6 Reasons to Use RFID in Manufacturing

Inventory management is one of the biggest challenges all manufacturers face. Failing to stay on top of this task means dealing with supply and product shortages, improper stock storage, and inefficient use of storage spaces.

Having an outdated inventory management system is one of the common reasons why manufacturing businesses face these problems constantly.

Radio-frequency identification or RFID is one of the best technologies you can invest in to stay on top of your inventory management and other issues you have to deal with regularly as you run your manufacturing business.

An RFID system is a type of data collection technology that automatically identifies objects through low-power radio waves. It uses RFID tags, antennas, RFID readers, and transceivers to send and receive data.

The system also collects and stores data, which you can use for various purposes.

What Manufacturing Businesses Can Gain From Using RFID Technology

If you use the right RFID system in Dubai for your manufacturing business, you can experience these key benefits:

1.     Improved inventory management

As mentioned, RFID technology is the best solution for an inefficient inventory management system.

An RFID system enables you to manage your inventory more efficiently and in a streamlined way. Tagging raw materials or, at the very least, their location, leads to a more precise method of controlling stocks, which leads to more effective production planning.

Your new system can also provide you real-time visibility of your inventory levels so that you can monitor and prevent shrinkage easily. Additionally, it can help you predict your need for raw material and equipment and supply demands more accurately.

Additionally, since RFID reduces human intervention, it can eliminate errors in inventory management, which is often the usual cause of the overstocking or understocking of supplies. This situation can lead to loss of money and profits.

All these advantages lead to a reduction in expenses and help in limiting shrinkage or wastage of resources.

2.     More efficient production processes.

Besides having a well-designed building and workplace, an RFID system can be enormously helpful if you have a production area or factory floor.

Aside from ensuring all necessary supplies, equipment, and human resources are available in the production area, you can use your RFID system as a tool to control and monitor operations here.

You can use the RFID tags and portable reader to keep track of the inventory on the factory floor to ascertain that they are of the right number and ensure the continuous flow of production.

For instance, tagging the raw materials needed for production enables you to monitor their real-time movements. This, in turn, can lead to more efficient production planning.

Since your RFID system can store lots of information, you can use the data repeatedly to optimize various production processes.

Moreover, you can use RFID technology to stay on top of your equipment’s necessary repairs and maintenance activities to prevent or minimize the disruption of operations in the production area.

You can also tag different pieces of machinery and equipment to monitor them within and outside the facility.

3.     Prevention of theft and losses

With improved inventory accuracy, RFID technology has the ability to help manufacturing businesses limit lost sales because of a lack of raw materials and an inadequate number of finished products.

Additionally, this system is an effective tool that helps mitigate theft. Its tracking feature can enable management to see exactly what items are removed from the storeroom and through a specific exit point.

This is because your RFID readers can alert your team when an unusual number of items is removed or some high-value products are taken to an off-floor location without prior permission.

With this technology functioning as a loss-and-theft preventive tool, you can avoid possible financial losses and security issues.

4.     Access to real-time, accurate production data

One of the best benefits of having an RFID system is having access to real-time information.

With a simple swipe or tap, you will know when your inventory is running low or where an asset is, in or out of your facility.

Because of this, you reduce the potentially costly delay that comes when you are forced to search for and read written reports with outdated information to create both short-term and long-term production plans.

Additionally, with this technology, you can set up application programming interfaces or APIs and data integrations to feed information automatically to the systems you want.

As a result, you can have access to the up-to-date information you need on your computer, laptop, smartphone, or any similar device.

5.     Enhanced accuracy and reliability in your supply chain

The supply chain is prone to various errors and disruptions, including lack of visibility, poor communication with suppliers and customers, and vague or inconsistent data.

These errors could lead to missed shipments, inventory and product losses, and deliveries ending up in the wrong locations. These are issues that usually come up when manual processes are used.

With RFID technology, staying on top of your supply chain can be easier and more efficient since tracking can be automated and updates are ref;ected in real time. It also gives you and all parties involved increased visibility.

Moreover, knowing which shipments are correct and incorrect and when something’s missing is critical for your business to have continuously efficient operations.

6.   Improved overall safety

Safety is one of the top priorities of all manufacturers. A key strategy of accomplishing this is by setting policies and guidelines designed to keep employees out of harm’s way on the factory floor.

You can use your RFID system to collect updated, critical production data and track assets digitally during the most dangerous processes of production. The information gathered can help you avoid putting the health or lives of your employees at risk. This way, your employees won’t be exposed to toxic chemicals, risky mechanical operations, extreme temperatures, and other hazardous elements.

Additionally, you can use your RFID system to flag potential dangers in the workplace, arming your employees with vital information that will help them prevent problems before they happen.

Investing in RFID technology for your manufacturing firm can lead to increased efficiency, thereby allowing you to save time and money.

This technology can also help you make better business decisions that will benefit your employees as well as your customers.

If you have any questions about how to choose an RFID solution for your system, do not hesitate to contact us.