RFID And Logistics Management

Logistics assets that have a circular flow are an essential part of the distribution network of any business. These assets are often reusable such as totes, racks, bins and roll cages, shipping containers, gas containers etc. used to transport goods from one place to another. Procuring, maintaining and managing these assets often forms a significant part of a company’s annual expenses. Since theft, damage and replacement erode asset productivity, these assets have to be managed in such a way as to minimize loss as possible. That is when RFID (Radio Frequency Identification Devices) and logistics management comes into effect.

Using RFID to Manage Assets:

Businesses have resorted to using radio frequency identification devices come in handy. These devices or tags are helpful in locating these reusable assets as well as have control over them. This greatly reduces loss due to theft as well as misplacements. It is also useful in locating particular containers containing specific products etc. Their use has greatly reduced costs such as replacement costs as well as avoiding shrinkage. It has also helped reduce capital costs, increase customer satisfaction, as well as ensuring the assets are in the correct place at the right time. An added advantage is the reusability of these tags, so companies, which want greater control over assets and their management, have opted to use RFID and logistics management techniques. Using RFID and logistics management strategies will serve to improve capital utilization lower the total operational costs as well as improve the availability of assets. The use of these asset management techniques has improved customer retention significantly. This technique will help improve visibility of assets in transit, availability management of much needed assets, transportation management etc. these techniques have to be reviewed periodically to ascertain if they have effected a significant change as also to take necessary action where required.

The use of RFID and logistic management techniques are especially useful for manufacturers, where parts bins feed parts in an automated plant, since the placement of the right part in the right place is critical. The company can use these techniques in areas where they have expertise whereas professional help can be sought for areas where they lack control such as transportation, delivery, pick up etc.

Companies should consider implementing RFID and logistics management techniques, as they will greatly benefit from it. It will reduce cost, increase control and availability, decrease chances of loss of assets due to various factors as well as prove to be very economical. Most of them are currently using manual techniques, which is not as efficient as RFID. They have to understand that asset management will be a key factor in improving customer satisfaction as well as help in customer retention.

Many firms offer professional help as well as products to run a business efficiently and effectively.