In today's ever-changing, fast-paced modern world, companies are looking to improve performance. They want the warehouse to run better, faster, leaner, and efficiently. It is this that sets one apart from others. Many businesses are trying to do this by optimizing processes but others are turning to Radio Frequency IDentification (RFID) technology.
An RFID inventory management system uses RFID tags to track and manage inventory with real-time updates. The system is made up of three components: RFID readers, RFID tags, and an RFID software application. RFID tags are attached to the inventory items being tracked, and each of these RFID labels contains a unique identifier. RFID readers use radio waves to communicate with the tags, and the software application is used as a database to track and manage the data collected.
Sometimes RFID handheld scanners are used, however fixed readers are generally placed around the perimeter of the area being monitored. When an inventory item is moved, the reader picks up the signal from the RFID tag and updates the software application accordingly. This allows warehouse operators to keep track of their inventory in real time, without having to depend on manual counts or barcodes. With RFID warehousing technology and tracking systems, items may be scanned and tracked from anywhere inside the warehouse. This is possible even if the items are lost or stuck behind obstacles or other areas within the warehouse regardless of location.
In an RFID-enabled warehouse, a truck arrives at the warehouse. All pallets that come off that truck have an RFID tag on it. As it passes the perimeter of the loading dock, a scanning device scans the RFID tag. Now that pallet is automatically tracked and entered into the warehouse inventory. As each pallet is being moved through the warehouse, the pallets are being scanned by similar scanning devices. So irrespective of where the pallets are in the warehouse, the RFID warehousing system will know the physical location of each pallet.
So now there is no need for the manual labor of scanning pallets and moving things within the system. This takes all human errors out of these warehousing processes. It will show where every pallet is in the warehouse in real-time. If implemented correctly, nothing will ever get lost. Hence the required infrastructure to set up these systems is immense.
In order to properly implement RFID warehousing technology, the warehouse will have to be properly laid out. Scanning devices will have to be set up throughout the warehouse. Make sure that the workers are correctly moving the pallets throughout this automated system. Once this technology is implemented properly, it will give accurate and real-time inventory. This is because RFID warehousing technology removes nearly all human action from these processes, which were earlier done by human beings. As long as the pallets are moved through the designated areas within the warehouse, one will not have to worry about inventory accuracy again.
Here are some of the benefits RFID can bring to a warehouse.
- Tracking of items through WMS integration becomes easy
Warehouse Management Systems (WMS) track the receipt, storage and distribution of goods. A WMS stores data about inventory levels, product locations, reordering details and other information that users may require for supply chain management. Users can integrate RFID technology with a WMS to potentially make product tracking faster, easier and more accurate. When goods arrive in a warehouse, employees can use an RFID scanner to scan the goods on each pallet and add the new stock to the WMS. As employees store products in the warehouse, they can scan the product and the bin number to enable location tracking. In addition, when pickers select goods, the pickers can scan each RFID tag, then mark the item as it is leaving the distribution center.
- Items are handled efficiently
RFID tags also help with route planning and goods handling within and between supply chain locations. Warehouse employees put RFID tags on logistics assets like trucks, containers, forklifts and other material handling equipment. Now the workers know the location of equipment at all times and can quickly retrieve it to transport products.
- Inventory counting done faster
An RFID system makes inventory counting and reconciliation faster, as storekeepers can use handheld RFID devices to easily and accurately scan RFID tags. Some scanners count the tags one-by-one for every individual item, while others can count all the tags simultaneously in a particular location. Faster and frequent inventory counting results in more accurate inventory management as well.
- Fix incorrect inventory counts
RFID technology makes it simpler to identify issues with receiving, storing or distributing products. Warehouse employees can use RFID to trace an individual item's movement and find out why a discrepancy occurred. If an employee stores an item in the wrong location, the RFID scanner may identify the tag elsewhere and alert the user. Since RFID provides information about how the error happened, it can help warehouse managers to take steps to prevent the issue from recurring.
- Improve product availability
Customers expect all goods to be available at all times, and combining consumer demand information with RFID's item tracking can help suppliers ensure their items will be in stock when needed. Suppliers, manufacturers and retailers that use RFID know item locations at all times because RFID can track items throughout the supply chain. They can then ensure they have enough to meet expected forecasts which increases product availability.