Benefits of RFID to Increase Supply Chains

One of the technologies that the company can use to improve the company’s performance is RFID (Radio Frequency Identification) technology. RFID technology is a wireless technology that is very useful for the industrial sector, especially in the commerce business. This technology uses a chip or tag that can be affixed or planted in an item, animals and even humans

This technology is using radio frequency to communicate between objects that have been planted with tag and the reader, then they can have many functions such as checking the products or goods, saving information about that object and send a data. The RFID tag has mini antennas and is equipped with programmable chips.

RFID Reader is controlled by a computer without the need for readings such as barcode reading. Each chip has its own pre-programmed frequencies. RFID technology has different functions in each industry.

One of the industry sectors that can use RFID technology is manufacturing technology, especially FMCG or Fast Moving Consumer Goods. FMCG has the fastest moving market in every country. In this industry, the product must be checked many times before it passes through the manufacturing process such as the production, cleaning and packaging stages of the product.

If the company has not used RFID technology yet, it will take time because every work is done manually. By using RFID technology, all goods can be calculated by the company within a few seconds. The advantage of RFID technology compared to barcode technology is that you do not need to scan items under the scanner to identify your items.

This can help you to save more time and costs. Beside faster identification of items process, RFID tags can also store more information than barcode label technology, and this information can also be used to optimize your production process. If the company has accurate knowledge about the mobility of raw materials and the time needed for certain production processes.

RFID technology can also give benefits in terms of machine maintenance and repair. Manufacturers can check which machines have been maintenance and which machines have not been maintained. Not only in the manufacturing process but RFID technology also used in warehouse management to detect and manage shipments through ships.

Besides, all the industry sectors above, some of the food and cosmetic products also use RFID technology to check inventory data in real time or online, then RFID can also give a warning if the stocks are already low or expired.

RFID technology can also apply to trolleys in supermarkets. The use of RFID tags on trolleys aims to detect how many trolleys are passing. This is very useful for making decisions about how many cashier counters need to open. If there are a large number of trolleys passing by, this is a sign that the cashier counter also needs to open more counter.

Next, RFID technology is also used in the fields of storage, transportation, and access control. The use of RFID technology is very easy in every field of industry, especially the manufacturing industry, because the process of checking goods becomes faster and efficient.

Well, that's the definition of what RFID technology is and how to run it. Technology is very useful for time efficiency and increasing supply chain efficiency. Beside RFID technology, strategic locations can also improve supply chain performance.

One of the strategic industrial estates is Karawang New Industry City. Located close to the capital city of Jakarta and having 6 infrastructure accesses makes KNIC a suitable location to build manufacturing and warehouse companies.

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