Solving Global Logistics Problems with RFID

 

The Black Hole has been the nightmare of supply chain professionals for decades: at some point, a shipment may be out of the factory or port, and then it appears to disappear completely, taking days or even weeks. Is it stuck on a vessel? Delayed at customs? Seated in the wrong warehouse? Nobody knew for certain.

Those days are ending. The RFID technology, together with the 5G connectivity, is finally shining into the dark area of world logistics and offers real-time visibility between ports and ports. Find an expert who can guide you regarding RFID retail technology.

Understand the Issues

Conventional tracking is based on scan points. When a container is loaded into a ship, it is scanned, and when it enters the destination port, it is scanned again. In between? Silence. This black hole brings trickle-down issues:

a.      Without the arrival schedules, manufacturers are not able to make changes in production schedules.

b.      Retailers assure the customers of the delivery dates on a guess-basis.

c.       The charges of demurrage are accrued on the time that containers have remained unidentified.

d.      The theft is not discovered till weeks after the counting of the inventory.

Finding Solutions Using RFID-Installed Containers

The solution is in smart containers. The supply chain transmits unique identifiers using passive and active RFID tags mounted on containers, pallets, and even individual high-value packages. RFID also automates data capture at each touch point, unlike barcodes, where manual scanning was implemented.

a.      In factories: The tags are coded with shipment, destination, and contents.

b.      In transit: Automatic capture of movement is performed on readers at truck gates, rail yards, and vessel holds.

c.       In the ports: That is where the magic is done.

Tackling Problems at Ports

Traditionally, ports are the deepest part of the black hole. Containers are loaded, piled up in enormous warehouses, and not seen again until days later when somebody scans them onto a truck.

Enter 5G-linked RFID readers. These readers are placed strategically on cranes, gate arms, and even drones traversing container yards, and they will automatically scan all the tagged containers. When a container is moved on a ship to the yard using a crane, the RFID tag is scanned. As soon as it is transferred to another stack, its position is changed by another read. As it goes through the exit gate, the system gives the next leg of the journey.

Benefits of Real-Time Visibility

In collaboration with RFID and 5G, logistics experts will have unprecedented insight:

1.      Live Location Tracking: Know which stack in which port your container is.

2.      Predictive Arrival: Port dwell times are used by machine learning algorithms to improve delivery estimates on the fly. RFID Warehouse Tracking is hugely popular for business people. You must use a similar one for logistics.

3.      Automated Exception Warnings: Get real-time information when a container has been diverted off its scheduled route.

4.      Checking of Chain of Custody: All hand-offs are documented, minimizing conflicts and theft.

Numbers Can Speak

Those companies that have deployed end-to-end RFID visibility make bold claims. The accuracy of inventory at the points of transit is over 99%. The number of late deliveries has been reduced by 30 per cent since the issues were detected before they occurred.

The cost of demurrage decreases due to the absence of containers forgotten. A major retailer in the world saved an average of five days to only forty-eight hours in its average port dwell time.

Implementation Tricks

Are you prepared to make your supply chain light? Consider these strategies:

a.      Begin with High-Value or Time-Sensitive Products: Demonstrate ROI on deliveries with the greatest visibility.

b.      Collaborate with Port Authorities: RFID infrastructure is available in most of the large ports; cost-benefit on existing investments.

c.       Unify the Positioning of Tags: Make sure the tags can withstand the extreme conditions and still be easily read during transportation.

d.      Connect to Already Existing Systems: RFID data should be entered in your TMS and ERP to make decisions.

e.      Prepare International Standards: International frequency standards may vary across regions; select international compatible tags.

The voyage does not have an endpoint at the port. Final-mile delivery drivers use RFID-readers and delivery vehicles to extend visibility to the porch. Customers get the delivery windows correctly and the automated capture at the point of delivery at the door.

The global logistics black hole is closing. Being 5G-enabled, RFID technology turns the opaque chain of supply into a transparent network and predictable. Since the moment when a container goes out of the factory to the moment when it arrives on the doorstep of a customer, each department can see every single step, understand all delays, and keep all stakeholders abreast.

RFID is not merely a wish list item in a world where clients demand Amazon-like transparency on every delivery way; RFID is the competitive edge that separates the industry leaders from the others.