Interest in RFID technology has fluctuated over the years. Still, recently, it’s experienced a significant resurgence driven by the rising cost of labour and the comparatively favourable pricing of RFID technology.
RFID, along with other AutoID technologies, plays a crucial role in warehouse management systems and serves as a valuable extension of ERP systems. From an inventory management standpoint, the advantages of RFID are substantial.
This blog looks at the many benefits and potential challenges of RFID technology and what it takes to implement it successfully.
Benefits of RFID Technology
Improved Inventory Accuracy and Efficiency – In a case study customers reduced their annual inventory variance from £170,000 to just £5,000 within a year, achieving a 300% improvement in inventory accuracy. RFID systems, whether passive or active, integrate with other advanced technologies, providing a robust foundation for continued optimisation.
Security and Product Authenticity – RFID can increase security and product authenticity. Consumers increasingly demand transparency about the origins of their food, while regulators need to track food and pharmaceuticals throughout the supply chain in case of recalls. RFID facilitates end-to-end traceability and it is also used to verify the authenticity of high-value, counterfeit-prone items such as foodstuff and other high-value assets.
Reduced Labour and Increased Automation – While barcode scanners remain relevant, RFID systems offer distinct advantages. RFID receivers can identify tags without a direct line of sight and can be used by workers, stationary readers, and mobile readers. Warehouses commonly use RFID to count pallets and boxes as they move in and out of the facility and within shipping vehicles. RFID scanners can scale capabilities and count multiple items simultaneously, significantly reducing staff time and boosting automation.
Data Analysis with AI Integration – Data is essential for AI, and AutoID and IoT devices are all able to generate a large amount of data. By capturing and delivering this digital data, AI can provide new insights, helping businesses to make better-informed decisions.
RFID technology continues to lead innovations in inventory and supply chain management, offering accuracy, security, and efficiency. However, successful implementation requires a well-thought-out strategy and an understanding of the potential challenges.
Businesses can look to the future, the integration of RFID with emerging technologies like AI and IoT promises to advance inventory management, enabling businesses to optimise their operations and enhance their decision-making processes.
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