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Is RFID Technology A Necessity For Manufacturing?

- Apr 19, 2018 -

Is RFID technology a necessity for manufacturing?

Introduction: RFID technology has become one of the essential technologies in the retail industry. What about manufacturing and logistics?

RFID technology has become one of the essential technologies in the retail industry. What about manufacturing and logistics? I believe that all major manufacturers and logistics companies will one day use RFID, but it's hard to say that leaving RFID technology will not survive, let me explain why.

For retailers, inventory accuracy is the key to omni-channel sales in the world. Manufacturing is facing unprecedented global competition. They are facing the pressure to reduce costs, simplify operations, and deliver the right product to the right place at the right time.

If you are producing consumer goods - carpets, ceramic plates, furniture, clothing, or any other product, retailers may choose to use RFID technology manufacturers, so that the cost will be cheaper and delivery will be more timely, but brand loyalty is also a problem. If Apple does not use RFID, the efficiency of the supply chain is not as good as that of Samsung. Then, loyal iPhone users will change to Galaxy S because they are cheap. Maybe not.

Manufacturers will benefit from historical relations and unique expertise over a period of time. If you can make a patented car or plane that others cannot manufacture, then Honda or Boeing cannot defeat you completely, even if your inventory accuracy and efficiency are inferior to those of you.

In other words, RFID can provide a better way to manage raw materials, parts, components, tools, and work-in-process (WIP). Because it is a difficult task to expand the scale of production, managing millions of parts lists to ensure that parts are on-line is a challenge.

During my lifetime, manufacturing has improved a lot. Through Six Sigma, Kanban and other technologies, manufacturing has reduced defects, improved quality, and delivered more accurately. However, since RFID can distinguish different parts of the same product without the need for personnel involvement, this technology can provide a better method for inventory management.

RFID can also help automate the collection of data to analyze and better manage the movement of parts, subassemblies, tools, WIPs, and more. Ten years ago, Killdeer Mountain Manufacturing Corp. pioneered the use of RFID to correlate its production process with the needs of its customers, Boeing, which provided Boeing with visibility into aircraft component status. This is the future of manufacturing, and it is now.

Every manufacturer needs to make a decision. But it is clear that as more and more companies demonstrate the value of using RFID in manufacturing, more and more manufacturers will use this technology to increase productivity, reduce costs, and provide better service to their customers.