Are you thinking of upgrading to RFID? Justifying an investment in RFID for your supply chain isn’t always easy, despite the numerous advantages the technology offers.
RFID requires investing in readers, scanners, printers, and supplies like those produced by our hardware partner Zebra Technologies. It also helps to have best-in-class software to take advantage of all the data options RFID presents like our RainVue cloud-based software.
But when you do have the best hardware and software, and a robust wireless network, you can get greater visibility into your supply chain and allow your manufacturing or transportation and logistics business to become more productive. Better productivity and efficiency will ultimately lead you to more profits.
Before you move too far into your research with RFID, make sure you understand what problems you want to solve in your business. You want to have a full understanding of your needs and have some clear-cut goals you want to accomplish. Begin with the end in mind.
Here are some reasons you can justify transitioning to RFID in your supply chain:
Reduced Labor Costs
RFID can help you reduce labor costs and improve employee productivity. With RFID, you are no longer asking employees to complete manual or barcode inventory or asset counts. Your employees are no longer required to scan thousands of barcodes, one scan at a time. Instead, employees can push a button and have your count in seconds.
Improved Asset Visibility and Traceability
RFID can increase asset visibility. RFID allows you to tag assets and then read those tags from anywhere in a facility. You know the location and quantity of your assets in real time. You can also track shipment status, the location of a shipment, and other traceability data. Similarly, your employees can track down tools, assets, and materials much easier than before. Because RFID improves tracking, it is an effective way to cut down on thefts and other similar issues.
Perhaps one of the most significant benefits of RFID technology is the extent to which it will improve visibility. RFID creates a more timely and more complete picture of your assets and eliminates actions that hinder your progress like misplaced materials.
RFID can also reduce errors, particularly with inventory. When using RFID technology, you should expect at least 95 percent inventory accuracy. Once everything is fine-tuned, you can approach 100 percent inventory accuracy. RFID will eliminate your miscounts and other inevitable human errors if you are using other means to count inventory and assets. RFID can also help you make sure your inventory is appropriately labeled and scanned effortlessly.
If you are disappointed with the amount of data you get from barcodes, RFID is an excellent solution to your problem. RFID technology can read up to 200 RFID tags at once. On each tag, you’re able to store up to 100 times more data than a barcode. You can use this information to improve decision making, deliver shipments better, and take the guesswork out of having to replenish inventory or stock. There are no limits on how much or what data you store. RFID helps you create whatever real-time data you need to increase productivity.
Enhanced Supply Chain Visibility
With software and RFID technology, you can have real-time location status information for your parts or shipments. If you need to track your inventory or react quickly to a problem, RFID allows you to do so much faster than traditional barcode technologies.
Increased Work Efficiencies
RFID empowers your workers to capture data in any environment accurate quickly. Scan cartons in seconds or scan one item at a time. Forget worrying about harsh work environments with dirt, chemicals, or dust—RFID tags can function with no problems. Get better reporting for compliance requirements. Use RFID to get a better handle on space utilization in real time so you can manage stock and locations.
You’ll reduce your operating costs with all these increased operational efficiencies.
At Versona, we are experts in understanding the relationship between your processes and how technology like RFID can improve them. Give us a call today, and we can talk about how we eliminate the risk of implementing an RFID system.