In the ever-expanding landscape of inventory management, there is a continuous focus on enhancing efficiency. Business organizations of varying dimensions are regularly analyzing their current capacities and looking for ways to make the most out of the existing infrastructure. They are also adopting brand-new technologies to reach unimaginable heights of prosperity.
One emerging technology that acquired widespread popularity is RFID or radio frequency identification. It revolutionized inventory management operations to a great extent. The following write-up explores the present condition of RFID tags – including their pros and cons. Please check them out now.
Define RFID Tags
All the RFID automation systems have a scanner that utilizes radio waves to communicate data with a tag. The tag has a tiny chip that allows the readers to read and interpret data for real-time updates. Each tag is encompassed in a material such as paper or plastic for additional protection and then affixed to various surfaces for tracking.
Most of the tags used to track inventory are passive, meaning they have no battery and derive power from the radio waves. Active RFID tags have a battery, are quite expensive, and are used to track heavy machinery like railway cars and trucks.
RFID Tags Pros
- Decreased Labor Costs
With labor costs accounting for approximately 55-85% of distribution center expenses, RFID seems like a viable solution. Inventory check-ins, counts, and shipment verifications are done automatically and quickly in a couple of scans without calling several employees to process them. The savings should be weighed against the cost of purchasing an RFID solution.
- Faster Scanning and Better Visibility
Unlike barcodes, RFID tags do not need any line-of-sight scan. It is possible to read the tags from a distance for quick inventory processing. The tags can also be read in any given orientation, thus, provide you with far better visibility with potential for more scanning locations and minute updates.
- Track Returnable Assets
For those organizations that use returnable assets such as pallets and containers, there is usually an important capital investment in need of protection. With RFID, you can track the assets throughout the supply chain and offer excellent visibility on various inventory locations. This has the additional advantage of enhancing returns and alleviating neglect or theft.
RFID Tags Cons
- Although RFID readers can be remote and fixed, you cannot scan them with a phone. This is limiting because it compels the employees to carry certain RFID readers to carry out the scans.
- RFIDs are a bit on the pricier side. They use specific readers, which you can purchase only from a limited number of manufacturers.
- RFID systems are prone to hacking. Remote devices are sometimes used to scan the tags at a closer range and copy the data.
Did you know that using RFID technology for inventory management has proven to increase accuracy by 15% compared to the conventional inventory tracking strategies and physical inventory checks in certain situations? In the retail industry, where accomplishing inventory accuracy is a huge challenge, none can deny the advantages of implementing an automated solution.
The organizations planning on investing in an inventory management solution must comprehensively evaluate the differences between readily available technologies such as barcodes and RFIDs. RFID makes sure one enjoys a desirable ROI, but barcodes seem like a practical and smart choice for a few sectors.
