One of fertile fields for the application of RFID is in supply chain management (Supply Chain Management). The functionality of RFID enable developing more flexible and intelligent logistics applications.

Why RFID Is Must Have For Supply Chain Management Process?

To optimize the supply chain process, it needs accurate identification and tracking of goods as well as knowledge about what inventory a company have, where it is, how much it has and in what condition. And to solve this purpose,

How RFID can help?

Product Forecasting and Management

Demand planning depends on historical sales and transaction data; it helps to create reliable forecasts. But Inventory forecasting becomes difficult if there is no timely and real-time data.

RFID can produce accurate and real-time information of work-in-progress, in-transit, and finished goods. Timely data about the market demand leads to accurate forecast, better inventory visibility and can have an immediate impact on top-line revenue by retaining the lost sales.

Improved Inventory and Order Management

It is generally difficult to get clear visibility of what specific raw materials have arrived, availability of right materials, tracking of work in process, dispatching the right item to the right customer at the right time, etc.

RFID can help in improving these processes and help to reduce the inventory and order errors which results in minimizing production delays. Inventory accuracy and visibility can be drastically improved as RFID can track the delivered goods accurately in real-time, optimize the workflow and even reduce the excess inventory.

RFID readers deployed in the storage areas can automatically record the removal of an item and update the inventory records. Counting inventory can be processed quickly, as identification can be performed in bulk and accurately performed by RFID readers.

Asset Tracking and Management

In many businesses, assets like pallets, trays, containers, equipment are often difficult to track.

But the RFID tag attached to the reusable assets can track them more efficiently. By placing the fixed RFID reader at strategic points, a company can automatically track the movement and location of the tagged asset, thus avoiding labor time.

RFID readers may also alert supervisors if there is any attempt to remove a tagged asset from an authorized area; this results in more security. Users can have full visibility of the inventory levels and locations, enabling them to locate quickly an item.

Shipping and Receiving

When items are collected for shipment, the tags can be read and automatically recorded in the system. As soon as the pallets are ready to dispatch, the handheld RFID reader can read the pallet tag and verifies the shipment content while providing real-time visibility in the system.

This result in time-savvy, cost-effective process, faster invoice settlement, minimizes human error and increases inventory accuracy and simplifies the receiving process.