Supply chains are becoming increasingly complex in today's world. With global supply bases, suppliers, and quicker fulfillment, businesses require end-to-end visibility of materials and products at each step of the process. Barcodes, spreadsheets, or other manual tracking systems generally are too slow and/or imprecise to accommodate the process. This is where RFID tags enter into the picture, offering real-time visibility directly into product movement through the supply chain.
An RFID tag is a tiny chunk of equipment that houses and transmits data in the form of radio waves. When mounted on a product, case, or pallet, it enables automatic tracking of items independently of line-of-sight or manual scan. In contrast to barcodes, which must be scanned item by item, RFID tags are readable repeatedly and at a distance. This makes it a supply chain visibility disruptor.
Enhancing Real-Time Tracking
One of the greatest benefits of an RFID tag is tracking the inventory in real time. Items in a warehouse, on a truck, or in transit from one distribution center to another can be displayed in real-time by the managers according to status and location. This eliminates expensive issues of missing shipments, misplaced items, or delays that anger customers.
When a company can visualize its operations, it can also make proactive optimizations. They could change the routing of other shipments, for example. If a shipment is delayed, they could adjust the workload in their warehouse. In either case, the company can respond quickly to limited disruptions in operation and be efficient. In addition to optimizing the efficiency of their operation, they can inform their customers that they can trust the new estimate for delivery in the update.
Increased Efficiency and Accuracy
Manual systems are open to human error, such as entering wrong data, skipping an item to scan, or simply counting incorrectly. An RFID tag and facilitating technology eliminate the possibility of error by computerizing the collection of data. Each time an item crosses a checkpoint, RFID reads communicate the updates so that records are updated and data are accurate and timely.
This attention to detail will improve forecasting, allowing for decreased stock-outs and over-stocking and decreased time in audits and cycle counts since workers will not need to go through the scan process anymore. Instead of a worker scanning 100's of items for hours, it could take seconds to read 100's of RFID tags. This will prepare the warehouse to be the best resource for efficiency.
Get Supply Chain Visibility Improvements
Buyers now expect total openness. Manufacturers and retailers must now prove not only where the goods are but also whether and how they are treated respectfully and sourced ethically. RFID allows this to happen through end-to-end traceability. Every RFID tag leaves a digital record of where the product has been, through which plant, and for how long.
This transparency develops customer and business partner trust, as well as assists organizations in meeting industry regulations. It also enables companies to audit supply chain performance in amazing detail and make ongoing process improvements.
Long-Term Business Value
Although there is a front-end expense to the installation of RFID technology, long-term advantages are astronomical. Minimizing losses, gains in efficiency, real-time visibility, and enhanced customer service yield tangible investment return on investment. Organizations have a competitive edge in supply chain optimization and outpacing disruptions.
At Poxo, we have expertise in providing RFID solutions that provide complete visibility to organizations of their logistics and supply chain operations. With our RFID systems, there is real-time monitoring, bulk reading, and integration with existing processes, which enable companies to make supply chain transparency.
Conclusion
RFID tags have emerged as the pillar of supply chain management in today's world. RFID tags help in the facilitation of automation of tracking, reduction of errors, and enhancement of transparency, enabling companies to achieve enhanced customer demands and transform the future of global logistics challenges. Companies embracing the technology with partners such as Poxo can provide smart, fast, and responsive supply chains.