RFID in Supply Chain Management: Implementing Intelligence to Streamline the Process

Do you know the products available in your favorite stores go through a long process?

Yes, any physical goods go through a streamline of processes (from the supplier, manufacturer, and distributor) before it becomes available in the market (to be purchased by the consumers and customers).

What is the Supply Chain Management (SCM) Process?

The Supply chain process can be best explained as a flow of materials, money, information, and services that transform raw materials into end products to be used by the consumers and customers.

Bottlenecks Identified in Manual Handling of Processes

Barcode scanning and manual data handling were used in the SCM processes in the early days, and sometimes the professionals had to put data manually, making the process slow, tedious, and error-prone. Due to this, the system inventory data did not match the physical inventory data caused of a lack of real-time data. Businesses understand that poor visibility of data due to a lack of obtaining real-time data leads to system bottlenecks slowing the decision-making process.

RFID (Radio Frequency Identification Device) has been introduced to streamline operations to mitigate such issues.

What is RFID Technology?

RFID stands for Radio Frequency Identification Device, which is fundamentally a data collection technology that uses wireless signals to identify data from tags (inventory, assets, etc.).

Real-time Visibility

RFID streamlines the processes in relation to SCM through real-time data regarding every movement in the supply chain that helps identify choke points and bottlenecks and avoid slowdowns.

For example, RAIN RFID helps determine the location, authenticity, contents, and direction of movement for each item containing a unique identifier. RAIN RFID is also installed on doorways and conveyors to identify goods while they move through facilities.

Product Forecasting, Inventory Management, and Order Management

With real-time data of work-in-progress, in-transit, and finished products and accurate information about past sales and transactions, businesses are able to forecast product demands that can immediately impact top-line revenue, retaining the lost sales.

With the help of RFID, specific data about raw materials having arrived, availability of needed materials, and data regarding work-in-progress and dispatching of goods can be identified with accuracy, which results in managing inventory efficiently and reducing inventory and order errors.

Automation in Shipping

RFID can enable supply chain leaders to automate systems without losing control and visibility. For example, goods tagged with RFID moving past the dock doors are automatically identified with an RFID checker.

RFID significantly reduces operating costs through a high level of data integrity, speed, and agility in locating the products and processes. It automated the tedious, manual handling of data that leads to bottlenecks regarding demand and supply. Total cycle time is reduced as a result, which increases efficiency and reduces human involvement.

We all know that the future belongs to flexible, affordable, and innovative solutions. Furthermore, solutions offering excellent customer experiences are needed for business development and increasing net profit, and RFID seems to have prospects for offering futuristic solutions.?