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Is RFID technology a necessity for the manufacturing industry?

RFID technology has become one of the essential technologies in the retail industry, and what about the manufacturing and logistics industry? I believe all the big manufacturers and logistics companies will use RFID someday, but it is hard to say that they can't survive without RFID technology

RFID technology

For retailers, the accuracy of inventory is the key to the production of all channel sales in the world. The manufacturing industry is facing unprecedented global competition. They are facing pressure to reduce costs, simplify operations, and deliver the right products to the right place at the right time.

If you are making consumer goods carpet, ceramic board, furniture, clothing or any other product, retailers may choose to use RFID technology manufacturers, which will be cheaper and more timely delivery, but brand loyalty is also a problem.

If the Iphone doesn't use RFID, and the supply chain is less efficient than Samsung, then the iPhone users will change to Galaxy S because of the price? Maybe not.

The manufacturer benefited from historical relations and unique professional knowledge for a period of time.

If you can create a car or airplane that someone can't make or with own's patent, Honda or Boeing can't beat you, even though your inventory accuracy and efficiency are not equal to them.

That is to say, RFID can provide a better way to manage raw materials, parts, parts, tools, and WIP (WIP).

Because it is a difficult thing to expand production scale, it is also a challenge to manage millions of parts list and ensure that the parts are on line on time.

In my lifetime, manufacturing has improved a lot. Through six sigma, Kanban and other technologies, the manufacturing industry reduces defects, improves quality, and delivers more accurate delivery.

However, since RFID can distinguish the different parts of the same product without the need of personnel participation, this technology can provide a better way for inventory management.

RFID can also help to automatically collect data to analyze and better manage the movement of parts, subcomponents, tools, WIP, and so on. Ten years ago, Killdeer Mountain manufacturing company pioneered the use of RFID to link its production process with customers' Boeing needs, which provided Boeing's visibility of aircraft components status. This is the future of the manufacturing industry, and it is now.

Every manufacturer needs to make a decision. But obviously, as more and more companies show the value of RFID in manufacturing industry, more and more manufacturers will use this technology to increase productivity, reduce costs and provide better services for their customers.