May 17, 2023
Among the central focuses in handling the fast and modern real business environment are proper tracking of assets and fast inventory management. Innovations and modern and unique ways have always been sought by companies to improve the control process, reduce costs, and optimise inventory activity. One of the technological advancements that have demonstrated potential interest is radio frequency identification (RFID). Bearing in mind all the benefits these RFID tags may offer, the technology presents a revolutionary concept in inventory management and asset tracking. In this article, we will discuss why the technology employed for the RFID tags is the future of the asset tracking system - the utilisation, benefits, advantages, and potential uses of these radio frequency devices.
An RFID tag is an electronic device for receiving, processing and resending a signal. RFID technology can recognise living beings and inanimate objects, including containers, vehicles, and clothing. The radio frequency identification method provides unlimited possibilities for improving business processes. The cost of transponders is included in the price of the final product, as the purchase of tags is an ongoing expense.
RFID is based on the transmission and recording of data. The information is recorded on the chip by means of the radio wave method. The stored information is then read from the chip using a special device. A small object is glued on or embedded in the product. The tag can contain information about the product and the direct manufacturer. Antennas are provided to transmit information to the transceiver.
One of the most significant benefits of RFID tagging for inventory management is the vast improvement in accuracy and efficiency. Traditional techniques for tracking set inventory levels, such as barcodes, demand manual scanning of each and every item, which is not only very time-consuming but also subject to a high potential for human error. RFID tags, in contrast, are readable automatically by an RFID reader even when several of these tags are within sight. Consequently, it enables fast and accurate stocktaking, thus saving much time that would have otherwise been spent on laborious stock takes.
Example: A major retail chain applied RFID tags in its asset tracking process, and this reduced the time spent checking inventory from several days to just a few hours. This application made it possible for the retailer to not only increase operational efficiency but also to maintain more accurate stock levels so as to minimise chances of stockout and/ or over-stocking.
RFID technology provides a real-time view of inventory levels and asset locations. Greater visibility in this respect is very important for companies with big warehouses or multiple storage places since it is easily traced across the different sites. With RFID tagging, businesses can monitor the movement of goods throughout the whole supply chain, ensuring the assets are at the places they are supposed to be at certain times.
Example: In an automotive manufacturing industry, RFID tags are basically employed to track numerous parts and accessories throughout an assembly line. Thus real-time tracking will prevent lags in production that are due to lost or wrongly placed parts and ensure assembly is running normally.
Because RFID tags are applied, labour costs can be dramatically reduced through the cutback in hours spent checking the inventory and hours spent managing the assets in stock. This means that the employees are now not highly involved and participating at the cash register and literally counting goods for hours or even days, but they channel their efforts toward more valuable, higher-order operations.
Statistic: Auburn University claims that the decrease in labour costs derived by companies that have adopted RFID technology in their supply chain operations reached as high as 50%. A company with a big inventory will benefit greatly from this, as it will up its bottom line.
RFID tags also facilitate strong security and eliminate the prospect of any loss or theft of the asset. RFID technology, in the tracking and monitoring process of goods or any asset, can indicate the movement of any item without permission in real time. Any unauthorised carrying away of any item may raise an alert in the system and prompt the safety personnel to take immediate steps.
Example: A drug company had deployed RFID tags to their high-value medications within the stock. The system was enabling quick detection of any unauthorised person in case they attempted to steal a crate of medication from the stock, to prevent prospective theft.
RFID capabilities are, to a large extent, versatile and can be implemented in any business, big or small, in virtually any industry. From a small inventory to even colossal populations of assets, RFID tags could easily be incorporated into the already existing inventory system and, if there is the need, scaled up. Finally, RFID tags can work within and around retail stores, warehouses, outdoor storage yards, and manufacturing plants.
Example: A small e-business was managing an inventory of electronics for which they installed RFID tags. The situation was easy to increase the RFID system, and the same applied to an elevated level of inventory in sustaining efficient operations without afresh configuring the system for asset tracking.
Of the many questions about implementing RFID technology, one of the most common is this: how much does an RFID tag cost? A huge swing in RFID tag pricing really depends on its type, quantity purchased, and special features added. Thus, on average, passive RFID tags could cost anywhere from $0.10 to $0.50 per tag, making it so much within reach for a great number of businesses. Active RFID tags, which are embedded with a power source and have a longer read range with added features, can cost $5 to $15 per tag.
While the cost of the RFID tags and readers is indeed more significant than that of a barcode front end, all the added benefits of RFID typically pay dividends in the investment over some period.
RFID technology has a wide range of potential applications across various industries, making it a versatile solution for inventory management and asset tracking.
In the retail sector, RFID tags can be used to streamline inventory management, improve stock accuracy, and enhance the shopping experience for customers. By providing real-time data on inventory levels, retailers can ensure that products are always in stock and available for purchase. Additionally, RFID tags can be used for loss prevention, reducing shrinkage due to theft.
Statistic: A study by GS1 US found that retailers using RFID technology saw a 99% improvement in inventory accuracy, leading to a 50% reduction in out-of-stocks and a 30% increase in sales.
In healthcare, RFID tags are used to track medical equipment, medications, and even patients. This technology helps healthcare providers ensure that the right equipment and medications are available when needed, improving patient care and reducing the risk of errors. Additionally, RFID tags can be used to monitor the movement of patients within a hospital, enhancing security and ensuring patient safety.
Example: A hospital implemented RFID tags to track its inventory of surgical instruments. The system provided real-time data on the location and status of each instrument, reducing the time spent searching for missing items and ensuring that surgical procedures could proceed without delays.
Manufacturers use RFID tags to track raw materials, components, and finished products throughout the production process. This real-time tracking helps manufacturers optimise their production schedules, reduce waste, and improve overall efficiency. Additionally, RFID tags can be used for quality control, ensuring that products meet the required standards before they are shipped to customers.
Example: A consumer electronics manufacturer used RFID tags to track the movement of components on its assembly line. The system provided real-time data on the status of each component, allowing the manufacturer to quickly identify and address any issues that arose during production.
In logistics and supply chain management, RFID tags are used to track shipments as they move through the supply chain. This real-time tracking allows companies to monitor the status of shipments, reduce transit times, and improve overall supply chain efficiency. Additionally, RFID tags can be used to automate the receiving and shipping processes, reducing the time and labour required for these tasks.
Statistic: According to a report by the International Journal of Production Economics, companies that implemented RFID technology in their supply chain operations saw a 20% reduction in transit times and a 10% improvement in overall supply chain efficiency.
As companies seek ways through which they can be more efficient, reduce their costs, and have secure activities, adoption of RFID technology for inventory management and asset tracking will grow. The increasing demand for real-time tracking and automated inventory management solutions is likely to make the global RFID market worth more than USD 18.68 billion by 2026.
Many changes are still foreseen in RFID tags as time goes by, with each new change in technology bringing even more power and possibilities. For instance, increased reading ranges, improved endurance, and more sophisticated security features of RFID tags will further expand potential fields of use in all industries.
RFID tags are highly potent and versatile in solutions for the management of inventory and tracking of assets, with very many benefits over traditional methods. From accuracy to efficiency and security to scalability, RFID technology in managing assets and stock has been changing businesses in numbers. With this kind of continuous development, its adoption will continue growing until, ultimately, RFID tags represent the future of asset tracking across a wide range of industries.
In a word, every business interested in profitability in the competitive world of today should take an oath of the efficiency and cost-saving benefits which have been brought to businesses by investing in RFID technology. In retail, healthcare, and the manufacturing/logistics sector, the tags from RFID have already proved to be an efficient means of optimising inventory management processes, hence making a business successful.
