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.
RFID began as an inventory management tool, but now it interfaces with every part of an organization. Today there’s an RFID application that will make your operations more efficient, more productive, and more profitable, no matter what your business is.
RFID’s digital records replaced pen-and-paper recordkeeping. As Jeff Schmitz writes in Forbes, RFID began by tracking the location and number of tangible items in a company’s inventory. Its speedy information delivery gave businesses a greater degree of agility in managing the flow of goods.
Then operations managers began to realize that RFID could transform from an inventory monitor to an enterprise-wide information system. An RFID-based “enterprise intelligence” system provides real-time or near-real-time updates on:
Levels of supplies
Work in progress
In addition to inventory reports, of course.
RFID is even integrated into automated manufacturing, connecting manufacturing execution systems (MES) to enterprise resource planning (ERP) systems and the production floor.
But RFID doesn’t stop with manufacturing and warehousing. Service industries too are benefiting from the speed, accuracy, and efficiency of an RFID intelligence system. Just a few of the service sectors making use of RFID:
Transportation, Logistics and Postal Services– Have you received a notification of a package delivery or updates on a shipment? These service companies use an RFID-to-customer-order interface to keep recipients informed.
Law Firms and Libraries– RFID doorway readers monitor the movements of paper documents embedded or tagged with RFID. One-of-a-kind documents are no longer at risk of being lost or misplaced.
Healthcare– Medical equipment, medications, and staff can be located without delay,
IT– Equipment in system control rooms and server vaults is tracked to eliminate loss or theft. Company-owned electronic devices (tablets, laptops) assigned to staff are tracked throughout company facilities, and as they leave and return to the building.
The bottom line: Practically every type of business has a need for RFID in many parts of its operations. But as Schmitz points out, “There is no such thing as a standard implementation strategy for RFID, and there is no single ‘best’ RFID solution for all organizations — or even for a particular industry.” An experienced RFID integrator can develop a custom solution for your unique business, and you can begin accruing the benefits of expanded digitalization.
Now that businesses are cautiously reopening, RFID is being deployed in the form of wearables that help employees maintain social distancing and stay safe in reopened workplaces.
In the U.S. and Europe, RFID suppliers are creating bracelets and smart watches with embedded RFID chips that alert users when they are too close to one another. Ford Motor Company, for example, has been testing an RFID wearable in the factories where it produces ventilators and respirators. Workers wear an RFID-enabled smart watch that vibrates and issues a color-coded warning whenever they move too near.
The watches also send social-distancing data to supervisors so they can modify workflows for better distancing. Further, the data provides supervisors with workplace contact tracing. If an employee becomes infected, other employees who have been in contact with that person can be identified for testing.
A spokesman for Italian RFID tech company Engineering points out that RFID’s proximity and contract tracing technology lets businesses isolate only the infected workers and their contacts, rather than all the employees. If only a small percentage of employees have to be pulled off the line, production can continue with little or no interruption.
Employees at many companies are teleworking to reduce their risk of infection. But even when telework is enabled by document imaging and digital asset management, it isn’t practical for every type of enterprise. Manufacturing, scientific research, logistics – these all require workers to be in the same place at the same time. The “new normal” is going to call for new ways of doing business and new applications of existing technology.
RFID is a mature, robust technology, a proven risk reduction tool for asset management and security. This same technology can be applied to a different kind of business risk: an infected workplace. RFID is easy to adapt for the socially-distanced workplace. As RFID is protecting your staff, it’s also protecting your business from additional production slowdowns. RFID is part of the solution for a safer workplace during reopening, and into the future.
Speed is the name of the game when it comes to inventory and asset management, and RFID delivers the data faster than any other technology.
RFID is everywhere. Those plastic tags you’ve seen in retail stores; the small square metallic stickers on packaged goods; even your pet’s ID chip – those are all RFID tags. They store information about the item they’re attached to, and they deliver that information to an RFID reader’s screen.
Don’t bar codes manage information the same way? Not exactly. The key difference is in the way an RFID tag communicates with the reader. Bar code readers must “see” each bar code to collect the data. There has to be a clear sight line between the bar code and the reader. RFID readers, in contrast, don’t “see” the tag. They “hear” it, via radio waves sent by the tag. RF = radio frequency, ID = identification.
RFID readers can “hear” the signals from all the RFID tags in an area, all at the same time. Bar code readers, because they rely on “seeing,” can record only one bar code at a time. This video shows a bar code reader and an RFID reader in a head-to-head race.
Spoiler alert: The bar code reader is not going to be invited to the Kentucky Derby.
RFID technology has an application for every business sector.
Every business has a need for speed, because time is money. The less time it takes to collect information about assets, the more time you have to spend on your organization’s primary mission. RFID streamlines your workflow, improves inventory accountability, and monitors assets. Turbocharge your business with RFID.
The IRS is acting like Oprah, and small businesses across the U.S. are benefiting. Thanks to Section 179, the IRS is handing out a $1,000,000 deduction to every small business that puts qualifying equipment and/or software into use before the end of the year. Rather than depreciating equipment over the course of several years, Section 179 allows businesses to deduct the full price of equipment in Year 1, up to $1,000,000. That’s an enormous tax benefit.
And it gets better: Even if you finance the equipment rather than paying for it up front, you still qualify for the deduction. Leases as well as purchases are included in this rule. You don’t have to hand over a pile of cash in order to reap the Sec. 179 benefit.
Almost any tangible business-related product qualifies for the deduction, including:
Tangible personal property used in the business, or equipment with a partial business use
Some improvements to existing business-only buildings, including security systems, HVAC, and roofing
There’s one small but essential thing to remember: The new equipment must be placed into service by December 31.
With only a few weeks left in the year, that deadline may seem like an insurmountable scheduling problem. Luckily, many business-equipment vendors offer quick-ship programs for their clients who want to take advantage of the Sec. 179 deduction. If you’re planning an equipment acquisition in the first quarter of next year, why not buy it now, put it into use before the end of this year, and get the money the IRS put under your seat?
You may already know how RFID* works, and how it benefits businesses through accurate, time-saving asset tracking. One surprising application is within the well-know bourbon distillery Wild Turkey, which adopted RFID to track its warehoused barrels of fine spirits. As reported in RFID Journal, the company formerly stamped each barrel with information about the barrel’s contents and the date the barrel entered the warehouse for aging. Keeping track of the whereabouts of each barrel was not just good business practice, it was mandated by government regulations. But maintaining a complete, accurate inventory required Wild Turkey’s warehouse crew to “eyeball” the information stamped on each of their 650,000 barrels – a time-consuming, labor-intensive and error-prone task.
Now, their RFID system starts tracking a new barrel at the time it’s manufactured, adding information to the barrel’s record when newly distilled bourbon is added to the barrel and when a warehouse location is assigned to start the aging process. Handheld RFID readers display the location and contents of every barrel in a warehouse, without the need for a warehouse staffer’s visual confirmation.
Regulatory compliance is now a simple matter of printing a report from the RFID software. Just as important, when a barrel has aged sufficiently and is ready for market, finding its location among its 650,000 neighbors is a snap. The fully-aged barrel is moved out of the warehouse, making room for a new barrel.
Even if you’re not operating a distillery, tracking the age of an asset is something that any business needs to do, particularly when the assets are documents. Like almost every enterprise, you probably have multiple file cabinets filled with documents. Many of those documents are long past their useful life, whether they were needed for operations or to fulfill regulatory requirements.
Add RFID tags to file folders, or even individual documents, and in the future any outdated documents can be identified easily, located quickly, and disposed of properly, whether disposal means scanning into a digital archive, or shredding securely. As you go forward, your files will contain only what’s required for current operations and record-keeping. And in the process, you’ll gain quite a bit of space formerly assigned to those old unnecessary documents – space that can be converted to more productive uses.
RFID pays you back in many ways: faster inventories, accurate asset records, and less storage space. An experienced RFID provider can show you how the benefits add up, and discuss a custom solution.