Radio Frequency Identification (RFID) technology, once a novelty, has now become an important part of inventory management in the logistics sector. By employing electromagnetic fields to automatically identify and track tags attached to objects, RFID has significantly enhanced the efficiency and accuracy of inventory tracking and management.
How RFID technology works
RFID technology operates through two primary components, these being, RFID tags and RFID readers. Each RFID tag, attached to an object, contains a microchip that stores specific information about the object.
The RFID reader emits radio waves that activate the tag, prompting it to transmit the information stored on its microchip. This information is then captured by the RFID reader.
As this process does not require direct line-of-sight, RFID can accurately and efficiently track and identify objects, even within a crowded, cluttered, or concealed environment. This capability is utilised in sectors such as inventory management, asset tracking, and access control.
Passive RFID VS Active RFID
The difference between passive and active RFID is mainly the range and power source difference. Essentially passive RFID gets its energy from the RFID reader when the RFID tag comes near the tag reader, while active RFID contains an internal battery.
Active RFID contains its power source and does not rely on the tag reader for any additional source of power.
Differences Between Passive & Active RFID
Passive RFID
- Shorter signal range of 3 meters
- Cheaper
- Limited to around 128kb of data
- Smaller size
- High total lifespan typically 20 years
Active RFID
- Longer signal range of 100 meters
- More expensive
- Able to store more data.
- Larger size
- Short total lifespan typically 5 years
When it comes to inventory management, the choice ultimately depends on the situation. For efficient management, we require an RFID solution that can be deployed in large quantities, remains cost-effective, and accurately identifies individual items. This makes the passive RFID the most suitable for large-scale inventory management.
The Emergence of RFID in Inventory Management
Traditional inventory management processes were labour-intensive, time-consuming, and prone to human error. This is where RFID technology made its mark, offering an automated and more accurate system for tracking goods.
Through RFID, logistics companies can easily track every product in real-time, from the moment it leaves the production line to the point it reaches the end consumer.
RFID technology encompasses two key components: a tag and a reader. The tag, attached to the product, contains electronically stored information. The reader then communicates with the tag, enabling real-time tracking of goods in the supply chain.
Impact of RFID tags on Inventory Management
1. Enhanced Accuracy
The RFID system provides real-time updates on the status of goods, reducing the risk of stockouts and overstock situations. Its automatic scanning eliminates human errors associated with manual data entry, thus enhancing the accuracy of inventory data.
2. Time and Cost Efficiency
By automating the tracking process, RFID technology reduces labour costs and saves time that would otherwise be spent on manual tracking. Additionally, the improved accuracy helps avoid costly mistakes such as double shipping or losses due to misplaced items.
3. Improved Decision Making
With accurate, real-time inventory data, logistics companies can make better-informed decisions. For instance, understanding inventory levels in real-time helps in demand forecasting, resource planning, and reducing holding costs.
4. Increased Customer Satisfaction
RFID technology enables faster delivery times and reduces the likelihood of errors, leading to improved customer satisfaction. Furthermore, with the ability to track products in real-time, customers can receive accurate delivery estimates.
5. Enhanced Security
RFID tags are difficult to duplicate, making them an effective tool against counterfeiting and theft. They also provide a clear trail of product movement, further improving security.
Conclusion
RFID technology has revolutionised inventory management by automating tracking, enhancing data accuracy, saving time, and reducing costs. As RFID technology continues to evolve, we can expect even more innovative applications that will further optimise the logistics sector.
Despite the initial investment required for RFID implementation, the long-term benefits it offers make it an invaluable asset for modern inventory management.