Radio Frequency Identification (RFID) technology has been there for many decades but today RFID is being increasingly used. RFID is a system that transmits the identity of the product in the form of a unique serial number wirelessly. RFID, a type of Auto-ID technology is used to reduce time and labor while also improving real-time data accuracy.
Planning and controlling of the warehouse facilities and systems has become more complex in supply chain warehouse operations. Warehousing requires performing routine logistics operations like stock storage, order status, paper processes, sorting, loading/unloading, and customer service. When the utilization of warehouse space is not done properly, manual errors, wrong identification of the product while receipt and dispatch, and locating items in the warehouse all impact the productivity and profitability that resulting in losses.
The RFID-based warehouse management system is an excellent real-time business tool providing help in managing the supply chain, and covers goods entry, pick-up, checking, delivery, and other operation; all of this increases profit.
The RFID-based warehouse management system helps to improve the efficiency of warehouse management and makes fast self-recording of receiving and delivery.
RFID in warehouse offers:
• visibility of real-time information
• fast locating of products
• possibility to record losses
• ability to plan product locations
The RFID tag has a microchip that is attached to a radio antenna mounted on a substrate. It connects products to the internet for tracking purposes and the information is shared with businesses across the supply chain. You can find two types of RFID systems; that is active and passive. There are no transmitters and they simply reflect back radio waves originating at the reader antenna. Active system RFID transponders are placed on products then information is accessed to pass it to a computer.
Active tags are used for large assets such as cargo containers, rail cars, and those that are transported long distances. Passive tags lack power sources and thus require no maintenance and are less expensive. For tracking products, often active and passive systems are combined to provide visibility in real-time.
Keeping track of a large number of cartons requires time and labor. But with RFID implementation is easy and also it can improve information management. Every cargo is equipped with an RFID tag and the information is stored in the central computer. When the cargo is moved in or out, the read-write equipment registers it and the data is sent to the backend system. This makes the management center manage the products leaving the storage or coming in.
The information got with RFID can lead to important improvements as the tracking of the products can be done in real-time with accuracy. The products in the warehouse are easily located as all product movements are tracked and the information is registered in the system.
Benefits of RFID based Warehouse Management System
• Smoother running a business; when you know precisely what and where inventory is, this reduces out-of-stock items and provides a more accurate real-time picture of availability.
• Reduced labor costs as the workforce needed for tracking and warehouse management is reduced.
• Reduced-order entry errors and improved employee productivity.
• Reduces warehouse space requirements.
• Provides the information required to implement inventory management and a significant positive impact on the company’s profitability.
• Instant access to the order database and on-the-spot visibility for the incoming material for immediate shipping.
• Access to real-time information provides the right shipment delivered to the right dock.
• Advanced data capture capabilities eliminate potential customer disputes.
• Quick scan of RFID tag provides instant verification.
RFID-based warehouse management system can collect, transfer, check, and update mass data on daily goods entry and delivery, so the labor intensity is decreased and errors like fault scanning, miss scanning, and re-scanning in manual operations are also avoided. All this improves efficiency and accuracy. With RFID technology, reduction of labor costs, gradual unification of the standards, and less error rate is a boon. An effective combination of WMS and RFID is a key factor to improve the competitive power of enterprises and the efficiency of the supply chain.
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