How RFID Can Improve Inventory Visibility

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Inventory visibility is the ability to monitor data on stocks and orders. This allows you to obtain insights on the number of units in your SKU (stock-keeping unit) and the location of your storage and warehouse.

However, every enterprise has its challenges that can make inventory difficult to do such as sudden market demand or surplus of supplies. To solve this situation, you need an efficient inventory management system that will allow you to get items faster and keep your resources safe.

When Technology Meets Inventory

Technology is the key player for any solution that provides convenient and fast processing. In a supply chain, technology can be utilized to improve inventory visibility. Among all of today’s technology, RFID stands out as a key differentiator in monitoring your products and maximizing your productivity.

RFID (Radio Frequency Identification) refers to a system that uses different electromagnetic frequencies to keep track of objects. It consists of a tag upon which inventory details can be stored and a reader which receives a signal transmitted by tags. If you are wondering how RFID works, you can check on the RFID implementation by Lowry Solutions and other similar companies.

So, how can RFID improve your inventory visibility? Keep scrolling to find out.

1. Speeds Up Scanning of Items

RFID can outperform traditional barcode technology in terms of scanning speed and storage capacity. An Ultra High Frequency (UHF) RFID can read multiple tags in a single scan. Even though tags could contain more data for every chip than a barcode, a wireless scanner can quickly determine and collect information. Depending upon the frequency, a scanner can read a tag even from a long distance – up to 200 to 300 feet.

2. Reduces Error

Even when the goods are not in the line of sight of a scanner, RFID technology can still accurately identify the item. Because of this capacity, you can avoid errors due to missed items, duplication of records, and transcription errors. Plus, RFID does not require you to unpack packaged goods since it can still read items even within the boxes. Placing RFID readers in the terminal points of your supply chain can streamline your processes. Operational inaccuracies can be detected and resolved as early as possible.

3. Traces Your Products in Real-Time

If you want to track your shipped items, RFID technology allows traceability of goods using the active tags attached to your products. You can set up a database equipped with cloud technology and integrate it with your RFID system so that you can monitor where your items are in real-time.

4. Allows Seamless Coordination with Your Supplier

If you are a manufacturer, you need to have access to the raw materials of your products. Purchasing the materials for your production is a critical part of your supply chain. Regardless of the nature of your business, you have to keep in balance the stocks of your raw materials with the demand you have at hand.

Having a supplier that supports RFID allows easy coordination with your need and the availability of stocks. You have real-time visibility of the availability of raw materials as well as the number of finished products. Moreover, you can easily verify whether the items you ordered are already specified in the shipment. This reduces the time you spent checking items at the receiving end so instead, you can move the raw materials for the production.

5. Enhances Demand Planning Accuracy

Demand planning is a process in which you anticipate the demand for your products to ensure that you can deliver them in time and make your customers satisfied. In making a demand plan, you have to maintain an inventory level that answers to customer demands without having excess stocks. However, demand can be volatile, depending upon the fluctuations in customer behavior, economic activities, and climatic conditions.

RFID technology can provide timely and precise information on sales and transactions. With this information, you can make your demand plan accurate and data-driven.

Additionally, RFID technology can provide real-time information about your semi-finished and finished products. You can have timely market data for better inventory visibility without worrying about it.

6. Ensures Product Authenticity

Customers nowadays have a variety of channels to purchase products. As such, counterfeit products can easily pervade the supply chain particularly in retail markets. Your company’s identity gives you a competitive edge. That’s why it’s crucial to protect your intellectual property by having an anti-counterfeit strategy.

Your anti-counterfeit strategy requires inventory visibility and authentication. As a business owner, you can assign unique serial numbers to your products through RFID tags. You can keep these serialization records in your database.

To verify whether the product is genuine, your retailers can simply scan the tags and determine if the numbers belong to the manufacturer. In this way, you can enhance your inventory transparency and customer satisfaction. On top of that, you have an efficient authentication process that can significantly reduce the number of fake products in the retail market.

Wrapping It Up

Remember, every product counts. Inventory visibility must be accurate for businesses to be efficient in their operations. By far, RFID can improve this visibility and provide you with a technological framework that allows convenience and accessibility for suppliers and customers alike.

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