Why RFID is Used Extensively in Supply Chain Management

RFID (Radio Frequency Identification) has become very common in industrial environments as an effective way to trace and track products, the flow of the material, and assets. However, the technology has been in the game for years now; the latest advancement in tag design has helped in cost-cutting, making them accepted in different industries.

There are so many likes of using RFID, but several industrial facilities are still reluctant to use or make them part of their automation solutions. Hope after this post; things will change for good.

This post mainly focuses on why RFID is used extensively in manufacturing and supply chain management.

  • Easy Implementation of Flexible Manufacturing Processes

In order to compete in this competitive industry, businesses need to produce more and more from the existing production line. To make the overall process of production flexible, it is important to have flexibility in the content and delivery of data to different manufacturing cells.

It is crucial to have the ability to accommodate and respond to a higher influx of continuously changing data. RFID has been instrumental in reading and writing data directly to a tag on the object in real-time. This ability can easily be leveraged to make something that we call flexible manufacturing into reality.

  • Better Transparency & Quality of Data Across the Supply Chain

The easily accessible precise set of data makes it very easy to solve a multitude of process inadequacies. One of the most effective ways to implement systems that lead to the highest reliability and availability is using “distributed data.”

Distributed data here refers to live data attached directly to the product and can be adapted automatically at process checkpoints. Respective answers are offered when data is read from a tag – like when? Why? What? Where? etc. This is the essence of RFID applications in the manufacturing industry.

  • Maximum Accuracy and Minimum Time Spent to Take Inventories

Counting manually is extremely tedious, time-consuming, inefficient, and, to some extent, inaccurate. RFID automated inventory system is used extensively to eliminate the need for ‘hand scanning,’ which results in immediate and significant improvements in overall inventory tracking. The results obtained from the use of RFID directly impact the overall customer experience and lead to maximum sales for businesses.

  • Boost Efficiency and Minimise the Tendency to Do Rework

RFID is indeed very advantageous when used in closed-loop systems that make use of reusable transport mechanisms. Real-time visibility that is possible because of RFID has allowed the observation and close monitoring of the products and processes.

It is so so that rapid action can be taken, and the process progresses in order to have a significant impact on the quality that can be made in a stipulated time frame with sheer precision. This, in return, does save millions for companies.

Are you also looking forward to integrating RFID in your supply chain and manufacturing management system? If yes, get in touch with a reliable service provider to make the most of it. Please share your insights for which one is your preferred reason to integrate RFID in your supply chain management below in the comment section.

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