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How Does RFID Technology Improve the Supply Chain?

Supply chain traceability has improved dramatically in the last couple of years with the implementation of radio frequency identification(RFID) technology. Effective traceability is one of the biggest reasons the world has seen a boom in the usage of RFID in various industries because of its phenomenal results many industries have reaped the benefits from it.

In this blog, you’ll come to know the impact of RFID on supply chain traceability.

Radiofrequency identification (RFID) uses a small silicon microchip and antenna that allow the user to instantly count, track and manage tons and tons of items in real-time. Cutting costs and improving accuracy from point of origin to point of sale.

The Implementation of RFID and Supply Chain

1) Inventory Management: In supply chain industries tons and tons of inventory is moved from one place to another on a regular basis. This movement of inventory is necessary but also causes chaos for the management. It is difficult for the management to have an accurate eye on the inventory. The RFID solutions provide visibility and inventory accuracy to the retail and supply chain operations. Cycle count and inventory capabilities allow portal tracks to enhance retail and eCommerce systems and increase customer satisfaction.

2. Time Management: For any business to grow prominent and profound utilization of time is required. The less time is taken for the operation the more time, management will get for the planning on the growth of the business. This problem is solved with the implementation of RFID into the supply chain, as it enables the counting of plenty of objects within seconds through scanning the tags attached to the objects. This technology not only provides better traceability but also enables better usage of time.

3. Fewer Errors: Like any other business the supply chain and logistics business involve human intervention and like any other business humans are bound to make mistakes. These mistakes can either be small and cause less loss or can sometimes be huge and result in ruination for the business. To avoid such circumstances the implementation of RFID technology in the supply chain is used. RFID technology involves every item to be scanned for better tracking, monitoring and identification thus the business becomes system-driven and eliminates the risks of human errors.

4. Increasing Receiving Throughput: The usage of radio frequency identification(RFID) technology in the supply chain results in increasing receiving throughput. At the time of arrival of the shipment at the distribution centre, the boxes packed or hanging in rail ready to be delivered can be checked against advance shipping notice.


This is the era of omnichannel fulfilment and getting sales through online shopping, to have a competitive edge the implementation of RFID technology is necessary.