Technology is fast evolving and so is its adoption by vast industries like supply chain where it is been used more creatively and expansively. RFID (Radio Frequency Identification) is one such innovation that is widely used in Supply Chain and Logistics as it’s efficient and saves time.
RFID is a tool to read & understand digital data encrypted in RFID tags through a reader via radio waves. To understand it, we can take the example of a bar code or magnetic strip of a bank’s ATM card where data is captured by the device and stored in the database. The only change with RFID is that one can scan more than one object at a time, thus reducing time and energy with improved efficiency. In the supply chain, this new technology helps automatically identify objects, read the data and enter it directly into a database with little or no human interference.
How it’s useful in the supply chain?
In a warehouse
The use of RFID is most effective in warehouses and distribution centers (DCs) by improving efficiency and productivity. Inbound activities: With the integration of RFID, products can easily be offloaded from a truck, pass through a reader and stacked in empty spaces within minutes. Improving process: With RFID, it’s easy to locate and identify a product, find missing products and improve quality checks. Outbound activities: Before shipping a consignment, it becomes easy to identify errors at the carton level before moving it to pallets. RFID for container tracking The containers can be easily tracked by suppliers and shippers via real-time tracking by embedding RFID chips into containers thus helping in pinpointing the location of a cargo movement and simultaneously planning for its movement. RFID is the best way to manage consignment without incurring the cost, effort and stress associated with tracking lost shipments. Not only that, RFID can also drill down to know the exact location of the cargo movement, the inventory it is carrying, the allocation and much more.
Benefits of using RFID
Ease of integration with ERP and MES for capturing real-time updates.
Allocation of container to trailer and supplier based on the requirement and stage of shipment
Traceability of inventory and empty containers in all stages of the supply chain (from receiving the consignment to processing and stacking and shipment of the same)
Easy reports and advanced data analysis
Just-in-time shipments and transportation based on actual forecasts
Substantial cost and effort saving with an optimized supply chain process
With time, the usage of RFID is growing due to its extreme benefits. Its adoption is impacting all areas of product and retail. 20Cube is managing the logistics operations at unprecedented levels by controlling the freight forwarding and warehousing operations via RFID by offering real-time tracking and improved visibility to its valuable customers.