4 Benefits Of RFID For Warehouse Inventory
Published on : July 16, 2021
What are the benefits of using RFID for warehouse inventory?
- Inventory Auditing
- Labor Management
- Improved Shipping Efficiency
- Real-Time Data-Driven Insights
When it comes to your warehouse inventory, there’s a constant focus on improving storage and worker effectiveness. Many companies take time to regularly evaluate these processes to find out how to squeeze out more efficiency than the last evaluation. Sometimes, this can lead to the adoption of new technology that can take their logistics to the next level. New management technology, such as RFID, has paved the way to improving how products are stored and shipped for many warehouses. Read on to learn more about the benefits of RFID for warehouse inventory systems. It is important to understand how integrating this technology can impact your entire operation.
Inventory Auditing

One of the biggest impacts that RFID has on warehouse logistics is its ability to improve tracking, scanning, and visibility of products. Unlike barcodes, RFID tags are scannable and readable from a distance, which allows for fast inventory processing.
Workers can tell precisely what is being stored at any given space, which gives an accurate real-time picture of inventory. This picture helps them to make smarter process decisions. When workers have a clear picture in mind, they can tackle stocking and spacing issues by optimizing storage. By knowing what is needed, workers can quickly reorganize storage and manage inventory with quick reports.
Labor Management
Labor costs are one of the biggest areas of spending for warehouses. However, RFID tags offer potential reductions in this area. Since RFID tags enable workers to quickly generate and report information when scanned, it reduces the amount of time they need to look over inventory.
Reduced time means reduced labor costs and more efficient work. Inventory check-ins, counting of products, and even shipment verifications are sped up and can be done in a matter of seconds — all workers need to do is scan and the job is done. This reduces the number of actions needed to do their job, inevitably leading to fewer order entry errors and effectively reducing manual interventions.
Aside from that, RFID also creates the most optimal workflows for human labor and allows management to monitor worker behavior and further adjust the process to avoid wasting more time. This also helps when reviewing staff scheduling, so that there is adequate manpower on the floor at any given time.
Improved Shipping Efficiency

Simply put, RFID tags improve shipping efficiency because of how fast information can be captured and processed using this system. The more information that is processed, the more visible the trends and leads in your supply chain are.
For warehouses that have many moving assets such as containers, trucks, and pallets, RFID allows you to track them as they move through the supply chain loop and gives updates on their location. This gives the added benefit of increased security. Also, since they are encased in plastic or hard shells, RFID tags are less likely to be damaged or destroyed during the packing, shipping, and receiving process.
But how does RFID do these updates? When shipments arrive at their destination, the tags will transmit their stored information to the readers installed in the delivery zones in the warehouse. This data is then transmitted and relayed to a central information management system. From there, this information can be viewed, modified, and sent back to the tags for facilitating other tasks. This system gives workers the ability to monitor real-time asset updates and even make inventory transactions.
Real-Time Data-Driven Insights

As previously stated, RFID tags can give real-time updates and relevant information on warehouse assets. This ability to track product information at a click of a button is an attractive prospect in any industry.
This is especially true in our digital information-driven economy, where fast-paced but informed decisions are one of the key ways to staying profitable. RFID tags can store vast amounts of information, allowing you to build up a detailed database of critical facts, figures, and statistics.
Using this database, you can derive broad patterns on your internal warehouse and transport processes. These broad patterns reveal insights on how your processes are functioning, and whether or not there are any problem areas costing time, manpower, or money. The first step to addressing these problems is knowing they exist. From there, you’re able to further use this data to come up with solutions.
For example, your database from your RFID tags shows that you have an excess of a specific product — it can show that it’s slow-moving, and how much it’s been costing in storage fees. From this insight, you might create a sales solution for this problem, such as putting these items on a 2-for-1 sale or for a discounted price.
Key Takeaway
For companies looking for warehouse solutions, there are massive benefits in implementing new technology into your systems. While weighing your options, remember the many benefits of using RFID for your warehouse inventory.
If you’re considering RFID, it is recommended that you consult reputed experts before implementing this technology for your warehouse. If you need help, Elid can assist you in choosing the right technological solution for your business. Message them today!