Why do you need RFID technology? 9 benefits of adopting RFID solutions.

Why do you need RFID technology? 9 benefits of adopting RFID solutions.

Radio Frequency Identification (RFID) is an advanced technology that enables you to identify an object, animal or a person, wirelessly using data transmitted through radio waves.

Regardless of the type of business you run, RFID can help you a lot by being used to track assets, products, human resources and the flow of production processes in your company.

RFID technology was invented three decades ago, and over the years it has experienced an extraordinary evolution, attracting an increasing adoption from various companies. Technology specialists claim to offer an accuracy of over 97%. 

RFID technology can be a great competitive advantage for companies and businesses.  It has applicability in many fields of activity such as retail, logistics, manufacturing and automotive. 

How does RFID work?

RFID is a combination of various technologies generically called Automatic Identification and Data Capture (or AIDC). The AIDC technique can automatically identify products, collect data and enter the collected data directly into a computer, where the necessary human intervention remains minimal or even works without human input intervention. Unlike barcode reading technology, RFID doesn't need to read a code to identify objects. Thanks to this, RFID systems you can easily track a variety of products throught the supply chain with punctuality and accuracy.

The RFID solutions comprise three components: 

Tag - it consist of an antenna for transmitting and receiving signals. It also has an RFID chip that includes information about the items to which it's attached.

Reader - this is the brand of the  RFID system. It is important for handling the entire operation of the system. A reader helps in receiving and inquiring about the information included in a tag. 

Management Software - enables you to easily manage all the data coming from the tag. Meanwhile, it enables users to make well-informed decissions and take appropriate action. 


Benefits of RFID technology: 

1. Keeps track of assets and managing inventory

RFID technology is useful for tracking the company's assets and inventory management. Whether we are talking about finished products, production line, tools, industrial containers or even high-value equipment, the RFID solution is the best option that can provide a reliable and fast way of tracking, without counting each item individually. You can instantly see various elements of a certain type, what state they are in, or you can detect their location. Thanks to the RFID system you can easily follow the route of an item, from its receipt in the warehouse to its use as a finished product. For many companies, tracking materials and goods is a real challenge, but with RFID the inventory management process is considerably easier.  This system also carries out stock audits and verifications. Even lost items can be easier to detect.


2. Improves data accuracy

Because it has electronic data transmission, RFID technology eliminates many errors, such as data duplication, transcription errors, and lost elements when dealing with large volumes of data. What's more, RFID can be used with cloud technology, which enables real-time data updates accessible to all members of your company. Employees can update the status and location of each item themselves without the ongoing support of a manager. Cloud-based information can be accessed by all employees, including those who are not in the office, such as field employees. Thanks to the interoperability of cloud services with different devices, you can use any gadget, regardless of the operating system used, to access your data from wherever you are. Also, using cloud technology, it's easy for you to share RFID data with customers. 


3. Ensures better production control

With RFID you can customize complex production processes because you can easily identify each item and its individual components. For example, on a production line, you can track your equipment, to make sure that certain molds are filled with the correct amount of liquids and heated for the recommended period of time. In addition, RFID can be used to monitor the movement of components, to make sure that they reach the right production line. With this level of accuracy you significantly reduce waste and increase efficiency.


 4. Shorter processing time

The RFID systems available at the moment are very advanced, with their help you can automatically track the flow of your items in the supply chain and transmit the information to a financial management system. Thus, you eliminate the manual filling of the information and permanently get rid of the outdated spreadsheets. 


5. Increases the quality of the company's activity

Another advantage of using RFID technology, is that it provides the accuracy of all the processes carried out within your business. Using an RFID solution you ensure that each item goes through all the necessary verification processes. Given the increasingly stringent measures that are required from year to year, you can ensure that only products that meet the quality standards in force are shipped to your customers.


6. Provide in-dept management information

Also with the help of RFID technology, companies can obtain real-time information from all stages of the life cycle of a product or asset. This data is used for operational purposes. Thus, with in-depth management information, companies can make much more accurate estimates and predictions that increase their efficiency. 


 7. Improves health and safety protection conditions

RFID solutions allow companies to check when vehicles and equipment were last inspected and when is the next inspection. It also restricts the use of equipment under certain conditions to ensure that the tools are not broken. With RFID systems you get an effective way to manage inspections and in this way, all processes are carried out smoothly in the area of health and safety.



 8. Reduced costs and higher productivity

RFID applications help automate the process of collecting data on the location and movement of stocks, assets or other objects. This system manages all processes faster, while reducing costs with better reliability and accuracy than manual procedures or other technologies such as barcoding. By eliminating manual data completion, RFID can make data management more productive at much lower costs.


9. High ROI

The RFID solution is cost-effective, especially for companies that have a multitude of ongoing work processes. All the advantages listed above make RFID technology a beneficial investment for any entrepreneur who wants performance for his company.  

RFID technology has seen exponential growth in recent years. And in Romania, more and more companies are choosing to implement this technology. But because we are talking about a fairly complex technology, which also requires expertise that may not be within the reach of the IT specialists inside your company, Total Technologies specialists are at your disposal at any time to lay the foundation for an RFID project.