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RFID chips are primarily being used
in distribution to track products grouped in various hierarchies:
(1) individual items or single packages containing multiple
items for consumer purchase; (2) cartons or cases of multiple
items; (3) pallets of multiple cartons or cases; and (4) loads
(e.g., truckloads, shiploads, or railcar loads) of multiple
pallets. The products at each of these levels may be assigned
an RFID label that is associated with information pertaining
to at least one adjacent hierarchical level. For example,
an RFID label on a pallet may be associated in a database
with the RFID labels for each carton on the pallet, or may
be associated with data pertaining to the RFID label from
the truckload.
Today,
distribution centers are able to establish unique identification
and "people-free" tracking of containers, pallets,
boxes, and totes to support real time inventory management,
faster inventory turns, less shrinkage, and reduced labor
costs. Data from tags attached to these items can be collected
automatically at various locations, such as at dock doors
for rapid inbound and outbound confirmation, and from shelf
locations when inventory is stored and retrieved without need
for human intervention.
With
traditional systems, every time items are moved from one point
to another, the pallets on which they are loaded have to be
stopped to enable labels to be read or barcodes to be scanned.
RFID systems enable data to be collected in milliseconds as
the goods move. Traditional systems may also require operators
to key information into a computer system, which creates the
potential for improper keystrokes resulting in errors. Since
data is collected automatically from RFID tags, no human error
is introduced thus maintaining the integrity of the database
and an accurate representation inventory levels and stock
locations.
The
most significant benefit is that vital data is available at
every step in the distribution process, ultimately providing
tremendous improvements in customer service and internal operations.
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