RFID is transforming global commerce in many unique ways. RFID provides many benefits for manufacturing Sector. RFID is evolving as a major technology enabler for identifying and tracking goods and assets around the world.
To understand the impact of RFID in the manufacturing floor environment you have calculate the return of investment (ROI) achieved by increase of visibility and work-in-process (WIP) inventory accuracy. This reduces the operating cost and thus increases the profit. Lead times and the total cycle times are shortened as a result of the increased manufacturing speeds and reduced inefficiencies of the manufacturing line.
The automatic identification of products with RFID in the warehousing and distribution center environments has a consequence: increased visibility and accuracy of the inventory. This increases the warehousing efficiency and order accuracy. At the same time it reduces shrinkage, stock outs and inventory levels. The increased warehousing efficiency has as a consequence a reduction in the operation costs, which translates into increased profits and also a reduction in lead times. Reduced lead times means increased customer service as well as decreased inventories along the supply chain. Ultimately, reduced inventories increase ROI.