A few entrepreneurs believe that Radio frequency identification technology is an unnecessary expense. But when you look at the benefits and how the technology is transforming the supply chain industry, you will understand why businesses must adapt and start using it. Also, other than its use in the supply chain industry, RFID technology reduces operational costs, optimizes capital use, and helps mitigate security risks.  Also, technology plays a critical role in assisting businesses to comply with standards.

RFID scanners communicate with RFID tags on items to make it easier to identify and enumerate them. It is a critical solution to logistic issues, that entails moving items from production to storage and to the final consumer. It helps to maintain quality and deliver on agreed-upon services.

RFID is indeed a cool technology that uses frequency waves in transferring data wirelessly. This technology is quickly transforming businesses by cutting costs and enhancing efficiency. It is applied in operations, in distributions, in purchasing and integration applications. Continue reading to understand how RFID is supporting the supply chain industry.

Has Made Supply Chain Efficiency

Checking inventory was the most difficult thing in the supply chain industry. However, the use of RFID scanners and lasers has made things easier. It is cost-effective to check inventory and know the content of each box without the need to open the box.  So, it has made tracking moving goods easier The RFID tags allow manufacturers to track the goods moving to and from the warehouse. It provides an overview of moving items in the supply chain. Therefore, it makes the supply chain efficient.

Has Brought Efficiency To Day To Day Operations

The day-to-day activities can either make a company grow, stagnate or fail. There are so many activities involved. As such, you must build an efficient supply chain to enhance operations and build an effective supply chain.  The goal is to cut down on costs and increase revenue.

RFID scanners allow managers to have a good understanding of how the business functions. It helps them figure out where more processes are needed, where the unseized opportunities lie and improve productivity.

The scanners have made monitoring goods move from warehouses easier. It allows for inventory management by making them more efficient since receiving and sharing information is done in real-time. Also, it allows them to know the products in the warehouse or what is going to the warehouse.  Besides, it enables them to know the products stored in the warehouse.

Integrating RFID in the warehouse management system is key since it allows enterprises to receive information in real-time. Also, it allows one to use drones to fly around and capture data around the warehouse to help truck the inventory. Using RFID and drone is likely to make warehouse control systems more functional and easier to capture the data needed for planning.

For managers in the trend industry, keeping track of the changing trend is critical in reducing wastes. Producers must know when to produce enough inventory, when to reduce and when to stop it. So, using RFID tags to keep track of the massive inventory is critical and can help decide whether to scale production up or scale it down.  It helps enhance warehouse performance and is the right step towards getting 100% inventory accuracy and shipment.

Purchasing Of Raw Material

Acquisition of raw materials is important since it helps to ensure that the production process is not interfered with. It does not matter the type of business you are in. Whether you produce packaged goods, computers, or other electronics, you’ll need to have the right components to have a seamless production.

RFID will allow you to check and give real-time visibility of the stock, raw material in-store, and the number of semi-finished goods.  RFID will also allow you to check and ensure that the shipping of the things you ordered is per the requirements. Also, it helps you determine whether every item you ordered is in packed in a given shipment. It minimizes the time spent receiving the goods and will help you move the raw materials or other items to the next production stage faster.

Finally, still on the acquisition of raw materials, you need some protection from defects. So, when a food supplier announces contamination in any of the ingredients or raw materials you use for production. It is easier to use the RFDI technology to identify the products that utilized that raw material. This is vital in helping to protect your customers from possible harm. It also protects your company from unnecessary claims, which may lead to hefty claims.


The distribution and movement of goods or any other item from production to the final consumer is a complex issue. Therefore, you need an upper hand in logistics to be able to do this. You also need to maintain high standards and ensure that the quality of the product is not compromised during the distribution process. Besides, accurate transmission details and availing them promptly is critical

For instance, it is vital to know when the adverse weather has affected the goods in transit or not. It should tell you whether you need to come up with an alternative plan or not. It helps when shipping sensitive products like pharmaceuticals. Note that temperature changes are likely to affect the integrity of medicine.  Thus, use of RFID will give you instant data to help you decide the best shipment container to use.  The RFDI tag will transmit information on the location, humidity levels, temperature of the container.

RFID can capture product details, including the description of products, manufacturing, and expiration date. When combined with GPS technology, it provides other details, including the location, time of departure, and arrival time. Also, RFID increases visibility into the shipment content. This is critical in countering counterfeiting.

Risk management

Deploying RFID technologies in tracking, automation, and supply chain visibility is important in reducing risks in the supply chain. Closed-loop tracking, supply chain visibility, process automation, and enhanced monitoring capacity reduces response time. It allows for quick decision-making in providing the support needed to avert a possible crisis.


RFIDs provide a unique identifier to goods and materials. RFID allows for closed-loop tracking, which makes it easier to monitor and identify goods on transit. It avails a mechanism that can help keep and retrieve records in the shortest time possible.