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Logistic Track

Logistic Track

RFID In Logistic Management

Logistics is the flow of resources between the manufacturing area and the area of supply in order to meet the requirements of customers or corporations. Logistics is a constantly changing field which involves transportation, inventory, material handling and packaging. Radio Frequency Identification (RFID) is a data collection technology that uses electronic tags for storing data. RFID is an automated form of identity verification. Other examples of such forms are Bar codes and scanner. RFID is superior because RFID tags hold more data than bar codes. A major differentiator is the unique serial number in the RFID's Electronic Product Code (EPC) because it allows tracking of individual items.

Logistics is one of the rising fields where the uses of RFID are ever increasing. Products manufactured are tracked right from the point of manufacture all the way to the distribution point or the retail level. RFID is useful in Logistics Industry for all the tracking, recording and verification purposes. Some of important Applications RFID adheres to are:

  • Increasing the inventory efficiency – Inventory accuracy is increased multifold times due to RFID. It gives accurate results of the storage provided. Therefore Inventory loses are reduced.
  • For making the transportation process smooth – Tags on shipping items are of small size and can be easily used. After their usage they are destroyed and new tags can be placed. This lets the controller know about transportation taking place.
  • For handling goods in a safe and secure form -Tracking items and increasing security is made easy and flexible with RFID. The storing and networking of information through RFID gives it an extra edge in security purposes. The tags can trigger security alarms if removed.
  • For packaging in a systematic form – Packaging can be done in an error-free systematic form. The efficient packaging results in cost savings. Thus RFID leads not only to a smooth process but it also leads to reduction in cost loss.

For example, RFID systems are used in cargos carrying the good for retail stores like Wal-Mart. These use tags for a much lesser duration and for a particular job only. RFID systems have also been used for Logistics in food processing by the Indian Government. These were used to process the grains coming in from farmers all over the nation and store the quality checked grains to the storage areas.

Benefits of RFID for Logistics

RFIDs have started to prove itself as an extremely beneficial component in the Logistics Industry. This is due to the wide ranging benefits that RFID offers. Some of the major benefits which separates RFID from other technologies are-

  • Increased Accuracy – RFIDs in Logistics have led to efficient processing of information and transfer of goods. Sensors can detect missing or wrong shipments and alerts are raised subsequently.
  • Fast and Diligent – RFID is able to scan multiple products simultaneously. This is also done without any human intervention making the process diligent. It therefore acts as a responsible regulator of products.
  • Lower Inventory – Reducing Inventory Losses is one of the primary benefits that RFID provides. It also impedes any product from going out of stock. It makes the system lower in inertia.
  • Visibility – The traditional models used by logistics providers fail to provide the much needed visibility. RFID provides end-to-end uninterrupted visibility for its users.
  • Operating cost improvement – Operating costs are improved drastically through pin-pointed accuracy, visibility in services and faster working. For example, in 2008, Euro RFID project running over 3 years and the project saved funds (around €7,5 million)  through RFID.

Typical RFID Application in Logistic Management Industry:

  • RFID in tracking and management of Returnable Transition Items

Around the world, the most popular way to transport cargo is to use returnable transition Items, including Container, Pallet, Trolley. RTIs transports are oftentimes chosen as they ensure safe and secured transportation, low costs, standard packaging and high transport density. Companies that use RFID in tracking and managing of RTIs are able to track containers or goods inside the RTIs in each link of the supply chain. Ultra-high frequency RFID technology has long identification distance and speeds up identification.

  • RFID in distribution process

Implementation of RFID technology can also add advantages to distribution processes. Usage of RFID will greatly accelerate the speed of delivery management, improve efficiency, and increase accuracy in selection and distribution processes. It will also reduce distribution costs. When products embedded with RFID tags enter a distribution center, the RFID read-write equipment at the entry gate can register the RFID tags, and send the information to the distribution centers' backend system. This information can be used to put the cartons in proper places, sort them quickly and efficiently, and dispatch the cartons to the retailing centers in less time with improved accuracy. Usage of RFID also ensures accurate inventory control.

As the products reach their final destination, aka the store, they are scanned and registered automatically at the entrance.

Crepak tag solution for Logistic Track

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