While Radio-frequency identification (RFID) systems have been around for decades, its use is on the rise across numerous sectors, and it’s becoming especially prominent in today’s warehouse and logistics operations. In fact, with the pace of implementation (with 93% of retailers using RFID in some way), RFID isn’t about to slow down anytime soon.

Current signs point to RFID technology becoming even more prominent among organizations of all types, and it’s being integrated into a wider variety of applications to produce significant improvements in efficiency. These changes stem in part from RFID’s increased affordability and accessibility. RFID systems are far easier to implement and maintain than in the past, so they are well within reach for businesses that previously had to rely on alternatives such as barcodes.

We’ve highlighted a few of the most promising RFID benefits and applications below, along with simple suggestions for making better use of this technology. 

1. Accurate Asset Tracking

RFID is a must for accurate asset tracking — especially for high-value assets, which can be a leading  source of lost revenue if misplaced or stolen. With RFID asset tracking, however, organizations gain valuable insight into assets, including their location, status, and movement throughout facilities. This precise insight into valuable assets facilitates effective decision-making and forms the foundation of today’s data-driven warehousing strategies.

The appeal of RFID-enabled asset tracking stems from the simplicity of tagging with no line-of-sight needed for scanning. With these systems, once common issues such as transcription errors and data duplication can become a thing of the past. 

2. Improved Inventory Management

Large volumes of inventory enter and move about today’s facilities, making it increasingly difficult to accurately track stock levels with traditional tools and manual techniques. RFID systems facilitate stronger inventory management by providing immediate access to granular data.

Inventory-based data collection ensures details such as location and status are consistently understood. Over time, this can be helpful for forecasting, revealing trends in stock availability and other patterns that can spur both efficiency and innovation. 

3. Operational Efficiency

One of the most commonly cited benefits of RFID systems is the ability to achieve impressive improvements in operational efficiency. These improvements relate not only to where inventory is stored, but also how workers navigate facilities and deal with inventory. Recent RFID advancements have driven impressive improvements in efficiency. Other qualities that drive exceptional efficiency include:

• Prompt reading. By removing the need for line-of-sight scanning as needed with barcode scanning, RFID readers make it possible to collect data stored in tags, but from a distance. What’s more, multiple tags can be read at once, prompting a dramatic increase in read rates.
• Optimized picking and packing. Businesses are always striving for greater efficiency in picking and packing, which can be some of the most time-consuming and error-prone processes in today’s warehouses. While RFID does not entirely solve this problem, it can certainly speed things up. For example, pick-by-RFID systems provide immediate and accurate insight into product locations. Meanwhile, picking lists can be updated in real-time and RFID systems can even be integrated with cutting-edge pick-by-voice solutions.
• Streamlined put-away processes. Optimal put-away can promote more effective picking and packing down the road. RFID systems improve this by helping to determine the best locations for put-away and assisting workers as they seek the best possible storage spaces. This makes it easier to maintain dynamic warehouse layouts and respond to fluctuations in demand without alarming losses in efficiency, and workers aren’t as dependent on fixed locations to guide their movement through the warehouse. 

4. Eliminating Human Error

Manual processes often lead to significant errors, even among the hardest working and most reliable employees. RFID solutions limit these accuracy errors by equipping employees with easy-to-use tools that help them bypass mundane and time-consuming processes such as manual data logging. Automatic scanning is far less likely to produce errors, and in the rare event that such issues arise, RFID systems can catch problems early on — and help staff seek and implement easy solutions. 

5. Real-Time Asset Visibility

Asset visibility determines how assets are tracked throughout their lifespan. Strong asset visibility paves the path to ongoing asset availability, so employees consistently have access to the tools and equipment they need.

RFID systems can provide better insight into asset visibility along with asset reliability, which is just as important—workers need to feel confident that equipment will consistently perform as expected. RFID systems record and maintain detailed records regarding asset inspections, certifications, and maintenance needs, all of which can easily be updated in real time. 

6. Better Traceability and Quality Control

Traceability determines the extent to which organizations can track goods as they move through the warehouse and continue through the shipment process. This plays into not only real-time awareness of product location, but also provides a reliable blueprint for where those products will end up next. This insight is valuable because it can help organizations develop streamlined supply chains with minimal bottlenecks.

RFID tags also play heavily into quality control. This is especially evident with RFID’s enhanced verification practices, such as inbound and outbound checkpoints near dock doors. This is a great strategy for catching possible shipping errors before products leave the facility. This is also an increasingly popular strategy for dealing with harsh environments, in which RFID can provide real-time insights into inventory status and potential hazards. 

7. Improved Customer Experience

Today’s customers have high expectations. They want the right products to be shipped in excellent condition and in record time. This can be a lot for organizations to live up to, but RFID can help to bridge the gap. Advantages include:

• Shorter processing and shipping timelines. Because RFID systems provide such dramatic improvements in efficiency, they shorten the cycle between order placement and fulfillment. This provides an important edge, as customers show an increasing preference for businesses that can process and ship their orders in a few short days.
• Avoiding stockouts. Customers find out-of-stock situations incredibly frustrating. These are easier to avoid when facilities are equipped with RFID technology which uses real-time data to help businesses improve inventory planning and ensure that the right products are available at the right time.
• Better customer service. While customers enjoy the seamless, low-effort opportunities that RFID-enhanced ordering provides, they may eventually seek support or insight from customer service representatives. When this happens representatives can draw on data produced and gathered by RFID systems to promptly and helpfully answer customers’ questions. 

8. Enhanced Security

Security represents a huge challenge in warehousing and logistics. While cybersecurity attracts the bulk of the attention these days, physical security remains a real problem. Opportunities for theft abound, and without RFID systems to carefully track the most valuable assets, it can be difficult to determine the status and location of high-value items.

In the event of theft or counterfeiting, RFID systems provide immediate insight into where assets have been moved and may also help with retrieving them, ensuring perpetrators are held accountable. RFID solutions can serve as a valuable deterrent, especially against thefts committed by employees or others with inside knowledge. If these individuals realize that high-value assets are carefully tracked and therefore difficult to steal, they are less likely to put in the effort. 

9. Cost Savings

Many of the benefits of RFID highlighted above combine to deliver significant cost savings. Small improvements really do add up. As such, while RFID systems can be more expensive to implement, they are highly cost-effective in the long run. Key areas of savings include:

• Streamlined operations, often accompanied by lower labor costs.
• Reduced shrinkage due to fewer losses in high-value inventory or assets.
• More efficient use of space, which can result in lower operational expenses.
• Fewer returns or refunds and streamlined processes when returns do occur.

In addition to these many sources of savings, enterprises can boost profitability. As we’ve discussed, greater accuracy and faster turnaround times can have a dramatic impact on customer satisfaction which, in turn, makes it easier to retain loyal customers and encourage them to make repeat purchases far into the future. 

10. Better Decision-Making and Forecasting

We’ve touched on the importance of forecasting from an inventory management perspective, but it  is valuable for all aspects of warehousing, logistics, and supply chain management. In general, data accuracy and an abundance of data are both of value to today’s organizations simply because they ensure that leaders are consistently informed. With new tools come better opportunities to make sense of these high volumes of data. The result: better decision-making strategies built on a strong foundation of data. 

Advantages of RFID in Different Industries

RFID’s benefits are well understood in eCommerce and for warehousing and distribution centers. Increasingly, however, RFID systems also play into other industries, where leaders are quickly realizing that data-driven solutions are effective and can be surprisingly affordable. Examples include:

• Healthcare. A must for tracking and safeguarding high-value healthcare equipment, RFID solutions help clinical staff members expedite care and understand the location and status of essentials like X-ray machines, EKG machines, and more.
• Transportation. Used for vehicle identification and even trailer association, RFID systems naturally extend beyond shipping to encompass the entirety of the transportation industry. Exciting applications can be found in trucking, rail, and even public transit.
• Agriculture. From tagging bales of hay to monitoring livestock, RFID provides the opportunity to gain a competitive edge in the increasingly tech-forward agriculture industry. This provides exciting opportunities to track inventories and understand climate conditions, crop growth, and more. 

Use Cases of the Future

The RFID benefits described above will remain relevant far into the future. Beyond this, however, exciting technological advancements provide numerous opportunities to improve on the already prolific use of RFID in warehouse management. We will also see the expanded use of RFID in other industries, such as healthcare and even brick-and-mortar retail.

As mentioned previously, RFID-assisted pick-by-voice represents one of the most exciting opportunities for RFID. Additionally, experts anticipate that AI-driven automation will enter the picture in a big way, being used increasingly or identifying objects and even predicting behavior. Meanwhile, IoT solutions will enhance the use of environmental sensors, which can be especially valuable for tracking and managing perishable items. 

Streamline Supply Chain Operations with RFID

RFID has the power to revolutionize the supply chain and could be a critical tool for overcoming the logistics challenges of tomorrow. Opportunities abound and as RFID solutions become more accessible, we can expect to see them play a greater role in daily operations and forecasting across several sectors.

If you’re ready to take the next step with RFID solutions, turn to Peak Technologies for the experience, expertise and support you need every step of the way. Contact us today to learn more about our RFID services.