RFID technology dramatically improves inventory management

In the past few years, RFID technology has played an important role in the warehousing and retail fields. Brands such as Target, Macy's and Kohl's are relying on RFID technology to improve their supply chains. Retailers hope to maintain reasonable inventory levels at all times through this technology.

A popular term nowadays is "omni-channel retail". In fact, its essence is that suppliers want to keep up with the development of the times by meeting consumers' various shopping needs. To this end, retailers need a well-functioning and streamlined supply chain.

We compared RFID tags with barcodes and found that: RFID tags can be scanned and read all at once, while barcodes need to be scanned one at a time. That's why inventory counts can be completed faster using RFID technology. In actual research surveys, it was found that retailers’ cycle count times were reduced by 96%, out-of-stock inventory was reduced by 50%, and average inventory accuracy increased to 95%. Simply put, RFID simplifies the process of collecting inventory data.

Here are three applications of RFID technology in warehouses and distribution centers.

Search and find products in warehouses. Finding specific products in traditional inventory management is time-consuming and laborious, and order fulfillment time is critical to many retail operations. Omni-channel retail relies heavily on a fast supply chain, and the ability to fulfill orders faster can improve the quality of customer service for distributors.

Order delivery becomes more efficient with RFID technology

Automatic order shipping verification. After items are picked up, RFID technology can inspect the delivered products as the order leaves the warehouse. A simple RFID tag validator can automatically verify every outbound shipment. This is accomplished by simply reading the RFID tags on items coming off the conveyor belt. If an incorrect item is picked/packed, the packed item will be marked, and the use of this technology can significantly reduce chargebacks due to incorrect shipments. In response to this problem, an outbound cargo inspection solution based on RFID technology is proposed, which can record every outbound cargo and accurately track all inbound and outbound cargo.

The application of RFID tags ensures the accuracy of order delivery

Inventory cycle counting. Many warehouse supply chains rely on warehouse WMS and ERP systems, but if the company or warehouse does not have a discipline to proactively manage and update inventory information, the data on the WMS/ERP system will be meaningless. The inventory accuracy of most warehouses is about 50%-60%. As mentioned earlier, RFID technology can quickly and efficiently count and inspect inventory products with RFID tags. All items can be scanned in batches at once, thus eliminating miscounts or human errors.

RFID technology greatly optimizes ERP and WMS systems

With the infrastructure in place, RFID technology can help brand owners track samples, workflows and raw materials prior to production. The use of RFID technology can even speed up the sales process of terminal physical experience Stores and improve customers' sales experience. After introducing RFID technology into brand operations, companies will reduce the cost of receiving, packaging and shipping goods, and minimize chargebacks through improved ordering and shipping.