Author: Tej | Read Time: 4 minutes
How Manufacturers Are Using RFID and QR Codes to Streamline Inventory Management
As a manufacturer, you're all too familiar with the challenges of maintaining an accurate, efficient inventory. From receiving shipments to tracking high-value assets, the manual processes involved can be time-consuming, error-prone, and disruptive to your operations.
But leading manufacturers have found an innovative solution to these persistent problems - RFID (Radio Frequency Identification) and QR (Quick Response) code technology. By automatically capturing real-time data on material movements and stock levels, these digital tools are revolutionizing inventory management.
Let's take a closer look at how manufacturers are leveraging RFID and QR codes to optimize their operations:
Seamless Receiving and Goods Put-Away
When a new shipment arrives, the receiving team scans the boxes or pallets with an RFID handheld device. The system automatically registers the items, creates a digital goods receipt, and updates the inventory records in the ERP system.
This eliminates the manual data entry required in a traditional goods receipt process, saving time and reducing errors. Once the items are received, the team can quickly put them away in the appropriate bin locations, with the RFID system tracking their movement throughout the facility.
Real-Time Inventory Visibility
By tagging individual items, containers, and even assets with RFID labels, manufacturers gain unprecedented visibility into their inventory. RFID readers positioned at key points like receiving docks, aisles, and pick zones constantly monitor the location and status of tagged materials.
This allows you to pinpoint the precise whereabouts of any item at a moment's notice, without having to manually scan barcodes or conduct physical counts. It also enables intelligent stock-level tracking, alerting you when items are running low or nearing expiration.
One major auto parts manufacturer used this RFID-powered visibility to cut its inventory counts from 40 hours down to just 4 hours per month. The ability to quickly and accurately reconcile stock levels has been a game-changer for their operations.
Streamlined Inventory Picking and Issuing
When a production order comes in, workers can use handheld RFID scanners to easily locate and retrieve the required materials. The system guides them to the correct bin location, validates the items, and automatically posts the transaction to the ERP.
This not only saves time compared to manual searching and paper-based transactions, but also ensures higher accuracy. The ability to instantly validate that the right items have been picked helps eliminate costly mistakes and expedited shipments.
Some manufacturers have even automated the issuing process entirely, with RFID-enabled smart shelves and cabinets that detect when materials are removed and update the inventory records accordingly.
Intelligent Asset Tracking
Beyond just tracking stock items, RFID can also be used to monitor the location and status of high-value production assets like tools, equipment, and molds. By tagging these items, you gain real-time visibility into their utilization and maintenance history.
One global auto manufacturer used RFID to track the 20,000+ tools in its facilities. This allowed them to quickly locate misplaced items, optimize tool deployments, and ensure proper maintenance - resulting in a 35% reduction in lost tools and a 25% increase in technician productivity.
QR Codes for Enhanced Traceability
While RFID excels at automating inventory management workflows, QR codes provide a complementary solution for enhanced product traceability. Manufacturers are using QR codes to store detailed information about individual items, from serial numbers and lot codes to maintenance records and supplier details.
By scanning a QR code with a mobile device, workers can instantly access this rich data. This supports quality control, compliance reporting, and other traceability-dependent processes. It also makes it easier to manage items with expiration dates or warranty periods.
One aerospace parts manufacturer leveraged QR codes to improve its parts tracking and recall management. When a defective component was discovered, they could quickly identify all the products it had been used in and initiate a targeted recall, minimizing disruption and waste.
Getting Started with RFID and QR in Manufacturing
Implementing RFID and QR codes may seem daunting, but the operational and financial benefits make it a worthwhile investment. The key is to start with your most pressing inventory challenges, prove the value of the technology, and then expand the deployment over time.
Many manufacturers begin by tackling goods receiving, then move on to work-in-process tracking, asset management, and other high-impact use cases. An experienced solution provider can help you design a tailored system that integrates seamlessly with your existing ERP and production systems.
Ready to transform your manufacturing inventory? Reach out to learn how RFID and QR codes can deliver measurable improvements to your operations.