Many businesses recognize the money saving importance of maximizing supply chain efficiency. Lost or misplaced inventory represents a huge drain on corporate budgets, and asset tracking that helps identify inventory’s progress through the supply chain can save a great deal of money without cutting services or jobs.
New tracking systems provide the benefits of increased automation, making it possible to form a dynamic picture of goods that are in stock or in transit without dedicating employees to the task. Implementing this system will immediately cut down on the ordering of excess inventory and reduce the number of manufacturing delays caused by misplaced packages.
Bar codes are one of the more traditional ways to manage inventory of all types. Through the creation of a unique bar code for each package, one can quickly know exactly which package is at which warehouse, manufacturing site or retail location. The scanning of bar codes will generally require some human intervention, as devices are often hand held and communicate wirelessly with a central database.
While this represents a far more efficient and exact way of recording the movement of a package than manual entry into a tracking system, there is still some room for human error. Packages may be missed at a destination or codes scanned incorrectly and not recorded. In companies where employees manage most inventory internally, this can be an effective means of managing complex inventory shipments.
New tracking systems often employ bar codes in conjunction with RFID (Radio Frequency Identification) technology to more effectively track asset movement. RFID tags can be affixed to each package, recording information on its contents and item numbers. This information is then wirelessly transmitted to a receiver that may either be manned by an employee or left unattended.
Depending on unique supply management needs, these tags may be battery powered to constantly transmit information for constant, real time tracking, or passive, meaning that they will only transmit when placed near a scanner. As human intervention is not required, human error is eliminated. This reduces losses and eliminates many overages caused by the unnecessary reordering of inventory.
These types of asset tracking systems are the two main options that are available to business owners and logistics professionals. In most cases, specific systems may be designed for complicated supply chain needs. Businesses that work with large retailers, government agencies, or in heavily regulated industries, should always make sure that any new system will comply with existing regulations.
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