Top 6 Reasons for Using RFID in the Warehouse

Rising customer expectations have impacted the supply chain with the force of a freight train. Warehouse and distribution centre owners are seeking digital solutions to help them optimise procedures and enhance efficiency as they face increasing delivery demand.

Warehouse operations have a reputation for being tough to manage and fine-tune. Everything may appear to function well during regular times, but there is so much information to keep track of that it’s easy to get caught up when workloads grow. Every few minutes, information pours from the upper office to the warehouse floor, and managers struggle to respond properly.

RFID in warehouse management systems has always had the potential to transform how you run and administer your facilities, but the technology’s high cost and complexity have hindered many people from utilising it. With major investment from large corporations that have successfully used the technology in their operations, it has progressed to the point where any size warehouse may employ the same RFID solutions for enhanced productivity.

This technology connects warehouse workers with warehouse management solutions where any individual can easily understand and identify from where to pick the product, where to move, etc within the warehouse.

How Does RFID Technology work?

RFID, for the record, identifies each subject based on the tag that is linked with them. And everything is handled by AIDC. The tag in an active RFID system receives data from the reader and stores it in its memory. This is the location where readers receive data, which is then process using the microcontroller interfaces.

RFID achieves this objective by using radio waves. The three primary components of the process are RFID tags or smart labels, RFID readers, and antennas. These tags need the energy to power up and convert data from the reader to a readable format. This technology is currently commonplace and used in a variety of sectors.

RFIDs’ unprecedented ascent and popularity in recent years can be attribute to a number of factors. RFID is making inroads into a wide range of industries because it enables scalable and secure logistics, supply management, and inventory tracking. It’s even use in hospitals to track inventory, workers, and patients, among other things.

Reasons for Using RFID in the Warehouse

Increased Operational Efficiency

The most noticeable benefit that RFID systems have over systems that employ barcode asset tracking software is that RFID tag data (or RF tag data, as it is frequently known as) can be read outside of the line of sight and does not need to be aligned to an optical scanner.

This means that a large number of tags may be read at the same time. Persons or goods may be track from anywhere within a defined range, enhancing speed and efficiency.

Improved Shipping Efficiency

Transportation is accountable for making or breaking a warehouse endeavour that might otherwise be profitable. With real-time driver mobility and information, one can work with drivers to constantly redefine the process. And increase performance, which benefits both the driver and the business.

Calculating efficiency is not as simple as it appears, and identifying where time has been spent or lost would be a headache for any organisation without RFID technology.

Using a Warehouse Management solution delivers precise movement data, allowing clients to pinpoint where and how time is being waste. This provides clients with a high level of transparency and dependability over the business, as well as optimal customer happiness.

Warehouse Inventory Management System

Inventory accuracy is important; obviously, getting it is difficult. RFID technology assists in obtaining and maintaining 99.9% inventory accuracy without the need for time-consuming and usually costly inventory inspections.

Audits can take hours or even days to complete, and they are expensive and time-consuming to carry out. RFID provides real-time pallet location information in minutes. By properly tracking inventory inward and outward movement. We can analyse and streamline by carrying the correct stock at all times.

Reduce Labor Costs

While RFID isn’t new, there are a slew of new applications available to assist minimise the number of labor-intensive operations in warehouses. Walmart was an early adopter of RFID and went on to become the world’s largest retailer by dominating all of their supply chains.

RFID may be able to aid with receiving velocity straight away. RFID tagging is becoming more common among suppliers and manufacturers, allowing you to connect your supply chains to your receiving operations. And track every item leaving the facility in real-time.

You may cut labour costs while also speeding up all associated activities by quickly scanning batches of items coming in or departing.

Easy Equipment & Parts Tracking

RFID warehouse uses go beyond inventory management. RFID technology may also be use to track the movement of critical assets and equipment such as forklifts, tools, IT equipment. And other things used in warehouse operations.

By monitoring your critical equipment on an asset management platform, you can maintain an accurate chain of custody. This will allow you to make better use of your equipment and handle loss prevention.

Workplace Safety

RFID promotes a positive business culture. A caring approach toward employees is both sustainable and necessary for long-term success and growth.

A caring attitude toward employees is both sustainable and necessary for longevity and growth.
We are tracking practically everything that happens within the warehouse with the use of RFID, and by using all of the information, we can avert future mishaps. \

As RFID enables the investigation and avoidance of such problems, from determining accountability to redirecting warehouse flow. It ultimately aids in the prevention of future accidents.


A warehouse management system (WMS) based on RFID can collect, transfer, check, and update large amounts of data on daily frequent product entry and delivery, lowering labour intensity. And eliminating errors such as fault scanning, miss scanning, and re-scanning in repeated human activities.

It improves both efficiency and precision. With the evolution of RFID technology, cost savings, progressive standardization, and a reduction in error rate, the efficient coupling of warehouse management software. And RFID will become one of the most important factors in boosting firm competitiveness and supply chain efficiency.

RFID-enabled companies can analyse all of the data acquired from the warehouse, resulting in trustworthy and dependable information. This helps the company increase its sales and profits.


Abrez Shaikh is a Product Manager at Arrowhub, a warehouse management system provider. He is responsible for overseeing a product from ideation to deployment. Abrez is a highly motivated and visionary personnel of the company who always strives for excellence and comes up with innovative ideas to enhance the product performance and make it adaptive to meet the evolving demands. When he is not making any magic at his desk, you’re likely to find him exploring nature & playing cricket.

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