Ecommerce market has grown explosively in the last few years. This growth can be explained by the prediction that from 2017 to 2021, worldwide E-commerce orders value went from $2.3 trillion to $5 trillion. The ease of use, purchase and available product options are the reasons for the massive success of the E-commerce market. The aspect of purchase convenience relies upon the supply-chain setup. An efficient supply chain can create a compelling experience for consumers as well as sellers.
The struggle behind rising customer demands & expectations
An idea of immediate or constant product availability has grown in customers with the use of E-commerce platforms. A product being out-of-stock is a deal-breaker even for loyal customers and can impact a seller or a brand’s identity. Despite these best efforts, often, there is a scarcity of products due to turbulent market trends. In most cases, meeting such consumer expectations takes a toll on sellers with overproductions, wastages, piled up stocks and warehousing costs.
Managing production houses and warehouses is not an easy job and requires significant manpower management and investment. To take care of supply chain needs, an intelligent, feasible and cost-effective solution is essential. Such competitiveness and unpredictability demand for more accuracy, automation, and efficiency in supply chains.
Why would RFID be the right fit to enhance supply chains?
Supply chains consist of tracking and managing packages or products through the entire production cycle. Such traceability and insightful coverage over the entire supply chain can be conveniently established using an RFID system. RFID can be used to identify, manage, and track items throughout the system and even allow further insights to identify any possible hurdles. On top of these general abilities, here are some more advantages of an RFID system:
Reduced production time
Keeping track of materials, product parts, and the assembled product through the supply chain avoids any misplacement or delays. A streamlined supply chain decreases production time, leading to many positive impacts such as higher returns on time, reduced labour, increased capacity, and the ability to address customer demands.
Accurate & efficient logistics
Second, to production chains, logistics also requires accurate management and control. Any error in managing a package through logistics can directly cost money and time for the buyer as well as the business. RFID’s identification ensures that the package is delivered to the right location.
Reduction into operational costs
Whether it is automating the supply chain or increasing its efficiency, RFID-based systems can reduce manpower costs and wastes. A supply chain with RFID can allow higher profit margins to brands and allow them to be competitive in their domain.
Quicker delivery to end-consumers
If the production house, warehouse management, and logistics are perfectly aligned, it would significantly cut down the delivery time for end-consumers. On top of the monetary and brand identity advantages, such delivery can create an impeccable consumer experience.
In conclusion, Current supply chain demands are going to skyrocket even further in the coming years. As such, brands must deploy technological solutions that can enhance supply chain capabilities in time. RFID-based supply chains are straightforward, efficient and viable to implement, making them a reliable choice to meet consumer demands.