“RFID tags can also help manufacturers keep tabs on inventory as it travels further downstream to distributors or customers, depending on the fulfillment model. The manufacturer is as eager as the recipient to know when the goods will arrive at their destination. RFID can help identify who is responsible when goods are lost, and can also speed up or automate billing processes. At the same time, RFID tags enable manufacturers to track and report on-hand inventory.
“
Author: Zebra Technology Greater China RFID and Card Printer Business Leader Hai Hai
Decades ago, manufacturers had limited progress in implementing barcode standards, but in developing the potential of the Fourth Industrial Revolution, they were at the forefront of adopting radio frequency identification (RFID) technology, especially automakers. While stationary industrial scanners can automatically scan barcodes on inventory items moving along production lines and conveyor belts, manufacturers still want more sophisticated ways to locate and report on individual items that leave their production lines and facilities. RFID can provide continuous visibility of obscured goods, thereby eliminating uncertainty about the status of goods in transit or at a standstill throughout the supply chain and enhancing accountability. Thanks to this visibility, it is easier for manufacturers to optimize processes, identify bottlenecks in workflows, and report on production and fulfillment progress to stakeholders, including customers. RFID also easily confirms the accuracy of component integration into products, creates serialized as-built records and quickly locates and replenishes out-of-spec inventory.
In fact, many European automakers today explicitly require their original equipment manufacturer (OEM) suppliers to label each component they ship. This requirement enables manufacturers to efficiently automate inbound logistics, including confirming receipt at loading and unloading and reassigning parts to the correct line, workbench, or shelf location. In addition, it helps to automate logistics workflows in factories and warehouses, especially material and information flow.
RFID applications outside the production line
Under the action program of “Made in China 2025”, its core is to realize the intelligent upgrading of manufacturing industry. RFID tags have proven to be not only an excellent inventory management tool for manufacturers, but also provide deep insights into processes and workflows. For example, manufacturers can use RFID and other location technologies to track their own logistics equipment. Operators can see if the forklift deviates from its normal path or sits idle for too long, an early warning that there may be a problem with the wider workflow. Perhaps there is an object or person blocking a more efficient route from point A to point B, or the material that the operator was supposed to retrieve is not at the reported location. By tracking material handlers, manufacturers can improve processes, reduce wasted labor, and reduce time and error. In a just-in-time (JIT) work environment, every second counts.
RFID tags can also help manufacturers keep tabs on inventory as it travels further downstream to distributors or customers, depending on the fulfillment model. The manufacturer is as eager as the recipient to know when the goods will arrive at their destination. RFID can help identify who is responsible when goods are lost, and can also speed up or automate billing processes. At the same time, RFID tags enable manufacturers to track and report on-hand inventory. By attaching a fixed RFID reader to the dock door, when a shipment is loaded into a truck or container, the reader is aware of the change and deducts it from the available inventory. In addition, similar to barcodes, RFID readers can automatically notify relevant parties that goods are in transit without manual intervention by workers. In fact, based on these advantages, manufacturers in various industries are increasingly adopting RFID tags, not only in the automotive field.
Diet, pharmaceutical and consumer packaged goods (CPG) makers are under unprecedented pressure to meet tight fulfillment timeframes amid a surge in orders due to the pandemic, after months of capacity constraints. By tokenizing assets, they are better able to respond to customer needs. Just as air traffic controllers oversee and coordinate flights, so too can manufacturers and supply chain stakeholders gain visibility into the location of people, equipment and cargo with a refreshing level of accuracy. On top of that, they can take action when they see a situation going off course, thereby avoiding serious consequences.
But realistically speaking, manufacturers’ growing interest in RFID is also partly a passive response. Although many manufacturers have begun to adopt automation, machine vision and other advanced technologies and have core technical personnel, in the field of RFID they are still following the pace of their customers more.
Demand for “marking at source” transforms manufacturers
Most of the current dominant Supply Chain 4.0 models are initiated by the industry’s preeminent retailers, healthcare providers, hotels or governments to regain control of their supply chains and warehouses. They expect real-time visibility into inventory locations and demand greater automation in warehouses and distribution centers. They must ensure that the right product is available when and where they need it, but they cannot do it alone without the collaboration of upstream suppliers, carriers and logistics partners.
According to Zebra’s 2021 Global Healthcare Industry Vision Research Report, about 80 percent of hospital executives plan to automate workflows this year, improving supply chain management and making critical equipment and medical assets easier to locate. And retailers and restaurant operators are facing pain points right now. The results of Zebra’s 2022 Global Consumer Survey show that consumers often leave stores without purchasing an item due to out-of-stock items. They are also frustrated with inconsistencies in physical and online inventory. Retail clerks hold the same view. This also explains why only 40% of consumers surveyed fully trust retailers to fulfill their orders.
There seems to be a consensus that RFID is an excellent way to control inventory and assets in stores, restaurants, hospitals and hotels, but it requires manufacturers to be involved in the implementation of the solution. Since labels can be purchased and applied in bulk as part of a standard process during production or packaging, the cost of labeling items at source is much lower than at the point of sale. What’s more, the rewards for tagging at source are relatively much larger for all parties, even for lower value items.
Manufacturers track their shipments in and out of their facilities by reasonably efficient means. Distributors, warehouse operators and carriers can install stationary readers that automatically identify and report when goods are put into storage, put on shelves, picked, packed and re-shipped. Retailers and service providers can also provide employees with hand-held RFID readers or RFID handles that connect to mobile computers, enabling instant inventory, location, and reporting of various items in the facility. When wide-area readers are not available, autonomous mobile robots (AMRs) can autonomously roam, read cargo tags, and verify their location.
Hotel housekeeping can then track linens such as linens and pillowcases in the house, store associates can keep merchandise out of hand or prevent counterfeit goods from entering the store, and healthcare providers, pharmacists, first responders, and other critical care providers can find what they need Supplies and equipment to escort people’s lives and health.
RFID is very useful in all aspects of the supply chain. And I think the value proposition of RFID is more important to manufacturers. Whether a manufacturer is using RFID to keep operations running smoothly or to help customers streamline their supply chain processes, it can help improve customer satisfaction. In addition, given that RFID tags can currently be read on metals, liquid items, and cold chain products such as frozen meat, manufacturers should break through the status quo and follow the trend.
The Links: QM150DY-HB EP3C25Q240C8N IGBTMODULE