Why You Should Be Using RFID Tracking in Your Business


Logistics businesses have had a tough time in 2020 with the global coronavirus pandemic, not to mention related economic concerns and political upheavals.

However, whether you’re currently flat out or experiencing a lull in demand, it’s wise to look for strategies to continually improve operations. One way you can do this is by utilizing helpful technological tools. Here are some reasons to use RFID tracking in your firm today.

Understanding RFID Tracking

Before you can understand why it’s worth using RFID tracking for your work, you need a clear picture of what this technology is. RFID stands for ‘radio frequency identification’ and uses radio-frequency waves to transfer data wirelessly, without the need for contact. Unlike barcodes, RFID scanners don’t need a line of sight to operate. RFID tags can also store much more information – up to around one typewritten page (2KB). These tags can be attached to all manner of goods and used across varying sectors.

Share and Access Data

RFID tracking allows users to better share and access data. In supply chain and inventory management, customer service, manufacturing, and so many other areas, it’s vital to share information between teams, warehouses, transportation providers, suppliers, etc. RFID helps this to happen.

Tags track items effectively and allow companies to account for goods in transit or spread across different locations, so everyone knows where things are at any one time. In turn, it’s simple to update necessary parties and make decisions based on this real-time, accurate transmission of information.

For example, companies can determine exactly how much of a given product they have on hand on that day, rather than relying on potentially weeks-old data. When shipping sensitive items, such as pharmaceuticals or foods, you can also use RFID scanning to tell if there has been a temperature change that may affect product integrity.

If you’re urgently waiting on stock from suppliers but hear there’s been a severe weather event in their area, you can find out about the status of your order by seeing if shipments have passed through the danger zone. If not, this allows you to come up with a contingency plan ASAP.

Increase Productivity and Reduce Costs

As an entrepreneur, you’re no doubt always on the lookout for ways to increase productivity within your organization and reduce costs. Happily, RFID tech tools can help you to do both. For example, RFID applications can help ensure greater accuracy and reliability of information often obtained from manual methods. RFID systems can be programmed to collate data automatically, relating to the movement and location of stock, components, assets, or other factors. All of this saves time and money.

Plus, since RFID tags work wirelessly, you can point a scanner at a whole box of items and register and analyze each one without having to unpack the whole lot to see if everything you ordered is there. Think about how much receiving time your team can save if they can check deliveries without having to open every box and scan all individual items. Powerful RFID scanners can take stock of whole rooms at once, significantly speeding up the process.

Also, this kind of system allows you to track fast-moving goods into your warehouse right away, so they can be sold or placed into the production system then and there, rather than sitting around until entire deliveries get opened.

If any issues arise with parts or goods and suppliers have to let you know about recalls, RFID tracking makes life easier and safer, too. Using RFID tech, you can identify boxed-up bad batches or final products featuring contaminated or defective raw materials.

Also, use RFID in your business to reduce bottlenecks in processes. Scanners make it simpler to monitor how materials and goods move through warehouses and on to other destinations. RFID tags can handle plenty of information, too, so you can place individual identifiers on products rather than a single barcode. In turn, it’s easier to see any steps in logistics or operational chains where movement may take longer than it should.

Minimize Losses and Theft

Minimizing loss and theft is vital when you want to improve business profits. Utilize RFID technology to help you in this area. RFID asset tracking makes every piece of stock visible, so even if things seem misplaced or lost at first, you can still find them, whether they’re in your warehouse or store or have already left the facility. You can also mitigate theft because it’s easy to track goods that have been “misappropriated.”

There are many tools, technological and otherwise, that business owners and managers can use to operate more effectively and cheaply. RFID tracking is one well worth adding to your arsenal.


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