In the last few years, supply chain visibility has become the central approach for businesses wanting to build more transparent and resilient networks. But for all its benefits, there are major challenges in making true end-to-end visibility possible. Even smaller supply chains can struggle to keep track of all the moving parts. That’s why asset tagging is so important.
As we’ll break down in this article, real-time tracking of items through the supply chain can enhance inventory management, while also driving better efficiency and visibility.
Why Asset Tagging Matters in Supply Chains
Asset tagging allows businesses to track and monitor both the location and the condition of their assets in the supply chain. This tracking is made possible by technology such as QR codes, barcodes, and RFID tags that automate the identification of items as they transition through warehouses, vehicles, etc.
Here are some of the key benefits that asset tagging offers and why it’s such a crucial part of any supply chain looking to improve visibility and operational efficiency:
- More Precise Inventory Control: Tagged assets can be tracked in real-time, which ensures more accurate inventory counting and, in turn, more accurate inventory control. This helps prevent over- or understocking.
- Fewer Lost or Misplaced Items: Even the most well-managed networks can face disruptions, but asset tagging helps minimize lost inventory by giving businesses real-time visibility into their assets. This visibility plays a key role in managing supply chain disruptions and reducing the impact of unexpected incidents.
- Increased Supply Chain Efficiency: Tagging also makes tasks like inventory audits, stocktaking, and inventory scanning quicker and more accurate. This then increases overall supply chain efficiency as less time is wasted on menial tasks.
- Regulatory Compliance: Certain industries require detailed histories on items and full supply chain transparency. Asset tagging performs that tracking for businesses and ensures that they have all the information necessary for compliance audits, etc.
- Cost Reduction: Less risk of inventory loss and better overall efficiency add up to serious cost-saving benefits. It’s one of the central reasons why asset tagging has become such an important tool for modern supply networks.
- Data-Driven Decisions: The data that asset tagging technology captures isn’t only valuable for real-time tracking. It also holds huge value for businesses looking to use predictive algorithms for data-driven decisions. For example, data on inventory movements can be analyzed by AI-powered platforms to assess any patterns that may be slowing fulfillment or increasing the risk of inventory damage.
Enhancing Inventory Accuracy with Durable Asset Tags
A study that looked at the efficiency improvements of implementing RFID tags into a supply chain found that inventory accuracy improved by 15% and incidents of theft dropped by 80%. In order to see results like these on a consistent basis, however, asset tags need to be durable.
Most assets in the supply chain are being moved or transported multiple times. It’s why it’s so easy for poorer tags to fall off in transit or get damaged to the point of no longer being scannable. When this occurs, it undermines the accuracy otherwise associated with asset tagging in the first place.
Durable asset tags that maintain their integrity throughout an asset’s lifecycle in the supply chain ensure that no item gets missed. The benefits of this include:
- An increase in the speed and reliability of inventory audits.
- Improved cycle counting, which means that inventory is constantly being checked, and bigger, more disruptive audits are no longer needed.
- Better overall real-time visibility of inventory levels so that duplicate orders and other issues don’t occur.
Even within the realm of durable asset tags, there are levels of durability. To ensure that businesses get the most out of the technology, it’s important that they consider how much shock, UV, or chemical exposure their assets are likely to undergo in the supply chain and pick technology that can meet those needs.
Achieving Real-Time Visibility Across Your Supply Chain
Asset tagging plays a vital role in real-time visibility, but tracking alone doesn’t necessarily mean that visibility is achieved. Trackers gather a huge amount of data, and if it isn’t processed properly, it can just mean the businesses have more information without necessarily accessing better insights.
That’s why it’s important to pair the technology with larger systems, such as an IMS or WMS. These platforms ensure that all the data being gathered by the tags is made available in the context of larger supply chain events. Assets are no longer tracked in isolation, but shown where they’re perhaps sitting in relation to transportation schedules, re-ordering deadlines, etc. That’s what provides true end-to-end visibility.
How to Seamlessly Integrate RFID and Barcode Tags into Logistics
Here are some key steps businesses can take to ensure that RFID and barcode tags are implemented seamlessly and with maximum benefits:
- Assess which assets will need to be tagged and what their lifecycles look like in the supply chain.
- Match the tag type and durability to the above. Deciding whether to use RFID or barcode tags should also come down to existing infrastructure and what suits the needs and capabilities of the supply chain.
- Upgrade infrastructure where necessary. RFID tags require readers at major checkpoints, barcode scanners operate best when paired with WMS/ERP systems, and both require decent 5G, etc., for data to be readily available for real-time visibility.
- Standardize tagging protocols according to global guidelines so that there’s easier integration between different warehouses and systems. It’s also important that tag placement is standardized so that scanners are always able to read them.
- Check that existing TMS, WMS, and other software can process the tag data and that the technology is compatible with each other.
- Refine workflows and staff training so that new scanning systems are used consistently and correctly.
Taking a more considered integration approach allows businesses to avoid unnecessary disruptions and see real results from asset tagging – from enhanced inventory accuracy to better end-to-end supply chain visibility.
Durable Tags for Better Visibility
End-to-end visibility depends on more than just data collection, it depends on the durability and reliability of the tags themselves. When tags remain readable across every handoff, shipment, and environment, businesses gain confidence in the accuracy of their supply chain data. That reliability is what enables better decisions, improved compliance, and long-term cost savings.