Distribution businesses that use RFID technology can attest to the fact that it can enhance productivity and effectiveness. Distribution centers across the globe have a result adopted the technology to improve their operational efficiency. Warehouses and distribution centers are challenging environments that require sound data management. If you are still sitting on the fence regarding incorporating RFID technology into the mix of automation solutions in your warehouse or distribution centers, here are the reasons why you should go for it.
1. Reduction of labor costs
Note that labor accounts for over 50% of the costs in a distribution center. RFID tags and labels can allow you to do inventory counts, picking times, and the verification of shipments in seconds. You will not be required to hire more employees to do the job, hence reducing your warehouse operations expenses. Due to the accuracy of the RFID system, inventory errors can be reduced and prevent potential losses. The system can tackle multiple tasks at once, that would otherwise require the human hands.
2. Enhanced customer experience
Alongside other technologies used by distribution centers like last-mile delivery service, RFID can help increase customer satisfaction. This is mainly because it allows better inventory management that ensures the correct deliveries are made to the customer at the right time. The technology also goes a long way in enhancing demand forecasts, ensuring that customers get what they want when they want it.
3. Security
If you run a distribution center or partnered with one that uses RFID technology, you are less likely to hear cases of theft or the loss of products and inventory. It increases the ability of the distribution center to monitor and track inventory, eliminating the possibility of misrouting and theft. The technology helps in identifying the exact locations of items even after being stolen, facilitating recovery.
RFID can also be integrated with an alarm system that can alert security when assets are being moved without permission. This will protect the reputation of the distribution center and also prevent losses.
4. Decreased errors
Sound RFID technology can reduce or eliminate both picking and delivery errors. Such mistakes can be costly both in time and money. RFID tags and labels can help the distribution center picker identify what is in a package without opening it. This can allow the picker to communicate and verify that the right item was picked. This reduces the amount of time used in identifying parcels and verifying them.
Also, errors made during deliveries can be frustrating, especially for the customers. It can also be costly for a business and a distribution center. RFID labels and tags ensure that the right products are delivered to the right clients at the right time. This reduces the number of returns made and prevents customer dissatisfaction when they have to return the products and wait more time for the right one to be delivered.
5. Inventory accuracy
Lack of reliable data on inventory and products in a distribution center could cause a lot of confusion, discrepancies, and even losses. RFID technology allows the collection and management of inventory data. This increases the accuracy and transparency of information, which is critical to the efficiency of operations in a distribution center. This makes the entire supply chain process effective.
The initial cost of incorporating RFID technology can be high. However, in the long run, the benefits are priceless. There will be increased customer satisfaction, fewer losses, reduction of errors, and transparency, which will all lead to increased profits. Adopting such supply chain technologies will increase the competitiveness of your business.
