Anything that accelerates the management and organization system of inventory is of great benefit in the warehousing industry. We have come a long way to manage inventory but maintaining an updated an accurate picture of the whole operation still seems challenging. After all, the industries must keep tabs on hundreds or thousands of square feet of storage.
Fortunately, RFID technology has been a game-changer in this scenario. With the new technology’s ability to decrease human error and smoothly handle warehouse operations, RFID is one of the essential parts of the toolbox of any supply chain manager.
What is RFID?
RFID (or radio frequency identification) is a wireless technology that utilizes radio frequency electromagnetic fields for data transfer. In today’s era, this new age technology has been used in various industries for monitoring everything from your passport to keeping a closer eye on your pet. All thanks to its ability to identify and track in real-time, RFID has also become a significant tool for warehouse management.
How does it work?
As soon as a shipment arrives, an RFID tag or label is fixed on the item in the package – either to the whole pallet or individual boxes. Every tag/label is “married” to the item being tagged. It now becomes the license plate for that item. All the item’s details are stored in the cloud-based solution which can be access from any mobile device anywhere in the world.
Making use of an electromagnetic signal, the RFID tag can transmit the data or information to the main database where the whole RFID warehouse management system can work on data analysis.
What RFID is used in warehouses?
In warehouses, RFID technology is needed for keeping better track of storage and movement of products, as well as to maximize work efficiency by streamlining the shipping and receiving process of consumer goods.
To assure all this happens smoothly, passive RFID tags help in reflecting radio waves from the antenna to give you the real-time location of an object. This means that RFID warehouse software technology can connect workers to the back-end application server of the warehouse management. At the app service, the wireless handheld objects can record all warehouse activities which comes from RFID tags that are attached to the pallets. With the collected information, the employees can identify where to put, pick, count or move objects within a distribution center.
Benefits of RFID in Warehouse Management
Here are some benefits of using RFID in warehouse management:
1. Prevents over- or under-stocking, and enhances security
With the RFID warehouse management solution, an industry is likely to have more information capability, like tracking, keeping consumers, and updating supply chain and retail partners.
2. Decreased labor costs
Since RFID tags can generate and report data automatically on scanning, the cost of labor will be reduced significantly.
3. Improved visibility across the entire supply chain
As there is no need for any line-of-sight, such as barcode, for tracking or scanning, there will be better visibility across the supply chain. This is because of lead capturing and maximum data processing.
4. Less damage and enhanced longevity during processes
Due to hardy construction, there will be less damage and improved longevity. Meanwhile, the technology scans much faster than the previous handheld devices for scanning barcodes.
5. Direct benefits of RFID warehouse system are to inbound and outbound processes
- OUTBOUND monitoring – Improved visibility to customers and stores; Less outbound quality checking
- INBOUND monitoring – Improved flow-through chances; Reduced detailed inventory checking; Improved supplier conformance.
6. Accuracy in collected data
Since RFID tags transmit data automatically, the chances of human error are largely reduced from the whole inventory process.
Conclusion
Overall, RFID technology integration with warehouse management systems is important in today’s fast-paced era, where there is no scope for errors. With an RFID warehouse system, companies can lower operating costs while increasing accuracy and speed for better performance.
