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5 Ways an RFID Inventory System Enhances Warehouse Efficiency

With the increasing importance of inventory visibility and accuracy, a radio-frequency identification (RFID) system is no longer a nice-to-have technology in your storage facility. It’s becoming the foundation of warehouse efficiency.

An RFID inventory system uses wireless technology to track inventory in the warehouse. This wireless technology involves RFID tags and RFID readers (scanners). An RFID tag, usually attached to stocks, contains a small memory chip for storing data that uniquely identifies a product in the storage facility. 

The tag also has an antenna that connects wirelessly to an RFID reader. This connection enables an RFID reader to activate a tag through radio waves. Next, it reads the product-identifying information on the tag’s chip. The reader then sends the data to your computer database for accurate, real-time inventory tracking. 

Below, you will discover five ways RFID takes warehouse efficiency to the next level. 

The Importance of Implementing RFID Inventory Systems in Warehouses

Traditional inventory management methods that rely on manual processes and barcode scanning can be time-consuming and prone to errors. Enter RFID inventory software—a revolutionary digital transformation in warehousing.

It uses radio frequency signals to identify and track items with RFID tags. Each tag contains information that uniquely identifies a specific product. This enables you to locate individual items swiftly and accurately inside the warehouse. 

Key Benefits of RFID Inventory Systems

An RFID inventory management solution benefits you in multiple ways. Here are the top five perks of implementing this technology in your warehouse: 

1. Real-Time Tracking and Visibility of Inventory

Real-time asset tracking lets you know how much inventory you have at any moment. In addition to quantity, RFID systems provide specific real-time data about stocks, such as color, size, and models. 

This data enables you to adjust your inventory levels based on the demand for particular products, helping you reduce overstocking. As a result, you avoid additional warehousing expenses related to storing excess inventory. 

Because RFID tags track all the items inside the warehouse, RFID systems show you the real-time location of products. That means you can instantly locate an item in your storage facility, reducing the time needed to search for products during pickups. 

RFID systems also allow you to monitor the location and movement of inventories in real time as they move through the supply chain. That explains why supply chain professionals use RFID for stronger visibility and ROI

2. Streamlined Inventory Audits and Cycle Counts

Businesses conduct regular audits to ensure inventory records on the computer match the number of physical inventories in the warehouse. Traditional inventory audits involve barcode scanning or visual inspection, where an employee physically scans each item. These traditional processes can be tedious and time-consuming. 

A nearly effortless and more efficient solution is using an RFID inventory system. One employee can walk through the warehouse and quickly capture data from all tagged items with a handheld RFID reader. Remember, the reader can wirelessly and automatically read data in RFID tags attached to valuable assets. 

That way, one can scan multiple products in the warehouse in minutes, leading to faster inventory audits. This allows your employees to dedicate their time to strategic tasks rather than counting stock. 

3. Reduction in Manual Labor and Human Errors

RFID systems minimize human labor when performing inventory audits and cycle counts. With RFID tags attached to each product in the warehouse, time-consuming and cumbersome manual counts become a thing of the past. Instead, you automatically monitor inventory levels and track the movement of items with minimal human intervention. This saves time and labor costs. 

Leveraging the power of RFID systems also minimizes human errors in inventory management. For instance, manual data entry is susceptible to errors such as typos, omissions, and transpositions (e.g., a person recording 56 instead of 65). 

While these errors seem minor, they can lead to costly inventory inaccuracies. For example, stock that is listed as available in your inventory system but is actually sold out can result in late orders. 

RFID systems eliminate manual data entry since RFID scanners automatically read data from RFID tags without human intervention. This helps you maintain accurate inventory records. 

4. Enhanced Order Fulfillment

RFID technology helps you fulfill orders swiftly and accurately. Instead of manually scanning or reading barcodes, your employees can utilize RFID readers that use radio waves to quickly locate items needed to fulfill orders. 

Also, shipping the wrong item can result in costly returns and customer complaints that hurt your brand reputation. RFID technology reduces the risk of delivering incorrect orders. RFID systems validate inventories against order requirements before any item can leave the warehouse. 

In other words, RFID systems check whether the items prepared for shipping match those specified in a customer’s order. This ensures your fulfillment team picks up and delivers the right items every time, boosting customer satisfaction. 

5. Improved Inventory Accuracy and Stockout Prevention

Stockout may occur when you miscount inventory in the warehouse. When this happens, you may think you have a certain amount of items left, when they are all sold out. 

With an RFID inventory management solution, you automate stock counting to eliminate mistakes related to counting inventory manually. This can help prevent out-of-stock situations caused by miscounting.

Furthermore, an RFID inventory system lets you track stocks accurately and in real time. As a result, you know the exact number of items inside your warehouse at any given moment. That way, you replenish your inventory early before you run out of stock. 

Create a Complete Map of Your Inventory With the Right Solution

RFID inventory software lets you track items in a warehouse using radio waves. However, inventory systems are built differently. Some are more powerful and accurate than others. 

Surgere’s Interius, a robust inventory system, allows you to monitor inventory in real time. It uses powerful sensor technology and certified RFID tags to create a complete map of your warehouse inventory with 99.9% accuracy. Therefore, Surgere’s Interius is a technology you can rely on. No more worrying about costly inventory errors. 

Contact us today to learn how Surgere’s Interius helps improve asset tracking, boost warehouse efficiency, and improve supply chain management. 

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