| The usage of RFID tags has been picking up | | | | process. |
| momentum for several years, but 2010 has increased | | | | 2] Improves compliance, improves work-in-progress |
| proliferation for three main reasons: 1] cheaper | | | | (WIP) productivity and cuts the cost of the finished |
| equipment and tags, 2] increased reliability and | | | | goods. |
| performance (up to 99.9% accurate now); 3] the | | | | 3] Enables the real-time monitoring of production, order |
| agreement of an international standard for UHF | | | | fulfillment, and distribution processes and their level of |
| passive tags. | | | | efficiency. |
| Cost has always been a prohibiting issue, but a Korean | | | | 4] Enhances profitably and ability to meet demand |
| firm has declared that it will have passive RFID tags | | | | rapidly and lowers inventory costs. |
| for sale for about three US cents each by the end of | | | | 5] Lowers labour costs by eliminating manual steps. |
| 2011. | | | | 6] Improves order and shipping accuracy by helping to |
| Historically, the biggest user of RFID tags was and still | | | | make sure that orders are dispatched complete, |
| is the US Department of Defense. The armed forces | | | | error-free, and on time, which thereby raises customer |
| use smart tags to trace the containers of their | | | | satisfaction and the likelihood of repeat orders. |
| hardware and sometimes individual pieces of | | | | 7] Provides extremely accurate real-time data capture |
| hardware too. The aviation industry has also been | | | | by means of warehouse management systems |
| using them worldwide for a long time. | | | | (WMS) and enterprise resource planning (ERP) |
| The latest industries to discover a use for the passive | | | | systems. |
| tags are financial services for IT asset tracking and | | | | The way forward is to begin with the goods-in bay. |
| health care, where more than 60% of the top medical | | | | Goods arrive with shipping labels, but they are often |
| device companies are using passive UHF RFID in 2010. | | | | inadequate in quality and information. It would be best |
| Companies that have not come up with a reliable | | | | to make a new 'identity badge' for all goods received |
| system to track their stock and know exactly what | | | | at this point. All the pertinent information that you have |
| they have of everything that they sell are apt to carry | | | | on the goods delivered can be put of an RFID tag and |
| surplus levels of stock to ensure they can supply their | | | | affixed to the pallet, the crate or even the items |
| customers' requirements. | | | | themselves. |
| If you can reduce excess stock by using improved | | | | Now these articles can be added to stock and the |
| information, you can: trim down investment, storage | | | | computer will always be able to reveal what the |
| space, labour costs; and expand asset utilization, | | | | goods are in the box, how many of them there are |
| increase stock turnover, facilitate faster billing cycles, all | | | | and where they are located in the warehouse. |
| of which will significantly contribute to cash flow. | | | | The simple procedure of creating an RFID tag at the |
| In short, the adoption of RFID: | | | | unloading bay and attaching it to the items received |
| 1] Eases stock control and item location in real time, | | | | can save hours of time wasted checking up on stock |
| which cuts product search time, reduces inventory | | | | levels and thousands of dollars wasted in overstocking. |
| levels and improves control of the manufacturing | | | | |