An RFID inventory tracking system is a must for modern-day businesses. Regardless of the size of your organization, they need to be able to manage their inventory. Doing this process by hand can take a while, and it doesn’t prevent errors or lead to an accurate inventory assessment. RFID (Radio Frequency Identification) is a useful technology that can overcome some of these challenges. This blog post will cover the key benefits along with the pros and cons of using an RFID inventory tracking system. Finally, we will discuss the difference between inventory tracking and asset inventory tracking so that you know what both of them mean.
Inventory Tracking vs. Fixed Inventory Tracking
Inventory Tracking: Inventory tracking primarily focuses on managing the movement and quantity of products or goods within a business. It involves monitoring stock levels, replenishment, and ensuring optimal inventory turnover. The goal is to accurately track items from the moment they enter the warehouse to their sale or consumption through the use of an inventory solution.
Fixed Asset Inventory Tracking: Asset inventory tracking, on the other hand, involves monitoring and managing tangible assets such as machinery, equipment, vehicles, or tools. Unlike inventory tracking, asset inventory tracking focuses on the lifecycle of assets, including acquisition, depreciation, maintenance, and disposal. The purpose is to effectively allocate, utilize and maintain assets while minimizing losses and downtime.
How is RFID Used to Track Inventory?
RFID (Radio Frequency Identification) technology has changed how businesses keep track of what they have in stock. There are several components within an RFID inventory tracking system.
RFID Tags and Readers: RFID inventory tracking requires both RFID tags and readers. An RFID tag is a small electronic device that contains a microchip and an antenna. These tags are attached or embedded into individual items, product packaging, or pallets. You can purchase RFID tags from Metalcraft. RFID readers are devices that emit radio waves and capture the data transmitted by the RFID tags.
Tagging and Identification: The first step in implementing RFID inventory tracking is to tag each item or batch of items with an RFID tag. Passive tags are tags that are powered by an electromagnetic field coming from the reader. Every RFID tag features a unique identification number to distinguish it from other tags.
Reader Communication: Once they’re within range of an RFID tag, a reader emits radio waves to power the passive RFID tag. The tag sends back a unique identification number to the reader over a wireless connection. This is an instant process that doesn’t need a line of sight or physical content.
Data Capture and Storage: A database or inventory management system captures the identification number that it receives from the RFID reader. The data that’s transferred can include things such as item location or item movement. Once the information has been stored, businesses can use it for analysis, reporting, and monitoring.
Analytics and Reporting: RFID inventory tracking systems provide valuable insights through data analytics and reporting capabilities. Using the data from RFID asset tracking software like Grey Trunk RFID can help businesses to identify trends and increase efficiency. Reports from RFID data can help with auditing and figuring out where a business can improve. Increased accuracy, efficiency, and visibility are just three of the many benefits that organizations can get from this inventory solution.
Benefits of RFID Inventory Tracking System
Improved Efficiency and Accuracy: RFID inventory tracking systems utilize wireless technology to automatically capture data about tagged items. This means that you’ll no longer have to enter data into an Excel spreadsheet! By using this inventory system, your business can reduce human error and keep an accurate record of what’s in its inventory.
Enhanced Visibility and Transparency: RFID tags enable businesses to track and locate items or groups of items throughout their supply chain. They make audits fast and simple.
Increased Productivity and Cost Savings: The use of RFID technology saves time and resources. When employees don’t have to scan a barcode manually or perform stock checks, they have more time to dedicate to tasks that the business needs to get done. A more accurate inventory also leads to less wasteful spending.
Prevention of Theft and Loss: RFID tags can trigger alarms and alert staff if an item is being stolen.
Pros and Cons of RFID Inventory Tracking System
- Real-time tracking and monitoring of inventory: Through the power of an RFID inventory management system, your organization can more accurately determine inventory levels. When you know how much stock you have and where it’s at, there’s less of a chance to be over/understocked.
- Reduced manual labor and human errors: Keeping track of your inventory in the traditional way can be painful. Thankfully, the use of an RFID inventory management system means that there’s less need for entering in data the old-fashioned way. Less human error means that a more accurate inventory can be in your reach.
- Improved inventory accuracy and visibility: When you know your inventory levels, it’s much easier to have an understanding of your current stock. If a company knows when it has too little or too much of something, it can plan purchases accordingly to save money.
- Streamlined supply chain operations: Your company’s supply chain will see a noticeable difference once your inventory management improves. With an RFID inventory management system, there will be less delays and it’ll be easier to manage resources.
- Enhanced customer satisfaction through faster order fulfillment: By using RFID, your business can make sure that products are available for customers when they need them. This helps your company to get a customer’s order out quickly, leading to happier customers. Less errors and a speedier delivery time are excellent for retaining business.
- Effective demand forecasting and inventory planning: When you know how much stock you have, it’s easier to take a look at your data and make predictions from it. Companies often wonder what sales will look like in the future, and more accurate data means that they can look back at previous sales or how much stock they had in the past. Less over or understocking saves your organization money while keeping customers satisfied.
Cons:
- Higher upfront investment compared to traditional tracking methods: From hardware to software, getting an RFID inventory tracking system set up can be costly at first. This is especially true if you’re running a smaller business. However, many businesses find that the system will pay for itself over time.
- Infrastructure requirements (RFID readers, antennas and tags): To use an RFID inventory system, you’re going to need special equipment. This includes readers, tags and antennas. Because they involve several parts, the setup can look intimidating and it requires some extra space.
- Limited range and potential interference from metals or liquids: The range of your RFID tag may be an issue in your application. When your tag is next to metal or liquid, this may negatively affect the performance as well. This is due to the RFID signal being either absorbed or reflected. This leads to less accurate/reliable RFID tracking.
- Data security concerns (encryption and protection against unauthorized access): Making your inventory into data means that it’s more vulnerable to a cyber attack. To prevent this, the inventory data might have to be encrypted or secured in some other way, which requires time and resources.
- Potential reconfiguration of existing processes and systems: In order to get your RFID inventory system up and running, it may require some big changes in your organization. You’ll have to work with your IT department on getting it set up. In addition, the setup of an inventory system might have an impact on operations. Employees will have to be trained on the subject and it might take some time to adjust to the new system.
Conclusion:
Implementing an RFID inventory tracking system offers several benefits to businesses that want to make their inventory management and operations a smoother process. Through the use of this technology, organizations can achieve improved accuracy, efficiency, and visibility in their supply chain. Although the initial costs and planning process may cause organizations to question whether implementing this type of system is worth it, the long-term advantages make up for it. Using RFID technology allows businesses to stay competitive while keeping customers happy and working towards sustainable growth in the marketplace.
 | About the Author: Colby Weber Colby is Grey Trunk RFID’s Marketing Assistant. He enjoys being able to combine his marketing and public relations skills with his writing and graphic design abilities to assist in Grey Trunk’s marketing efforts. He has one brother, a niece, and two nephews. In his free time, Colby enjoys playing video games and trading card games. He’s also a fan of anime and creating digital artwork on his drawing tablet. |
