Radio Frequency Identification (RFID) technology is emerging as a solution for challenges facing by the supply chain management in the pandemic and post pandemic era. It is recognized that Automation is the key for the cost optimization and efficiency improvement. Barcode which was a semi automation now replacing by RFID technology to reduce time and real time data accuracy.
Warehouse operations are becoming more and more complex as the customer demands and expectation are increasing. They need to perform multiple tasks like stock storage, loading/unloading, search and pick, priority aging etc. Warehouse spaces are becoming costlier and smart utilization of these spaces are critical. Wrong identification of the product during receipt and dispatch, making manual errors etc loose the efficiency of the supply chain and create customer dissatisfaction.
Key Benefits of RFID in Warehouse Management:
- Know precise location of inventory hence saving time in searching.
- Accurate data of the items available in the warehouse hence timely reorder of the stock and reduce the shortage of items which leads to the business stoppage.
- Reduce the labour cost by automation of search and recording.
- Reduction of human errors by automating the data entry and location identification
- Access to the real time information ensures the right items docked at the right bin and loaded on the right truck.
- Instant verification of the right items picked.
Normally, an RFID tag consist of a microchip connected to an antenna. The data is on the micro chip and it connect to the internet so that the where abouts of the item is available to the business at given point of time. There are two types of RFID system. Active and Passive.
The Active RFID tags do not have a transmitter inside and it reflect back the radio wave originating from the reader/antenna. Where in active RFID tags, the transponder send the data to the Reader/Antenna. Hence able to communicate long distance.
In Supply chain Active RFID tags are typically used for high value products where the precision of the product is very critical and large packages like containers, trucks etc. Passive RFID tags are less expensive and maintenance free compare to Active RFID tags. In supply chain the perfect combination of Active and Passive system gives a cost effective real time visibility of items.
How RFID System works in warehouse?
When the shipment arrives at the destination, each RFID tag will transmit its information to readers installed within the warehouse. These readers will be placed in strategic locations within the receiving and storage areas. The data is transmitted via electromagnetic waves re received by the readers and transmitted to the central software. This gives warehouse operators the ability to perform tasks such as real-time asset counts and advanced inventory transactions.
