the use of RFID tags in logistics and warehouse does not slow down

The Unexpected Comeback: RFID Tags in Logistics and Warehouse Management

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When QR codes emerged and became established as the standard for accessing information by scanning with a mobile phone, everyone expected the swift and quiet demise of RFID technology. However, RFID tags in logistics and warehouse operations are making a strong comeback.

One of the most important aspects to consider here is data confidentiality. Adopters of QR codes found out, at significant expense, one of the biggest flaws in this technology: anyone with a mobile phone can scan a code and access potentially sensitive information.

RFID Technology Remains the Norm in Logistics and Shipping

Radio frequency identification (RFID) relies on radio waves that read information written on a chip. Despite its very small size, the chip embedded in a RFID tag can store large quantities of information. More importantly, the information can be edited, updated or deleted.

Thus, RFID is the most effective way for:

  • Identification
  • Tracking
  • Sharing sensitive information.

Since the implementation of RFID technology involved high costs and the use of specialized devices, this is only available to relevant stakeholders and involved parties in the supply chain, such as:

  • Manufacturing companies
  • Warehouses
  • Transportation companies
  • Distributors
  • Retail partners.

Why Are So In-Demand RFID Tags in Logistics and Warehousing?

Let us now examine some of the most important reasons why RFID continues to lead in the preferences of logistics and warehousing managers among other merchandize tracking solutions.

1. Time-Saving Solution

Employees using RFID readers can quickly perform stock taking or identify products for order picking. Also, during transit, merchandize can be easily identified at various checkpoints, including customs.

This saves a lot of time for everyone involved in the supply chain, from the producer shipping the goods to the retailer accepting them and preparing them for sale on the store aisles.

2. Automatic Data Registration

When RFID technology is fully implemented, all the processes related to FIFO, FAFO or other systems for managing stocks can be automated. The entire process of selecting the goods for order picking to confirming delivery in good condition is simplified and free from errors.

3. Easy RFID Tag Embedding on Returnable Packaging Materials

The widespread use of RFID tags in logistics is also justified by the ease of adding these tags to reusable packaging solutions, such as:

When discussing their packaging needs with the Logistic Packaging team, many clients include RFID chip embedding as customization option. At the present, we can handle almost all types of request of adding this type of tracking technology to our standard or customized packaging materials.

4. Effective and Tampering-Free Product Traceability

In critical industries such as pharma, food, automotive and electronics, it is essential to be able to trace each product to its place of origin. Moreover, the end client (often a manufacturer or retailer) must have the guarantee that the products are genuine and they were not tampered with during shipping.

RFID tags offer this guarantee, as the information embedded in the chips cannot be accessed and modified by an unauthorized party. Also, any authorized party noticing signs of interference, can add this detail to the tracking data, allowing both the sender and receiver to make informed decisions related to the compromised items.

5. Useful for Just In Time Production Planning and Stock Replenishment

RFID tags are essential in Kanban systems and for Just In Time (JIT) production planning, which is the standard method in the automotive industry.

Tagging various components, parts or WIP with RFID labels helps both employees and automated systems (ERP and warehousing software) make sure that stocks and inventories are kept at adequate levels.

Logistic Packaging offers RFID tags embedding into packaging materials as customization options for a wide range of products. Send us an email to select the best packaging for your needs and discuss customization details with our specialists!