As the world embraces the social distancing protocol and changing how retails operate, companies that digitalize their supply chain process with the Internet of Things and RFID will stay afloat and survive
Fremont, CA: The global pandemic has made the environment of supply chains disorderly, globally. A new supply chain environment will slowly emerge as organizations work to become more active to meet the customers' needs and keep the businesses running.
It is crucial for supply chains to prevent delays in processes and results and complete cancellations without repairs. As the health crisis has caused significant merchandise shifts, supply chain professionals will see a decrease in “wants” merchandise and a rise in “needs” merchandise during these disruptive times.
Consumer product goods (CPG) enterprises and manufacturers will fast track their supply chain strategies to compete with retailers. And retailers may produce more branded merchandise as a response to the threat. There will also be a more localized collection of inventory positioned for pick up like BOPIS as retailers move towards a decrease in human interaction. Supply chains need to digitalize to promote functional digital processes that will optimize shopping experiences.
Use of RFID in the Warehouse
RFID tags are a powerful and automated way of storing data to deliver inventory visibility. This technology enables products to have a tag that will provide data about what is inside the package. The RFID tags need to be programmed continuously and updated during the packaging as the demand for SKUs increases because of the changing e-commerce trends.
When supervised properly, RFID is capable of automating the audit and piece-counting process for carrier drivers and warehouse dispatch staff, allowing full automation of the warehouse and distribution network.
Time to Invest in IoT and RFID
Although the pandemic has created major changes in the industry, it is also the best time to invest in digitalization. As some retailers face low demands while others face high demands for their potentials, supply chains can take advantage of this period and invest in technologies that will improve processes as digitalization is now the factor of surviving in the market.
Working together to Optimize Inventory
IoT and RFID go hand in hand as these tools rely on each other to unlock the potentials for businesses. IoT works only if products have a sensor to read RFID data and RFID data is of no use if there are no IoT devices to read and respond to the data.