Companies utilising shipping and logistics as part of their supply chain management can attest to the importance of reliable tracking information regarding assets. RFID tags are one methodology that can be utilised in tracking assets, and here’s how. 

image of a rfid tag

image from Google

RFID tags can either be active or passive.

Passive RFID tags require a scanner to collect information from the label, which is fed into a computer.

Active RFID tags, on the other hand, are linked to a power source, enabling them to transmit real-time information to a beacon, which then translates that to the receiving computer. In terms of asset tracking, active RFID tags are a great investment. 

Gone are the days where supply chain management relied on checkpoints to visually verify the contents and security of a shipment to account for all assets. Now, RFID tracking information is so exact, shipments can be pinpointed to exact geographical coordinates. 

If you are willing to pay for the investment to protect your assets, this can be much better. Asset tracking can be so exact that it can even provide weather disruption information. For example, if a container of goods is on a ship and adverse weather conditions affect the shipment, it could cause the container to go overboard or the shipment to go off course. RFID tracking information would provide early indications of this information, resulting in fewer lost shipments. This will in turn mean less money is lost. 

RFID tracking devices have strong arguments for applications in supply chain management as they help ensure the security of assets. RFID tags improve asset tracking, resulting in less lost revenue.