase accuracy. By using RFID tags and readers, workers can quickly and easily identify and locate the items they need to pick, pack, and ship, without relying on manual scanning or visual inspection. RFID can also verify the contents of each package and alert workers of any discrepancies or errors. Second, RFID can enhance inventory visibility and management. By tracking the movement and status of each item in real time, RFID can provide accurate and updated inventory data, such as quantity, location, and expiration date. RFID can also help optimize inventory levels, avoid stockouts or overstocking, and reduce shrinkage or theft. Third, RFID can boost efficiency and productivity. By automating and streamlining the order fulfillment process, RFID can save time and labor costs, improve customer satisfaction, and increase sales and revenue.

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Jordan-John Karambelas

OMS Nerd | Partnerships @ OneStock | MACH Alliance | Unified Commerce & Supply Chain
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Making order fulfilment seamless and profitable comes down to good inventory data. RFID adds that extra layer of accuracy and efficiency. With an improved granular level of visibility, that data can increase the efficacy of other systems involved in the order fulfilment process, like a Distributed OMS and any pick / pack / dispatch tools (depending on your business this could be POS/WMS/OMS). This means you can shift the needle even further, for example: - increasing fill rates / inventory turn rates - improving online conversions (accurate fulfilment promise) - improving labour costs (wages as a % of sales can increase significantly with more efficient pick/pack/dispatch) - reducing fulfilment costs, stockouts / cancellations

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3 What are the challenges of implementing RFID?

RFID technology comes with some challenges and limitations, such as cost, interference, compatibility, and privacy. Cost can be a significant factor for small or medium-sized businesses due to the expense of RFID tags and readers, as well as installation, maintenance, and integration costs. Interference from physical or environmental factors can reduce readability and reliability of the tags and readers. Compatibility issues can arise from different standards, protocols, and frequencies in different industries or regions. Additionally, RFID tags can store sensitive or personal information, raising security concerns if not encrypted or protected from unauthorized access.

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4 How to overcome the challenges of implementing RFID?

To overcome the challenges of implementing RFID, businesses need to consider several factors and best practices, such as assessing their current order fulfillment process and identifying their pain points, goals, and expectations. It is also important to evaluate the return on investment and the feasibility of RFID implementation, as well as choose the right type and quality of RFID tags and readers for their products and environment. Furthermore, businesses should integrate RFID with their existing systems and processes, train and educate staff on how to use it, and test and monitor its performance. Doing so will help them measure the impact and benefits of RFID on their order fulfillment process and customer satisfaction.

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5 How to get started with RFID?

RFID is a powerful and promising technology that can transform the order fulfillment process and improve the competitive edge of any business. However, it is not a one-size-fits-all solution, and it requires careful planning and execution. If you want to implement RFID for your order fulfillment process, you should begin by researching the technology, its advantages and disadvantages, its applications and use cases, and its best practices and standards. You should also assess your current order fulfillment process to identify your needs, challenges, and opportunities. Estimate your budget, timeline, and resources for RFID deployment. Develop a detailed plan for RFID implementation including selecting appropriate RFID tags and readers for your products and environment. Integrate the RFID system with your existing systems and processes. Train and educate staff on how to use and maintain the system. Execute the plan, test the functionality of the system, monitor results, adjust as needed.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can RFID technology be used to speed up order fulfillment?

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3

4

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1 What is RFID?

2 How does RFID improve order fulfillment?

3 What are the challenges of implementing RFID?

4 How to overcome the challenges of implementing RFID?

5 How to get started with RFID?

6 Here’s what else to consider

Inventory Management

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How can RFID technology be used to speed up order fulfillment?

1

2

3

4

5

6

1 What is RFID?

2 How does RFID improve order fulfillment?

3 What are the challenges of implementing RFID?

4 How to overcome the challenges of implementing RFID?

5 How to get started with RFID?

6 Here’s what else to consider

Inventory Management

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