Radio Frequency Identification Technology (RFID) is not just another hi-tech gadget for managers who want to be trendy and promote a “digital” logistic flow. It may have been perceived as top-of-the-line in its early days, but right now RFID labeling has survived the perception of latest fad and has become a reliable tool for companies worldwide.
What Does RFID Labeling Do In Fact?
A RFID label consists of a computer microchip and a printed antenna. Thus, it can store and transmit data in a higher volume and with a greater speed than classic barcodes. To make a clear differentiation between the two technologies:
- Barcodes show the status of an item at a certain moment in time and in a specific place;
- RFID labeling stores information from the entire journey made by the item, from the production facility, to the customer’s doorstep.
This makes RFID the best merchandize tracking technology companies can access right now to monitor and improve their logistic flow. It is surprisingly, therefore, that the rate of adoption of RFID labeling is not as high as it was expected in specialized forecasts.
The key reason for this could be traced in the lack of compatibility between this new generation tracking technology and older packaging materials and warehouse equipment. Yes, implementing new technology means upgrading logistics and packaging materials. But it is truly beneficial and today we will show you the key features and benefits of RFID labeling for your logistic flow:
1. Implementing Kanban Principles in Manufacturing
Kanban principles improve productivity, reduce wastes and help companies keep track of the balance between expenses and revenues. To implement this manufacturing philosophy, companies need to track and correlate customer orders with the quantity of manufactured products at each state of the work process.
RFID labeling solutions are a perfect fit for Kanban processes. Since they can store information which can be edited, added to and monitored in real time, these labels are an added benefit to the cost saving principles of Kanban.
2. Improved Fleet Management
Whether your company operates in merchandize transportation or you prefer to have your own distribution fleet, you need to keep your vehicle moving as much as possible to achieve full ROI. As the specialists from Logistic Packaging noted on many occasions, this does not happen all the time.
Lack of coordination between workers in the warehouse and the orders coming from the central office increases dwell times for trucks and trailers. This means downtime, when the trucks are not producing revenues for your company. The logistic flow usually gets stuck during the phases or order picking and preparing the packing list. Using RFID labeling speeds up this process even more than using traditional barcodes, eliminates human error and keeps your trucks moving all the time.
3. Product Pooling and Distribution Made Easy
Warehousing is one of the industries where a smooth logistic flow is of the utmost importance. Orders usually involve products from various manufacturers, cross-shipped from other warehouses, meaning a lot of paperwork, human labor and the unavoidable errors.
RFID labels make everything simpler and more efficient. Just one employee equipped with a handheld RFID reader can put together an order, prepare the paperwork and sign off the transportation to the end customer.
4. Fewer Overheads, Less Manual Labor
At any point in the journey of a product from the moment it starts being manufactured until it is delivered to the store or end customer, there are overhead costs inflating the sale price. Since price is a key factor in the customer’s preference for a brand over another, the competitive edge in this respect belongs to companies who can reduce overheads.
By reducing manual labor, handling and the number of phases in the manufacturing and distribution of their products, companies can effectively reduce overheads. The single item which helps them achieve all these – RFID labeling.
5. Better Customer Satisfaction
Finding and keeping loyal customers is more and more difficult these days. By improving your logistic flow and reducing human errors, through the use or RFID labeling, you will be able to deliver your products faster, have fewer mistakes in order picking and keep your customers happy.
These key benefits are certainly appealing to any logistics manager and can be easily achieved by deciding to make the shift from classic merchandize tracking procedures to RFID labeling.