Radio Frequency Identification (RFID) refers to a technology that is designed for a reader to capture data that is encoded in RFID tags via radio waves. These tags can also be called smart labels. RFID is similar to barcoding where the data from a tag is captured by a device that stores the data in a database. However, RFID has several advantages over systems that use barcode tracking software. Data from an RFID tag can be read out of line of sight, whereas barcodes must be aligned with an optical scanner.
The RFID, when deployed the Internet of Things (IoT) technology, has the capability to track the movements and conditions of goods as they move through the supply chain. The two terms are sometimes used interchangeably. Although, the two technologies are frequently deployed together, there are significant differences. IoT involves the collective network of connected devices and the technology that facilitates communication between devices and the cloud, as well as between the devices themselves.
Operational enhancement capability of RFID
Radio Frequency Identification (RFID) deployment can help to mitigate labour shortage risk in your supply chain, at the same time improve optimizing and automating processes to make tasks easier for any workforce. The combination of RFID capability and the Internet of Things (IoT) technology can assist you in by-passing pinch points in your system, automate repetitive tasks such as data entry and speed up inventory movement through the system with limited input from your workforce. RFID gives you a better control over these supply chain challenges and help to increase resilience in the event of disruptions.
In general, the combined implementation of Internet of Things (IoT) technologies with radio-frequency identification (RFID) provides organizations with end-to-end supply chain visibility. As such it has become one of the best tools to optimize supply chain processes and it’s designed to get more things done with limited resources.
Visibility Capability
The technology’s capabilities are proving attractive to supply chain assets around the world because it provides visibility across the supply chain. This visibility can help identify and reduce product waste, identify and reduce carbon emissions, The technology helps reduce aging inventory by enabling supply chain professionals to track inventory so it doesn’t get expired, as well as providing the visibility needed to plan better routes and minimize the number of trips each truck makes. Furthermore, visibility also helps to reduce time spent on manual task and simplify the new employee onboarding process.
The identification of suitable challenge
The key to accomplishing your RFID deployment in the shortest possible time, is to define the initial project with a specific goal in mind. As cost reduction continues to be one of the important pillars of an efficient supply chain, doing more with less resources will continue to highlight the importance of RFID, as inventory tracking and sustainability objectives are cost effectively met.
RFID is scalable and repeatable
The leading concern of this technology is the mistaken perceived costs of deployment by many leadership teams around the world. However, RFID solutions enable you to start small and build as your organization grows. It is highly scalable and repeatable. Maybe, you can start with a small initial deployment and build on it as you see the return on investment (ROI). You don’t have to deploy a huge tech infrastructure all at once before you can benefit from RFID. Hardware is relatively easy to unbundle and deploy. The communication between tags and readers can be routed through cloud software to an external network to prevent expensive system integration as you up-scale. Considering the relative ease of RFID deployment, companies can rely on its in-house IT team for installation.
Benefits of RFID deployment
- RFID tag scanning eliminates the need for manual data entry, which saves time and prevents errors.
- The IoT/RFID module provides real-time inventory status and locations, which facilitates optimization of demand and supply planning.
- The efficiency brought about by the process of error free data entry into the inventory management system forestall, stockouts, late deliveries and encourages faster return on investment (ROI).