RFID tags are everywhere. They are in toll transponders, entry & ignition keys, credit cards, and even pets and cattle. RFID microchips can be as small as a grain of sand making them easy to attach almost anywhere. Having technology that is so compact with such powerful capabilities allows businesses to better manage their supply chain, inventory, and labor cost.
RFID technology enables items to be uniquely identified and
tracked during the supply chain process. The process starts with a tag or a
chip with a unique identify code being placed on a particular item or shipment.
This tag can then be scanned but an electronic reader anywhere along the supply
chain, the best part about this is that as long as the scanners are placed
close enough to the product or shipment this step can be accomplished without
any human interaction. RFID chips allow businesses to track shipments,
warehouse locations, product location, outbound shipments, inventory,
promotional display activity, and point of sale information. RFID tags have
many features that can benefit any organization such as, non-line-of-sight
scanning, tracking, data collection and labor & labor cost reduction.
Non-line-of-sight scanning is a benefit to many companies because
it can help reduce the time of checking and scanning incoming inventory. With
RFID tags you no longer have to worry about barcodes being in the right place
or readable. RFID tags can communicate within milliseconds and have the ability
to scan multiple items at the same time. RFID tags also eliminated the need for
human scanning with barcode readers, which can save a company a lot of money
and time. The RFID tags can also relay information about product location,
design and history without actually seeing the part.
RFID tags can also assist companies with tracking shipments and
inventory. This becomes very beneficial for those needing to track shipping
containers. RFID tags can log where it has been and what has been stored in
each container. On a smaller scale businesses, can use RFID tags to
track shelf inventory. This allows you to track expiry dates, warranty
information, and recall information. These tags can also help retailers that
are using just in time inventory models, by providing accurate and rea-time
inventory quantities and movement. They can help forecast demand, manage
inventory and distribution.
Being able to collect data like this can help improve customer
satisfaction and point of sale reports. RFID tags data collection capabilities
are second to none. First, they are almost impossible to copy, so even when
working with highly sensitive items RFID tags can be used. Secondly, they can
be used in almost any environment. Most RFID tags can withstand temperatures
ranging from negative 40 to 200 degrees centigrade, along with being able to
survive in most acids. Even though these tags can be as small as a grain of
sand they can hold anywhere from a few bits to thousands of bits of data in a
single tag.
RFID chips can also improve supply chain functioning by reducing
labor and labor costs. Labor is one of the largest cost components of
distribution, it can account for 50-80% of the total distribution cost. RFID
chips and scanning techniques can reduce receiving check-in times by 60-93%. It
will also produce 36% labor savings in order picking, and a 90% reduction in
verification costs during the shipping process (Michael & McCathie). Not
only do these RFID tags save businesses money by reducing cost, it also makes
the employees more productive. Now employees can spend more time on valuable
tasks rather than counting and receiving in pallets or shipments. This proves
that RFID tags will have a substantial positive impact on a company’s bottom
line.
In conclusion RFID tags, can make an enormous difference to many
businesses. For firms that are worried about the privacy aspect of the RFID
tags, I think Kuang (2015) states it the best “No matter how often we say we’re
creeped out by technology, we tend to acclimated quickly if it delivers what we
want before we want it”, and this is exactly what RFID tags do. They provide
information to organizations to prepare inventory, displays, and even
interactions before the consumer is ever thinks about needing it.
Sources:
Kuang, C.
(2015, March 10). Disney’s $1 Billion Bet on a Magical Wristband | WIRED.
Michael,
K., & Mccathie, L. (2005, July 11-13). The Pros and Cons of RFID in Supply
Chain Management. International Conference on Mobile Business (ICMB'05).
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