Key Reasons Why It’s Worth Using RFID Tech in Your Business


Whether you run a logistics, retail, wholesale, manufacturing business, or one of many other types of ventures, it’s essential to utilize technology to save time, money, and energy and better service your clientele. A specific tool that many entrepreneurs are starting to use more these days is RFID – radio frequency identification. Read on for some info on what RFID is, how it works, and some top reasons to use it.

An Explanation of RFID Tracking

Radio frequency identification, commonly referred to as RFID, is a type of technology that involves using radio frequency waves to wirelessly transfer data. There’s no need for physical contact or even a line of sight between two points, so an RFID scanner can be situated far from RFID asset tags, and the tools can still communicate.

You can place tags on a wide variety of goods, though most businesses use them on inventory, and, unlike barcodes, you can store more than one set of numbers on each tag. RFID enables up to 2KB of data to be encoded, which equates to around one typewritten page. There are many reasons why it’s worth using this tech in your organization, such as the following.

Cost Savings Through Boosted Productivity

Firstly, if you’re like most entrepreneurs, you’re sure to be always keen to find ways to save money. One way to do this is to find ways to boost productivity within your workforce. Thanks to RFID, significant time savings, and therefore cost benefits, can occur.

RFID systems can automatically collate data about the movement and location of stock and other assets, so your personnel don’t have to do this manually. Plus, the tech can increase the accuracy and reliability of the information collected, as manual errors are minimized.

When you receive parcels, you can point an RFID scanner at a package containing multiple items, and it will read all the RFID tags inside. This means you can quickly register and analyze information about what’s inside without your team having to unpack everything to check that what you ordered is inside. In turn, you’ll get fast-moving goods into your warehouse ASAP so they can be sold or utilized in the production line. Plus, powerful scanners can even cope with taking note of whole rooms of information at once, so you can keep track of the items you have on hand.

Another time savings occurs if you ever have to deal with product recalls. RFID tracking can quickly identify bad batches or single products that may feature contaminated or defective materials, parts, etc. RFID helps minimize bottlenecks in your business processes, too. Scanners can monitor how goods move through your warehouses and onto other places and provide you with information to analyze and act on.

Data Access and Sharing

We all know how powerful having access to and utilizing data can be in this day and age. RFID is a technology that can be your friend in this area, too. It assists with accessing and sharing information in manufacturing, inventory management, supply chain processes, customer service, and more. Use RFID to move information between your teams, various warehouses or offices, to and from suppliers and logistics firms, etc.

For example, by using tags to keep track of the movement of goods, you can account for items that may be in different premises or parts of the country. All approved employees or third parties with access to this data will know where stock is at any given moment (even if held up by shipping issues or weather events, etc.) and can use such information to update customers, answer their queries, handle fast order fulfillment, or plan orders.

As a result, you and your team don’t have to rely on potentially weeks-old details that are outdated, and you can make faster and smarter decisions in turn.

Limit Theft and Losses and Other Related Issues

For many businesses, one of the issues that proves hard to combat and is a significant drain on profits is theft and losses of stock or parts. Happily, RFID technology can help you with this. Asset tracking leads to high item visibility, so even if you think goods are lost, you can use RFID to locate them in a warehouse or elsewhere rather than having to write them off. Similarly, it’s possible to mitigate theft before goods can be tracked.


RFID can also be used for better systems integration and delivery optimization and help you to boost compliance. It’s worth starting to use this technology sooner rather than later in your business to take advantage of its many benefits.

Ruth Gibson

Howdy, I’m Ruth. I’m a public speaker living in Alabama. I am a fan of writing, fashion, and homesteading. I’m also interested in fitness and education. Connect with me on Tech Magazine.

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