RFID Stocktaking: Definition, Components, How it Works, and Applications
- Marketing Tudi
- 9 minutes ago
- 4 min read
Stocktaking is a crucial activity to ensure that physical inventory matches the data recorded in the system. In many companies, this process is still done manually or using barcodes, which is time-consuming, error-prone, and often disruptive to operations. With technology, RFID, the stocktaking process can be done much faster, more accurately, and without stopping warehouse or shop activities.
Understanding Stocktaking with RFID
RFID stocktaking is an inventory counting method that utilizes RFID tags on items or storage units to speed up the stock counting process. Reading is performed automatically by a handheld or fixed reader without touching or looking at the labels one by one, so that audit time can be shortened significantly.
Each RFID tag stores the data the system needs to recognize the item during stocktaking. During a walk-around scan of the storage area, the tag data is read by a reader and immediately compared with the stock data stored in the inventory application or WMS.
Stocktaking Function with RFID
RFID-based stock taking brings important functions that increase the effectiveness of inventory control.
1. Speed Up Stock Counting
Handheld RFID can read multiple tags in a single sweep, allowing stock counts to be performed in minutes rather than hours. This allows companies to conduct stocktakes more frequently without disrupting operations.
2. Improving Data Accuracy
Data EPC The information stored on the tag chip is automatically read and sent to the system without manual input. This process minimizes human error, misread labels, and missed items.
3. Faster Discrepancy Detection
With a shorter inventory duration, companies can carry out cycle count Periodic inventory checks per zone or category. Stock discrepancies can be detected early so they don't pile up at the end of the period.
4. Reducing Operational Burden
RFID reduces physical activity like opening packages or searching for hidden labels. Operators simply walk along the shelves and perform sweeps, streamlining and consistent operations.
Component
To run RFID-based stocktaking, several main components need to be considered.
1. Tag UHF RFID
Tags are attached to items, cartons, or pallets, depending on stock details. These tags act as identifiers that readers can read during the stock scanning process.
2. RFID Reader
RFID readers are the primary devices in the stocktaking process. These devices can be handheld readers carried by operators to perform mobile scans of storage areas, or fixed readers installed permanently at gates or specific zones. The readers capture responses from tags within range and transmit the results to the system for processing into stock data.
3. RFID Antenna (Optional)
RFID antennas are used when companies implement fixed readers as part of their infrastructure. The antennas expand or direct the reading zone so that the movement of goods, such as inbound, outbound, or movement between areas, can be detected automatically. This component is not required on handheld readers because the antenna is already integrated into the device.
4. Middleware and Inventory Systems
Middleware processes the readings from the readers to prevent data duplication and then forwards them to the inventory system or WMS. This system displays the stocktake results and any discrepancies for follow-up.
How it works
Before stocktaking is performed, each item is fitted with an RFID tag and its information is registered with the system. During the process, a handheld reader is used to scan tags within its range. The reader sends an RF signal, the tag responds with data, and middleware processes the results to ensure there are no duplicate readings. This clean data is then sent to the system for comparison with recorded stock.
In addition to handhelds, fixed readers can also be used to assist with stocktaking, particularly by automatically monitoring the movement of goods at specific points, such as warehouse entry and exit points. Every tag passing through the reading zone is recorded, allowing the system to determine which items have moved before or after the stocktake.
Advantages
This technology offers various advantages in increasing operational efficiency.
1. Much Faster Calculations
RFID is capable of counting multiple items at once, drastically reducing inventory time.
2. High Accuracy
Automated processes reduce manual errors and make stock data closer to actual physical conditions.
3. Supports Cycle Count
RFID allows for more frequent stock audits without hampering daily operations.
4. Better Traceability
EPC reading history helps audit and analyze inventory issues.
Disadvantages
There are several things to consider in its implementation.
1. Initial Investment
The cost of tags, handhelds, and system integration needs to be factored into the ROI.
2. Tag Placement Challenge
Materials such as metals and liquids require special types of tags to ensure optimal reading.
3. SOP Adjustment
Operators need training to perform sweeps and read variance reports correctly.
Applications in Various Industries
RFID is used in various sectors that require high stock accuracy and speed.
1. Retail
RFID speeds up stocktaking in display racks and back warehouses without closing the store. Daily cycle counts help maintain inventory availability and reduce apparent out-of-stocks.
2. Logistics and 3PL
Logistics warehouses utilize RFID to audit pallet and carton inventory across large areas and high racks. The readings help verify inbound and outbound movements, allowing discrepancies to be identified and analyzed more quickly.
3. Manufacturing
RFID is used to check the inventory of raw materials, components, and finished goods. This process is faster and more accurate, minimizing the risk of production delays due to stock errors.
4. Healthcare
Healthcare facilities use RFID to stocktake medical equipment, linens, and pharmaceutical supplies. This rapid process supports SOP compliance and ensures the availability of critical items.
Conclusion
RFID-enabled stocktaking significantly improves speed, accuracy, and inventory visibility. By utilizing tags that store EPC data and can be automatically read by a reader, the stock counting process becomes more efficient and discrepancies are easier to control.
With the right tagging design, appropriate device selection, and integration into an inventory system or WMS, RFID can transform the stocktaking process from a chore to a strategic and modern inventory control solution.
As an end-to-end RFID solutions provider, TUDI is ready to help you design and implement accurate, efficient, and integrated RFID-based Stocktaking. Consult your needs with the TUDI team of experts to find the best solution for your business.
