The Skinny On RFID For Sustainable Supply Chain Management

The supply chain plays a huge part in the efficiency and sustainability of a business, and RFID technology has the ability to completely change how you run your business. You probably have many questions, such as “what is RFID technology?,” “how will it benefit my business?,” and “is it as good as it seems?.” Let’s go over those.
What is RFID technology?
RFID stands for radio-frequency identification, which means that the RFID scanner can retrieve information from store merchandise and shipping containers using radio frequencies. RFID tags are attached to the items you wish to track and can be read by an RFID scanner within a range of a few feet. Some high-frequency devices can read an RFID tag within 20 feet. These tags contain chips that are capable of holding 2 kilobytes of data, such as serial numbers, the date and location of manufacture, and sell-by date. This technology makes it possible for the items to be scanned much quicker and more efficiently than ever before, reducing manual labor, saving time, and providing real-time information for unbelievable management opportunities.
How will RFID benefit my business?
RFID technology makes it possible for whole shipments of merchandise to be scanned in seconds. A wealth of information can be accumulated on each item, including where it came from and how long it was in transit.
With information gathered from RFID tags, you can:
● reroute shipping vehicles for minimum driving
● more effectively schedule orders to reduce unnecessary shipments
● locate products fast
● keep a more efficiently stocked store
● reducing the need for customers to drive to and from your store to see if an item they need is finally in stock
● take time-consuming inventory tasks off of employee’s hands so they can do other work
● get products to customers faster
● receive materials and products you need faster
● plan maintenance strategies more effectively
● reduce waste
● reduce ghg emissions
● make the most of shipping containers by repairing and reusing them
Is RFID as good as it seems?
There are some things to consider before jumping in:
● First, RFID technology requires a reasonable but significant investment.
● Second, because of the distance between the tag and the RFID scanner, the system must be set up carefully to prevent reader collision and tag collision. Two RFID scanners in close proximity to each other can interfere with each other, and sometimes there can be too many tags in the reading area to be read correctly.
● More importantly, there is some debate over whether RFID tags are truly good for the environment. They are made of materials that are hard to recycle and may present similar health risks as our cell phones. A study conducted by both Sam Houston State University’s Center for Innovation and Technology and Southern Arkansas University states that the benefits of waste and emission reduction outweigh the production and recycling issues.
RFID technology promises mind-blowing opportunities for running a more sustainable business, but there is debate over whether it has such a significant drawback as to not be very useful for environmentally-friendly goals. Perhaps it is too soon for the world to fall completely in love with RFID technology, but I specifically said too soon, because there are already plans in place to improve the technology to make it both greener and more readily available. Even if you decide to hold out on RFID technology, you may want to keep an eye on developments in the area to take advantage of it when you feel the time is right.