Solve Supply Chain Disruption Challenges with RFID

It’s a familiar technology, but enterprises have yet to utilize RFID to its full potential.

While it’s always been important to keep track of items throughout every part of the supply chain, ongoing supply chain disruptions are making visibility even more critical. If your clients are struggling with barcode scanning or manual processes for data collection and traceability, it may be time to have them take a second look at RFID technology.

Why RFID is Different than Legacy Tracking and Data Collection Processes

• Reading RFID tags doesn’t require a line of sight, so this technology can automate data collection and reduce the risk of human error.
• RFID chips can store more data than a barcode, such as product origins, which makes authenticating products easier.
• RFID tunnels can collect data from hundreds of labels simultaneously, reducing bottlenecks.
• Readers can read RFID labels that are smeared, wrinkled, or damaged, unlike barcode scanners or the human eye, which may not be able to collect that data.
• It’s possible to include sensors that track temperature or humidity to provide additional information about products during storage or shipping.
• It provides a more streamlined method of tracing reusable shipping containers and pallets and even information like how recently the container has been cleaned

Furthermore, a study by Cambridge Retail Advisors and sponsored by Sensormatic by Johnson Controls found that the cost of passive RFID tags decreased to as low as 3.8 cents per tag in 2021. RFID’s automation capabilities, rising costs of labor, and the lower price per tag add up to ROI, even for smaller companies.      

How RFID Implementation Helps Solve Supply Chain Disruption Challenges

With manufacturers, cargo forwarders, distributors, and retailers worldwide asking where their shipments are, RFID technology can provide the answer. By automating data collection with RFID and sharing that data with supply chain partners, decision-makers have vital information on where shipments are, where delays are occurring, and when to resort to a contingency plan.

RFID can also help protect shipments from losses and waste. Data stored on RFID chips can authenticate pharmaceutical and food shipments, ensuring products are safe for consumers and discouraging the introduction of counterfeit products.

Track-and-trace solutions leveraging RFID can enhance the safety of the food supply and prevent mislabeling of produce or meats, so consumers receive exactly what they pay for. Additionally, if a recall is necessary, RFID can help pinpoint which products should be discarded instead of recalling all of a product type.

RFID’s Future in the Supply Chain

Savvy solution providers recognize that RFID technology has yet to be utilized to its full potential in the supply chain. For example, data from RFID systems can enrich analytics for deeper insights into operations. Intelligent restocking solutions can leverage RFID and artificial intelligence (AI) to detect when it’s time to reorder and generate POs automatically.

Using near-field communication (NFC), a form of RFID technology, consumers can access product information with their smartphones, allowing them to read farm-to-fork stories or download coupons or discount codes. Blockchain solutions can also leverage RFID technology to create immutable track-and-trace records.

RFID solutions can also contribute to the circular economy, enabling the traceability of materials in the waste stream to improve recycling processes. RFID tags can aid in sorting waste, facilitating reuse, and preventing illegal dumping.

How Will You Leverage RFID Technology in Your Solutions? 

Your clients struggling with supply chain visibility and the need to automate to overcome labor shortage challenges can benefit from upgrading to RFID technology. However, your industry and technological know-how may also enable you to create innovative solutions that can bring more efficiency, profitability, and safety to your clients’ operations in the future.

What’s your next move to advance the supply chain?