Supply Chain RFID: How To Use for Maximum ROI (Part 1)

Supply Chain RFID: How To Use for Maximum ROI (Part 1)

Supply chain RFID (Radio Frequency Identification) provides leading companies with rapid and measurable benefits throughout their supply chains. By taking the time to understand the technology's capabilities, organizations can increase operational control while reducing their costs of operation.

Here are some examples of how Supply Chain RFID can be used:

Example #1: Asset management

Fixed assets and capital equipment can be "labeled" with permanent RFID tags. Tools, machinery, vehicles and equipment can then be tracked by tag readers set-up strategically throughout the facility. The exact location and movement of these assets can now be tracked precisely. This eliminates the need for manual searches, saving both time and labor. Also, the system can be set to alert key employees in the event tools, equipment and other assets leave a specified area. This prevents costly theft and asset misplacement.

Example #2: Production Tracking

RFID can be used to track materials inventory and work-in-process (WIP). RFID tags used in the production process give precise, real-time views into all phases of wip. Often times, these are environments where barcodes are not a viable option. Using RFID in this manner can help dramatically reduce working capital needs and provide greater control over the production process.

Example #3: Inventory Control

Inventory tracking is a primary benefit when implementing RFID solutions.The technology allows for tracking and information collection in areas where tracking was not feasible before.

RFID tags accurately transmit information in environments that make barcodes unusable. The tags transmit through most types of packaging and will work in difficult environments (moisture, dirt, heat and chemicals). The technology is also ideal for and given unusual sight orientations as it doesn't require a direct line of sight between the item and the reader. RFID increases visibility and removes inventory "blind spots".

This type of accurate inventory control and insight allows an organization to reduce overall inventory costs since precise levels of safety stock are known. This in turn saves on labor costs associated with processes like stocking. Additionally, alerts or alarms can be established to eliminate shrinkage costs associated with theft of inventory.

The applications above are only a few real-world examples of how RFID is being used to save both time and money. The business benefits (ROI) associated with Supply Chain RFID are significant and should be explored for every part of your business.

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