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Several factors play a part in warehouse efficiency. Utilizing your warehouse space effectively through proper design and layout, optimizing your staff and making sure the right people are performing the right tasks, managing your inventory so you know what stock is on hand and where it is within the warehouse, and streamlining the inbound and outbound shipment process just to name a few. With all these things to consider, companies are looking for ways to simplify the warehouse management process.
RFID technology is quickly becoming the tool of choice for businesses searching for solutions to enhance their warehouse operations. According to a recent report, the RFID market is expected to increase 11.9% reaching $35.6 billion by 2030. In this article we will discover what RFID technology is, how it works, and how you can use it to improve the efficiency of your warehouse.
What is RFID Technology?
RFID technology is the identification and tracking of objects through radio waves. Systems consist of tags or labels containing microchip transponders and RFID readers that send signals to those tags or labels to communicate.
Not all systems operate the same. Each one has its own features and benefits. Passive systems contain tags that don’t require batteries and must be within range of a reader to transmit signals making them more cost effective. Active systems use battery powered transmitters to send data. These tags are often used in large scale industrial or logistics applications to track high value equipment and assets. As a result, they are more costly to implement and maintain.
Bluetooth low energy (BLE) systems are the most recent type of active system to come on to the market. This RFID technology uses Bluetooth or ultra-wideband to connect readers and transfer data through sensors to the cloud.
Semi-passive systems combine the cost effectiveness of passive tag systems with the enhanced data transfer you get with battery operated systems. Cost savings is created by using smaller, more eco-friendly batteries compared to those used with active systems.
Now that you know what RFID technology is, how it works, and what options are available, let’s see how you can leverage this technology to improve your warehouse operations.
Improved inventory accuracy and visibility
Customers are at the heart of every business. There is nothing worse than having frustrated customers who can’t buy what they need due to stock outs. Having an RFID system in place can make missed sales opportunities from lack of inventory a thing of the past by improving inventory data accuracy.
This technology also makes inventory visibility seamless as all inbound and outbound shipments can be tracked in real time. In addition, automating inventory control through RFID tags eliminates human error as staff no longer need to be directly in front of barcodes to scan inventory.
Increased productivity and efficiency
The most time consuming task for warehouse workers is order picking. RFID technology helps save time by showing exactly where items are located keeping staff from hunting around the warehouse looking for misplaced inventory.
By having the right items picked for packing, shipping accuracy Increases resulting in optimized order fulfillment. This tracking capability also reduces time staff has to spend reconciling inventory.
Enhanced safety and security
A recent Bureau of Labor Statistics report showed 4.8 per 100 workers in the warehousing and storage industry are injured compared to the U.S. average of 2.7 per 100 workers among all private industries. Implementing a RFID system can protect staff by providing a safe work environment making it easier for them to do their jobs.
Having the ability to monitor the movement of equipment such as tow motors and forklifts within the warehouse can help avoid accidents and track near misses. Since this technology doesn’t rely on line of sight to read tags, large or out of the way items can be scanned without workers risking injury to move them. RFID tags can also be used to secure areas of the warehouse by restricting access to only authorized staff keeping everyone else safe.
Cost savings and ROI
Implementing a RFID system within your warehouse can result in significant ROI for your business. Alinean Research reported organizations can achieve a 2-7% increase in revenue due to improved inventory visibility and accuracy by using RFID technology. Providing this level of visibility within your warehouse lets you streamline the inventory management process reducing the cost of holding excess inventory you didn’t realize you had.
Businesses also generate savings through reduced labor costs since multiple items can be scanned at once, making inventory processing faster. Last but certainly not least, time wasted tying up workers looking for misplaced inventory can be used to perform money making tasks for your business.
Implementing RFID Technology in Your Warehouse
It can be helpful to take a three pronged approach when implementing an RFID system for your warehouse. First, identify where the current bottlenecks are within your inventory management process. Figure out where you can gain the most efficiency. Examples such as reducing pick & pack errors, keeping track of tools, and managing returns are all great ways to gain process improvements within your warehouse.
Next comes choosing the right system to fit your needs. There are some distinct differences between systems to keep in mind. While real-time software is essential for all RFID technology to operate, passive RFID systems require licensing fees to upgrade software.
On the other hand, licensing costs are often included with active RFID systems. Passive systems often incorporate disposable tags making RFID label printers a necessity, whereas battery life and replacement costs must be taken into account with battery operated systems. You will also have to decide if you need fixed readers, mobile readers, or a combination of both. Other things to consider include:
- system capability
- location accuracy
- number of tags
- continued maintenance and support
Lastly, Installation and integration needs are different among systems as well. Passive RFID systems require a more indepth setup. Antennas have to be calibrated and call for specialists to implement. Active systems don’t require cables and antennas so only reader and software installation is needed.
Regardless of which option you choose, implementers will be necessary to test the system within your environment and can help decide the best placement for readers so you get the most optimal use for your space.
Final Thoughts
It’s easy to see why businesses are leaning towards RFID implementation for warehouse management. Improved safety, inventory control and visibility, and reduced labor cost are all ways RFID technology can significantly optimize your warehouse efficiency. By taking the above mentioned factors into consideration, you can find and implement the right system to help increase your warehouse performance. Click here for more ways to streamline your business operations.