Why is it worth business to use RFID solutions? Adam Silny, president of the management board of ISS RFID
The potential of RFID technology lies in the creation of management-useful information thanks to our software that appropriately processes the data collected from RFID tags.
How does RFID technology work?
RFID technology is based on radio recognition of objects equipped with markers (labels, tags), which send information about their status to the reader, enabling contactless identification. The reading range is up to 15 meters when using passive technology, while with active tags it can be up to 100 meters. RFID is needed especially where solutions based on optics are not sufficient, and therefore scanning barcodes or QR codes is impossible or inconvenient.
Where does RFID work best?
Each industry has its own specificity and needs. Depending on the defined challenges, the information generated by the software will be tools that will allow companies to be better managed. They will bring specific improvements, measurable savings and increase safety. In each case, they will respond to real problems, such as high inventory costs, difficulties with locating goods or completing orders.
For example, in retail, RFID supports inventory and warehouse processes, and is also a convenient self-check-out solution. This translates into efficient goods management, accuracy of stock levels, and thus better management of the retail outlet. Importantly, RFID systems can also be integrated with existing POS and anti-theft systems.
However, in logistics and transport, in addition to better management of warehouse resources, RFID monitors and controls the supply chain in real time.
Our clients from industries also benefit from RFID, including: automotive, maritime, electronics production, and even wholesale flower sales.
Do the numbers also support the specific benefits of using RFID technology?
Absolutely yes, our clients have declared over 90% reduction in inventory costs and up to 40% in warehousing, which is a significant amount on an annual basis. It also improves shipment accuracy by 80% and reduces pickup time by 90%. The benefits are unquestionable and measurable. The key is to identify challenges, which is why we approach each company individually.
What should you pay special attention to to fully benefit from the benefits of this technology?
From conversations with potential customers who have encountered RFID, we know that a noticeable problem was the incorrect selection of tags, both for individual products and for the environment in which the processes are to take place. That’s why we put so much emphasis on needs analysis. Pilots are an essential element of pre-implementation analysis to thoroughly examine all circumstances and select optimal solutions, including hardware ones.
I also see a constant need to educate specialists in the logistics sector about the effects that can be achieved thanks to data collected and processed through software, but also about the possibilities of integration with existing systems in companies.
Today, companies must follow the trend of sustainable development and implement the guidelines. What role will RFID play here?
RFID systems that generate valuable information are a powerful tool for optimizing processes and supporting digital transformation. Effective management of resources, e.g. returnable packaging and overall logistics processes, helps save materials, reduce waste and create a more friendly working environment.
Information analysis enables quick response to changes, identification of critical points, which improves efficiency, e.g. shortens the time needed to monitor and control processes, means less energy and raw materials are used, and lower gas emissions into the atmosphere.
Investments in innovation in companies in the field of broadly understood digital technologies involve significant expenditure. How to take the first step and implement RFID?
Decisions about the comprehensive implementation of an RFID system have a strategic and long-term dimension and require an in-depth analysis of the benefits and rate of return. With this in mind, as a first step, we recommend pilot programs. Without the client’s financial risk, we diagnose the problem and conduct a detailed analysis of the system’s operation in specific conditions. The pilot includes research using specialized equipment for analyzing the radio environment, installation of mobile gateways and RFID devices, as well as preparation of dedicated software.
There are also a number of opportunities to obtain funding for the implementation of this type of innovation. ISS RFID is a member of the European Digital Innovation Hub (EDIH), a support point for industrial companies that want to introduce Industry 4.0 solutions. Entrepreneurs who want to increase their competitiveness can now use packages of services supporting digital transformation free of charge.
Which brands have already trusted you?
There are many of them, and one of the examples of good cooperation that we are proud of is the largest drugstore chain, Rossmann SDP. First, the company decided to conduct a one-month pilot, which allowed it to analyze data and draw conclusions, and then, in a short time, carry out a project that improved the management of transport resources and automated processes in the newest central warehouse in Łódź. A real revolution was the automatic identification of several tens of thousands of boxes with goods intended for shipment by equipping them with permanently attached RFID tags.
What does the future hold for RFID technology?
I am convinced that RFID technology, which provides solutions to problems faced by managers every day, will become more and more popular. In today’s economic conditions, searching for savings, increasing efficiency of business processes while ensuring adequate safety of employees and the environment is a necessity. And our team is ready to accompany customers in these changes, so that they can implement them efficiently and safely and take advantage of the advantages of radio technology.
Adam Silny, president of the management board of ISS RFID, which he founded in 2015, obtaining co-financing for its development from European funds. In 1989, he founded and became co-owner of Silny&Salamon, a leader in supply chain security and packaging automation. From the very beginning of running a business, he has focused on customer confidence and safety. He has experience in strategic management of organizations, research and implementation projects, including those co-financed from EU funds.
Last Updated on June 27, 2024 by Anastazja Lach