RFID Tagging Is the Latest in Supply Chain Management

RFID tagging and compatible supply chain software is improving the efficiency of inventory tracking and management.  Costs are being reduced.  Loss and theft are down.  As time goes by and more companies use the tags, breakage may become the only thing that companies need to worry about when they ship items.

The tags contain at least two parts; an integrated circuit and an antenna.  The integrated circuit allows for the storing of information, including the description of the item, the UPC code, the date of manufacture, the expiration date (if applicable) and the lot number.

The antenna allows the information to be accessed from remote locations.  The transmission of signals over long distances is one of the advantages of RFID tagging.  The maximum transmission distance varies.  For example, this is the same kind of technology that allows vehicles to pass quickly through a tollgate.

Vendors that have contracts with the US Department of Defense or deal with some of the larger retailers have been required to include this kind of tagging on their shipments for several years.  However, the deadlines have been extended time after time to allow vendors to install the appropriate supply chain software and upgrade their systems.

There have been a number of obstacles to overcome.  For example, the performance of tags mounted on metal has been less than desirable, because of signal interference.

Recent improvements in the industry have created metal mount tags that can be read at a distance of 25 feet or more.  Imagine what that could mean to the accuracy and efficiency of doing inventory in a large warehouse.

If your company often runs promotions, such as offering discounted prices for a limited period of time, in the hopes that the savings will be passed along to the customers, RFID driven supply chain software is something that you need.

You may be aware that retailers are buying more than they could sell during the promotional period and then reselling the extra to other retailers.  With promotional tracking, you can find out which retailers are engaging in the practice.  Eventually, as retailers become aware of the tracking, it should stop the diverting all together.

Currently, supply chain software and RFID tracking is being used mostly by the bigger manufacturers, but smaller companies are starting to see the benefits of the technology.  As the circuitry is becoming more affordable, it could be a worthwhile investment for your business, whether it is large or small.

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Author: Tom Gruich

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