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RFID technology is increasingly being used in warehouses to increase productivity and efficiency.
Roqhaiyeh Eghbali from OLIMP Warehousing was quoted in Supply & Demand Chain Executive stating that Radio Frequency Identification (RFID) technology:
“is transforming supply chain and logistics operations by providing unprecedented visibility, efficiency, and control.”
RFID has several benefits that Eghbali claims make it better than barcodes. A key advantage is that RFID uses electromagnetic fields to identify items without requiring line-of-sight. An order picker with an aisle picker trolley can easily locate items that they cannot see when hidden behind other objects.
RFID technology also makes inventory management easier with real-time inventory level data available at all times. This helps prevent over and understocking when managed by a warehouse management system that automatically orders out-of-stock items in quantities informed by customer demand.
An RFID system has three parts:
- Tags containing microchips that store data
- Readers that communicate with tags
- Software that analyses and processes data
RFID technology is not restricted to inventory. It can also be used to track and plan routes for forklifts, vehicles, and pallets. It also helps prevent theft by identifying items that move outside authorised zones.
Eghbali forecasts how RFID technology will improve. He expects blockchain security to create tamperproof records of inventory movement and combat counterfeiting.
RFID tags will be thinner, cheaper and battery-free, making them more viable for every warehouse.
Due to RFID technology increasing the speed and accuracy of order processing, Eghbali expects that RFID will be used in most supply chains in the future.
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