Are you a manufacturer looking to navigate the headwinds of labor shortages, inflationary pressure, recessionary risk, and supply chain disruption? One solution that deserves your attention is radio frequency identification (RFID) technology. RFID, a type of automatic identification and data collection (AIDC) technology, uses radio frequency waves to automate data collection and track items throughout the value chain. There are two types of RFID tags commonly used in logistics and transportation:

• Passive RFID tags: These tags use the power in radio waves emitted by fixed or portable readers to rebroadcast their unique identification. They do not have an internal power source, which sacrifices range and data storage for cost efficiency and lifespan. Passive Ultra High Frequency (UHF) tags are frequently used to track consumer products.
• Battery-enabled RFID tags: These tags use either battery-assisted passive (BAP) or active RFID technology. The internal power sources in these tags sacrifice cost efficiency and lifespan for range, data storage, and self-initiated broadcasting. BAP and Active RFID are more common in asset tracking and near materials that impact radio waves, such as water and metal.

RFID technology has evolved significantly over the past few decades. Today, inventory tracking is the most successful use case for RFID technology. With accurate production-location data, companies can streamline inventory management, accelerate picking and packing processes, and ensure on-time delivery.Item-level tagging is the key to achieving a high level of inventory accuracy. This level of detail provides manufacturers with a granular view of their environment. While lot- and serial-level track and trace and container and package-level identification are still relevant, item-level tagging offers the greatest potential for ROI.

To determine the level of detail that is best for your organization, it is important to assess your enterprise software. Take a close look at your inventory management, ERP, and warehouse management system (WMS) to determine whether they can support a high degree of granularity. Conduct thorough research and consider the potential ROI before making any decisions. Remember, this is not a task for an Excel spreadsheet.

Inventory accuracy plays a crucial role in the success of your organization. An ideal scenario includes an ERP solution that pulls real-time data into a centralized database, providing one source of truth for your organization. With a high level of inventory accuracy, companies can quickly fulfill picklists and improve overall operational efficiency.
RFID technology also enables effective collaboration with suppliers, minimizing supply chain disruptions. Real-time inventory tracking leads to more accurate counts and order forecasting, as well as easier tracking of sensitive or high-value materials. By automating warehouse processes and maintaining a high level of quality, RFID technology helps eliminate orders for out-of-stock items and trace potential product issues faster.
When manufacturers and their teams can stop worrying about inventory accuracy, they can focus on other critical aspects of the business, such as securing major contracts or accelerating digital transformation. Instead of waiting for RFID mandates to be imposed, now is the perfect time to get ahead of the curve and implement a solution that positions your organization for future growth.

By taking control of your inventory with RFID technology, you can optimize your operations, enhance efficiency, and overcome the challenges posed by labor shortages, inflationary pressure, recessionary risk, and supply chain disruption.
Make the smart move and embrace RFID technology today. Your organization's success depends on it.