Benefits Of RFID in supply chain

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Benefits of RFID in supply chain

RFID is an automated system that identifies services and products through radio waves. This technology basically allows data transmission by portable devices commonly known as tags. It is the most effective identification technology as it offers a number of advantages over the bar code reader. Here are some of the reasons why it has gained immense popularity in supply chain.

1. Effective inventory tracker
The technology is always at par with the inventory, which means that all products and services are easily located along the supply chain. With RFID, there are no discrepancies whatsoever since it uses radio waves to identify products and services. This makes it simple to keep track of a product’s history, design and location. Also, it prevents out-of-stock incidences by keeping track of all the products and services purchased.

2. Better security
Another reason why RFID technology is popular than bar coder reader is that they are not easy to copy. Since RFID tags use automated ID technology, data cannot be replicated thus is efficient in preventing theft.

3. Minimizes vulnerability
RFID tags are ‘’robust and rugged”, which means they can resist harsh environment, such as exposure to strong acids. Moreover, the tags can also read non-metallic products. While barcode readers are vulnerable to theft, RFID tags are not easily tampered with.

4. Data readability
In a supply chain one thing that make RFID tags unique than barcodes is data readability. Since barcodes usually involve a connection between the barcode and the scanner, any dirt may make the data unreadable. That is why most companies today prefer using RFID technology since it uses radio waves for automated payments, tracking assets, as well as theft prevention.
While this technology has numerous benefits in supply chain, operating costs are expensive. In addition to that, the system is not efficient in areas that have weak signals.

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