How IoT and RFID Are Disrupting the Supply Chain Industry
Logistics businesses are beginning to realize that modern tech solutions are crucial, and adapting to challenges is a MUST to succeed in their industry. Internet of Things (IoT) technologies, and RFID, are exceptionally attractive because of their various benefits and information-sharing capabilities throughout the supply chain.
The benefits of IoT and RFID
One of the main benefits of IoT and RFID in the supply chain is the ability to track goods in real-time. This allows companies to have a much clearer picture of where goods are in the supply chain at any given time, and to make adjustments as needed to ensure that goods are delivered on time. For example, if a shipment is running behind schedule, the company can quickly identify the issue and take steps to resolve it, rather than waiting until the goods have already been delivered.
Another benefit of IoT and RFID in the supply chain is the ability to monitor the condition of goods as they move through the supply chain. For example, if a shipment of perishable goods is being transported in a refrigerated truck, the company can use IoT and RFID technologies to monitor the temperature of the goods to ensure that they are being kept at the proper temperature. This can help to reduce spoilage and waste, as well as improve the overall quality of the goods.
IoT and RFID technologies can also be used to improve the efficiency of the supply chain by automating various processes. For example, RFID tags can be used to automatically update inventory levels as goods are received and shipped, eliminating the need for manual inventory management. Similarly, IoT sensors can be used to automatically trigger actions, such as reordering supplies or routing goods to a different location, based on real-time data.
Overall, IoT and RFID technologies are disrupting the supply chain industry by providing real-time tracking and monitoring of goods, improving supply chain efficiency, and automating various processes. These technologies are helping companies to reduce costs, improve the quality of goods, and deliver goods more efficiently to their customers.
Why IoT and RFID are becoming popular?
Since the pandemic, new and challenging business environments have pushed many organizations toward IoT and RFID solutions. Previously, warehouse employees often used barcode scanners to manually scan items as they came through various choke points. However, the recent labor shortages have caused massive slowdowns and bottlenecks. In many organizations, the need for operational efficiency has been the primary driver behind supply chain optimizations. At the same time, the need for agility and speed in operations is fostering IoT investments. Organizations can streamline specific processes by investing in these solutions, reducing the required headcount and improving accuracy. For example, integrating a RAIN RFID solution allows items to be automatically read as they pass through transition points, replacing the time-intensive and reparative task of manually scanning items one by one.
RFID is an always-on technology; hence it provides a steady data stream. It allows organizations to make better and more timely decisions about their supply chain operations. With RFID, organizations have access to real-time information with 99% order and 95% inventory accuracy, increasing confidence in their inventory systems.
There are also several factors that have contributed to the growing popularity of IoT and RFID technologies in the supply chain industry:
- Declining costs: The costs of IoT and RFID technologies have decreased significantly in recent years, making them more affordable for companies to implement.
- Improved technology: The technology behind IoT and RFID has also improved, making it more reliable and easier to use.
- Increased demand for efficiency and real-time data: Companies in the supply chain industry are under constant pressure to improve efficiency and reduce costs. IoT and RFID technologies can help to meet this demand by automating various processes and providing real-time tracking and monitoring of goods.
- Changes in consumer behavior: Consumers are increasingly demanding more transparency and visibility in the supply chain, and companies that implement IoT and RFID technologies can provide this by providing real-time data on the location and condition of goods.
- Changes in the business environment: The supply chain industry has undergone significant changes in recent years, with the rise of e-commerce and the increasing importance of customer experience. IoT and RFID technologies can help logistics and supply chain companies to meet the challenges of this changing business environment.
- Government regulations: Some governments have implemented regulations that require companies to improve supply chain visibility and traceability, which has driven the adoption of IoT and RFID technologies. For example, some countries have implemented regulations requiring the use of RFID for tracking and tracing food products to ensure food safety.
Overall, the combination of declining costs, improved technology, increased demand for efficiency, changes in consumer behavior, and government regulations has contributed to the growing popularity of IoT and RFID technologies in the supply chain industry. As a result, more and more companies are adopting these technologies to improve their operations and better serve their customers.
Why you should implement IoT and RFID solutions?
Global challenges seem to be the hallmark of the 2020’s and many logistic companies will need to become leaner and meaner to survive! IoT and RFID technologies have many applications that allow companies to become more competitive, more profitable and thrive despite the difficult business environment. Due to the complicated nature of supply chains, investments generally take place gradually and drive efficiencies over a period of time. Implementing these improvements to your business incrementally can ultimately revolutionize your business, make you stand out from your competitors and help solve your biggest supply chain challenges.
Summing up, there are several reasons why logistics and supply chain companies should consider implementing IoT and RFID solutions, but let us list them in a few points:
- Improved efficiency: IoT and RFID technologies can help to automate various processes in the supply chain, such as inventory management, routing, and reordering, which can improve efficiency and reduce costs.
- Real-time tracking and monitoring: IoT and RFID technologies enable real-time tracking and monitoring of goods as they move through the supply chain, which can help to identify and resolve issues in a timely manner.
- Increased visibility: IoT and RFID technologies provide real-time data on the location, condition, and status of goods, which can help logistics and supply chain companies to better understand and manage their operations.
- Reduced errors: Automation and real-time data can help to reduce errors in the supply chain, such as incorrect shipments, missed deliveries, and lost or damaged goods.
- Improved customer satisfaction: By improving the efficiency and reliability of the supply chain, logistics and supply chain companies can improve the overall customer experience by delivering goods on time and in good condition.
- Improved sustainability: IoT and RFID technologies can help logistics and supply chain companies to optimize routes and reduce waste, leading to a more sustainable supply chain.
- Increased competitiveness: Companies that implement IoT and RFID technologies in their supply chain are likely to have a competitive advantage over those that do not, as they can offer more efficient and reliable service to their customers.
On the whole, the benefits of IoT and RFID technologies in the supply chain are significant, and logistics and supply chain companies that implement these solutions are likely to see significant improvements in efficiency, visibility, and customer satisfaction. If you are thinking about implementing IoT solutions, get in touch with us!