Almost everyone has heard how RFID can enhance warehouse efficiency, but very few know what RFID is. Well, RFID or radio frequency identification could be defined as an automatic information collection technology used to smooth operations at the warehouse and at different distribution centers.

RFIDs depend on electromagnetic waves to transfer the data between a moveable object and a reader. They can track, identify, and categorize inventory, even the ones lying far away, within a short period and increase productivity much better than barcode systems.

The following write-up describes the function of RFID in detail. Please check it out now.


While receiving them, several warehouses still use barcodes to tag the items, cases, and pallets. The items are scanned one by one, thus, taking a lot of time. RFID tags, on the other hand, make receiving quite easy. They automatically identify the shipments when they are passing through the dock doors.

Shipments can be verified against the order, and the worker will get instructions accordingly. All the goods are arranged, and the back orders, damaged products, etc., are sent back to the warehouse.

Item Tagging During Manufacture

RFID for warehouse inventory is also used at the point of manufacture. This paves the way for accurate outbound and inbound figures, which are immensely necessary for business prosperity.

Tagging during manufacture is especially beneficial if the products in question are luxury. This confirms the authenticity and alleviates theft or misplacements to the greatest extent. RFID has amazing tracking capacities, and it can automate verification procedures. Now isn’t that great?

Asset Management

Asset management is another aspect where RFID can help. Passive or active RFID tags are attached to containers, equipment, and people, and the tags provide their real-time status or location. There are some special tags that are utilized only for certain kinds of assets and only in closed-loop units.

The best example of RFID being used for asset management is the declaration of the Veterans Affairs Department – it had started a $543 million assignment to install RTLS or real-time location systems in 152 hospitals and 7 pharmacies. The assignment involved attaching RFID tags to medical supplies, surgical instruments, etc.


As soon as an order is dispatched, the retailer gets information on when the order will arrive. The goods with RFID tags can be tracked, escalating the safety quotient. The information is evaluated and compared, and any discrepancy is resolved immediately.

Walmart 2005 announced that their suppliers are tagging all the deliveries. Several other retail establishments followed suit. Since then, the use of RFID has grown across multiple industries like tourism, agriculture, and technology.

As evident from the above discussion, and as specified by top-notch experts offering RFID for warehouse inventory, the technology has positively impacted almost every procedure a business conducts – receiving, picking, packing, putting away, cross-docking, confirming and shipping.

Just like any investment, entrepreneurs, regardless of which industry they belong to, must consider the advantages as well as the cost of RFID. They would otherwise be unable to determine if the adoption is justifiable for them. No one likes spending money on anything, right?