RFID is an important aspect of warehouse logistics. It is commonly referred to as Radio Frequency Identification. Through advanced tracking solutions, RFID warehouse management technology is transforming how businesses manage and control their warehouse operations. RFID tags store information that enables swift information access, and item tracking reducing errors and saving time.
So, no wonder that companies need this technology for all their warehouses. After all RFID in logistics boosts the overall efficiency. However, the adoption of the technology of RFID warehouse management comes with its own set of challenges.
But before you go and get RFID solutions for your business warehouse, isn’t it better to understand its advantages and disadvantages? This will allow you to understand how suitable it can be in optimising your warehouse operations.
Let’s see the impact of RFID on supply chain management- good and bad.
Pros of RFID Warehouse Management
Industries have been using RFID tags in their operations for decades now. These tags have simplified many processes allowing companies to save time and money. So, if you’re looking to optimise the efficiency of your warehouse inventory operations, consider RFID. here’s how it helps.
No More Manual Data Processes
Manual work takes time and money. In today’s fast-paced world, no business can afford to put in so much time to do work manually. The solution? RFID technology. It can automate many tasks.
RFID tech can help you locate any items inside the warehouse. What’s more – you can track the item even after it leaves the warehouse until it reaches its destination. RFID readers can scan the tags of the items at the entrance and exit of warehouses.
With realtor-time tracking of inventory, it can update the systems about the items that have moved out and the ones that are coming in.
Increased Accuracy
With RFID tags, there’s less risk of human error. When you enter information manually, usually there’s a chance of making errors. But by automating the process you can reduce that possibility. This accuracy boosts productivity and streamlines efficiency in your warehouse.
Increased efficiency due to using RFID warehouse management and logistics, can also have an impact on profits. When there are more accurate operations in logistics, items move out in time. This allows the companies to sell their desired quantity at their time pace, making profits and curbing losses.
Enhanced Inventory Visibility
Leveraging RFID in inventory allows you to have accurate and real-time information on your stock levels. This helps you to avoid overstocking and understocking.
Reduced Labour
Automating tasks means you will not need as many employees. hey enhance efficiency, decrease human error, and cut down the need for manual data entry, resulting in faster and more accurate production processes.
Improved Customer Satisfaction
As you increase the efficiency of your warehouse operations, you also make your customers happy. By streamlining operations with RFID warehouse management, increasing the pace of delivery and reducing errors, you can ensure your customers are happy!
No Line of Sight for RFID Tags
Perhaps the best reason, RFID tags remain a preference in the industries is because of their scanning capabilities. You do not need a worker to face the scanner at the tag to scan the items. You can scan multiple tags at once. That’s why many industries from retail to healthcare to manufacturing are using RFID tags.
Stores More Data Than Barcodes
Barcodes are essentially identifiers linked to a database where the item’s details are stored. In contrast, RFID tags store extensive data directly on the tag, encompassing various information types. This data can be accessed and utilised without needing a connection to an external database.
Not just all of these, with RFID inventory management you can optimise your floor layout.
Optimise Your Floor Layout
RFID tags offer you real-time data. You scan the barcodes and get all the information about the items. This means that at all times, you have a clear picture of what is happening on the warehouse floor.
You can know which items personnel are picking up and which items are being restocked. Using this data, warehouses can reconfigure inventory to optimise operations. Not just that they can make RFID warehouse management frequent and swift.
However, like all processes, there are some limitations to using RFID for asset tracking and inventory management. The roadblocks usually come in when certain industries have not yet familiarised themselves with the latest technology they need for RFID tracking.
Let’s see why some industries would lag.
Cons of RFID Warehouse Management
Even with all the latest tech and ever-evolving tools, not all can fully capture the advantages of RFID. RFID does come with some drawbacks, but that only happens when companies or individuals fail to grasp its concept. They are:
Lack of Understanding
Many individuals still fail to completely understand the RFID technology which can lead to errors and hesitancy from customers and stakeholders.
Privacy Concerns
With an increase in the use of technology, some people may be worried about non-consensual data collection or being tracked.
Interference
Radio waves used in RFID systems can be disrupted by materials like metal and water in your warehouse, leading to reading errors.
RFID Tags are Expensive
These tags are usually on the pricey side, individual tags cost more and parts are not replaceable. This means if a part of the tag becomes faulty, you have to replace the whole product.
RFID warehouse management has two types- active tags and passive tags. While passive RFID tags are more affordable, the cost can add up for bulk applications. Active tags with batteries are significantly more expensive, impacting large-scale deployments.
Interference Problems
While it’s true that you don’t need a line of sight to “read” the tags, there still exists a problem. You can’t just read these tags from anywhere at any angle or in all conditions. If there are physical barriers between the reader and the tag then scanning it becomes a challenge,
No Standardisation
Inconsistent standards for RFID tags and data can cause headaches for international supply chains. Different regions may require incompatible systems, raising costs and complexity.
Knowing all the pros and cons of RFID warehouse management, you can adopt the best practices. This ensures you can harness the full “power” of RFID tags.
RFID in Warehouse Management Best Practices
- Define Your Clear Goals: Finalise what you want to achieve with RFID technology in your warehouse. Align them with your business objective.
- Do a Pilot Test: Don’t jump in! Run a small-scale RFID pilot to iron out wrinkles and confirm it delivers the benefits you expect.
- Choose the Right Hardware and Software: Choosing software and hardware that is compatible with your existing systems and meets your business needs is crucial.
- Train Employees: Empower your team with RFID training to seamlessly integrate it into their workflows.
- Monitor: Regularly monitor and analyse the system’s data to identify optimization opportunities and keep your inventory management sharp.
All of these help in driving efficiency and cost savings through data-driven RFID warehouse management.
FAQs: Pros and Cons of RFID in Warehouse Inventory Management
What determines the cost of RFID tags?
The price of the tags depends on their industry of use and their purpose. Usually, RFID tags are mostly useful in retail or logistics. Such tags are meant for one-time use only.
It depends on the tag’s RFID chip, memory size, durability, whether it’s tamper-free, heat-resistant,anti-freezing, and how it reacts to chemicals- all of these determine the cost of the RFID tag. Usually, active tags are more expensive than passive ones.
How much information can RFID tags store?
RFID tag storage varies: simple IDs hold just a number, while industrial tags store product details (up to 2KB). High-memory tags (4KB-8KB) exist for aviation, with military versions reaching 128KB.
What are the three types of RFID tags?
The three variants of RFID are low frequency (LF), high frequency (HF) and ultra-high frequency (UHF).
Conclusion
RFID warehouse management enhances efficiency through faster, more accurate data collection. While initial costs and potential interference exist, understanding the pros and cons allows you to leverage RFIDs power for streamlined operations.
Qodenext provides modern supply chain solutions, including RFID technology. Learn how we can streamline your operations and boost profits.
