Logistics operations are the core of the production of products and distribution of goods or services in a company. Generally, Logistics operations refers to the processes of moving finished goods, including from the manufacturer to a distribution center, and then to the end user. The entire logistics process consists of managing inventory, fulfilling orders, and shipping packages. If there is any undisciplined activity in these operations then it could result in loss to the company. Some data shows Only 6% of businesses achieved full supply chain visibility.
This above-mentioned data shows how badly it needed to bring something revolutionary in the industry for logistics operation so the supply chain of the products can be better. RFID or Radio Frequency Identification could be a technology that can bring something new and innovative to logistics and supply chain management. Also, there are many manufacturing companies worldwide that use RFID. It can be seen that RFID applications have targeted supply chain management (6.22%), logistic processes (2.07%), and information technology (1.55%).
We will discuss more about the RFID-based solutions in logistics operations and how this technology could be beneficial and able to produce differences from conventional methods.
What is RFID for Logistics Operations?
Simply, RFID (Radio Frequency Identification) is defined as a technology that can transmit the data stored in a microchip through radiofrequency signals that include a defined protocol that stores and recovers information remotely, using tags, cards, etc. In the manufacturing industry, RFID solutions could be very beneficial for logistics operations as they can be used to track their supply chain workflow, which provides more usable data with manufacturing equipment, inventory, asset management, and company processes. This will increase the efficiency of the production of products and also make a fluent supply chain.
Also Read: Inventory Management With RFID Tags In Manufacturing
Features of RFID Solutions
RFID solutions have a lot of potential to revolutionize the logistics operations in the manufacturing industry. For that it possesses a lot of features as here are some features of RFID solutions mentioned below.
Applicability
RFID technology is a technology that works on electromagnetic waves so it doesn’t need any physical contact to work which increases its availability. It allows us to establish connections regardless of dust, fog, plastic, paper, wood, and various obstacles, and communicate directly.
Efficiency
Detecting and scanning the RFID technology is faster so it increases the efficiency of work compared to manually. RFID solutions enable it to read and scan multiple codes at a time.
Simplicity
Simplicity is a basic and important feature of RFID solutions as it provides a user-friendly interface with a simple structure, high recognition rate, and simple reading equipment. Simplicity level is much higher as users can scan codes with their smartphones.
Also read: How to Integrate RFID With Inventory Management
Advantages of RFID Solutions for Logistics Solutions
RFID solutions provide a lot of advantages for logistics solutions as here are a few of them mentioned below.
Enhanced Inventory Visibility
RFID-based solutions enable real-time visibility on inventory as this allows manufacturers to track products from warehouse to shop shelves which allows them to prepare according to demand.
Improved Productivity
RFID solutions help to automate various logistics operations such as maintaining inventory records and many other processes that save a lot of time. Just not only saves time but also reduces the human error rate resulting in an increase in productivity in less time.
Increase Security and Loss Prevention
RFID solutions-based tags enable companies to track their products at every stage of logistic operations, reduce the chance of suspicious risk in security and enhance the loss prevention method.
Read our trending blog: Using RFID for Inventory Management: Pros and Cons
Applications of RFID Solutions in Logistics Operations
Since RFID solutions offer a wide variety of features and benefits they surely also offer some application in logistics operations. Here are some key applications of RFID solutions mentioned below.
Product Tracking
Tracking of products can be a beneficial move for companies as it enables companies to make sure that their supply chain is working well or not. Sometimes product supply is in the wrong place by mistake or intentionally by some greedy employees.
Quality Control
RFID solutions can be used to check the quality of products as RFID-based scanners can easily identify the defects in products and inform consumers that they should not get defective products.
For a Better Customer Experience
As mentioned, RFID solutions can contribute to improving the quality of products that increase the customer’s belief in the companies and their experience. This results in an increase in profit for the company.
Use Case of RFID Solutions for Logistics Operations
Many big companies are already using RFID solutions to improve their supply chain and other logistics operations. Here are some examples of big companies mentioned.
- BJC Healthcare uses RFID inventory management techniques like smart cabinets to have full visibility into their inventory and know exactly how many to order and when.
- Inditex uses this technology to give its logistic centers visibility through the shipping process and track the supply management process.
- Amazon has used RFID technology to create an RFID lab for students so they can study this technology to design, integrate, and deploy RFID technology within the facilities.
Related: RFID for Asset Tracking and Inventory Management
Challenges of RFID Solutions for Logistics Operations
Some challenges of RFID solutions could be faced by companies while implementing this technology. Here are a few challenges mentioned below.
- The cost of implementation is too high for RFID so it is a challenge for most of the companies but it’s worth it after implementation.
- Tag placement is also a concern as sometimes it is difficult to find a place to stick the tag on the products that should not cover the branding or any important part of the product.
- RFID technology is all about collecting data so there is always a risk of security concerns of data that nobody could steal and misuse over.
Final words
RFID-based solutions are capable of revolutionizing logistics operations by their unique and incredible features. But many parts of the world do not even listen about this technology so it is very important to let them know that they use it for their industry. But as mentioned there are some challenges but that could be solved with the development and passing years. Overall, RFID solutions have a bright future to streamline the logistics operations but have to wait for some time to make a full impact on the world manufacturing industry.
