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Applications In Supply Chain Management And Logistics

Complete Guide On RFID And Its Applications In Supply Chain Management And Logistics

Radiofrequency identification (RFID):
It is a technology that works on radio waves or radio frequencies. This technology proves to be highly effective in usage as it enables tracking and identifying the object automatically at an ease. RFID technology is not only restricted to being used on objects but it can also be used on animals and birds.

How does it Work?

RFID tag gets attached to the object that needs to be tracked. The continuous radio waves come from the RFID reader and whenever the RFID tag comes in contact with the distant meter the RFID reader will get the feedback transmitted by the RFID tag.

Is it Similar to Barcode?

There is a misconception that RFID is similar to barcode but it is not. In reality, when it comes to the barcode, the barcode reader and the object need to be in a line of sight to transmit the data but in the case of RFID technology the line of sight is not required, the object will be able to transmit its feedback to the reader as far as it is in the range of the reader.

Supply Chain Management and Covid-19

An important item from a supply chain perspective is through the chaos of recovery it’s very easy to overlook the root cause and gaps within the supply chain that may have paralyzed the business during this event in the first place so building toward a resilient supply chain will be at the epicentre of future discussions for years to come. Not to mention that the covid-19 is only the latest in an increase in the number of unexpected disruptions that have been hitting supply chains.

The Implementation Of Rfid In Supply Chain Management And Logistics:

1. Tracking – It is quite obvious for a business owner to know its product but to keep track of the product once it leaves the manufacturing site presents a challenge for brands and retailers across the world. With global market sites and multiple selling regions, the retail supply chain is complex. Hence the implementation of RFID shines a spotlight on the inventory and gives accurate visibility across the entire supply chain. With the implementation of  RFID products are born digital at the point of manufacture and can then be seamlessly integrated into existing trims and packaging once it’s applied to the product you’ll have access to item-level data that keeps you up to date on where inventory is within the supply chain you’ll then have the power to accurately manage orders and shipments.

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2. Accuracy – RFID automates the pack line so that both manufacturers and retailers can be confident that every order is packed accurately as it starts its journey in the supply chain which means retailers can leverage omnichannel inventory availability to meet consumer demand. RFID tags are read automatically at regular points across the supply chain so that the business owner can easily track shipments and receive electronic proofs of delivery and one can be assured that the right products are in the box without even looking inside.

3. Optimization of time –As compared to the traditional approach of maintaining the data of the products the usage of RFID technology is very less time-consuming. Earlier at the time of arriving at the shipment, the receiver used to count and cross-check the products manually which was way too time-consuming and tiring at the same time. This issue has been resolved with the implementation of radio frequency identification (RFID) technology.

4. Reduction in human errors – A technology-driven business is likely to make fewer errors as compared to humans. Humans can make mistakes at the time of counting of the product, monitoring the shipment, checking the accuracy of the order, etc but the chance of having errors gets reduced by implementing the RFID technology and its applications in the supply chain management and logistics.


To conclude we’ll say that everything your read above is just the tip of the iceberg and there’s a lot more radio frequency identification (RFID) has to offer.  RFID is shaping and making the future of supply chain management and logistics brighter day by day. To optimize the business one should give it a try to RFID technology.

Manoj Kumar

Manoj Kumar is a young blogger and digital marketing manager at Aeologic Technologies. Covering topics related to emerging technologies - AI, IoT, Big data, Cloud Computing, Cyber security, RFID and industrial automation. You can find Manoj on LinkedIn & Instagram.