Page 16 - Logistics News - May 2021

T H OU GHT L E A D E R SHIP

The technology creates an ongoing change log to US$60,000 was saved in managing an 86-vehicle fleet.
confirm when people alter parameters and what they RFID tags prevented the need to manually sign out each
tweaked. Such information makes it easier and more automobile someone used or track its mileage. Thus, RFID
efficient to troubleshoot issues, including those related tagging facilitates inventory management by minimising
to a degradation in supplied products. the tasks prone to human error.

For example, machine users may suddenly alter 5. Enhancing product distribution accuracy
the dimension parameters on the packaging machine Getting supplies to the right places becomes more
after getting a new shipment of corrugated cases. If so, complicated as the overall number of destinations goes
that could indicate a quality issue to bring up with the up. A South African retail group with a presence in
supplier. It may also help manufacturers track how often dozens of countries and thousands of stores decided to
packing supplies get used – and by whom. use RFID technology to receive more up-to-date details
about each supplier or retailer’s needs.
4. Accelerating inventory assessments and
maintaining transparency In one example, products across the group’s global
An RFID tag can also help track a product’s location supply chain feature labels encoded with RFID data. That
within the supply chain and safeguard it against theft. information shows which suppliers receive shipments
Some companies even install permanent RFID tags. from particular manufacturers after production.
For example, such a tag associated with a freight truck
could help manufacturing plant personnel prepare to Counting stock after products arrive is much faster,
receive incoming shipments of raw goods. It could show too. Employees previously used a largely manual process
the real-time location of the items, plus their exact that took days and required workers to put in overtime
origin. It might confirm which field potatoes come hours during store closures. However, with the help of
from, for example, and it could automatically record and RFID, people can get the job done in a matter of hours.
distribute confirmation of receipt for the grower.
Facilitating the better usage of time
A manufacturer or supplier could also connect These five examples show that manufacturers can save
RFID data to individual customers. In that case, it substantial amounts of time by using an RFID tag
becomes easier to determine valuable specifics, such system. As a result, they can cut costs and notice fewer
as whether some products sell more rapidly in certain mishaps due to data entry errors and other blunders
parts of the world. Moreover, connecting RFID data that can cause productivity losses.
to customers also makes information more accessible
L O GI S T I CS NEWS after manufacturers hear about possible defects or information record. If a manufacturer wants proof that
Additionally, RFID tags help create a verifiable
recalls.
a supplier sent a shipment, they can show that without
Moving ahead with an RFID tag system also cuts down
anyone at the company needing to pick up the phone or
on manual tasks and paperwork. The US Social Security
send an email. •
Administration participated in an RFID trial and estimated

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