RFID for the Optimized Inventory Management

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29 Νοε 2013 (πριν από 3 χρόνια και 7 μήνες)

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RFID for the Optimized
Inventory

Management

As the times goes by,
everything keeps on developing and changing, getting improved,
and getting even more complex.
The lifestyle of people nowadays is totally different as it
used to be, the climate and environment have even changed as well.
As
the more complex
people’s lives and activities
become in this era, there is only one way to make everything
runs easier, which

is called technology.


Technology has already invented from a very long time ago and it keeps improving
rapidly. When everything is getting more complex, technology is the solution that can help
people to do their activities in a more effective and effici
ent way.
In the past, to find
information about something accurately, reading books with hundreds of page is needed. But
in this era, browsing it via internet will be one of the easy ways. Still remember how to
communicate with other people in the past? Fa
ce
-
to
-
face meeting, writing a letter, or maybe
using pager are the options to communicate with each other, but it takes more time and effort
to do compared to the options provided by the technology now which allows people to simply
send e
-
mail, make a phon
e call, instant messaging, and social media which can be accessed
easily with real
-
time processing.

By seeing the examples mentioned above, it can be seen that technology, specifically
the ICT, really helps people to do their activities a lot.
As explain b
y Stephen Doyle in his
book ‘
Information and Communication Technology: Vocational A Level

,
ICT stands for
Information and Communication Technology and it looks at the ways in which the
combination of information technology and communication technology can

serve people and
organizations.

In conclusion, ICT is the combination of IT and communication, or IT
-
related
things that help the communication process like mobile phone, wireless communication,
Bluetooth, internet, etc.

In real life, ICT does not only he
lp people in the terms of communication with each
other. ICT can be implemented as well to support the business and industry to run their
business process more effectively and more efficiently.
As the more complex business
processes are in a company and mo
re competitors appear, a company should find the best
solution to support their business processes to be able to run well.

Looking at how complex the business processes in an industry from the production
process, storing at the warehouse, picking, packing,

transportation for delivery, and the other
stuffs can be very complicated.

But from all of these processes, which process is the most
important one? Well, all of those processes are
definitely
very important, but one of the
processes tha
t can be managed i
nto an optimized way by using the support of ICT is the
storing process of the raw materials and the finished goods into the warehouse.

Storing raw materials and finished goods into the warehouse is a process that actually
can be imagined as an easy proces
s, but in the reality, there are lots of problem that can be
occurred in this process.
Locating each of them, tracking the materials which are needed to be
used, which are already expired, and which are ready to be sent are not an easy jobs to do.
In
fact, a company can get huge amount of expense for managing the
inventory

and loss of
materials because it is hard for them to track which one is already expired and misused of the
materials.

Seeing that inventory management is not an easy thing to do b
ecause it requires much
effort and time, also might result a huge amount of loss if it is handled improperly, that is
why the support of ICT is needed. One of the ICT solutions that can be used to solve the
inventory management problem is called RFID.

Radi
o Frequency Identification (RFID) is the tag that can store lots of information
about an item and it also has the ability to track the location of that item within certain

distance by using the reader. RFID uses the wireless or radio wave technology. Nowad
ays,
RFID is very popular to be used for different purposes, for daily activities, health, education,
and it is one of the best ways to be implemented for inventory management.

So, how does the RFID work to optimize the inventory management in an industry?

It
is very easy. The company only needs to purchase RFID tags and a RFID reader.
To make it
works, the RFID tags will be embed into all
raw
material items
and finished goods in the
warehouse. The tags will then record all the information of each item, for

raw material items
it can be the name, condition, for what product it will be used, etc. While for the finished
goods it can be the name, expired date, the composition, etc. Then to track everything down,
RFID reader will be used to locate each item and t
o see each item’s information.

By using RFID for managing the inventory of an industry, it is definitely will save
lots of expense of the company. Firstly, because it will reduce the number of workers needed.
By using RFID tags, location and condition of e
very item is known perfectly
, so there is no
need to have workers for quality control purpose, for the stock of each item is also known
perfectly, so there is no need for workers to calculate it manually. Then, since everything can
be tracked down easily b
y using the reader, there cannot be a misused items or miscalculation
of the items stock. Also by using RFID, the company can also know the
materials which are

about to expired soon and also the exact location of those items, so those materials can be
used first for production before the expired date.

Implementing RFID for inventory management in the industry might be a bit
expensive for some companies to afford

because it requires lots of RFID tags to be purchased
for each item
. But it is a very promising investment, because it is definitely will cut bigger
number of costs rather than the costs needed for the investment of the RFID itself at first. It
will reduc
e the number of workers needed, also improve the security and control of material,
reduce the time
-
consuming, and all information needed
is

recorded and can be accessed
easily.

That is why, rather than having a messy warehouse to store the raw material ite
ms and
finished goods with low control and lots of worker required, of course it is worth trying to use
RFID to make the inventory management runs more effectively and efficiently.


References:



Stephen Doyle (2000).
Information and Communication Technology
: Vocational A
Level
.

Nelson Thornes.



Steven Shepard (2004).
RFID: Radio Frequency Identification
.

McGraw Hill
Professional.



Gwynne Richards (2011).
Warehouse Management: A Complete Guide to Improving
Efficiency and Minimizing Costs in the Modern Warehouse
. Kogan Page Publishers.