How RFID Tagging Improves Inventory Management In Logistics Industry?

RFID Snapshot based on various reports:

  • As per the Auburn University’s 2016 report, 96% of the retailers are planning to adopt the RFID tagging on their apparel products, with retailers like Target, Kohls and Macy’s has started taking advantage of RFID.
  • The reveals that based on the current market scenario, the SKU (stock keeping unit) is around 65%, but with the advantage of RFID this accuracy will increase tremendously to 95% or even better.

As suggested by the RFIDJournals, RFID technology can help to increase the accuracy by 95% and this higher percentage of accuracy will lead to increase in sales and helping to reduce the excess cost that is seen within the supply chain, only if the data is more importantly being used to improve operations and processes.

Inputting data or checking the inbound items manually is a huge waste of time, effort and cost. As an alternate solution to this, taking advantage of the RFID in the entire receiving processes. As mentioned, RFID helps in reducing the time, to best describe this, manufacturers whose items are tagged with RFID experiences an increase in inventory count rate from mere 200 to jumping +12,000 items per hour. This also means that RFID helps to simultaneously scan multiple products, leading to less intervention of human dependency and creating clear uninterrupted visibility for its users and reducing the dependency of traditional logistic model. These will result in improve in customer satisfaction with faster retrieved right items and more accurate inventory.

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