At its height, the COVID pandemic caused supply chains to grind to a halt. The impact is still being felt today. Businesses still struggle to reach pre-pandemic throughput levels. With varying scales of lockdowns closing warehouses and stopping manufacturing lines around the globe, supply chains were fundamentally changed. Buyer-supplier relations were negatively impacted and thousands of businesses saw their “bottom line” suffer because of limited stock availability.
Even now, more than a half-a-decade later, supply chains are still struggling to rebound. The long-term effects continue to be felt as a lack of inventory visibility combined with raw material shortages are complicating the process of scaling up to meet demand. One of the most prominent examples of this comes from the global semiconductor chip shortage. The lack of availability affects a range of technology and automotive products.
As manufacturing stopped and remote working became the primary solution for many organizations, consumer demand only increased. Once production began again, suppliers were dealing with a significant backlog, projected not to be clear until 2023.
The Need for Change
Back-end issues highlighted a number of cracks within supply chain models, particularly within retail businesses. Post-pandemic, many retailers began to recognize the importance technology plays in creating and maintaining an efficient supply chain. According to research by Ernst & Young (LLP), 64% of supply chain executives said their digital transformation will accelerate due to the pandemic.
While some retailers have found solutions, many are still searching for ways to improve efficiency in their supply chain. Ultimately, the goal is to streamline operations from the manufacturer to the shop floor. This goal can be accomplished with RFID technology.
Deploying RFID & Tracking Items
By implementing item-level RFID, retailers can significantly improve the flow of operations while minimizing their costs. Items can be tracked all the way from the production line to warehouses, and everywhere in between. Stock levels can be managed appropriately, and retailers can optimize their revenue streams effectively.
Using ClarityRFID Inspire™ RFID tags, retailers can track items at every touchpoint across the supply chain in near real-time. Combined with Clarity®, users have access to and visibility over all tagged items in all locations. They can also effortlessly track, manage, or redirect inventory at the touch of a button.
The Supply Chain Efficiency Formula
According to the State of Retail Insight Report Part 1, employees spend an average of 14.6 hours per week carrying out manual inventory tasks, such as counting, finding, and transferring. Respondents reported there was additional time spent on performing similar tasks. Because RFID allows retailers to complete this task more efficiently and effectively, high levels of inventory accuracy are achieved and maintained.
By placing RFID-enabled workstations within distribution centers and warehouses, retailers can easily perform audits of outbound shipping and inbound receiving. They can also perform quality checks, packing functions and shipping verifications, as well as facilitate the execution of click-and-collect purchases. These features can be automated and configured in order to retain or improve upon current throughput levels, while also increasing accuracy.
As a result of this, retailers can move items along the supply chain and into the store as quickly as they need to. Overall, item-level RFID technology increases the speed and accuracy of supply chain processes significantly, and retailers can make smarter decisions about their supply chain faster. Labor efficiency also improves, with employees aided by RFID terminals or mobile devices that streamline omnichannel business processes and execute tasks.
Optimizing Revenue & Minimizing Environmental Impact
Implementing item-level RFID technology doesn’t only result in optimized efficiency throughout the supply chain, it also enables retailers to maximize revenue. With enhanced visibility from production through the supply chain to retail stores, retailers can better understand their operations.
This means they can re-direct stock and allocate it throughout the supply chain at the most effective cadence. It also allows them to identify areas where they have excess stock to optimize the allocation of items. They can order only what they need, potentially lowering manufacturing, storage and transportation costs by a significant margin as bloated inventory is eliminated. Furthermore, not only does this provide a financial cost saving, but it also helps retailers to minimize the CO2 emissions produced throughout the manufacturing and transportation process and empowers sustainable business practices.
As retailers continue to search for ways to create supply chain efficiency, RFID technology can play a pivotal role in enabling them to accurately and effectively track inventory along every touchpoint, while reducing costs and negative environmental impact. Partnering with an experienced RFID provider in the supply chain will create long-term sustainability and business growth as retailers optimize operations to meet the growth of omnichannel selling and position themselves to adapt to future supply chain disruptions.
