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How RFID Technology Transforms Global Supply Chains

Radiofrequency identification is a major support system that helps supply chain management. The uses of RFID in the supply chain have a significant and positive effect on the operations, as we all know supply chain operations are the backbone of every industrial segment and their functioning is crucial for business development. Studies have revealed that poor supply chain and logistics can cause the company to lose up to 45% of its business.

So, it is really important for every related business to incorporate RFID technology into their businesses for more productivity.

Here in this blog, I will try to clarify all your doubts with three simple questions;

  • Why incorporate RFID technology into your business?
  • How to incorporate RFID technology into your business?
  • When to incorporate RFID technology into your business?

Based upon the above question’s answers, I will try to summarise my blog that how RFID technology is transforming the global supply chain?

First, it is important to understand how does technology works?

The RFID tags are called transponders and they send information to RFID readers which captures the information via radio waves and send it across a server and ultimately to the display unit. This is how it captures the information.

Why incorporate RFID technology into your business?

  1. Improved Data Transparency:

RFID is the best and cheapest way to implement a system that provides results with the highest rate of accuracy and reliability by using the concept of ‘distributed data.’ Distributed data is live data that is attached to an object directly and can be automatically modified at various checkpoints.

  1. Ease of implementing processes that are flexible:

In order to see a rise in flexible business processes, there must be flexibility in the content and delivery of data to the various department cells. The process should be able to accommodate and must respond to a higher inflow of changing data. For this purpose, RFIDs are used to reliably read and write data to the tag of an object in real-time.

  1. Increase accuracy of inventory while saving time:

It is impossible to count their inventory manually if their operations are large. It is an extremely tedious process and very time-consuming. One minor error could lead to several inaccuracies. RFID precisely help to solve this by reducing or eliminating the need for manual work. It can provide immediate drastic and significant improvements in inventory handling.

  1. Ability to track and trace:

RFID is very reliable it can easily track and trace even in challenging physical environments. RFID does not require a direct line of alignment to the object’s tag, unlike standard bar code labels. RFID cannot be destroyed in extreme environmental conditions such as extreme temperature changes, high humidity, chemical exposure or exposure to paint and rough handling.

How to incorporate RFID technology into your business?

Most RFID systems consist of three main elements:

  • Tag: It is composed of an antenna that transmits and receive signals with an RFID chip that contains information about the object to which it is affixed.
  • Reader: It is the mind of the RFID system, the reader typically used to interact with RFID tags. The reader receives the information stored in the RFID tag.
  • Management Software: It allows the user to manage information transmitting from the tag which enables the user to make decisions and take action.

To set up your RFID technology, AeoLogic could be the best partner to help you out.  AeoLogic technology private limited has vast experience and is also well-versed with technology. We have implemented several projects based on the technology.

When to incorporate RFID technology into your business?

There is no specific answer to this question. However, it is totally depending on certain factors like;

  1. What business do you own?
  2. Does RFID help to reduce your existing problems?
  3. Future goals
  4. Are you ready to invest in the technology?

These are some self-explanatory questions that one can consider before implementing the technology.

Now, as we already discussed the three important aspects How, Why and When. It will be easy for us to understand “How RFID Technology Transforms the Global Supply Chain”. So, let’s conclude this blog with a proper explanation.

RFID technology help companies easily monitor how goods move through their warehouses. Inventory management becomes significantly more efficient since companies receive real-time product information about what is in the warehouse, what is on its way to the warehouse, and what is been sent to customers.

RFID technology integrations with Warehouse Management System allow enterprises to receive real-time information while integrations with Warehouse Control Systems provide the future possibility of drone capabilities. What could this look like? Essentially, drones would fly around warehouses capturing data from a few centimetres away to keep track of inventory. We are still some years away from widespread adoption of this practice, it’s the most exciting indication of the potential of RFID technology in warehouses.