RFID for Inventory Control in Manufacturing
Managing inventory levels in a cost-effective and revenue-driven manner can be difficult, even for the most experienced manufacturer. Without access to effective software to help automate inventory control processes, properly managing inventory levels can be quite the challenge for manufacturers. AssetPulse RFID asset tracking software helps in automating the inventory management.
AssetPulse’s inventory control capabilities allow manufacturers to automate their processing based off of previous purchasing trends and can even set reminder alert for raw material orders to renew when needed. This is achieved using RFID tags for assets and deploying RFID readers in strategic locations. With a real time inventory data, inventory control becomes less of a pain point and more a second nature
How inventory is traditionally managed?
Many different ways are used to keep control of inventory. One basic method is by creating a spreadsheet with various columns for product name, item number, and quantity. A column to deduct what is sold. Additionally, a log for returns and new incoming stock is maintained. It requires continuous manual monitoring to ensure every transaction is accounted for. Of course, this is an incredibly labor-intensive process. The information is difficult to share, and another huge pitfall is human error. People are prone to make mistakes––mistakes that are difficult to track and result in inaccurate inventory numbers.
A manufacturer relies on inventory to complete a finished product for which they expect to get paid. For example, an aerospace manufacturer has millions of dollars in parts in their inventory of raw materials that they include in the finished product.
Forecasting demand is essential for any business. For a manufacturer, this means having enough inventories on hand to meet this demand. If a manufacturer fails to forecast demand and orders too little inventory, they face the possibility of losing customers to a competitor. A late order may come at a higher expense, as supplier prices rise due to increased demand; this is another way the manufacturer loses money. If the manufacturer overestimates demand and orders too much inventory, they stand the chance of having unused inventory and may have to incur additional storage costs.
AssetPulse’s RFID in Manufacturing
Inventory management can be automated with the help of RFID to track and manage assets. RFID tags are affixed onto the items that are inventoried. With the help of Fixed RFID readers or handheld RFID scanners, inventory data is updated in real-time or periodically, whichever is preferred.
This inventory data is centrally stored on a web application that can be readily accessed from anywhere. Apart from this, AssetPulse RFID asset tracking solution also alerts users when the inventory level is running below par. All this happens automatically without any human intervention, thereby making the otherwise time consuming process very efficient and accurate.
The RFID asset tracking software also has different reports including historical reports which enables manufacturer to forecast a demand and stock required inventory.