Managing a supply chain is tough. It demands precise accuracy, smooth efficiency, and consistent performance at every step. While bar codes and other tools remain useful, radio frequency identification (RFID) technology has become the new standard for boosting operational efficiency.
Using RFID in the supply chain offers far more than simple product identification. It delivers real-time tracking, smarter inventory management, and powerful data insights that help businesses stay ahead. Let’s explore how RFID works in the supply chain and why it’s a game-changer for industries worldwide.
What Does RFID Mean in Logistics?
Radio frequency identification is a technology that provides practical benefits across many industries. A radio transponder produces a signal using radio waves, and the radio receiver picks up that signal.
Today, radio transponders can be incredibly small, fitting inside RFID tags that you can attach to any kind of product or packaging. The data they provide enables fast and accurate product identification and can carry a wide range of information.
RFID tech is even more versatile with the inclusion of passive RFID in inventory management. These tags don’t have an internal power source, instead relying on power transmitted by the RFID reader. This lets you make even more compact tags, and even wholly flat RFID stickers.
How RFID Works in Supply Chain Processes
RFID technology is versatile, working well in many parts of the supply chain, from handling raw materials to delivering finished products to customers. It helps improve real-time visibility at every stage, making your supply chain management smoother and more reliable.
A full RFID solution uses tags, readers, and software. You place tags on parts, products, or containers, and then use automated and handheld RFID readers to relay important data to management software quickly and accurately.
Production Stage
You generally think of RFID tags in warehousing and distribution, but they can be just as impactful during production.
In multi-stage production processes, you can use RFID tags to automatically track parts and components moving between process steps. That way, you always know the quantity and rate of products moving through each production stage on your factory floor.
This allows for real-time KPIs that improve factory floor decision-making. As a result, shift leaders and operators can manage operations more effectively, and the data you accumulate over time enables optimization and strategy development, especially when combined with AI insights.
Warehouse or Distribution Center Stage
RFID technology works great in distribution centers and warehouse optimization. For example, hardware like RFID portals can fully automate asset tracking. This means no more manual scanning and fewer mistakes.
RFID tags also enable accurate information on parts and products moving inside the warehouse and to other locations. Outbound reads ensure shipments go to the right place.
RFID tags also integrate seamlessly with warehouse management systems, letting you easily track items. They also help maintain a clear, easy-to-validate record of all steps in storage and shipping, improving your compliance and making operations smooth.
RFID Applications in Supply Chain
RFID can help in every manufacturing environment where parts or components go through multiple process steps or where you need to do warehouse management.
Automotive manufacturing is a prime example of an industry where RFID shines. This industry faces supply chain challenges like container loss, misdirected shipments, and a high frequency of expedited shipments.
RFID technology simplifies container management, providing greater inventory accuracy so manufacturers get real-time transportation insight on all parts. If any issues arise, they will get an alert immediately.
While automotive manufacturers provide a prime example, they are far from being the only area where RFID delivers significant benefits. Both commercial and industrial applications of all kinds can use RFID technology. Here are some other ways in which you could use RFID in your supply chain:
- Inventory management: Enabling full visibility and accuracy in stock levels across the supply chain.
- Receiving and put-away: Automating inbound verification and guides efficient product placement.
- Order fulfillment and picking: Speeding up picking while reducing errors through item-level tracking.
- Shipping and distribution: Verifying outbound shipments automatically to ensure accurate, timely deliveries.
- Asset tracking and returnable container management: Tracking containers and assets throughout the cycle to prevent loss and improve utilization.
- Yard and dock management: Monitoring trailer and container movement to streamline yard flow and reduce delays.
- Work-in-progress (WIP) tracking: Providing real-time updates on parts and assemblies as they move through production.
- Reverse logistics and returns processing: Accelerating and simplifying returns handling with automated identification and tracking.
The Benefits of RFID Technology
RFID offers a wide range of benefits for process and warehouse management. You can address many challenges while enjoying greater efficiency and reduced costs compared to other types of asset-tracking solutions. Below are some key benefits:
- Efficiency and Cost Savings: RFID streamlines operations and lowers costs compared to traditional tracking methods.
- Automation with RFID Portals: Fixed readers reduce the need for handheld devices, saving time and boosting inventory accuracy.
- No Line-of-Sight Required: Unlike barcodes, RFID tags can scan items in bulk without direct visibility.
- Richer Data Storage: Tags can carry detailed information like lot numbers, vendor, and manufacturing data.
- Flexible Data Updates: Read/write RFID tags let you modify stored information on the fly, enabling adaptive tracking throughout the supply chain.
- Real-Time Operational Visibility: Gain insights into bottlenecks and inefficiencies as they happen.
- Unified Asset Management: Track and manage assets through a single, integrated Internet of Things (IoT) system with real-time accuracy.
- Improved Security: RFID helps you prevent theft and unauthorized access by tracking high-value assets in real time.
- Faster Cycle Times: Automated RFID scanning speeds up processes like inventory counts and shipping, reducing delays.
- Better Compliance: RFID provides you with accurate, verifiable data that supports regulatory reporting and quality standards.
A Sound Solution to Your Supply Chain Woes
RFID technology helps solve many common supply chain problems. But it works best with the right support and setup. Surgere offers tailored asset identification solutions designed for your manufacturing, warehousing, and distribution needs.
Our complete RFID solutions include tags, hardware, and software that work together to improve your operations and save time.
Schedule a demo with us to learn more about how RFID can help your business.
