What is RFID?
RFID stands for Radio Frequency Identification, a technology used for object identification using radio frequencies (RF). To put it simply, RFID is similar to barcodes, but RFID tags don’t need to be scanned directly; they only need to be within range of an RFID reader, typically from a few to ten meters. At this point, the RFID reader can identify hundreds of tags within seconds.
The breakthrough of RFID technology has led to more advanced applications in the supply chain. Recognizing its potential, Managers have begun leveraging its potential to reinforce their supply chain’s precision, efficiency, and visibility, all of which significantly impact manufacturing and shipping operations.
RFID System
An RFID system consists of three components:
- Antenna: scans the RFID tags
- RFID tag: the RFID tag itself
- RFID reader: reads the RFID tag
First, data is stored in the RFID tag. When the tag is within range of the scanning antenna, electromagnetic energy activates the tag to transmit data via radio waves. These radio waves are received by the antenna, sent to the reader, and decoded into digital information.
3 Benefits of RFID Technology
After understanding what RFID is and how the RFID system works, let’s look at the outcomes of this technology.
1. Accuracy
Accuracy is often the primary keyword associated with RFID, and for good reason. In supply chains, RFID improves accuracy throughout the production process until the product reaches the customer’s hands. Compared to QR code scanning technology, RFID can increase packaging accuracy up to 99.9%. This helps reduce costly errors or customer refunds.
2. Visibility
Another key benefit of RFID in the supply chain is full visibility. Data from RFID generates reports that provide managers with a comprehensive view of the production process, including inventory levels, bottlenecks, or the performance of each stage. By enabling real-time, transparent insight into production status, RFID helps managers swiftly address emerging issues and simplifies factory management.
3. Efficiency
Another strength of RFID is the speed at which it can count and verify items or even entire cartons in just seconds. With its ability to rapidly identify different cartons, RFID can sort mispacked crates, significantly reducing labor costs and packing time.
RFID Technology at Each Stage of the Supply Chain
Factory
To gain a complete end-to-end view of the supply chain, RFID tagging must begin at the factory. After items are tagged and ready for shipment, they are placed in cartons and passed through an RFID tunnel. The reader reads the data, displaying precise details of the products. Once the correctness of packaging is confirmed, workers attach labels to the cartons and prepare them for shipping. At this point, an Advance Shipping Notice (ASN) is generated and sent to customers, informing them of exactly what they will receive.
Distribution Center / Store
When batches of goods arrive directly at stores or through distribution centers, staff can input RFID reads, verify orders, and check contents against shipping notes. This allows for a complete RFID process and new services within the store. At TradeLink, we provide direct shipping solutions. By shipping directly, importers save an average of 20% on distribution costs. Additionally, millions of dollars in inventory are reduced, resulting not only in a more efficient supply chain but also creating a stronger financial balance sheet.
Conclusion
In summary, RFID is used to track all items and cartons throughout the entire supply chain. The application process starts at the factory, where items are tagged and packaged, then moves to distribution centers or stores where goods are sorted and sold. Each time goods enter or leave a stage of the process, RFID identifies their identity, helping to detect errors for timely correction.
RFID’s technological superiority demonstrates its value in enhancing manufacturing efficiency, minimizing costs, and avoiding unnecessary refunds! Transparency, accuracy, and efficiency are huge competitive advantages in establishing long-term business credibility and trust.
—-
About TradeLink Technologies,
TradeLink Technologies (TradeLink) was founded in 1999 with a mission to create advanced supply chain solutions for global brands and retailers. We provide visibility, accuracy, and advanced distribution solutions for over 400 global brands and more than 50 logistics companies, leveraging a network of over 11,000 suppliers across 70 countries. With our latest local and cloud-based scanning and barcode applications, our solutions are scalable to fit businesses of all sizes. TradeLink’s strength lies in our industry expertise in supply chain management and utilization of cutting-edge technology. Learn more at: www.tradelinkone.com