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RFID has the potential to improve efficiency and visibility, cut costs, delivers better asset utilization, produce higher quality goods, reduce shrinkage and counterfeiting, and increase sales by reducing out-of-stocks. It can even help improve the safety of the food and pharmaceuticals that consumers buy.

By deploying RFID, manufacturers will benefit from increased inventory visibility, more efficient use of labor, better line operations and improved fulfillment. Retailers can benefit from reduced inventory, because the improved supply chain visibility allows better demand forecasting, lower safety stocks and lower order cycle times. Automated data capture through RFID will also cut costs by reducing labor in the store and warehouse, and fewer sales will be lost through out-of-stocks.

Asset Management

RFID tags can be permanently attached to capital equipment and fixed assets including pallets, RPCs, cylinders, lift trucks, tools, vehicles, trailers and equipment. Fixed position readers placed at strategic points within the facility can automatically track the movement and location of tagged assets with 100 percent accuracy. This information can be used to quickly locate expensive tools or equipment when workers need them, eliminating labor-wasting manual searches. Readers can be set to alert supervisors or sound alarms if there is an attempt to remove tagged items from an authorized area.

By tracking pallets, totes and other containers with RFID, and building a record of what is stored in the container as items are loaded, users can have full visibility into inventory levels and locations. With visibility and control, manufacturers can easily locate items necessary to fill orders and fulfill rush orders without incurring undue managerial or labor time.

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* Contributed by: -
Narendar Lokwani,
Alumni of IIM Bangalore,
Currently working as Business Development Manager at Aztecsoft, Bangalore.