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The advantages of RFID in sales and logistics

Radio Frequency Identification (RFID) is a highly versatile technology with applications throughout the enterprise. It enables automatic identification and location of products. Let's see what the advantages of RFID are in sales and logistics.


This technology is useful from controlling manufacturing processes to maintenance and equipment inspection. It also facilitates asset management and tracking of goods to final distribution.


RFID technology

RFID can form the basis of an effective asset management system and is also at the core of the Internet of Things. In e-commerce, RFID technology has been propelled into the logistics process for the visibility and interactivity it provides, resulting in a better customer experience.


RFID systems offer advantages to businesses of all sizes, allowing them to quickly improve efficiency and reduce costs by automating processes and enhancing asset utilization and quality.


This system significantly reduces the time spent on logistics tasks by around 80%, as well as the time spent on searching for and locating items by 40%.



Advantages of RFID in Sales and Logistics


RFID technology provides a wide range of advantages in sales and logistics for the retail. Operations are enhanced when processes are automated to increase profitability, resulting in savings in labor and time. Here are some of the benefits of RFID:


Asset Tracking and Inventory Management


Tracking assets and materials is a challenge for most organizations. RFID systems offer a quick and reliable way to track without having to count each individual item.


They can be applicable to different items such as components in a production line, finished products being shipped, industrial containers needing return, or high-value tools, laptops, and other equipment that are often lost.


Tracking assets and materials is a challenge for most organizations. RFID systems offer a quick and reliable way to track without having to count each individual item.

With RFID applications, you can:

  • Immediately see how many items you have of any type.

  • Know their location or what stage of the process they are in.

  • Track items from the moment they are received in warehouses, sent to manufacturing, and used in a finished product.


This facilitates inventory management, conducting stock checks and audits, and controlling "losses." RFID can also help find items that are in place but have gone missing.


Time and Money Savings through Automation


RFID applications can automatically track the movement of products and upload inventory information into the financial management system or ERP.

Thus, they can eliminate the need to manually fill out forms and replace outdated spreadsheets. The use of fixed readers at key points can save even more time, and in a production line, for example, it can completely eliminate the need for manual intervention.



RFID applications can automatically track the movement of products and upload inventory information into the financial management system or ERP.

Improvement in Data Accuracy and Availability


Since data is collected and uploaded electronically, RFID also avoids transcription errors, data duplication, and "lost items" when used to collect data from a large number of items simultaneously.


The use of cloud-based systems allows all members of the organization to view updated data on the whereabouts or status of items. Data can also be shared with customers.



Enhancement of Health and Safety


RFID systems enable businesses to check when equipment and vehicles have been inspected or when inspections are due, and restrict their use if certain conditions are not met.


Check-in systems provide an effective way to manage inspection and notification regimes and help satisfy insurers or regulatory bodies that processes are being followed.


Allows for Better Production Control


Since RFID can identify individual items or components, it is ideal for complex or customized manufacturing processes.


For example, they ensure that specific molds are filled with the correct volume of liquids and baked for the correct period or control which specific components end up in the correct production line. This helps reduce waste and improve efficiency.


Improvement in Quality and Traceability


RFID systems can also help ensure that items have gone through all the correct checks and processes.


RFID systems can also help ensure that items have gone through all the correct checks and processes.

For example, a boiler has been assembled correctly and has been inspected and approved before being delivered to the customer, improving quality and reducing the number of returns. RFID labeling can help ensure traceability by tracking a product from its point of origin.


Contributes to Revenue Growth


By improving inventory management, organizations using RFID can provide a service that creates a competitive differentiation and promotes higher customer satisfaction with opportunities for increased sales and better margins.


For example, before using RFID tags, Walmart was losing about $2 billion a year in inventory. However, since adopting the technology, Walmart has been able to reduce shrinkage by over 80%.


By improving inventory management, organizations using RFID can provide a service that creates a competitive differentiation and promotes higher customer satisfaction with opportunities for increased sales and better margins.

Another company that has benefited from RFID technology is Delta Airlines. By tagging your luggage, Delta has been able to reduce baggage handling times by up to 25%. This not only saves money for the airline but also improves the customer experience by getting the luggage to its destination more quickly. As a result, these companies have saved billions of euros and gained a significant competitive advantage.


More Detailed Management Information


Since RFID allows real-time data capture at different stages of the asset or product lifecycle, it provides enhanced management information for operational and planning purposes. Companies can use this information to improve efficiency and productivity.


Shorter Processes


RFID technologies can be integrated with other manufacturing or supply chain technologies, such as automated pallet handling and stock picking systems, to reduce the time from order to shipment and delivery.


Quick Return on Investment


RFID is a highly cost-effective technology, and the cost savings and revenue improvements achieved can quickly cover the initial investment cost.





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