The Roles of Smart Labels in the Supply Chain

Imagine a supply chain, where every asset is tracked in real-time, with no human intervention or errors. This dream is already a reality for businesses that use RFID technology. In fact, a major retailer in the UK implemented RFID inventory management across 500 stores, resulting in 30% reduction of inventory discrepancies and, therefore, £3.2M annual savings. Let’s find out how.

Real-time visibility

For many years now, businesses have been using traditional barcodes for their asset management. Although doing the job well, the barcodes rely on human workers scanning them at every step throughout the supply chain in order to receive up-to-date information on their whereabouts. By optimizing the supply chain with RFID technology, organizations can now have real-time tracking on every single asset, from raw materials to finished goods.

These smart RFID labels allow you to view the precise location as well as all relevant data about the asset remotely, regardless of how far it is from you geographically. This capability is game-changing in various businesses scenarios, however, warehouse management is one of the greatest examples. Real-time visibility in warehouse management means assets cannot just disappear, minimizing losses, while any bottlenecks in the supply chain can be quickly identified and optimized.

Inventory accuracy

Accurate asset tracking is a huge challenge in supply chain management, leading to issues like overstocking or stock outs. When a business overstocks their inventory, they incur unnecessary warehousing costs or, in industries like food and drink, the stock may also be subject to an expiry date. Therefore, overstocking can lead to higher costs and excess waste. Stock outs, on the other hand, mean that you may lose a sale to a competitor, affecting your revenues.

All of these issues can be avoided with smart RFID labels, by reducing human error and providing you with accurate inventory records. Since you are always aware of your inventory situation, you can make data-based decisions to always maintain optimal stock levels and respond quickly to any peaks or surges in demand.

Not just that, inventory accuracy is of paramount importance when it comes to regulatory compliance, particularly in industries where product traceability is not just a benefit, but a strict requirement, like the pharmaceutical sector. Embedding unique identifiers into pharma products ensures that nothing will get mixed up due to human error and the conditions in which the product must be held are kept.

Process automation

In addition to all the above benefits, RFID smart labels can also help automate a lot of your processes. Offering advanced integrations with Industry 4.0 frameworks and IoT systems, they enable a completely seamless communication between different devices. As a result, businesses often see a great reduction in manual labour needs as well as an increase in operational efficiency. For example, manufacturers use the labels to automate quality checks during production or track the progress of raw materials in real-time.

Conclusion

Smart labels have the ability to revolutionize not only the supply chain, but the whole business too. From real-time visibility to automated processes, it’s an increasingly important investment to make.