Maximizing Efficiency Using RFID in Warehouse Management

Anirudh Pulikonda

Maximizing Efficiency Using RFID in Warehouse Management

Radio frequency identification (RFID) technology may have begun adoption in the late 20th century but it has been around since the invention of the radar during World War II.

Radar systems laid the foundation of RFID technology, and further breakthroughs expanded its application in various industries.

The modern usage of RFID in warehouse management has been adopted slowly but surely, following the versatility of the technology. Let’s take a look at how it can help maximize efficiency.

What is Radio Frequency Identification (RFID)?

Mario Cardullo patented a passive radio transponder with memory storage in 1973, an ancestor of the modern RFID.

RFID tags are made up of a microchip and a radio antenna on a substrate, allowing it to use radio frequency fields to transfer data. Similar technology is used in pet microchipping and credit cards, offering the ability to gain real-time visibility into its location.

The built-in sensors can communicate and be identified by readers, being used in place of barcodes and making RFID in warehouse management an appropriate choice.

The data encoded into the RFID tags and labels can be captured by radio waves. Depending on the frequency band of the systems, the inventory can be tracked for longer ranges with fast data reading speed.

History of RFID in Warehouse Management

RFID in warehouse management has become prevalent since the early 2000s, with the first commercial RFID chip being available in 1999.

Early Warehouse Management Systems (WMS) began to integrate RFID technology to improve inventory visibility and streamline operations.

As of 2021, the sales of RAIN RFID tags hit over a 100 billion, with large-scale deployment becoming common in various industries including manufacturing, automobile, retail, healthcare and general supply chain operations.

Why choose RFID Systems in Warehouse Management?

Considering that RFID in warehouse management can be used to track a varied group of items, its versatility has made it a popular choice across several industries.

The technology uses radio waves to identify inventory and transmit data. RFID has an additional advantage over barcodes – where a barcode needs to be scanned individually, RFID tags only need to be within the vicinity of the reader in order to receive the data via radio waves.

The small chip can store up to 2,000 bytes of information and is usually within a sticker that can be attached to any object.

How do RFID Tags Work?

RFID systems consist of the following components:

  1. An RFID tag
  2. An RFID reader
  3. A computer system with a database and the appropriate warehouse management system software

The transponder in the RFID tags transmits stored data such as SKU information when used for inventory management systems in warehouse management. The RFID reader, also known as the interrogator, receives data from the RFID tags by using the scanning antenna and transceiver.

IN RFID systems, RFID readers typically fall into two categories:

Fixed readers

These readers are usually permanently installed in locations such as the receiving bay. This allows the inventory management system or warehouse management system to automatically read the inventory as it comes into the warehouse.

Mobile readers

Mobile readers replicate the system of barcode scanning, except they are not tethered anywhere. These are portable and can be taken anywhere, making them ideal for mobile workers.

Rundown of using RFID for Tracking in Warehouse Management

Tracking with RFID in warehouse management works through multiple stages, asserting greater control over the inventory through every pass:

  • The shipment arrives at the warehouse receiving dock and is unloaded
  • An RFID tag is attached to either the individual item or the entire pallet 
  • Each tag has an internal memory that is modified as it moves through various processes in the warehouse
  • The tag transmits the information to the central database via a radio signal
  • The WMS analyzes and updates the data as the item progresses through the warehouse system

RFID scanners don’t need the item to be within the line of sight, so items can be scanned and catalogued from anywhere. The ability to remotely read and detect tags drastically improves the efficiency of the workers, eliminating the need to scan each product individually.

By attaching RFID tags to transportation equipment such as pallets, vehicles, and forklifts, one enables automated record keeping of equipment’s in and out movements, reducing the risk of loss and damage.

RFID technology can be used for several tasks in warehouse management including:

  • Receiving and put-away
  • Locating stock
  • Inventory control and inventory management
  • Cycle counting
  • Order picking and packing

For businesses that are working with more expensive inventory items, implementing RFID technology is recommended as it promotes better visibility and traceability for the product within the overall supply chain.

5 Benefits of RFID Technology in Warehouse Management

RFID in warehouse management cuts out several manual steps, streamlining operations and adding efficiency to the warehouse management process. The accurate stock tracking also makes it easy to record risks and losses, improving the handling process.

RFID offers several advantages to the warehouse management process:

Improved accuracy

The ease of reading RFID tags significantly improves the accuracy of inventory tracking and management, reducing stockout instances.

Lower labor costs

As several manual processes are eliminated, fewer staff are needed for tracking and management tasks.

Fewer errors

Automating instances of order entry and general inventory tracking helps minimize errors and, thereby, increasing productivity.

Quick access to data

Implementation of RFID in warehouse management offers real-time data about the movement of shipment through the warehouse, verifying that the inventory or order is in the correct place at the correct time. RFID can also offer quick access to order databases, enabling the team to take immediate action.

Instant verification

An RFID-based WMS can provide instant verification following a scan of the tag, ensuring that the correct item has been picked. This can, in turn, allow the WMS to deduct the item from the inventory, asserting greater inventory control.

Types of RFID Tags

In RFID technology, the most popular types of tags are active RFID tags and passive RFID tags. 

Active RFID Tags

An active RFID system uses batteries as a power source for the RFID tag that sends signals to the reader. These active tags can be read from a greater distance and are capable of transmitting data much more quickly than passive tags. Active tags are helpful for tracking the movement of assets across a wide area.

Passive RFID Tags

A passive RFID tag doesn’t require battery power. It is instead powered by the electromagnetic field that is emitted by the reader. These tags are much less expensive than active tags but have shorter read ranges and can take longer to receive data.

Passive tags are a great choice for tagging individual products, where changing batteries frequently is impractical.

Different Types of RFID Systems

Aside from RFID systems divided by tag type, there are three major types of RFID systems – Low-frequency (LF), High-frequency (HF), and Ultra High-Frequency (UHF).

Microwave RFID is an uncommon option but is also available in the industry. Choosing the frequency range depends upon the country or region the RFID system is being used in.

Low-frequency RFID systems

These systems range from 30 to 300 kHz, but the sweet spot is around 125 kHz. There are other systems that can operate around 134 kHz.

This frequency band has a short read range of around 10 cm. It also has a slower read speed than the higher frequencies, but it is not very sensitive to radio wave interference. Low-frequency RFID systems are best utilized in access control and livestock tracking.

High-frequency RFID systems

The high-frequency band ranges from 3 to 30 MHz. These systems typically operate at 13.56 MHz and have read ranges between 10 cm and 1 m, more than what low-frequency systems offer.

High-frequency systems are moderately sensitive to interference and find uses in ticketing, payment such as through smart cards and proximity cards, and data transfer applications like Near-field Communications (NFC). 

Ultra High-frequency RFID systems

The Ultra High-frequency (UHF) band covers the range from 300 MHz to 3 GHz. RAIN RFID systems use the 860 to 960 MHz band, leveraging the UHF Gen2 standard.

These frequencies can differ slightly based on the operating region, but RAIN RFID systems operate between 900 to 915 MHz in most countries.

The read range of passive UHF systems can go up to 12 m. These systems also have faster data transfer rates than low-frequency or high-frequency systems and are also easier to manufacture.

However, they are also more sensitive to interference. UHF systems are more versatile and are used in retail inventory management, wireless device configuration and more.

Microwave RFID systems

Though these systems are rare, they serve a specific purpose. These systems run at 2.45 GHz and can hence receive tags from distances more than 30 feet. 

To choose the RFID setup best suited for your business, consider your use case and choose the radio wave frequency range and read speed that will be most suited for the system. No need to invest in higher frequency RFID systems when the readings will be done individually or in a smaller space.   

Using RFID for Inventory Management

RFID allows businesses to identify individual products and can hence be crucial for exerting inventory control and in inventory management.

Tags are usually encapsulated in paper, plastic or another lightweight material, then attached onto the product, its packaging, the pallet or container, or even to the van or delivery truck.

RFID tagging offers greater stock control and has several advantages over barcodes, including:

  • The ability to read tags remotely, up to high distances (especially for higher range systems)
  • Simultaneous reading of several tags, enabling an entire pallet or container of inventory can be checked at once
  • Each tag can be given a unique identification code, allowing for individual products to be tracked more effectively
  • Some tags can be overwritten, allowing the data about a product to be updated as said product is on the move

As the costs attributed to RFID have fallen in recent years, this make the system easy to adapt and implement in existing warehouses. These are especially useful for businesses that wish to boost their productivity and inventory management capabilities.

RFID tagging can be used to prevent overstocking and understocking, for stock security by tracking the item with the help of tag readers to trigger alarms, and for quality control, especially for items with a limited shelf life. From retailers to wholesalers and distribution centres, most places can utilise RFID for inventory management.  

4 Steps to Integrate RFID in Warehouse Management

The below steps can help one leverage RFID technology in warehouse management, improving the overall accuracy, efficiency, and security of the processes:

  • Choosing the correct RFID tags for your needs is the first step towards implementing the technology for your warehouse. Consider factors such as the size, type, range, and environment of the warehouse. 
  • Once the tags are procured, ensure these are placed at appropriate locations and installed correctly. Secure these popular and test them prior to implementation, ensuring that they function correctly. 
  • A high-quality RFID reader is essential for accurate reading of the tags and quick transmission of the data. Invest in one compatible with your WMS. 
  • In a final step, integrate the RFID system with your warehouse management system, automating the inventory management process and generating accurate inventory reports as a result. 

Modern Warehousing & RFID in Warehouse Management

RFID in warehouse management can be a powerful tool to improve efficiency and productivity, offering warehouse managers greater control over operations and better inventory management capabilities.

Automated processes that communicate with the warehouse management system don’t just save time, they also impact services that demand human intervention, such as pick and pack. Workers and warehouse managers can save hours of work, increasing productivity.

Shipsy’s Warehouse Management System makes it easy to integrate RFID capabilities into the system, providing greater real-time visibility into the inventory.

Add greater inventory control with Shipsy and RFID for effective operations management, order picking, shipping, and more. Empower your business with technology and unlock productivity and efficiency.

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