How does RFID ease inventory management?

It’s a crucial task for a business to keep up with the ever-changing market and to manage and modify its stock as per the current trend in the market. It’s also crucial for them to have smart technology that can help them in inventory management.

But thanks to RFID technology, it has changed the way we manage inventory.

It has become the most proficient way in the current market to streamline inventory and warehouses.

So let’s have a glimpse of RFID technology.

 Glimpse of RFID Technology

RFID is a technology that works on radio frequency waves. It helps identify the objects automatically.

It uses the same technology that radios use; a radio tower sends its frequency to radio antennas, which help us connect through radio. In a similar way, an RFID chip will help you get in contact with RFID readers, which help you share the data as per your requirements.

RFID tags can be embedded in a wide variety of objects, including books in libraries, animals, vehicles, any product in shopping malls, birds, and even people, which automatically leads to tracking stocks with efficiency.

In this technology for inventory and warehouse management, the RFID tags used to get attached to the object, which we wanted to track and finally know about the stage of transit.

In the ever-evolving world of inventory management, every business is keen to improve its efficiency. Small retailers and large MNCs are all regularly evaluating their current capabilities and finding ways to use their resources efficiently while preparing to adopt new technologies that can take their performance to new levels.

One emerging technology that has received a lot of attention and has the potential to revolutionise the inventory management industry with efficiency is radio-frequency identification (RFID).

So let’s discuss the advantages of RFID.

Advantages of RFID

1. Cost saving

With the help of RFID, maintenance costs are decreased by almost 80% as inventory checking speed increases by more than 80% without any manual intervention, which helps in a decrease in labour costs.

Due to automation, there is transparency in inventory management, which helps identify the quantity of inventory needed.

Help to reduce expenses due to overstock and understock.

Thus, with ease and accuracy in inventory maintenance, employees can focus on more important tasks.

2. Increase in accuracy

In the past, asset tracking and inventory management were done manually or by minting records in books or Excel sheets.

Which was time-consuming or prone to errors.

But RFID helps automate the inventory management process.

RFID helps improve accuracy and reduce human error through automation.

It helps the management by allowing them to make decisions regarding replacement, repurchase, and price level.

Without RFID, businesses may have to bear the cost of excess inventory lost and a decrease in sales, which can lead to financial loss.

1. Efficiency in asset tracking

Utilising RFID allows you to track these assets through the entire supply chain loop and provides increased visibility on inventory locations. This way, RFID helps in improving returns and reducing theft or neglect.

 4. Real-time updates

For any industry, tracking the real-time data of their inventory is an enticing prospect. Especially for the one that requires an instant decision for the data.

RFID tagging also helps to prevent over-stocking or under-stocking of a product or component.

For instance, by using a databank with real-time data insight, warehouse operators can directly know whether the retail stock is running high or low and can plan accordingly based on market demand and current trends. This way, RFID will help businesses run their supply chains smoothly.

RFID can also help reduce shrinkage, as tags can be used to track individual items and identify when and where they were last seen.

 5. Increase in visibility

An RFID tag is a tiny microchip that contains a range of digital data about a particular item, which can be added in as per the requirement. 

Rfid is also used for stock security by positioning tag-readers at points of high risk, such as exits, and causing them to trigger alarms.

RFID tags are different from barcodes as a line of sight is not required, unlike barcode systems.

Hence, RFID tags give a more clear picture of our inventory, as the date storage range provided by RFID is quite good compared to the barcode system.

     6.Warehouse efficiency

After goods enter the storage area, the staff scans the goods in the storage area.

Quantity and expected quantity are kept the same, and we proceed with the next step.

RFID helps in locating goods out of mountains of stocks without any manual intervention.

The RFID chip system monitors the stocks 24/7.

User time for manual recording can be reduced.RFID tags can prevent overstocking on items such as perishable goods that have a short shelf life.

Tags are facilities on each stock that help them track and trace easily.

Conclusion

RFID is a boon to modern management, and by leveraging RFID technology, companies can improve their management and increase their accuracy and efficiency.

RFID will help boost its visibility and decision-making process. which helps them improve their business operations.

And for these, your business requires a team of experts who can help you customise or design a better RFID-enabled system as per your business requirements.

And when there is mention of a team of experts, silent infotech is the only answer.

Our expert team at Silent Infotech will help you meet your needs and bring your inventory management to the next level.