In today’s world, businesses have become highly competitive and complex in all aspects. Visibility in the supply chain has become an important factor for businesses to increase efficiency, optimize operations, structure business processes, and provide customer satisfaction. One technology that has taken over the supply chain industry is Radio Frequency Identification (RFID).
To automate processes and improve the productivity of businesses, RFID tags have been a lifesaver.
It is an ideal technology that sources huge amounts of data related to supply chains as these tags are used all over the supply chain process for scanning, transporting, storing product information, etc.
This blog offers a brief understanding of supply chain visibility RFID Technology, solutions, and recommendations to improve the efficiency of supply chains while implementing this technology.
Let’s try to break down these points for simple comprehension.
What is Supply Chain Visibility?
Supply chain visibility refers to the ability of companies to maintain transparency in tracking a product from its shipment to its final destination.
- It includes having access to up-to-date data about inventory levels, transportation, the whole production process, and delivery status.
- This is possible only through specialized technology and software that allows every individual involved in the supply chain to access the same information.
Now that we have known about the visibility aspect, let’s take a closer look at the intricacies of RFID.
What Is RFID?
Radio Frequency Identification is a wireless system that mainly consists of two components: tags and readers. The readers refer to a device that has antennas that emit radio waves and it receives signals from the RFID tag.
- It encodes a range of information that allows businesses to uniquely identify each item by its various attributes like colour, size, shape, and style. This ensures that retailers have a clear understanding of their inventory levels making it easier to manage inventory, enhance consumer satisfaction, and minimize out of stocks.
RFID has been a game changer in the supply chain industry for enhancing supply chain visibility. Using RFID tags has provided real insight into businesses while optimizing the whole supply chain network. This helps businesses to stay ahead of the competition.
It’s also essential to understand the Importance of supply chain visibility RFID tech in the operations industry. Read further for better knowledge.
Importance of Supply Chain Visibility
Supply chain visibility enables shippers to reduce costs and improve customer satisfaction through proper management of inventory by limiting disruption and risk mitigation.
The main goal of supply chain visibility RFID systems is to provide advanced insights into how your supply chain works by reducing the risk factor.
- Firstly it is required to mitigate disruptions. Operating a supply chain requires strong data analysis with the help of RFID. Supply chain visibility may reduce these roadblocks and may help in getting exceptional results.
- Warehouse associates may make data-driven decisions related to the supply chain. They may move faster in operation processes when they know what’s coming on their way.
- Enhanced visibility helps in aligning supply chain visibility RFID to customer demands. So business must be flexible and adaptable.
- Visibility helps in accessing huge amounts of supply chain data. This helps shippers make decisions. This helps shippers make informed decisions and enhance customer experience.
Improvisation is a crucial factor at every stage of business. So let’s understand how we can improve supply chain visibility.
How to Improve Supply Chain Visibility?
The steps to improve your visibility have been listed below. One should follow these steps to remain ahead of the competition.
1. Mapping Processes
The first step is to outline procedures to identify disruptions and bottlenecks.
- Mapping product movements from the suppliers to the consumers and tracking communication methods helps in maintaining operational efficiency. This also helps in uncovering reasons for lost items, any delays, or communication gaps.
- Identifying weak areas in supply chain visibility RFID that need attention allows teams to develop strategies for smoother operations and better visibility.
2. Enhanced Communication
Communication is crucial for enhancing supply chain visibility.
- Clear and consistent communication keeps everybody informed and reduces any kind of confusion. There might be external factors like a spike in demand or weather that may make visibility a challenge.
- Transparent communication helps in building stronger relationships with suppliers and enhances collaboration. Implementation of traceability features aids in real-time shipping of goods. Also seeking timely feedback ensures effective communication.
3. Data Collection and Analysis
Data analysis and collection are essential parts of supply chain visibility.
- Software system helps in data collection and analytics, and the generation of reports with important matrices like sales numbers and inventory levels.
- It is important to share this data among the distributors, suppliers, and the members of the team to enhance collaboration and unity in the supply chain. Different sectors can provide them inside contributing to informed decision-making.
4. Using Updated Technology
Outdated systems and disconnected applications may hinder the supply chain visibility RFID mechanisms. Manual data entry reduces accuracy and compatibility with the software.
- Timely Technological upgrades like electronic data interchange and vendor management inventory may improve efficiency and accuracy. These tools facilitate the sharing of real-time data, and provide insight into the inventory levels and the movement of products.
- Upgrading software supports better communication and collaboration with suppliers boosting overall profitability.
FAQs: Supply Chain Visibility with RFID: Strategies and Best Practices
What is a Supply chain command centre?
A command centre is a system that involves the integration of internal data sources with external market signals. This helps in making improved decisions around problems and scenarios that may occur in a supply chain visibility RFID system.
What is the meaning of Cost to Serve?
Cost to Serve is a measure that shows all the costs incurred in a supply chain network. It focuses on improving the profitability of individual customers.
Is Supply chain visibility software suitable for all businesses?
Yes, it is well-suited for every type of business be it small or mid-sized enterprises. Software may help in managing costs and improve customer satisfaction.
Conclusion
Earlier supply chains were built with the focus mainly on the supply chain process. Analysis of the movements of goods as they go in and out of the warehouses and adopting technology has been the key to improvement. However, the rise in technology developments has led to a shift in the whole industry. With the continuous growth of this industry, supply chain visibility RFID becomes important. It can be beneficial in preventing late deliveries and improving the overall workflow
Qodenext is one such company that provides you with crucial applications like supply chain visibility and brings intelligence to your business. So, make a shift in your processes today.
