Logistics is one of the key sectors for global economic development, representing around 10% of the global GDP[1]. In this context, the need for logistics services has increased due to e-commerce in an unparalleled way, resulting in exponential growth in the sector.
As consumers demand faster and more efficient deliveries, logistics companies face the challenge of managing an increasing volume of shipments with greater precision and speed. This has led to a significant transformation in logistics operations, forcing companies to adopt advanced technologies like RFID to improve the visibility and control of their shipments. Efficiency is crucial to meet customer expectations and maintain a competitive edge in the ever-evolving e-commerce market.
In this article, we will explain how RFID can help maximize efficiency in shipment tracking, how it is a sustainable solution, and the challenges faced by the industry.
RFID Drives Sustainability Solutions for shipment tracking
Shipment tracking is a crucial process in the supply chain as it allows knowing the status of goods at each stage. The importance of implementing advanced solutions is on the rise, driven by the demand for faster deliveries, which directly depends on the ability to monitor shipments efficiently and accurately.
Historically, traditional tracking methods, such as barcodes, have dominated this field. However, they present significant limitations, especially in adverse conditions. This is where RFID technology comes in as a revolutionary solution, offering greater accuracy, efficiency, and visibility in shipment tracking.
What is RFID? It is a technology that uses radio waves to identify and track objects with tags containing electronically stored information that goes a step further by offering a sustainable solution that provides visibility into the location and status of goods.
This allows companies to optimize delivery routes and reduce fuel consumption. Additionally, the ability to simultaneously track shipments with a unique code and specific information improves operational efficiency and reduces the need for additional resources. This not only lowers operational costs but also minimizes the environmental impact of logistics operations.
Challenges and Solutions for shipment tracking
Traditional shipment tracking faces several significant challenges. Firstly, barcode reading is limited in adverse conditions such as humidity, dirt, or physical damage, causing errors in goods identification, operational delays, and loss of visibility.
Furthermore, the difficulty in tracking multiple shipments simultaneously due to the need for direct line-of-sight limits efficiency in high-volume environments, resulting in delays and errors in logistics management. This negatively affects customer satisfaction and operational efficiency, especially given the unprecedented growth in demand for logistics services driven by e-commerce, particularly in the last mile segment.
Sustainability is one of the pending topics in the logistics sector. Therefore, companies are adopting more sustainable practices to reduce their environmental impact, such as using electric vehicles, route optimization, and efficient energy management. However, implementing these practices requires precise visibility and control over operations, which is difficult to achieve with traditional methods.
This is where RFID asset tracking technology comes in as a key tool to address the challenges. Unlike barcodes, RFID tags can be read without contact and without the need for direct line-of-sight. This allows for accurate and quick identification of goods, even in challenging conditions. This not only improves efficiency and accuracy but also reduces errors and losses of goods.
RFID technology provides an advanced solution for the identification and tracking of goods, significantly improving accuracy and efficiency in the supply chain. By removing the need for manual scans and providing real-time data, companies can minimize human errors and improve inventory management accuracy, avoiding losses and manual scans.
Another benefit that RFID tags bring to shipment tracking is the optimization of routes and delivery times. With information about the location and status of shipments, companies can plan and execute their routes more efficiently, reducing delivery times and improving customer satisfaction. Real-time visibility allows for a quick response to any issues or delays, ensuring that shipments arrive on time and in perfect condition.
Undoubtedly, the logistics sector is in a state of transformation, and implementing solutions like RFID technology is key to the future of logistics. In warehouses, RFID allows for quick and accurate identification of goods, improving efficiency and reducing processing times. In transport, RFID tags can be used to track assets, providing valuable information for fleet management and route optimization.
[1] Global Logistics Indicators, Supply Chain Metrics and Bilateral Trade Patterns Hausman, W. H., Lee, H. L., & Subramanian,
