Supply Chain Discussion: Why Deploy RFID in Your Warehouse?

In this discussion, Sean Stephens, business development executive with Lyngsoe Systems, is joined by Wes Coleman, industry principal/warehouse with Zebra Technologies Corporation. Together, they talk about why radio frequency identification is so essential to distribution operations today.

RFID is hardly new — its roots go all the way back to World War II. So why are we talking about it now? “There’s mass adoption going on in many segments of the business world,” driven in large part by customer demand, says Stephens.

Stephens and Coleman detail five key benefits of deploying modern-day RFID in the warehouse:

1) Enhanced tracking and visibility. “The need for real-time visibility is critical in the supply chain,” Coleman says, noting that the price of tags has plummeted from 30 cents in 2003 to just 3 cents today — even as dependability has soared.

2) Reduced labor cost and staff time. Stephens cites continuing pressure in the labor market for supply chain jobs, forcing logistics operations to boost efficiency and productivity through the use of technology.

3) Improved inventory value management. Coleman says today’s RFID can identify specific items of various value, and is easily integrated with other technologies.

4) Optimized capacity utilization. There’s a need to make better use of existing warehouse space while eliminating the bottlenecks that arise from inefficient operations, Stephens says.

5) Elevated customer satisfaction. RFID “empowers businesses to better service their customers,” Coleman says. Stephens adds that the technology is essential to pinpointing the location and status of orders, all the way to the customer’s door.

Source: Supply Chain Brain