In order for enterprises to maintain their competitive advantage in today’s economy it’s crucial to cut unnecessary cost spending all while preserving, as well as increasing production. Yet many supply chain management inefficiencies often devise from inaccurate data collection on inventory levels and tracking their exact location in the supply chain. For instance, a point of sale (POS) retailer might provide a stock request to the manufacturer, however, without knowing the existing inventory levels in advance and which stock is already currently in transit, these data collection points are not providing precise data for demand planning. So how do you avoid errors while increasing productivity and reducing associated costs? This is where the RFID system comes in to play.
Radio Frequency Identification (RFID) has evolved as an integral technology system for tracking and identifying company products and assets around the world. A RFID reader can help hospital staff locate important equipment more quickly to help improve patient care, help pharmaceutical companies to prevent counterfeiting, as well has help logistics providers better manage their moveable assets. Best of all, this technology offers new efficiencies in tracking products directly from the point of manufacture all the way through to the POS.
So what is RFID exactly, and how does it work? To put it simply, in a RFID system tags are attached to all products or items that are intended to be tracked. These tags are made from small tag-chips that emit radio signals to an antenna to be picked up by a RFID reader devices, and can be imbedded into many different types of tags from apparel tags, security tags, as well as large variety of industrial asset tracking tags. Each tag chip contains memory storing technology which stores the product’s electronic product code (EPC) and other customizable information so that it can be read and accurately tracked by a RFID reader anywhere in the world.
Having a RFID system undoubtedly plays a vital role in accurately managing business process. Still need more convincing? The proof is in the pudding – in fact, research suggests global interest and adoption of RFID as a key factor in achieving greater asset traceability for supply chain’s has increased by 40 per cent since 2005. And according to estimates provided by the industries top pharmaceutical manufacturers, they estimate that RFID-based solutions could save the industry more than $8 billion by 2018.
To ensure you’re getting the most out of the advantages the RFID system has to offer, it’s important to understand just how this technology will benefit your enterprise. Here are the top five benefits of adopting the RFID reader system:
1) Improved Productivity and Cost Avoidance
Identifying and tracking with a RFID reader requires less work than using traditional barcode scanning. This leads to a smother and more efficient process in many tasks such as receiving and loading and selecting and shipping goods. As well, the cost of tracking items by a RFID reader is substantially less than other methods.
2) Reduced Rework
RFID technology has greater first time pass accuracy compared to other similar scanning systems. This accuracy reduces the amount of errors that can occur, and the number of times re-scanning of an item is needed.
3) Reduced Business Risk and Control of Assets
By using RFID you gain greater audit and asset control. Having the ability to better trace items means your assets can be found more easily. As well, having the opportunity for enhanced data collection means increased accuracy of records and enhanced asset maintenance.
4) Improved Utilization of Resources
The data collected by RFID can be used to improve demand planning. By having improved inventory tracking process time can be saved, and assets can be better utilized.
5) Increased Revenue
By replacing your current system with the RFID system you will be eliminating any costly uncertainties. Gone will be the days of “out of stock” dilemmas because you will now have obtained greater item availability tracking. This will reduce the amount of lost sales and provide your customer base with increase choice, leading to more sales!
Just like the evolution of mobile technology, the widespread adoption of GPS systems in today’s commercial and consumer positioning, and the inception of this incredible thing called the Internet, RFID is already transforming markets. Only time will tell how large of an impact RFID will have, but we can bet it will be big!