Businesses nowadays are focused on improving their operational efficiency to stay ahead of the competition. In various industries, businesses are adopting RFID (Radio Frequency Identification) technology to increase transparency of their assets and inventory and to keep their business processes running smoothly. Asset tracking systems using RFID are widely being used across many major industries including logistics, automotive, manufacturing, retail and construction. According to recent research, the RFID technology market is estimated to reach $40.5 billion by 2025.
Asset tracking system using RFID
RFID is a more sophisticated technology compared to barcoding and GPS that is utilized by asset tracking software. RFID technology takes over your tedious manual tasks such as asset control and inventory counting within seconds. It uses an electromagnetic field to automatically track and identify tags attached to items. The tags consist of electronically stored information which can be viewed on RFID readers through radio waves. RFID readers that are usually installed at storage areas can detect items up to 6600 feet away. They are also utilized to quickly give a total count of the number of items available just within seconds. They sure provide ease and quickness that can prove to be valuable for asset protection.
In this blog, we have enlisted a few key benefits that your business can enjoy implementing an asset tracking system using RFID technology.
RFID tracking increases asset visibility
RFID when coupled with an asset tracking tool, increases the visibility of assets and inventory. According to RFID journal, inventory accuracy at most stock-keeping units is approximately 65% but RFID can get it up to 95% or better.
Along with tracking your assets, you can also track the movement of your trucks, returnable transit items, forklifts and other valuable assets that go in and out of your facility on a regular basis. All this tracking is done in real-time which empowers your teams to take swift and effective actions. In case of barcodes, you need a clear line of sight to barcode scanners and you won’t be able to scan an item when you don’t even know where it is. However, RFID gives you the ease of being able to locate everything you have ever lost or misplaced. Your teams can use RFID systems to improve inventory accuracy, which eventually leads to reduced overhead costs.
One of the most common uses of RFID technology for many businesses is asset management. Companies tag their assets so they can always stay updated on the assets’ whereabouts and employees can monitor the servicing cycles and review asset availability. This gives a clear picture about the assets a business owns and how efficiently they are being utilized. Furthermore, it lets you make decisions on the fly and make changes like rerouting assets in just a few seconds.
RFID eliminates delays in product deliveries
What happens when your internal teams and divisions are unable to achieve efficient production flow? Businesses waste labour efforts, supply chains are disrupted and there are unwanted delays in product delivery. When there is lack of visibility in items that are actually moving through stages of distribution or production, products don’t get delivered to the desired destination in time. Consequently, this adds extra expense, erodes customer confidence and stocks unwanted items.
Luckily, you get to cut down on this sheer dependency on employees to perform manual functions with RFID. You can simply automate everything with an asset tracking system using RFID. Having real-time visibility to production offers analytics that removes bottlenecks and accelerates product delivery times.
RFID tracking system mitigates loss, theft and risk
Do your business operations involve high-value assets that are rented and returned on a regular basis? If yes, then you must have an idea of the consequences of just one mistake in record keeping or a single missing piece of equipment. The check-in and checkout processes associated with asset tracking systems using RFID are extremely accurate as you can hold customers or employees accountable whenever the actual checked out assets are not returned. According to a study by RAMP RFID, a business with about 100,000 assets can save up to $150,000 by moving to RFID-based asset tracking technology.
With extreme transparency that RFID technology offers, there is little room for foul play or error. When you are able to track the movement of each and every asset in your facility, you can make sure that all items are accounted for which eventually mitigates costly risks like theft, counterfeiting, maldistribution, and loss. These risks take a tremendous amount of time and money to be fixed.
RFID tracking reduces labor costs and increases productivity
RFID technology does not need your employees to be within line of sight of an asset in order to locate it. The asset is identified and scanned automatically as it moves between or within facilities when it has an RFID tag on it. The employees don’t have to waste their time scanning individual barcodes or counting inventory amounts.
This allows you to cut down on your labor costs because now you don’t require teams of people to manually scan or log the movement of items. Moreover, there are no more headaches and expenses that come from misplaced or lost assets. Now your employees can spend time doing more important tasks to improve the bottom line.
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EZOfficeInventory is a leading RFID asset tracking software used by businesses around the world. Eliminate human error and theft with RFID technology to improve your productivity and profits!
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