A company must know what inventory it has, where it is, how much it has, and in what condition it is in order to optimize the supply chain process. In order to accomplish this goal, RFID technology can bring a positive impact on the supply chain process.
Let’s see how RFID can help:-
Product Planning and Governance
The basis for demand planning is historical sales and transaction data; it is vital in creating reliable forecasts. If there are no timely and real-time inventory data, forecasting becomes extremely difficult.
RFID can produce accurate and real-time information on work-in-progress, in-transit, and finished goods. Timely data about the market demand leads to accurate forecast, and better inventory visibility and can have an immediate impact on top-line revenue by retaining the lost sales. Get in touch with us for the best RFID solutions in Dubai.
Enhance Inventory and Order Management
In general, it is difficult to see what raw materials have arrived, what materials are available, what work is currently being done, and when to dispatch the correct item to the correct customer at the correct time.
RFID can help in improving these processes and help to reduce inventory and order errors which results in minimizing production delays. Inventory accuracy and visibility can be drastically improved as RFID can track the delivered goods in real-time, optimize the workflow and even reduce the excess inventory.
An RFID reader in the storage area can record the removal of an item automatically and update inventory records. With RFID readers, inventory counting can be completed quickly, as identification can be done in bulk and with accuracy.
Shipping and Receiving
During collection for shipment, tags are read and automatically recorded in the system. The handheld RFID reader can take a read of the pallet tags as soon as they are ready to dispatch and verify the shipment content while providing real-time visibility into the shipment.
This result in a time-savvy, cost-effective process, faster invoice settlement, minimizes human error, increases inventory accuracy, and simplifies the receiving process.
Asset Tracking and Management
In many businesses, assets like pallets, trays, containers, and equipment are often challenging to track. RFID tags attached to reusable assets, however, make it easier to track them. By placing the fixed RFID reader at strategic points, a company can automatically track the movement and location of the tagged asset, thus avoiding labor time.
Additionally, RFID readers can alert supervisors if assets have been removed from authorized areas; this increases security. In this way, users can view the inventory levels and locations, enabling them to locate items more quickly.
Additional Benefits: How RFID is a real promise in supply chain visibility
● Reduces the operating costs
● Can ensure high levels of data integrity
● Doesn’t require a line of sight or direct contact to operate and can be read away from several meters
● increased product locator speed and agility
● Product management requires fewer human resources.
● Reduction in the total cycle time
● The materials’ input and output are automatically recorded.
● Increase efficiency and cut down reworks
Of course, there are some factors that make RFID technology implementation difficult. Let’s see another side.
Concerns about implementing RFID
● Anyone with a compatible reader can read RFID tag data, which results in a less secure and private experience.
● Obtaining commitment from top professionals and supply chain partners is difficult since without them the project is doomed to
fail.
● The cost of implementing RFID into the supply chain is quite high, which may cause a big roadblock to the technology’s adoption.
● All suppliers may not have access to new technology.
● Though they’re few obstacles to implementing RFI but seeing at its features and benefits, RFID can be the competitive edge to give
more sustainability to the business.
Conclusion
In recent years, RFID has become one of the most promising, rapidly evolving, and anticipating solutions. E-commerce and mobile commerce require better inventory management and RFID has the potential to increase ROI, serve customers faster, improve reliability & accuracy, and improve supply chain management.
For the best RFID-based supply chain solution, contact us today. WOWRFID, one of the best RFID companies in Dubai, strives to deliver innovative solutions to customers as a leading logistics & supply chain software solutions provider.