Immense interest has been generated around radio frequency identification (RFID) technology over the last several times. Though the technology has been in actuality for decades, its operation had been limited for utmost of these times. But now, thanks to newfound and revolutionary operations for example, as supply chain operation and asset tracking, it’s presently one of the most promising – and problematic – technologies. RFID in logistics is disruptive to current systems and processes. Its perpetration calls for a paradigm shift in the way business is conducted with channel partners and clients. Investment in RFID in logistics has strategic counteraccusations on businesses.
Also read: RFID Solutions for Transportation and Logistics Industry
The Challenges of Implementing RFID in Logistics
Implementing radio frequency identification (RFID) technology in logistics processes can bring multitudinous benefits, from bettered supply operation to enhanced supply chain visibility. Nonetheless, like any technological implementation, there are challenges that manufacturers need to overcome to successfully implement RFID in logistics into their functions and processes.
From a logistical viewpoint, one of the primary challenges is the original investment needed to emplace RFID systems. The cost of RFID markers, software, and readers can be significant, particularly for installations of large scale logistics. Also, retrofitting present structure to accommodate RFID technology may bear significant time and resources.
Likewise, enforcing RFID in logistics setting frequently necessitates a change in workflow and employee training. Workers must acclimatize to new processes and learn how to operate and interpret data from RFID systems effectively. Resistance to change can be a hedge, and thus, proper training and communication are pivotal to insure a smooth transition.
Overcoming Challenges: Best Practices for RFID Implementation
Regardless of the challenges, manufacturers are able to overcome these hurdles by following some suitable practices for the integration of RFID in logistics. Following are some of the crucial ways to consider
Completely Assess the ROI
Before investing in RFID technology, manufacturers must conduct a all-inclusive cost benefit analysis. By assessing the implicit return on investment, including reduced labor costs, bettered supply accuracy, and enhanced functional effectiveness, decision makers can determine whether the perpetration is financially feasible.
Start With a Pilot Design
Rather than trying a full scale perpetration right down, manufacturers can begin with a pilot design in a specific area of the logistics process. This helps in allowing for fine tuning and testing the RFID system on a lower scale, associating any challenges or issues before spreading out to the entire installation.
Unite with Suppliers and Partners
To achieve maximum benefits from RFID in logistics, it’s essential to unite with suppliers and partners. By assuring that all parties involved in the supply chain are exercising RFID technology, manufacturers can achieve end to end visibility, accurate supply tracking, and flawless data exchange.
Choose the Right RFID System
When opting an RFID system, manufacturers should consider factors for example, as read range, label continuity, and compatibility with current structure. For illustration, passive RFID markers may be suitable for tracking particulars within a short range, while active markers with longer read ranges may be necessary for certain operations. Assessing the specific conditions and constraints of the logistics terrain is pivotal in choosing the most effective RFID system.
RFID in logistics has been present for several years, but the technology still has operations today and can potentially help companies ameliorate their supply chain operations. RFID provides logistics managers with multiple ways to track and manage products and means in the supply chain. Moreover, RFID markers and scanners can potentially ameliorate product and accoutrements handling outside and outside the storehouse terrain, with operations ranging from supply operation to robotization.
Following are some of the benefits RFID can bring to the supply chain.
Improves Product Handling Effectiveness
RFID markers can also help with route planning and goods handling within and between supply chain locales. Storehouse workers can put RFID markers on logistics means like exchanges, holders, forklifts and other material handling outfit so workers know the position of equipment at all times and can rapidly retrieve it to transport products.
Also read: Benefits of RFID Asset Tracking in the Supply Chain
Increases Supply Counting Speed
RFID markers and scanners can help speed up supply counting and conciliation, because storehouse workers can use handheld RFID device to fluently and directly overlook RFID markers. Some scanners count markers one by one for every individual item, while others can near simultaneously count all the markers in a particular position.
Faster and more frequent supply counting can affect in more accurate supply operation as well.
Helps Fix Incorrect Supply Counts
RFID technology makes it easier to identify the source of issues with entering, storing or distributing products. Storehouse workers can use RFID to trace an individual product’s movement and probe why a discrepancy occurred. For illustration, if an employee stored an item in the wrong position, an RFID scanner may identify the label away and warn the user.
Since RFID provides information about how the problem passed, it can potentially help storehouse managers. In order take way to help the issue from recreating.
Helps Ameliorate Product Availability
Today’s clients anticipate all goods to be available at all times. And combining consumer demand information with RFID’s product tracking can help suppliers insure their products will be in stock. When demanded. Suppliers, manufacturers and retailers that use RFID know products’ locales at all times. Because RFID can track products throughout the supply chain.
These groups can also match the number of products in a certain position. And insure they’ve enough to meet anticipated deals situations and availability. RFID can potentially help in boosting client experience. Since it is combining with consumer demand information and can drive toward increased product availability.
Also read: Challenges and Technology Solutions for Logistics
Conclusion
RFID technology has the implicit to affect all businesses that are dependent on a physical supply chain. Businesses have started to realise the benefits that RFID can give. For instance, as increased visibility of supply chain, better supply operation and item tracking capabilities.
