A warehouse plays a crucial role in retail, supply chain and logistics, manufacturing and production, courier services, e-commerce, etc. Warehouses are the designated spot where businesses store not just their raw materials but also finished goods, items imported from other countries, items being exported to other countries, items going to other warehouses and distribution centers, etc.
Now, with items coming in great numbers, it becomes difficult for warehouse managers to manage and track warehouse items. More labor is required to store items, keep track of inventory, and ensure that items are dispatched to the next warehouse, distribution center, or store in a particular order, FIFO (First in, first out) being one of them.
A report from Impinj and Supply Chain Dive, “Inventory, Labor, and Sustainability: How RFID Solves Today’s Supply Chain Challenges,” highlights that managing labor shortage is the most concerning for 96% of respondents and 40% said that inventory challenges have resulted into slow picking due to continuous shipping and tracking challenges post covid19.
This is where technology plays a great role, streamlining all these operations and more while saving costs, reducing wastage, and enhancing the efficiency of a warehouse. RFID technology, IoT, BLE, UWB, etc. are popular technologies that are often employed in warehouses for inventory tracking and management.
Let’s see how RFID technology can solve various challenges in a warehouse.
What Does an RFID-based Warehouse Look Like?
RFID technology is growing rapidly and the global RFID tag market will reach an estimated figure of 29.4 billion USD by 2030. It is quickly adopted by warehouse managers and integrated into various daily operations whether it is gate-in and GRN, storage, dispatch, reshuffling, or reordering.
An RFID-based warehouse has all the items in the warehouse, warehouse assets, and workers tagged with RFID labels. It is equipped with RFID gate systems at entry and exit points to track all the goods, and consignments coming in and going out of the warehouse. Workers are equipped with RFID handheld readers that can be used to not just find a particular item when required but to also keep track of inventory, find out items leaving the warehouse quickly, and also the items not moving quickly enough.
With RFID handheld readers, it is easier to carry out inventory audits periodically and take a quick inventory of items in a particular zone.
RFID antennas can be installed at the ceiling to offer better data capture when stock is moved from one zone to another. Also, the centralized RFID-based inventory management system can be displayed on multiple computer screens throughout the warehouse to offer better efficiency and accuracy in item-level tracking in the warehouse.
Why RFID Technology is Necessary in Warehouse Management?
An RFID-based warehouse inventory management solution is necessary for many reasons. It utilizes radio frequency identification technology to track and manage inventory in real time, improving efficiency and accuracy by automating processes and eliminating manual tasks.
RFID stands for Radio-Frequency Identification, a technology that uses radio waves to automatically identify and track objects. RFID tags are attached to items, and RFID readers (or interrogators) are placed strategically in the warehouse. The reader emits radio waves, and when a tagged item is within range, the tag sends back a signal containing its unique ID.
RFID brings real benefits to warehouses, enhancing how items are tracked throughout the warehouse and reducing wastage, especially in a warehouse that deals with food, fruit and vegetables, and other consumables.
With RFID, it is easier to implement FIFO, which allows the warehouse manager to keep the storage costs and wastages to a minimum.
Ruddersoft is a leading provider of RFID, Barcode, and IoT devices, offering not just products but software solutions, support, and services in the field of AIDC. Being an authorized Zebra Partner, we also offer premium Zebra RFID Readers, Antennas, Mobile Computers, and Printers to our clients, pan-India.
Benefits of RFID in Warehouse Inventory Management
RFID offers several benefits in a warehouse, some of them being:
1.RFID Brings Real-time Inventory Visibility
RFID Inventory Management systems provide continuous tracking of inventory, allowing warehouses to know exactly where items are located and in what quantities.
2. RFID Technology Increases Accuracy
RFID reduces human error associated with manual inventory counting and scanning, leading to more accurate inventory data.
3. RFID Readers Ensure Faster Processing
RFID allows for bulk scanning of items, speeding up processes like receiving, shipping, and cycle counts.
4. RFID Brings Improved Efficiency in the Warehouse
By automating tasks and providing real-time data, RFID systems help optimize warehouse operations and reduce labor costs.
5. RFID Reduces Shipping Errors
RFID systems can help prevent stockouts and shipping errors by providing accurate and timely inventory information.
6. RFID Offers Enhanced Security
RFID can be used to track and protect valuable assets, reducing the risk of theft or damage.
Why RFID is a Better Alternative than Barcodes?
RFID tags offer several advantages over traditional barcodes, including:
1.No line of sight required: RFID handheld and fixed readers can read tags from a distance and even through obstacles, unlike barcodes which require direct scanning.
2. Multiple tags can be read simultaneously: RFID readers like the Zebra RFD40 SLED can read around 1300 tags per second, making inventory counts faster and more efficient.
3. More data storage: RFID tags can store more data than barcodes, allowing for more detailed information about each item.
Some RFID Applications in Warehouses
1.Receiving and Putaway Operations
RFID Readers and RFID gate systems can be used to automatically track incoming shipments and guide them to the correct storage locations.
2. Picking and Packing
RFID can help warehouse workers quickly locate and retrieve the correct items for orders.
3. Shipping and Dispatch Simplified
RFID gates can be used to track outgoing shipments and ensure that the correct items are shipped to the right customers. RFID handheld Readers can be used to scan and confirm shipments about to be dispatched.
4. Cycle Counting with an RFID Handheld Reader
RFID can be used to automate inventory counts, saving time and reducing errors.
5. Asset Tracking with RFID
RFID Readers be used to track the location and condition of warehouse assets, such as equipment and tools in a warehouse.
Things to Consider Before Implementing RFID
1. Cost of RFID System
RFID systems can be expensive to implement, requiring investment in RFID tags, readers, and software.
2. Complexity of the RFID Infrastructure
RFID systems can be complex to set up and maintain, requiring expertise in RFID technology.
3. Data Management
RFID systems generate large amounts of data, which needs to be managed and analyzed effectively.
To conclude, RFID warehouse inventory management solutions are critical for businesses in retail, healthcare, food retail, and supply chain and manufacturing. RFID and other technologies like BLE, IoT, Barcode, UWB, etc. are increasingly being used in warehouses to offer better visibility of warehouse assets to reduce errors in order delivery and enhance warehouse operation efficiency.