When companies have a clearer picture of the availability, location, and usage of their core assets, business owners can improve operations with an RFID inventory management system that saves time and money.
Clear visibility of core assets and access to real-time, item-level data is vital to the success and efficiency of any inventory-based business. For decades, companies used manual systems to maintain and track assets. However, it became evident that the increasing labor costs combined with a high error rate made any manual system inefficient.
Many companies have found a solution by investing in an automated inventory tracking technology like R
FID (radio frequency identification) to minimize costs and save valuable time and labor. RFID data provides visibility of the location and quantity of a company’s key assets at any given time. Analysis of that data allows operations managers the ability to speed up core processes that save money and keep business running reliably.
Many manufacturers utilize RFID technology to manage their inventory and gain an edge over the competition.
Everything You Need to Know about RFID Inventory Management Systems
RFID technology uses electromagnetic fields to automatically identify and track tags attached to thousands of assets. The tags transmit digital data back to the reader. Effectively automating B2B supply chains with RFID technology can save time and labor for both the consumer and the supplier.
RFID is a diverse technology that can create business benefits like managing assets, controlling manufacturing processes, tracking goods through distribution, and even managing the maintenance and inspection of equipment. RFID tags for inventory management are attached to the items being tracked. Each label contains a unique identifier, and then RFID readers use radio waves to communicate with the tags. The collected data is tracked and managed through a software application.
The ShelfAware platform, for example, uses RFID Smart Labels as a data collector. The labels are printed on standard Zebra label printers and applied by suppliers at the time of shipping. On behalf of the supplier at the consumer facility, an RFID checkout station is deployed. This magical user interface ensures broad user adoption by tracking the consumption of thousands of inventory packages in seconds.
A web-based application leverages the inventory consumption data to automate replenishment, ensure lean inventory quantities, and guarantee no stock-outs.
7 Reasons RFID Technology Saves Time and Money
Any technology that leads to time-saving operations and cost efficiency is worth exploring. Tracking inventory with RFID technology accomplishes that, and more. Here are 7 reasons to implement RFID technology into your manufacturing operations:
- Increase Revenues. With improved inventory management, organizations using RFID can provide a service that creates competitive differentiation and promotes increased customer satisfaction with opportunities for higher sales and better margins.
- More In-Depth Management Information. Because RFID allows data to be captured in real-time at different stages in the lifecycle of the asset, enhanced management information is provided. Companies can use these insights to drive further efficiency improvements.
- Shorter Processes. RFID technologies can be integrated with other manufacturing or supply chain technologies—such as, automated pallet handling and stock picking systems—to reduce the time from order to dispatch and delivery.
- Rapid Payback Time. RFID is a very cost-effective technology and the cost savings and enhanced revenues achieved can very quickly cover the cost of the initial outlay.
- Spend Less Time Locating Assets. Automated inventory management drastically reduces the time spent looking for things. Staff can quickly access what they need when they need it.
- Visibility Equals Accountability. Data from RFID tracking is collected consistently and reliably. You’ll know where key assets are at any given time. If an asset is damaged, it’s easier to identify where in the overall process that damage occurred, where training is needed, or who was responsible.
- Optimize Layouts. Collecting and analyzing data allows you to adjust your layout to support efficient processes. You can easily spot assets that are commonly accessed together and then move them closer to each other.
Affordable Inventory Tracking with RFID Technology
Saving time and money are critical to the sustainability of any business. Technology continues to change the ways businesses are profitable and efficient, and RFID can play a vital role.
The open-platform solution ShelfAware is a great example of how RFID technology can accomplish both time and cost savings. It was built by practitioners, not a tech company. Therefore, it provides a practical approach to supply chain innovation. ShelfAware leverages existing RFID Smart Label technology, focused on an easy-to-maintain, web-based software application.
Data collection is not over-complicated. It is simple and practical—ensuring an almost instant and easy-to-calculate return on investment. There are no upfront ShelfAware costs, just a flat monthly fee per customer installation.
Want to learn more? Request your free ShelfAware demo
Too good to be true? ShelfAware is redefining the vendor-managed inventory industry. For this reason, we’re happy to talk to you about how our intelligent inventory platform can benefit your business. Contact us today for more information.
More articles about using inventory management to solve supply chain challenges:
What Kinds of Manufacturing Businesses Can Benefit from Inventory Management Software?
Top 10 Advantages of RFID Inventory Tracking
