RFID is an innovation that brings a positive change in the retail sector as it enhances the business’s sales and efficiency, which results in higher profitability. Competition becomes higher due to the increase in the trends of e-commerce, customers are looking not only for products but convenience and simplicity in online booking and instant access to shipment information and product delivery. The real competition is here and RFID technology is helping retailers to stand out among their competitors.
A Salesforce study shows that 84% of retailers see digital transformation as an important aspect of their business, with 73% increasing digital investments. In supply chain management RFID technology brings real change with its real-time asset tracking and visibility of inventory and shipments features.
It makes business operations easier and efficient which in return lowers cost but increases profit. In short, adopting RFID is no longer optional for businesses aiming to stay competitive — it’s essential for future success. Let’s discuss in detail how RFID technology transforms global supply chain management.
RFID Cost And Hardware
When it comes to cost, it’s higher in the initial days, but with time and technological innovations, the price has somehow become affordable for big businesses in the previous seven years by dropping by 50%. Accenture records that 93% of North American retailers benefit from using RFID; among them, those who fully adopt it achieve 10% ROI and increase by 2.5% in revenue by lowering stockouts. Retailers at the NRF conference reported 99% inventory accuracy and system payback within a year, even for large chains.
To get advantage from RFID technology in your business’ supply chain management, you have to buy RFID hardware, BOWEI RFID offers the best and quality hardware to make your supply chain management efficient.
- RFID Antenna
- Integrated RFID Reader
- Fixed RFID Reader
- UHF Gate Reader
- RFID Handheld Reader
- RFID tags
- Smart devices
Supply Chain Management Challenges and Solutions
Businesses facing many challenges in their supply chain management which overall affect their business operations and revenue generation. To get the most out of their supply chain performance, effective solutions to these challenges are necessary. The three most common challenges every kind of business faces in their efficient supply chain management are discussed here with their practical solutions. So, read.
Inventory Management Issues
A business crucial need is to have complete knowledge of supply and demand. Stockouts and overstocking both are business breaking factors as the former causes missed sales which results in customer dissatisfaction and the later drains capital and raises expenses. When a business fails to predict demand accurately and manage real time inventory, overstocking and stockouts issues occur.
Solution:
RFID technology solves both of the problems and helps businesses to efficiently manage their supply chain and benefit from them.
- RFID technology provides real-time inventory insights like product movement and customer trends and helps businesses get better demand forecasts so they can plan according to demand changes.
- These real-time inventory insights also help businesses to accurately manage and keep an eye on their inventory records, which results in a reduction in overstocking. When a business knows its product demand and inventory levels, it saves Capital by not overstocking inventory.
- Based on accurate demand and inventory levels, RFID technology also triggers automatic replenishment of inventory when inventory drops below predefined limits. In this way, RFID technology lowers the risk of stockouts.
Logistics and Distribution Challenges
Efficient delivery of products to customers always needs proper logistics and distribution. The things which cause hindrance and need quick solutions are transportation cost management, solving supply chain disruptions, and optimization of delivery routes.
With the growing eCommerce industry’s fastest delivery needs, logistic networks are under stress. However, companies have to deal with international supply chains’ complex regulations and customs procedures that result in delays and increased cost problems. To deal with this situation, logistics needs advanced planning and real time tracking to efficiently respond to changing conditions.
Solutions
- Asset Tracking: RFID tags improve asset tracking by enabling accurate tracking of shipments throughout the supply chain. These tags offer better visibility that lowers the risk of missing and delaying shipments. Enhanced visibility by RFID technology improves the overall performance and asset distribution efficiency.
- Route Planning: RFID helps you to get real time data updates to get connected with your shipment. These updates are helpful in optimizing delivery routes, considering factors like weather conditions or traffic. This technology is really helpful in reducing costs and improving asset transportation services.
- Customs Management: RFID technology helps simplify compliance checks and automate documentation processes for international shipments. Customers will get timely deliveries, as RFID reduces the delays related to regulations and customs.
Cost and Efficiency Concerns
Efficiency and cost control are a huge concern for supply chain managers. From transportation and labor to high costs of raw materials, everything can affect profitability. This is a matter of concern for companies, and they have to find ways to minimize expenses without compromising on quality. A business achieves supply chain efficiency by automating tasks, optimizing operations, and integrating new technologies. But the challenge is still there: new technologies and systems can also be expensive, and their integration needs significant process changes. To deal with the challenge of balancing cost reduction with the need for efficient operations, we have a solution that is as follows:
Solutions
- Reduces Labor Cost: Labor cost reduction is crucial for those who are dealing with cost concerns. By automating asset tracking and inventory management, RFID technology not only lowers the need for labor but also reduces error possibilities. In this way it saves business capital and maximizes its efficiency.
- Warehouse Efficiency: RFID also performs inventory audits from order picking to stocking everything efficiently and accurately. Through this, it improves the warehouse’s overall operational performance and directly helps in storage costs
- Increased Visibility: RFID technology provides complete supply chain visibility, which helps businesses identify and address inventory inefficiencies. This visibility allows businesses to more effectively manage cost and optimize operations.
Benefits of RFID Technology in Global Supply Chain Management
Here I have listed some of the benefits of RFID technology for Supply Chain Management, give it a read.
- Speed: RFID speeds up inventory counting by eliminating the need for manual barcode scans.
- Tracking: Real-time inventory tracking enhances visibility throughout the supply chain.
- Reduced Stockouts: Real-time data helps prevent stock shortages and disruptions.
- Accuracy: It reduces human error by capturing data from multiple tags simultaneously.
- Faster Order Fulfillment: Accurate inventory data speeds up order processing.
- Reduced Labor Costs: Automation cuts the need for manual labor and saves costs.
- Reduced Loss: RFID helps prevent theft and track high-value products.
- Analytics: RFID data provides valuable insights for optimizing various things from inventory and pricing to promotions.
Conclusion
Efficiency in supply chain management is necessary for a business success and profitability. RFID technology helps businesses in managing their logistics and supply chain which not only saves the company’s Capital by lowering operational cost and product loss but also increases ROI and overall profit of the business.
