Why use RFID to Track Inventory
Thousands of small and large businesses around the world now use Radio-frequency identification (RFID) to automatically identify and keep track of their assets and inventory. RFID technology has become indispensable for businesses due to its many crucial benefits, some of which we will discuss in this article.
Time and Cost Savings
Perhaps the primary benefit of using RFID technology to track your assets is the time and cost savings. According to a comprehensive study by RAMP RFID, an organization with about 100,000 assets can save up to $150,000 by moving to RFID-based asset tracking technology. Unlike traditional barcode scanning and manual tracking, RFID technology uses radio and electromagnetic signals to track truckloads of information. So, for example, if you want to check your inventory on a service van, you can turn on the RFID reader and information of the total inventory loaded on the van will be transmitted to your software or device instantly. Similarly, in another case study, a client company was able to dwindle its inventory costs by a whopping 60% after it moved to an IoT-based RFID solution made by GenPact.
Avoiding “Lost Sales” and Theft
Companies around the world suffer massive losses amid ‘lost sales’ which may be a result of the lack of RFID tracking technology. Human workforces have opportunity to misplace physical items. By placing tiny radio transponders or tags, companies can track their assets and items all the time. This could result in literally thousands of dollars in savings annually. Walmart made RFID technology mandatory in its warehouses and supply stores in 2005. American Apparel was able to get 100% visibility over its assets after introducing UHF RFID solution in its stores. It also managed to track and recover 1,500 lost items due to RFID technology.
RFID is Standardized and Scalable
RFID has become a standardized way of tracking assets and inventory. In 2008, the Financial Services Technology Consortium (FSTC) was founded by big companies like Bank of America, Wells Fargo, Citibank, and some tech companies. The purpose of the consortium was to standardize the RFID tracking technology of assets. This initiative made RFID scalable and secure. It doesn’t matter what kind of assets you want to track. They could be IT assets like computers, smartphones and tablets; machinery; livestock; furniture. You can use Passive RFID technology for physical assets. You just have to put tags on your items. These tags require no line of sight, and you can process hundreds of tags within a second.