What Is Radio Frequency Identification (RFID) In Logistics?

Radio Frequency Identification (RFID) is the use of a contactless wireless system that uses high-frequency electromagnetic fields to transmit data from a tag attached to an item for the purpose of automatic identification and tracking. RFID technology can be applied to various aspects of a supply chain, including inventory management, warehouse management, manufacturing, retailing, and freight transportation.

A History of RFID In Shopping

The retail industry began to use RFID in 1999, but on a much smaller scale than what we see today. This was due to the high implementation cost of RFID compared to barcode labels. Bit by bit, developers of RFID technology worked out issues and were able to reduce the cost of their products dramatically. This had a positive impact on the adoption of RFID.

Ecommerce in particular has boosted the popularity of this technology, which greatly helps with order fulfillment.

Benefits Of Using RFID Technology

RFID technology enables fulfillment centers to automatically locate and monitor products. Most versions of RFID consist of radio signals transmitted between an optical scanner and a label. This data is also simultaneously broadcast from the cloud to many distribution systems, enabling real-time tracking.

Additional benefits of RFID include:

• Improved control over stock through real-time inventory management
• Better visibility of the supply chain, including warehouses and logistics companies
• Reduced labor costs
• Faster labeling and packaging
• Lower operational costs
• Improved information accuracy

Companies that do not use RFID typically face issues like inaccurate inventory information, theft, picking errors, and delivery mix-ups. All of this leads to problems that can affect business growth and relationships with current and potential customers.

Need Help With Your Fulfillment? A 3PL Can Help

If you’re having trouble fulfilling orders, a 3PL like Fulfillment Works can help you get on track. We have the skilled staff, experience and technology required to deliver high order volumes on time and keep your inventory levels optimized.