Logistics vs. Logistics Management
Logistics refers to the flow or movement of supplies, goods, services, and information within a supply chain. When most people hear “logistics,” they often think of companies like UPS, USPS, or FedEx—service providers that facilitate this flow.
Logistics Management, however, is the behind-the-scenes process of planning, implementing, and controlling the efficient and effective flow of goods, services, and information. For logistics to operate smoothly—from the origin point to the final consumption point—there must be a strategic logistics management plan in place.
How Does RFID Help Logistics Management?
The key to enhancing logistics management with RFID technology is visibility and chain of custody. Without knowing where an item is located or where it was last seen, a company essentially takes a gamble when sending shipments out of a facility.
RFID tags can be attached directly to items, boxes, or pallets, uniquely identifying each one. These unique IDs are read upon scanning and linked within software to relevant information such as item descriptions, sender/receiver details, value, order numbers, or purchase orders.
Two primary RFID applications form the foundation for improved logistics management: RFID Shipment Verification and RFID Inventory Management.
RFID Shipment Verification
When tagged items are unloaded from trucks, they pass through RFID portals where their tags are read. The software then uses the associated information to:
- Verify received counts against shipped items
- Route pallets/items to designated holding areas or zones within the facility
- Record item receipt in the system
- Route pallets/items onto another truck for further shipment
- Track time spent in various sections of the supply chain for process improvement
- Ensure driver accountability for delivery and receipt
RFID Inventory Management
Tracking items only when they enter and exit a facility is insufficient. Within warehouses or holding zones, RFID continues to provide value. By installing RFID readers—either as portals or overhead systems—throughout the facility, items’ movements and exact locations can be continuously monitored.
These readers feed data into software systems that divide the facility into zones, tracking tags as they move through different areas. This data can either integrate with an existing Warehouse Management System (WMS) or form part of a new, combined system.
Benefits of integrating RFID with WMS include:
- Reading multiple items or pallets simultaneously
- Hands-free automation with smart forklifts or shelving
- Reduced human interaction, minimizing errors
- Significant labor hour savings
For facilities where items only pass through without being stored, RFID portals positioned strategically can still provide valuable visibility as goods move internally.
RFID Logistics Management
Unique identification and continuous tracking of items—from arrival to departure—are critical to efficient logistics and warehouse management. Whether a company merely routes items through a facility or stores inventory for extended periods, RFID-powered visibility is key to streamlining operations and improving accuracy.