RFID in Supply Chains
RFID helps run complex supply chains and take care of critical inventory by enabling end-to-end, real-time visibility across all modes, suppliers, and distributors.
Complex supply chains have a high degree of interconnectedness and interdependence. RFID technology assists in transforming this complexity into synchronized efficiency.
Supply chains face significant challenges such as ensuring proper visibility, guaranteeing quality and safety, and coordinating efficient operations.
RFID offers field-proven solutions to enable end-to-end visibility, speedier operations, and data-driven insights. In addressing these challenges, the technology helps deliver greater efficiency, resilience, and sustainability.
Inventory
Tagging
Monitoring
Inventory
Consignment inventory involves suppliers placing their goods in a buyer’s location until they are consumed or sold.
RFID technology plays a crucial role in enhancing the management of consignment inventory.
By attaching RFID tags to each consigned item, real-time visibility is achieved, allowing both suppliers and buyers to monitor inventory levels accurately. This visibility reduces the risk of stockouts and overstocking, as well as improves overall inventory management.
RFID-enabled consignment inventory systems provide a seamless way to track usage, automate reordering processes, and ensure that both parties have a clear understanding of the charging status.
Tagging
With source tagging, products are RFID tagged at the point of manufacture or packaging.
This approach allows products to enter the supply chain already equipped with RFID technology, enabling seamless tracking from origin to end-user.
Source tagging using RFID provides benefits such as automated data capture, improved accuracy in inventory counts, and reduced labor costs associated with manual tagging.
Retailers, for instance, can receive goods with RFID tags already in place, enabling faster and more accurate inventory reconciliation and shelf replenishment. This innovation optimizes supply chain operations, minimizes errors, and enhances customer experiences through smoother stock availability and purchasing processes.
Monitoring
Cold chain monitoring is critical to product integrity in industries such as pharmaceuticals and food.
RFID temperature sensors attached to shipments continuously monitor the temperature throughout the journey. If deviations occur, alerts are triggered, allowing corrective actions to prevent spoilage or degradation. This level of real-time visibility ensures that products remain within the specified temperature range, preserving their quality and safety.
RFID-driven cold chain monitoring not only prevents costly losses but also ensures compliance with regulatory requirements, making it an indispensable tool for industries where temperature control is paramount.
Impact of RFID in Supply Chains
+30% Forecasting Accuracy
Demand forecasting for more accurate inventory planning and reduced excess stock.
-40% Carrying Costs
Just-in-time replenishment with RFID, while maintaining required stock levels.
-95% Reduction in Counterfeiting
RFID-enabled authentication and anti-counterfeiting.
What are RFID vending machines?
RFID vending machines are automated systems that incorporate RFID technology to streamline and enhance the vending experience. These machines utilize RFID tags to enable secure transactions and provide real-time inventory tracking.
In healthcare for instance, vending machines are deployed by medical device manufacturers to securely distribute medical supplies and equipment, ensuring accurate charging inventory management with their hospital customers.
Vending machines have also gained traction in manufacturing as a means to efficiently manage and distribute tools and equipment.
One such example is Fastenal, a supplier of industrial and construction supplies, which offers RFID-equipped vending solutions. These machines allow employees to access tools and supplies by scanning their RFID badges, ensuring accountability and real-time tracking of usage. Another example is AutoCrib, a provider of automated inventory management systems.
Their RFID-enabled vending machines cater to manufacturing and industrial facilities, offering controlled access to tools, parts, and consumables. These solutions not only improve tool availability and reduce downtime but also provide data insights that drive informed inventory management decisions in industrial settings.
What are RFID mandates?
RFID mandates refer to regulations or requirements set by industries, governments, or organizations that dictate the use of RFID technology for specific purposes such as inventory management, traceability, or security.
In the retail industry, major retailers like Walmart and Target have implemented RFID mandates for their suppliers, demanding the use of RFID tags on products to enhance inventory accuracy and streamline supply chains.
In the pharmaceutical sector, the FDA has encouraged the use of RFID technology to improve the tracking and authentication of prescription drugs, ensuring patient safety.
Additionally, the aviation industry has seen mandates for RFID tagging on critical components.
These examples underscore how RFID mandates drive the adoption of technology to achieve efficiency, transparency, and compliance in various industries.
What are supply chain management systems?
Supply chain management systems are sophisticated software platforms designed to orchestrate and optimize the various processes, activities, and resources involved in the entire supply chain lifecycle, from procurement to distribution: SAP Integrated Business Planning for Supply Chain, McKesson SupplyManager for healthcare organizations, Oracle SCM Cloud, etc.
These examples showcase how supply chain management systems revolutionize industries by providing data-driven insights, streamlined processes, and improved collaboration among stakeholders.
Which tracking technologies are best for supply chain management?
Complex supply chains often utilize RFID in combination with other identification and tracking technologies to enhance visibility and efficiency.
Barcodes play a crucial role in numerous industries. QR codes are commonly used in the automotive industry for parts and vehicle traceability. Companies like Tesla utilize QR codes on components, enabling quick access to production data.
GPS tracking systems are extensively used in the logistics industry, with companies like UPS employing them to monitor the real-time location of shipments.
Moreover, Blockchain technology is gaining traction, particularly in the food industry. Walmart’s “Food Traceability Initiative” uses blockchain to track the journey of produce, ensuring transparency and food safety.
These technologies, alongside RFID, exemplify the diverse range of tools employed in complex supply chains to achieve accuracy, security, and streamlined operations.
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