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RFID For Small Businesses: 5 Ways To Save Money In The Supply Chain

  • General News
  • 1st August 2022

Small businesses in today’s landscape have a higher opportunity to grow and expand because of technology. But of course, there would be challenges, but they could be better dealt with using apps and other modern equipment and solutions, such as RFID in business operations.

Many decades ago, its initial purpose was to identify if a military aircraft is a friend or a foe. But from being a war tool, RFID is now making waves in the supply chain, agriculture, and manufacturing industries.

RFID or radio frequency identification is a technology wherein digital data is encoded in tags and read by radio waves. It’s like barcodes without needing to scan the items in the reader’s line of sight. The RFID system can even conveniently locate items in transit.

Unfortunately, many business owners assume this investment is too expensive. Still, it would be great to know that even a small business can get a loan with flexible rates, such as those offered by many financial institutions. Most of these institutions provide working capital loans that will not hinder your growth but will help you expand your business and achieve your goals.

Small businesses can benefit immensely from RFID scanners. Once implemented, order fulfilment, inventory management, and product tracking can become simple and accurate.

Soon, challenges with order accuracy, speed of service, customer complaints about product unavailability, and loss of revenue will be a thing of the past. If you need this system for your business, you may check out various suppliers of RFID scanners online before making a purchase.

To give you a better idea, here are ways small businesses can utilise RFID to save money in the supply chain:

Monitor Production More Accurately

An entire assembly line will not be successfully finished when one particular item is missing, which will delay the whole day’s production. Time is of the essence in manufacturing and production, and businesses should accomplish everything on schedule since orders are waiting to be fulfilled.

In a large warehouse, locating items can be an ordeal, but with an RFID system in place, businesses will be able to tell exactly where items are. There is no guesswork and no time wasted as entrepreneurs can efficiently finish all target production yields for the day. Small businesses can save money on this aspect as they won’t need to place unnecessary orders for items that were thought unavailable in the warehouse.

Manage Inventory In Real-Time

Inventory is something every manager dreads at the end of the month. Counting stocks take a lot of time, and one mistake can lead to discrepancies that would affect the bottom line. Fortunately, that used to be the case. With RFID today, businesses can say goodbye to time-consuming manual counting.

The RFID system gives better accessibility to products since one scan can reflect the entire picture on a computer screen. In addition, it provides visibility because discrepancies can be tagged as unlocated, which could mean some items are not in their proper place. This can remind employees of important business rules, such as always putting things in order.

When it comes to speed in doing inventory counts, RFID is unprecedented. It can accomplish inventory 25 times faster than barcodes. This means small businesses can scrap the thought of needing employees to do physical counting because one person can do just one sweep using an RFID scanner. This is a massive amount deducted from personnel expenses.

Additionally, businesses may solve the dilemma of constantly apologising to loyal clients about items being out of stock. They can immediately tell in one sweep which things are running low to fast-track production and fulfil orders for customers. This will also save money on service recovery gifts and discounts to dissatisfied customers.

Enhance Security In Business Locations

Unfortunately, all businesses run the risk of employing individuals who may be tempted to steal items from the workplace. Staff will think twice about stealing valuable items in the facility because the RFID tag can immediately alert security of any item leaving the premises. Pilferage will be non-existent because of the fear of being caught. This will save businesses a lot of money because stocks will be accounted for and will not be lost to theft.

Track Shipments More Efficiently

With an RFID tag, goods can be located by GPS in real-time. Even in a moving van, small businesses can keep track of items that have left the warehouse on the way to the store or tagged as shipped to the customer.

Ensure Product Safety

Since an RFID tag can hold more information than a barcode, aside from location and quantity, businesses may also encode the best by date of perishable items. This way, they won’t risk dispatching products near spoilage, damaging their reputation and brand entirely. This will not just save money but will keep businesses from suffering a massive financial blow.

Conclusion

Growing a business can be challenging nowadays. With so much competition scrambling to get to the top, having the right tools and solutions can help one get there in no time. An RFID system can give any business the boost it needs to maximise production, keep employees and customers happy, and achieve important business goals.

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