Technology has brought a drastic change in how we do business. As far as warehousing is
concerned, it is one of the most critical hubs in the supply chain management, acting as a
bridge between purchasing and manufacturing, manufacturing and selling, wholesaling and
retailing and among the switch of transportations. The efficiency of supply chain network is
greatly dependent on warehousing. With the scale of warehousing skyrocketing, it is
imperative to adopt ways which improve the overall productivity and reduces labor costs
thereby increasing the profit margin in an otherwise competitive environment.
Radio-frequency Identification (RFID) technology is one such tool that can help with better
management of supply chains. It is a system that transmits identity in the form of a unique
serial number of a product wirelessly. Most commonly, a RFID tag consists of a microchip
attached to a radio antenna mounted on a substrate. This technology connects products to
the Internet for tracking purposes so that information can be shared with businesses across
the supply chain.
How it works:
When a shipment arrives, a RFID tag (or chip) is attached to the items in that shipment –
either to individual boxes or an entire pallet. Each tag features an internal memory to store
the item’s information, which can be modified as it moves through different processes in the
warehouse. Using an electromagnetic signal, the RFID tag transmits that information to a
central database where a warehouse management system can analyze the data.
Now let us look at top five reasons why RFID should be used in warehouses:
1. Unlike traditional barcodes, the RFID tags need not be in order for the information to
be picked up by the RFID antenna. This improves the operation speed and efficiency.
2. Warehouse management software is updated in real time, which means we know
where an item is from the time it arrives on the dock, leaves the warehouse and
every moment in between. This reduces chances of employee thefts and errors in
shipment placements.
3. Readers can read up to 200 tags at once. This will increase speed and productivity
since employees will not need to physically scan each label.
4. It can provide accurate information about current inventory despite size, shape and
environmental concerns thus increasing the visibility and optimization of warehouse
movements
5. With RFID portals strategically located in the warehouse, the movements of goods
at entryways can be controlled. All movements are recorded without human
intervention. RFID tags can store up to 100 times the data of barcodes, this keeping
track of all the data needed for the inventory such as lot and serial number, size,
manufacturer, vendor, expiration date, user, location on the production line and anything
else which is required.