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RFID tags or labels on pallets, cylinders, RPCs and other shipping containers can be automatically read at the dock door as they leave with an outgoing shipment. By matching the reading with specific shipment information in a database, manufacturers could automatically build a record of what specific shipping containers were sent to each customer. This information could be used to document cycle times, improve returns and recoveries and aid in disputes with customers about lost or damaged assets.

Production Tracking

Manufacturers can reduce their working capital needs between 2% and 8% by taking advantage of RFID to provide greater visibility into work-in-process tracking and materials inventory. By applying RFID tags to subassemblies in the production process, rather than to finished goods, manufacturers can gain accurate, real-time visibility into work-in-process in environments where bar codes are unusable. Industrial control and material handling systems can integrate with RFID readers to identify materials moving down a production line and automatically route the items to the appropriate assembly or testing station. This capability, which requires no human intervention to look up item serial numbers or other identification marks, provides the accuracy and labor savings needed to efficiently execute complex sequencing and make-to-order production.

Inventory Control

The main benefits to using RFID in the supply chain comes from improved inventory tracking, especially when the technology's capabilities are used to collect information and provide visibility in environments where tracking was not done before. Manufacturers, distributors, logistics providers and retailers can all use RFID for inventory applications, and in carefully planned systems, may share the same tags to reduce implementation costs. Because it can be read through packaging, without concern to orientation, without direct line of sight between object and reader and can withstand exposure to dirt, heat, moisture and contaminants that make bar codes unusable, RFID can remove blind spots from inventory and supply chain operations.

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