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RFID Shipping Solutions For Businesses: A Guide
Shipment tracking is crucial for warehousing and distribution efforts. After all, the process involves various stages, each one presenting decision-makers with opportunities for error.
For this reason, organizations should implement the ideal strategies, such as radio-frequency identification (RFID) shipping solutions. These systems help companies of all sizes and industries improve customer experiences, ensure on-time deliveries, and enjoy lower costs.
Megacorporations like Amazon, Zara, and H&M utilize such technologies to enhance their world-class services. This article will discuss why industry leaders include this strategy in their business plans. Ultimately, it should help you decide if it’s an ideal investment for your firm.
What Is RFID Asset Tracking?
When the Internet of Things (IoT) became a gold standard for business practices, RFID naturally gained popularity worldwide, especially with organizations that rely heavily on their assets. These resources include stocks, tools, and IT devices.
In a nutshell, RFID container tracking means automating the management and location of your physical assets. With consumers expecting quick deliveries and personalized services, such systems have been a game-changer for many organizations. In fact, experts estimate the industry to reach $36.3 billion by 2025.
How Does RFID Container Tracking Work?
You’ve probably already experienced RFID technology when you handled transactions with manufacturing, retail, and healthcare companies. Let’s discuss how it works in more detail.
No matter how businesses use RFID shipping solutions, the elements work similarly. First, you will need RFID tags, an antenna, a fixed or mobile RFID reader, and a database with asset tracking software.
Once you have the equipment on hand, your system should work in four stages:
- An RFID tag stores your preferred data and assigns a unique electronic product code to an asset.
- An antenna detects the signals from the nearby RFID tag.
- The RFID reader — which you should wirelessly connect to the antenna — then receives the information from the RFID tag.
- Afterward, the database stores and evaluates the transaction specifics received from the reader.
How Do Companies Use RFID Shipping Solutions?
RFID is a versatile technology. Below are some ways modern companies use these solutions to their advantage.
Trace Reusable Assets
Investing in reusable assets is futile if you keep losing or mismanaging them. Luckily, with reliable RFID shipping services, you can trace where pallets, hand trucks, and scales are and their condition. This feature lets you determine your equipment inventory and when they’re due for maintenance.
Identify Bottlenecks
Shipping bottlenecks can cause massive operational disruptions. After all, one delivery delay could mean several unhappy clients. RFID container tracking lets managers identify bottlenecks and devise necessary strategies to prevent them in the future.
Track Luggage
One of the worst mistakes airline and cruise companies can commit is losing checked luggage. RFID technology enables these firms to enhance their luggage transport operations. Placing RFID tags on passengers’ luggage and readers on checkpoints lets people in charge oversee movement from check-in to pick-up.
Manage Vehicle Schedules
With RFID, businesses can oversee the comings and goings of company vehicles across manufacturing, warehouse, and distribution environments. This component makes it convenient for managers to track schedules in real-time, helping them manage the flow of goods more effectively.
Supervise Inventory Levels
Retailers like Amazon, Zara, and H&M often use RFID tools to improve their stocking and inventory management strategies. Their massive unit volumes make it challenging to maintain systems, but RFID simplifies their processes. With the right solutions, companies can offer better customer service for business and personal clients.
Determine Works in Process
Some companies prefer tracking products from assembly to completion. RFID enables these organizations to identify which items they can complete at any particular time. The technology also lets them identify potential production delays.
Protect High-End Pricing
High-end manufacturers rely heavily on the value of their products to maximize their profits. These companies track where retailers sell their products and what mark-ups they impose. Through RFID technologies, they can quickly identify product leaks and catch unauthorized retailers.
Pros and Cons of RFID Shipment Tracking
While RFID shipment tracking has helped countless organizations, it’s not a one-size-fits-all solution for all warehousing and distribution concerns. Review the pros and cons of this strategy to determine if it’s an ideal investment for you.
Pros
Below are some of the advantages of RFID asset tracking.
Boost Efficiency
Improved efficiency is one of the most standout advantages of RFID shipping. The technology streamlines the entire delivery journey, enabling manufacturers and distributors to enhance their productivity.
You can typically integrate RFID tools with existing business systems. It can be the missing link to simplifying your internal processes.
Improve Product Visibility
RFID shipping solutions enhance product visibility by enabling teams to track and monitor every movement across the supply chain. Employees can use tools to access information about the whereabouts of any item from any company facility.
Reduce Labor Costs
Labor costs usually account for up to 65% of warehouse fulfillment expenses, not including shipping. For this reason, automation efforts like RFID shipping drastically lower this percentage.
With such a technology on your side, you can use artificial intelligence (AI) to minimize the need for multiple employees. Doing so will accelerate the check-in and verification process while eliminating human errors.
Enjoy a Quick Setup
Contrary to popular belief, RFID tags don’t need line-of-sight systems like barcodes to work. For this reason, workers can quickly set up RFID systems without taking too much time because they don’t have to relabel all the boxes in warehouse facilities.
Determine Ideal Stock Levels
Overstocking is not conducive for business. Apart from facing expiration, companies also have to spend more on labor and product transfers when dealing with this scenario. However, understocking also leads to lost opportunities and can harm client relationships.
For this reason, firms should aim for ideal stock levels. RFID technology is a perfect partner in achieving this feat.
Free Up Time
Container tracking and inventory management are two of the most time-consuming business activities. However, with RFID shipping, companies can automate repetitive manual duties. This feature frees up time for particular departments, letting them focus on high-value tasks.
Gather Valuable Data
In today’s modern world, data plays a crucial role in business success. RFID shipping solutions provide firms with more information about their clients and internal processes. This component empowers the top management to make innovative decisions based on real-time data.
Reduce Risk of Fraud or Theft
Fraud and theft are common ways brands lose money. With RFID, organizations can help fight them because you can track your containers anywhere. Knowing that you have power over your assets will give you peace of mind.
Accelerate the Scanning Process
It takes a while to scan a shipment using handheld barcode scanners. However, with RFID tags, you can perform inventory counts for various items on piles. This technology helps employees perform this task faster and more accurately.
Plan Future Strategies
Logistics is a complex field, making planning essential. Companies that use RFID asset tracking can enjoy various planning benefits, including traffic monitoring, proper packing, and inventory organization. Thinking ahead enables firms to achieve their short-term and long-term goals.
Cons
Naturally, there are downsides to using RFID shipping solutions. Below are some of the most prominent ones.
Spend More for the Technology
RFID technology helps companies save considerable amounts on labor costs, but it’s still more expensive to use than a barcoding system. However, this scenario will likely change over time when more organizations use the technology for shipping services.
Experience Data Transfer Interference
Some materials like heavy metals and radio wave sources are not ideal for RFID systems. They may interfere with data transmission, leading to unforeseen operational delays. If you experience such circumstances regularly, investing in higher-level equipment might help.
Invest in Equipment Upgrades
RFID technology requires tags, an antenna, a reader, and tracking software to work. The chips won’t work without the other components. For this reason, you need to invest in equipment upgrades before integrating an RFID system with your existing warehouse tools.
Encounter Incompatibility
No authority regulates RFID tag information. For this reason, this technology doesn’t follow global standards. Multinational companies may need to invest in equipment to navigate these barriers.
Face Security Challenges
RFID technology offers customer-enhancing experiences, but security remains a top concern for professionals who support it. Without a trusted RFID provider by your side, hackers can use their smartphones to perform attacks like cloning, spoofing, or sniffing on your tags.
Who Can Benefit From RFID Shipping Solutions?
Large companies have been using RFID shipping solutions on their shipping for some time, but its benefits don’t only apply to big businesses. For instance, Walmart requires its suppliers to use this technology to identify inventory upon delivery.
You can also integrate RFID logistics applications with other business components, especially those that directly benefit your clients. For this reason, apparel, automotive, and aerospace companies use it for optimizing strategic processes.
Frequently Asked Questions
Let us answer some frequently asked questions regarding RFID asset tracking.
How Much Does It Cost To Implement RFID?
The price of implementing RFID in a logistics capability largely depends on what an organization needs. It could cost as little as a few thousand dollars for specific projects and hundreds of thousands for more complex systems. Remember, you need tags, antennas, readers, and tracking software to achieve your RFID goals.
How Long Can RFID Tags Last?
Under normal circumstances, RFID tags typically last three to five years. Their shelf life is dependent on their batteries. Remember, some tags allow battery replacement, but some do not.
At What Distance Can RFID Remain Functional?
There are several RFID types. Far-range ones can read passive tags as far as 12 meters and active tags as far as 100 meters. Note that interference affects UHF RFID tags the most.
Can You Use Mobile Devices To Read RFID Tags?
Yes, you can use mobile devices to read RFID tags. Android phones require NFC, and Apple ones need Bluetooth capabilities to work. However, we recommend using other tools such as switches, shields, and mutual authentication to protect your system from potential safety threats.
How Accurate Is RFID Technology?
Some companies achieve 99.9% reliability on their RFID network, making the technology a worthy investment. The RFID company you work with plays a critical role in your success, so it’s essential to find a trustworthy one.
Use RFID Shipping Solutions Now
RFID has become an invaluable logistics tool for streamlining business operations from production to delivery. Apart from helping companies track shipping containers and cargo, we suggest using the technology to trace equipment and tools.
If you want to boost your warehouse efficiency, improve product visibility, and reduce labor costs, RFID asset tracking is the perfect solution for you. The ideal next step is to find a reliable provider, like Safe Ship Commercial Products Group (SSCPG).
At SSCPG, we have over 40 years of experience in RFID shipping. While we specialize in industrial accounts from the metals business, we cater to the needs of companies of all sizes and industries.
Call us now at (513) 755-0125 to learn more about our bespoke services. Our specialists can help you identify the ideal solutions for you.