How RFID Works in Logistics and Supply Chain Management?

RFID in Logistics and Supply Chain Management

How RFID Works in Logistics and Supply Chain Management?

In logistics and supply chain management, efficiency, transparency, and precision matter the most. To achieve this, a business must be well-equipped with the necessary tools to ensure an efficient logistics system. As the movement of goods over long distances increases, tracking them has become a focal point of businesses. Tracking goods allows manufacturers, distributors, and retailers to have control over them.  

Technologies like RFID need to be implemented to ensure effective tracking of goods. RFID in logistics and supply chain management plays an important role. It helps to lower the cost and achieve efficiency in operation. 

What is RFID? 

We must first understand what RFID means when implementing the new RFID technology. RFID, or radio-frequency identification, transmits the data from the tag to the reader. RFID is like a barcode but much stronger. It can scan the data from a distance and multiple objects at a time. 

The key components of RFID are an RFID tag, an RFID reader, and an antenna. The RFID tag consists of an embedded transmitter and a receiver. The tag has two parts: a microchip to store the data and an antenna to transmit and receive signals. An RFID reader comprises a transceiver, a radio transmitter and a receiver. 

Tech solution provider companies like Quinta are among the best dealers of RFID devices. They also provide services and software solutions. 

RFID in Logistics and Supply Chain Management 

RFID technologies can be used as applications in supply chain management and logistics. These technologies enable the processing of high volumes of goods at an incredible speed. RFID in logistics can help provide visibility to service providers and the receiver. It can help monitor large volumes of goods from multiple locations. 

A supply chain works on transparency. RFID in supply chain management is key to achieving accuracy and traceability of goods shipped. 

Benefits of RFID in Logistics and Supply Chain Management 

Now that we know what RFID is and how it works, let us look at its benefits when implemented in logistics and supply chain management. 

Improved Inventory Management 

RFID enables inventory tracking. This allows companies to locate their products in the warehouses quickly. It is also helpful in the supply chain journey. Along with quicker access to the goods, it decreases the risk of stockouts and overstocking. It also minimises the potential risk of human error as the track is kept from the initial stage. RFID can also provide information about the discrepancy. This enables the warehouse management to act accordingly to avoid such discrepancies. 

Asset Tracking 

RFID enables the tracking of raw materials and physical assets in a company. This reduces the reordering cost for lost parts. The organisation can also track vehicles on a real-time basis. This increases visibility and reduces the risk of theft. 

Real-Time Monitoring 

The monitoring process begins as soon as the product enters the warehouse. It keeps track of the product by entering and cross-verifying the data. This makes the journey of the product visible. RFID provides information on supply chain operations, such as the location of goods, shipment status, performance of supply chain partners, etc. This not only optimises the operations but also builds trust and credibility. 

Cost Reduction 

RFID automates the inventory management system. This reduces the cost of labour. Real-time monitoring enables companies to optimise their operations and reduce waste. RFID informs companies about the discrepancies. Actions can be taken to mitigate the differences and avoid loss. 


RFID is a valuable tool in logistics and supply chain management. It is the most reliable tracking system that can enhance productivity. From cost reduction to increased visibility, the benefits are immense. Quinta is your one-stop solution provider for all RFID queries. Its devices and software are reliable and easy to use. 


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