Improving Inventory Management and Supply Chain Visibility with RFID in the Chemical Sector

In the chemical industry, effective inventory management and supply chain visibility are essential for maintaining operational efficiency and ensuring regulatory compliance. One technology that has significantly transformed these areas is Radio Frequency Identification (RFID). RFID allows chemical companies to track, monitor, and manage their inventory in real-time, offering enhanced visibility and control over their supply chain.

RFID technology uses radio waves to identify and track tags attached to objects. These tags contain electronically stored information that can be read remotely by RFID readers. In the chemical sector, RFID provides several advantages, including:

Real-time Inventory Tracking: RFID enables chemical companies to monitor the movement of inventory in real-time, from the manufacturing facility to distribution centers and ultimately to the end customer. This immediate visibility allows companies to optimize inventory levels, reduce stockouts, and minimize the risk of overstocking.

Enhanced Supply Chain Visibility: RFID delivers comprehensive visibility into the supply chain, allowing companies to track the movement of products at each stage. This visibility helps identify potential bottlenecks, delays, or issues within the supply chain, enabling proactive measures to be implemented to address them.

Improved Regulatory Compliance: The chemical industry is subject to stringent regulations that require meticulous tracking and tracing of hazardous materials. RFID technology allows companies to maintain detailed records of the movement and storage of these materials, ensuring adherence to regulatory standards.

Reduced Manual Labor: RFID automates numerous inventory management tasks, decreasing the need for manual data entry and reconciliation. This not only saves time but also lowers the risk of human error, resulting in more accurate inventory records.

Enhanced Security: RFID tags can be equipped with security features such as encryption and authentication, which help prevent counterfeiting and unauthorized access to sensitive materials.

Implementing RFID in the chemical sector necessitates careful planning and investment, but the advantages significantly outweigh the costs. By enhancing inventory management and supply chain visibility, RFID enables chemical companies to operate more efficiently, cut costs, and comply with regulatory requirements. As technology continues to advance, its role in the chemical sector is expected to expand, driving further improvements in efficiency, safety, and compliance.

In conclusion, RFID technology presents substantial benefits for inventory management and supply chain visibility in the chemical industry. By offering real-time tracking, improved visibility, and enhanced compliance, RFID empowers chemical companies to function more efficiently and effectively in an increasingly complex and competitive landscape.

Core Technology

RFID (Radio Frequency Identification) is a contactless automatic identification technology that automatically identifies target objects and retrieves relevant data through radio frequency signals, requiring no manual intervention and capable of operating in various harsh environments. RFID technology can identify fast-moving objects and recognize multiple tags simultaneously, making operations quick and convenient.

RFID electronic tags are a breakthrough technology: “First, they can identify individual, very specific objects, unlike barcodes, which can only identify a category of objects; second, they use radio frequency, allowing data to be read through external materials, whereas barcodes need lasers to read information; third, they can simultaneously read multiple objects, while barcodes can only read one at a time. Additionally, the amount of information stored is also very large.”

Operating Principle

The basic working principle of RFID technology is not complicated: when a tag enters a magnetic field, it receives radio frequency signals emitted by the reader and uses the energy obtained from the induced current to send product information stored in the chip (Passive Tag) or actively sends a signal of a certain frequency (Active Tag); the reader reads and decodes the information, then sends it to a central information system for relevant data processing.

RFID systems consist of two parts: a read/write unit and an electronic transceiver. The reader emits electromagnetic pulses via an antenna, and the transceiver receives these pulses and sends the stored information back to the reader as a response. Essentially, this involves non-contact reading, writing, or deleting data from the memory.

Technically, “intelligent tags” include RFID circuits that contain an RFID chip with an RFID radio frequency component and a super-thin antenna loop, which is embedded with a plastic sheet inside the tag. Typically, a paper label is also adhered to this tag, allowing for important information to be clearly printed on the paper label. Current smart tags are generally the size of a credit card, with smaller labels measuring 4.5 x 4.5 cm, as well as round labels with a diameter of 4.7 cm for use on CDs and DVDs.

Compared to other ID technologies like barcodes or magnetic stripes, the advantage of transceiver technology lies in the wireless link between the reader and the transceiver: the read/write unit does not require visual contact with the transceiver, allowing for complete integration into the product. This means that the transceiver is suitable for harsh environments, as it is insensitive to moisture, dirt, and mechanical impact. Therefore, the transceiver system has very high reading reliability, quick data acquisition, and lastly, it saves labor and paper.

Applications

As a data carrier, electronic tags can serve the purposes of identification, tracking, and information collection. Abroad, electronic tags have been widely applied in various fields. The RFID system, composed of electronic tags, readers, antennas, and application software, is directly connected to the corresponding management information systems. Each item can be accurately tracked, and this comprehensive information management system brings numerous benefits to customers, including real-time data collection, secure data access channels, and the ability to obtain all product information offline. In foreign countries, RFID technology has been widely applied in many fields such as industrial automation and commercial automation. The application scope includes:

1. Anti-counterfeiting: Detailed logistics records are generated through scanning.

2. Production Line Management

Electronic tags can conveniently and accurately record process information and operational details on the production line, meeting the needs of flexible production. Records of worker ID numbers, time, operations, and quality inspection results can fully achieve traceability in production. It can also avoid errors caused by handwritten or visually observed information in the production environment.

3. Warehouse Management

Using RFID systems for intelligent warehouse management effectively solves the problem of managing information about stored goods. For large storage bases, the management center can understand the location and storage status of goods in real time, which is significant for improving storage efficiency, providing product information feedback, and guiding production. It not only increases the number of items processed in a day but also allows for monitoring all information about the goods. Various application forms exist, such as attaching tags to goods, with readers on forklifts and at corresponding locations in the warehouse reading and writing; barcodes can also be used in conjunction with electronic tags.

4. Sales Channel Management

Establishing strict and orderly channels and efficiently managing inventory is a strong need for many enterprises. Electronic tags embedded in products during production contain unique product numbers, allowing manufacturers to monitor product flow with identifiers, while wholesalers and retailers can use readers provided by manufacturers to verify product legitimacy.

5. Management of Valuable Items

Electronic tags can also be used for theft prevention, settlement, and after-sales guarantees for valuable items such as cameras, camcorders, laptops, portable CD players, and jewelry. Their anti-theft function is a type of Electronic Article Surveillance (EAS) system. Tags can be attached to or embedded within product packaging. Dedicated shelf scanners perform real-time scans of products, providing real-time inventory records. If a product is removed from the shelf, the system will verify whether this action is legitimate; if the product is taken illegally, the system will trigger an alarm.

At checkout, all items of different categories can be scanned at once using a scanner, simultaneously generating a sales receipt while deactivating the anti-theft function. This way, when customers leave with their purchased items, the alarm will not sound. When customers pay, the checkout will write the sale date onto the tag, thus providing a corresponding guarantee and commitment for the purchased items.

6. Library Management and Rental Product Management

By attaching electronic tags to books, it becomes convenient to receive book information, and organizing books can be done without moving them, improving work efficiency and avoiding errors.

7. Other applications include logistics, anti-theft for vehicles, and management of air cargo, etc.

Picking System

Principle of the Picking System

The electronic tag picking system (Computer Assisted Picking System) works by using electronic tags to indicate the types and quantities of items to be picked, thus replacing traditional paper picking lists and improving picking efficiency. In practical use, there are mainly two methods—DPS and DAS.

DPS (Digital Picking System)

This method uses electronic tags to implement the picking process. First, the warehouse management must ensure that storage locations, item types, and electronic tags correspond. During picking, the outbound information is processed by the system and transmitted to the electronic tags at the corresponding storage locations, displaying the quantity of items to be picked and emitting light and sound signals to guide the picker. DPS allows pickers to avoid wasting time searching for locations and verifying products, as they only need to check the picking quantity. This not only improves picking speed and accuracy but also reduces labor intensity. Multiple picking areas can be set up to further enhance picking speed.

DPS generally requires each item type to be equipped with electronic tags, which can be a significant investment for many businesses. Therefore, two methods can be used to reduce system investment. One is to use electronic tags that can display multiple items, allowing a single electronic tag to indicate several products; the other is to combine DPS with manual picking: for the top 20%-30% of products with the highest outbound frequency (accounting for about 50%-80% of outbound volume), use the DPS method to improve picking efficiency, while still using paper picking lists for other products with lower outbound frequency. This combination effectively improves picking efficiency while saving investment.

DAS (Digital Assorting System)

This method is another common application of electronic tags. Based on this information, sorting operations can be quickly performed. Like DPS, DAS can also operate in multiple areas to improve efficiency.

Electronic tags used in logistics distribution can effectively improve outbound efficiency and adapt to various harsh operational requirements, especially demonstrating absolute advantages in the distribution of loose items. They have broad application prospects in chain distribution, pharmaceutical circulation, and the logistics of frozen goods, clothing, and audio-visual products. DPS and DAS represent the flexible use of electronic tags in different logistics environments. Generally speaking, DPS is suitable for situations with multiple varieties, short delivery times, high accuracy, and large transaction volumes, while DAS is more suitable for concentrated varieties and multiple customers.

Whether it is DPS or DAS, both have extremely high efficiency. Statistics show that the use of an electronic tag picking system can at least double the picking speed and increase accuracy by ten times.