Minimising the time it takes for goods to complete a workflow is a crucial operational requirement in fulfilling a supply chain. While barcoding systems have sufficed in the past, they’ve presented a few limitations in terms of operational efficiency, accuracy and futureproofing logistics operations for ease of integration with emerging technologies and business management systems.
For many businesses within the logistics and supply chain realms, it is easy to fall into the repetitive cycle of utilising legacy systems, due in-part to clientele requirements, as well as a lack of information on viable alternatives, such as an RFID system and the best way to approach the decision to implement.
When implementing an RFID system, it is important for logistics, warehouse and supply chain managers and entrepreneurs to be cognisant of the misconceptions and pitfalls - for instance, a prevailing misconception is that the implementation of an RFID system is costly, when in reality the costs attached are in effect volume contingent, in the case of RFID tags, while the other hardware costs have a multiplier effect on profit, in that, a significant reduction in inventory losses and an increase in operational efficiencies, such as higher visibility due to the implementation of an RFID system within the supply chain, renders the solution not only cost-effective, but profitable.
The return on investment can be realised as early as the first month of roll out, depending on whether the solution is being utilised correctly.
![Typical RFID enabled workflow. [source: ResearchGate].](https://lh3.googleusercontent.com/sFEbH6jk3BTAHBMaFe2ZDgLuDG_YejPIun5YqwXaJZvDj7jWZWplN-kCFFIYpBFV_EVmhpfGWo3z5ZPm9LDsFl-tk22I0Gmfsbs)
The effectiveness of an RFID system in a supply chain hinges on its proper implementation. This requires a deep understanding of the workflow it must follow, a clear grasp of the inventory involved, strategic placement of event trigger points, and vigilant oversight to ensure compliance. By adhering to these guidelines, logistics companies can enjoy advantages in inventory traceability, replenishment and fulfilment.
Conversely, improper utilisation of the system can lead to unmet objectives, negatively impacting the daily operation, customer experience, and ultimately, revenue and profits. Therefore, it is crucial to engage a skilled and experienced RFID systems provider who can offer the necessary training and support to avoid potential system failures.
![Typical RFID System structure. [source: ResearchGate]](https://lh3.googleusercontent.com/TKZBLibsHLlhQKD31tdZjRIm1C4K-SXvTWtTq-5lpq7K9UyRfOTe_Owlbixe--GTGNNEV1M1NDuP3pN2m2iHC-SQFgCkXVNqJpzQ)
Logistics businesses also have the ability to roll out the tagging process of the solution at manufacturing, to streamline their supply processes and enhanced quality control, amongst other benefits. RFID identifies, locates, protects and authenticates items in work-in-progress from docking points, into the warehouses and distribution centres. This also extends further, into point of delivery and allows for seamless returns processes with an added benefit of product authentication. In this manner, businesses are then also able to fully venture into paperless operational processes. This improves efficiency at multiple points of the supply chain, fuelling and sustaining growth, while reducing costs and the labour burden.
RFID technology is transforming logistics by enhancing visibility, improving efficiency and driving cost savings. As logistics and warehousing businesses continue to seek ways to optimise their supply chain operations, the adoption of RFID will become increasingly prevalent. By leveraging RFID technology, logistics companies can gain a competitive-edge, improve customer satisfaction, and contribute to a more sustainable future.
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