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The Impact of RFID on Accurate Warehouse Operations

2025.05.13

Warehousing is one of the most important parts of supply chain management. Errors in product storage, picking and shipping can lead to delays, customer dissatisfaction and extra costs. Therefore, many companies are using RFID (Radio Frequency Identification) to improve warehouse operations. RFID helps to track products using radio waves. What is different from barcodes is that you can scan many items at once without needing a direct gaze to read. This article explores how RFID helps improve warehouse accuracy and efficiency, and how it compares to traditional methods like barcode scanning.




What Is RFID and How Does It Work?

RFID stands for Radio Frequency Identification. It uses small electronic tags and readers to exchange data wirelessly.

Each tag has a chip and an antenna. The reader sends a radio wave to power the tag and receives data from the tag. This data includes product names, locations and quantities.

There are two main types of RFID tags:

Passive RFID tags: No battery. Get power from the reader.

Active RFID tags: Have a battery and can actively transmit signals to a reader

RFID  technology can be used to track products in real time. For example, when a pallet enters a warehouse, the BOWEI RFID reader placed on the door can record the exact time it arrives, what is in and where it should go.

Problems in Traditional Warehouse Operations

Before RFID, traditional warehouses used barcodes and manual methods to manage stock. Barcodes helped improve accuracy compared to handwriting, but still had many limitations:

● Workers had to scan the goods one by one.

● Barcodes become hard to read when dirty or damaged.

● There was a possibility of overlooking items when counting inventory.

● Easy to scan wrong goods and shelf locations.

● Input error is prone to manual input.

These problems often caused wrong inventory records, lost goods, and delayed shipments. Companies spent a lot of time solving these problems, sometimes even losing customers because of mistakes.

How RFID Improves Accuracy in the Warehouse

RFID allows workers to walk down the aisle with handheld readers and scan hundreds of tags at a time. This makes inventory counting faster and more accurate. No need to scan each product.

This has the following advantages:

● Reduced inventory check time

● Discover missing or forgotten items.

● Retention of real-time inventory data.

Better Inventory Tracking

Each item tagged with BOWEI RFID tag  can be tracked at every stage, when it arrives, where it is stored, and when it is released. This level of detailed information helps prevent loss and forgetting.

For example, if a product is lost, the system can know where the product was last seen. This allows the staff to quickly find them without spending hours searching.

Fewer Shipping Mistakes

RFID helps ensure that the correct product is picked and packed. If the worker chooses the wrong product, the system can issue a warning before shipping.

This reduces the following:

● False shipment.

● Returns from customers.

● Extra cost to fix errors

Better Use of Warehouse Space

RFID makes it easy to know where everything is stored. This helps the administrator plan where the product is stored so that the space is used well. If the space is effectively utilized, it will be easier to quickly put in and out of goods.

Real-World Example: How RFID Helped a Large Retailer

Let's see how one famous retailer improved its warehouse using RFID. The company suffered from misshipments and delays. After adding BOWEI RFID

● Increased inventory accuracy from 80% to 98% or more.

● Picking error decreased by 70%.

● Reduced inventory calculation time by half.

This reduced the company's expenses and made customers more satisfied with the right products on time.

RFID vs. Barcode: A Simple Comparison

Feature

Barcode

RFID

Read method

Line of sight needed

No line of sight needed

Speed

One item at a time

Many items at once

Durability

Easy to damage

Can handle rough use

Cost

Low

Higher, but prices are going down

Tracking

Limited

Real-time tracking

Barcodes are inexpensive, but RFID is more accurate and time-saving. Many companies start with barcodes and gradually shift to RFID as their needs grow.

Things to Think About Before Using RFID

Although RFID has many advantages, it is important to plan carefully before using it in warehouses. Here are some points to consider:

Cost of RFID Tags and Readers

The first thing to think about is cost. RFID tags, especially active ones, become more expensive than traditional barcodes. Passive tags are cheaper, but still more expensive than printing barcodes. If the warehouse deals with high-value items, the extra cost may meet that. However, for low-cost products, it may not be realistic to tag each product. We also need to consider the price of readers, antennas and software.

Training for Staff

No matter how good a technique is, it can only be useful if someone knows how to use it. Before using RFID in a warehouse, employees need proper training. Employees need to learn how to scan and read RFID tags, use handheld readers and fixed readers, and understand the meaning of data. Training is also required for basic troubleshooting, such as how to deal with tags not being scanned or system errors.

System Integration

Warehouse management systems (WMS) and Corporate Resource Planning (ERP) softwares need to be connected to existing warehouse systems. In other words, the data collected by RFID must flow into the system already used to manage inventory, orders and shipments. Interlocking these systems can take time and may require help from IT professionals.

Signal Problems

Since RFID uses radio waves, like other radio technologies, it may face signal problems. Materials such as metals, water, and thick walls may block or weaken signals. In other words, tags placed near metal or liquid may not be properly read. Also, the environment that works better depends on the type of tag. It is important to test the RFID system in the actual warehouse space before running.

Future of RFID in Warehouse Operations

RFID technology is becoming more common and affordable. In the future, further improvements such as:

● Smaller and cheaper tags

● Smart shelves to see the addition and removal of products.

● Better analysis that enables administrators to make appropriate decisions using real-time data.

● Prediction of the need for discovery and inventory of problems in combination with RFID and AI.

Many large companies already use RFID in all warehouses. As more companies understand its benefits, it is likely to become a standard tool in warehouse operations.

Final Thoughts

RFID helps make warehouse work more accurate by making it easier to track goods, avoid mistakes, and keep real-time inventory records. It is costly to start, but in the long run, better operations will lead to long-term cost savings.. If your warehouse is facing issues such as inventory accuracy, shipping mistakes, and stock delay, it is worth considering RFID. With the right planning and training, RFID helps create a more reliable and productive warehouse environment.

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