Due to its wireless transmission characteristics, the adoption of RFID technology in logistics supply chain scenarios can bring a number of benefits. Here have 5 benefits of RFID in logistics supply chain.
Not only can it significantly improve efficiency, but it also opens a new window of digital information management. In general, the application of RFID technology in the logistics supply chain can bring the following benefits.
The 5 benefits of RFID in logistics supply chain
(1) Automated operation in benefits of RFID in logistics supply chain
In practice, products often flow between multiple warehouses, the use of RFID technology, in and out of the warehouse when you can determine the location of the product, and then the product is placed in a reasonable location in the warehouse, ready for the next transport.
If the products sent in time-delayed or transported to the wrong warehouse, it must be marked and restarted in accordance with the requirements of the transmission to the correct location, all the above work to manual intervention will certainly enhance the accuracy of the flow of products in the supply chain while reducing the time spent on the flow.
(2) Optimize warehouse space in benefits of RFID in logistics supply chain
After the use of RFID technology, it is possible to more reasonably improve the application of warehouse space. Companies only need to choose the most efficient way to store products based on their size and shape.
At the same time, warehouse managers can also use handheld devices to determine the location of products, both to enhance the efficiency of positioning and packaging, but also to reduce the time and effort spent on inventory by retailers.
(3) Minimization of inventory in benefits of RFID in logistics supply chain
The use of RFID technology enables real-time knowledge of the inventory situation and timely reduction of inventory levels in the retail sector, increasing the pressure on each company in the manufacturing and distribution sectors to meet the specific requirements of retailers in a shorter period of time.
So the distributors will keep the gradually increasing buffer stock to meet their specific needs. To get more accurate new information, the visibility of the supply chain can be improved and the size of the buffer stock can be effectively reduced.
(4) Ensure the safety of the transportation process and reduce the loss of goods in benefits of RFID in logistics supply chain
Once theft and loss of products must occur shortage if in a retail environment most of the identified products loss rate can occupy up to 1% of inventory, this loss is a huge loss for profits, so it is necessary to reduce the loss and theft data to ensure its accuracy, but also can be used as a retail environment anti-theft system.
(5) Comprehensive merchandise tracking capability in benefits of RFID in logistics supply chain
When products are to be tracked in real-time, it is necessary to improve customer service opportunities throughout the supply chain. In turn, this enables the manufacture and retailing of products and the making of strategic decisions with a full understanding of the supply of goods.
Many logistics companies are now operating through the Internet, for example, using the Internet to track parcels and gain significant market share.
This ensures that information is shared throughout the supply chain, which not only improves efficiency but also enhances customer loyalty.
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