Shortages and hoarding were two of the many unwelcome side effects of the pandemic. Remember the Great Toilet Paper Shortage of 2020? A similar effect was felt in many business sectors. Manufacturers experienced shortages of parts or materials. Hospitals ran short of PPE and other supplies. Out-of-stocks cost retailers billions in a year.
Businesses responded to shortages by overstocking inventory. But overstocking is costly. Buying excess inventory is expensive; storing the excess adds additional costs. And if demand suddenly drops, your business is left holding the bag.
The just in time (JIT) production and distribution chain has been the enterprise holy grail for more than 3 decades. It only works if every segment of the supply chain communicates with every other segment in a timely manner. Any lapse or slow-down of communication means potential or actual shortages, with a ripple effect that is felt all up and down the line. Time is indeed of the essence.
And timely communication is where RFID shines. Not only does it track your inventory coming in the door, it tracks it as it leaves. And it communicates that information to your ERP system, in real time. At any given moment, managers can know exactly what they have on hand, and they can re-order at the right time to avoid a shortage, or an excess.
Moreover, this close monitoring of inventory doesn’t add to labor costs. Door-mounted RFID readers collect information automatically as inventory moves in and out. There’s no need to wait for a manual check-out, or even slow down for a bar code reader. RFID wins the inventory race every time, as this video shows.
Fast, accurate tracking of inventory is the key to keeping the supply chain moving smoothly and profitably. The data collected from RFID lets businesses confidently predict supply and demand throughout the supply chain. RFID is your ally in the battle for profitability.
Photo © peerayot/ AdobeStock