The demand for products and services keeps on increasing with accessibility. Companies have started opted new technologies for the uplift of efficiency. In this evergreen world of inventory management companies of all scales are continuously assessing their current abilities and searching methods so that as much as efficiency can be made available. It is as crucial as ever for operations management to do the due dedication of complete research and an appropriate ROI analysis to understand it completely.
Emerging technology has gained a lot of attention with the potential to transform the inventory management industry and that is radio-frequency identification(RFID). Now let us understand the meaning of RFID for inventory management.
Define – RFID
RFID is a technology that has encoded data related to a product in a tag or label. It can be recognized by a certain machine with radio waves. The tag itself consists of a microchip that permits the reader to read the data and also write data to the tag for real-time updates.
RFID system contains three components: RFID reader, tag, and antenna. Advanced asset tracking and inventory management system depends on an RFID subsystem of a logistics mobility solution that assists several application domains.
Inventory management and asset tracking solutions have a SQL Server database as its back end. Another major benefit of RFID is it can scan more than one goods or object at a time and therefore it also saves a lot of time.
Pros of using RFID for inventory management
Using RFIDs for inventory management systems provides multiple benefits for example minimal labor costs and rapid scanning. Given below are the benefits of RFID:
Lesser labor costs
Manual inventory management is not only consuming time but also costs high. In manual task, it needs more employees so if you want to minimize your labor cost invest in an RFID inventory management system. This technology assures that one employee or worker is enough to accomplish the task and in manual management, many employees would be required for the same. This minimal labor cost will enhance profitability and will lift your revenue.
Better visibility
RFID scanners can be fixed onto a doorway, opening in the warehouse, so all the items in the warehouse that are going inside or out will be accounted for. Warehouse management system employees will have enhanced visibility in their stock and upgrade their tracking system with the help of this feature. This feature also provides more accuracy in the comparison of using barcodes if sometimes any staff member can forget to scan any product.
Assists with products in a warehouse
Warehouse space is the only element of complications for organizations. However, this is one of the major benefits of a warehouse management system. RFID readers can be placed at the entry points and exit points at your ease. And also permits real-time tracking of inventory as it goes out and comes inside the warehouse.
Ensure durability
With the help of RFID tags, it will guarantee you that they will cater to you for a long time whereas a barcode will become useless if there is any kind of dust or any particle on it. RFID tags are not affected by dirt and it is simple to customize them to work in diverse environments.
Holds huge amount of data
The RFID inventory tags have wide memories. It permits you to store huge amounts of data thus creating an enhanced inventory. With the help of this RFID system, you can enter a client’s names, details, price of a product, and other details.
Cons of RFID inventory management
As an RFID management system is beneficial it has several demerits. Let’s have a glance at it:
High establishment cost
Establishing the RFID inventory management system needs high capital. You require to buy the following items:
- RFID tags
- Inventory management software
- Fixed RIFD readers that rely on your needs
All these products are more expensive than the barcode scanner system. However, it will be an advantage to you in the future.
Interference with radio signals
RFID system refers to issues that face radio signal to the tag, so any type of disruption can decrease your RFID functionality. Most of the UHF and HF tags won’t run in such a type of environment. Thus always keep in mind that the tag you purchase has a low frequency or can be customized. An environment full of radio waves will interfere with data transmission and will reduce the functionality.
Upgrading cost
To maintain efficiency, you need to upgrade your RFID equipment. Changing the scanners and rest elements of the system might sound costly. In addition to these whenever you add a department in your firm you will need to improve the RFID system.
Compatibility issues
RFID tags differ across countries, regions, and industries. The application of an RFID management system for an international business can be tricky. If you want to get success in your business, you need diverse RFID systems in multiple locations.
How do businesses encompass RFID into supply chain management?
Supply chain management and logistics play a versatile role in RFID systems. In RFID business Supply chain management consist of four crucial steps and they are:
Integration
Enhanced integration is a key to the success of supply chain management. RFID tags permit organizations to capture facts for goods in transportation and share them with other supply chain partners without any effort. This is the reason Why RFID is a worthy investment for businesses that want to expand.
Operations
Regular operations affect organizations’ supply chains a lot. Managers who concentrate on daily operations develop a brilliant supply chain. RFID scanners assist companies in smoothly monitoring the product movement in warehouses. Inventory management becomes remarkably more efficient as companies get real-time information regarding warehouse activities.
Purchasing
Manufacturing the products without raw materials is a complicated task. That’s what makes purchasing necessary for the supply chain procedure. When you adopt RFID technology into your supply chain management, it offers you real-time visibility over semi-finished materials.
Not only this RFID technology authorizes you to analyze whether everything is according to your order shipment that significantly minimizes the time spent at the receiving stage and assists in moving products to the production phase.
Distribution
Logistics is referred to as cooperation and movement of products from the origin point to the final destination point. Brilliant logistics make distribution possible whether it is a distribution of raw supplies to manufacturers, warehouses, or clients. For organizations moving products, it is essential to maintain quality products, fulfilling all the needs, keep the cost minimal, etc. All this depends on the accurate and timely transmission of information.
Conclusion
The pros and cons of RFID in inventory management are crucial for organizations with a diversity of products to offer. As organizations look for innovative ways to enhance their supply chains, technology such as RIFD will play an important role in strengthening up operations. Like any warehouse technology, there are several questions about the methods to utilize this technology.
As advantages become more visible, RFID makers will become more motivated about recognizing, addressing, and terminating challenges. If you are an entrepreneur and thinking of RFID integrated app development then contact peerbits. We are experts in offering robust solutions with the least cost app development.
