The Impact of RFID Warehouse Management

Supply chain management and logistics are always changing, which is why it’s an excellent idea to learn about an RFID warehouse management system. If you want your warehouse to keep up with the times, Radio Frequency Identification (RFID) could be an excellent tool for your organization to track warehouse inventory, consumables or supplies. There are several methods for keeping track of these things such as barcode scanning, but this article will focus on how RFID brings powerful inventory-tracking advantages to your warehouse.

Traditional Inventory Tracking: Barcode Systems

Obtaining knowledge of barcode technology is a step that must be taken before we explain the impact of RFID. When it comes to inventory management with an inventory management system, the use of barcode has been commonplace for quite a few decades. Barcodes help organizations to track inventory through a computer system. As barcode labels are scanned, the physical label is turned into data that the computer stores as a part of your inventory management system.

Despite their ease-of-use and low cost, barcodes are not without their downsides. When you’re using a barcode for inventory tracking, you won’t be able to read several barcodes at once. Barcodes must be seen to be scanned, and they also aren’t as durable as other available options. Although you may save money on the tag itself when compared to RFID, the additional labor time and money that scanning barcodes takes may outweigh the initial savings for your warehouse.

RFID in Warehouse Management – A Game Changer

The use of RFID for inventory management has made the process easier than ever before. Electromagnetic fields are used with RFID in order to quickly locate objects they are on. Each tag has data that’s stored on it which can be read from far away. Because of this, you don’t have to stand directly in front of the tag like you do with a barcode in order to scan it.

Types of RFID Systems

Active and passive RFID systems are the two main categories you’ll want to know about when it comes to this technology and its use in a warehouse management system. You won’t need to have a source of power for a passive RFID tag. This is because these types of tags work due to the electromagnetic energy that comes from an RFID reader. With an active RFID tag, it’s always sending a signal and the read range is longer than that of a passive tag. UHF (Ultra High Frequency) RFID is a solid choice for warehouse management because it’s a great option for tracking several items at once in an economical fashion.

Benefits of RFID for Warehouse Inventory

1. Enhanced Visibility and Accuracy: With the use of RFID, your warehouse can track the location of an item, check in/check out assets and change their status with an application like Grey Trunk RFID Asset Tracking Software. This means that your warehouse will have improved inventory accuracy.
2. Increased Efficiency and Productivity: Once you’ve implemented RFID into your inventory tracking, it will drastically speed up the process of inventory management. With less time spent on this task, employees will be able to accomplish more.
3. Improved Labor Allocation: RFID makes the inventorying process a breeze. When your employees don’t have to scan each inventory item one by one, they can do other things that need to be completed. This means that your warehouse organization can save money on labor costs.
4. Better Data Analytics: When combined with Grey Trunk RFID, RFID can allow your warehouse to compare expected inventory with the actual inventory you have on hand, resulting in better inventory accuracy.
5. Scalability: In a world where businesses are changing and growing, they need something that can manage their increasing inventory. With Grey Trunk RFID, your warehouse can purchase different plans depending on the number of assets, and you are not charged per user. This makes it a simple process for your asset tracking software to grow with you.

RFID vs. Barcode: A Comparative Overview

Inventory management can be done with either barcode or RFID, but these technologies are quite different. A comparison is made within the table below:

Feature	RFID	Barcode
Scanning	Several tags can be scanned at once, line-of-sight isn’t required	You can only scan one at a time and you have to be right in front of the asset.
Read Range	Several meters as a maximum range	Around a few centimeters to a meter
Durability	Strong and durable (damage is less likely)	Lower durability (more likely to be torn)
Data Storage	More data can be stored on this type of tag and that data can be rewritten	This tag type doesn’t have as much storage and they can’t be rewritten
Cost	There’s a higher up-front cost but a great potential for long-term savings	Barcodes have a cheaper cost up-front

A More Accurate Inventory with RFID Warehouse Management: The Power of Cycle Counting

Cycle counting is an excellent tool for making sure that your warehouse inventory is organized. Through this process, an organization counts their inventory in small sections over a period of time. Now that RFID is on the rise, the way that cycle counting is performed is changing.

Understanding Cycle Counting

When you’re counting pieces of inventory manually, it can often disrupt the “flow” of your warehouse due to the amount of time and work that goes into it. For cycle counting, an organization splits this inventory process up over a number of days, which can lead to less mistakes and a lesser impact on your warehouse’s operations.

The Role of RFID in Cycle Counting

With the introduction of RFID, cycle counting has become a much more efficient process:

1. Speed and Efficiency: The time for manually scanning each item is now behind us. Through RFID, different areas within a warehouse can be counted very efficiently. A more precise inventory can be created with RFID due to the reduced scan time leading to the ability to scan more often.
2. Reduced Labor Requirements: By using RFID for inventory purposes, an organization can decrease the labor required when performing cycle counts. With less time spent inventorying, workers can direct their energy towards other projects.
3. Data and Reporting: Through the RFID software, a warehouse can spot and correct issues that arise such as an overstock or stock out.
4. Improved Accuracy: While tracking by an employee manually is prone to errors, RFID allows your cycle counts to be very accurate. Keeping these records up-to-date allows warehouse employees to make smart supply chain choices.
5. Operational Continuity: In the fast-paced world of a warehouse, the last thing that you want to be doing is stopping operations for the inventorying process. Luckily, this is no longer necessary with the combined power of RFID and cycle counting. With your warehouse still running at full capacity, you won’t have to sacrifice productivity to take inventory.
6. Strategic Decision Making: With the combined powers of cycle counting and RFID, it’s much easier for management to make decisions on how much inventory they need/how much they should be bringing in. This allows them to carry less unnecessary inventory and increase the efficiency of their warehouse overall.

Integrating RFID into the Cycle Counting Processes

If a warehouse wants to make use of cycle counting and RFID, they need to account for these things:

• Implementing RFID Tags: RFID tags need to be placed on the items you’re looking to inventory in order for the tracking system to work.
• Utilizing RFID Readers: Your warehouse’s RFID readers need to be easily accessible to the employees that use them, otherwise it will be tricky for them to track assets with RFID tags on them.
• Training Staff: To cycle count efficiently, you have to teach your employees how to use RFID technology.

Using both the cycle counting method and RFID together results in a game changer for warehouse inventory management. When they’re combined together, your warehouse can be efficient and fast while avoiding interruptions to the day-to-day activities of a warehouse. If your warehouse wants a way to accurately track inventory while making operations more efficient, the use of RFID and cycle counting is a great place to start.

Conclusion

With RFID, a warehouse can make smarter inventory decisions thanks to the precision and efficiency that RFID brings. Although barcodes will cost less at the start, those who use RFID technology in their warehouse will receive a great return on investment. Warehouses are always looking for ways to improve their efficiency, and RFID is a great way to do so. Because logistics are always changing, there’s never been a better time for your warehouse to take a dive into the world of RFID tracking.

Related Articles

• RFID Starter Kit: A Comprehensive Guide
• Fixed Asset Tracking Software: Why Your Organization Needs It
• Benefits of Passive UHF RFID vs. Barcode

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.