RFID technologies are becoming more and more common in inventory tracking in warehouses. RFID solutions for inventory tracking in warehouses are crucial for businesses of all types. It provides reliable, real-time inventory monitoring data by transmitting data from an RFID tag to a reader. Implementing RFID technologies can really transform your business and provide you a competitive edge.
What is an RFID tag?
Radio frequency identification, or RFID, is a technique for tagging products so that they can be monitored by a system. RFID tags are small transponders that can be read by computers and have distinct serial numbers. They are readable by an RFID scanner, which is a portable device that recognizes the number on the tag and stores the data in a database.
What is Inventory Management with RFID?
RFID-enabled inventory management is a unique way of tracking and monitoring your products. It’s especially helpful for companies that need to effectively manage a large number of products.
RFID tagging has become an essential part of inventory management. It helps to make sure that products are tracked accurately and that the inventory is updated regularly. This is crucial for businesses that sell products online because it helps them prevent expensive mistakes like overstocking and understocking.
How Does an RFID Solution Work in Inventory Tracking?
RFID tags are small electronic and battery-powered devices that can be read by radio waves. They have a specific electrical signature that recognizes them as part of an inventory system. The tags are typically the size of a grain of rice, and have a projecting antenna that enables them to be read up to 30 feet away. The key benefit of using RFID tags is that you can read the data they contain and use it to track inventory items around the warehouse.
Does RFID Increase Inventory Accuracy?
When compared to manual inventory checks and conventional inventory monitoring techniques, using an RFID inventory system has been proven to increase inventory accuracy by up to 13% in some cases. There are certain advantages to having a more automated approach, particularly in the retail sector where maintaining inventory accuracy is a constant problem. In a warehouse setting, the costs of implementation could occasionally outweigh the advantages. It can be useful in circumstances where a very high inventory accuracy rate is necessary, but there is always a balance between hardware and labor costs that should be taken into consideration.
Benefits of Using RFID Tags for Inventory Management
There are various advantages to using RFID tags for inventory management, including lower labor costs and quicker scanning. Here’s a look at how using RFID tags for inventory management might be advantageous.
- Improved visibility and faster scanning. RFID tags may be scanned from a distance for quick inventory processing because they do not need to be in “line-of-sight” like barcodes. Additionally, they can be read in any angle, giving you better access to your inventory and the possibility of more regular updates and scanning places.
- Reduced labor costs. With labor costs making up between 50 to 80 percent of the costs in distribution centers, RFID has the potential to be beneficial in this regard. Without the need for several people to process them, inventory check-in, counting, and shipment verification can be completed swiftly and automatically in a few scans.
- Tracking of returnable assets. Businesses that use a returnable fleet of assets like containers and pallets, there is often a sizable capital investment to protect. Utilizing RFID gives you greater visibility into inventory locations and allows you to follow these assets across the full supply chain loop. Additionally, this will increase returns and decrease theft and neglect.