Amid pressures like rising rents and energy costs, an ongoing labour shortage, and fierce competition, many warehouse and distribution centres are turning to efficiency improvements as their best option for profitability and growth.
It has to be. Increasing throughput by improving efficiency offers a way to optimise warehouse performance and capacity when increasing footprints and adding storage structures aren’t feasible.
That’s where active inventory visibility, whose benefits to retailers and ecommerce merchants are well-recognized, can help warehouse operators increase facility throughput.
At the same time, retailers have begun widening their mandates that suppliers source-tag merchandise with radio frequency identification, or RAIN RFID-enabled, tags and labels. RAIN RFID is transforming inventory and supply chain management for retail giants—and their use of active inventory visibility is a vital factor in the RFID revolution.
In this article, we’ll explore the ways warehouse and DC operators can put inventory visibility, data insights, and RAIN RFID-enabled technologies to work, boosting their effective capacity and their facilities’ overall throughput.
Consumers value active inventory visibility because it saves them time and offers certainty. If they’re ordering online, they can trust their order will be fulfilled quickly and completely because they can see for themselves that items are in stock and available. If they’re placing a buy-online-pickup-in-store (BOPIS) order or heading to the store to make an in-person purchase, they get the same benefit of certainty that their time won’t be wasted.
In fact, it’s so effective that real-time inventory data can even generate a sense of urgency that spurs action—increasing the likelihood of a purchase.
Extending that visibility and certainty to warehouse pickers has the same effect: It prevents wasted time. With accurate, real-time inventory, products can be replenished and reordered to more effectively prevent stock-outs, incomplete shipments, and wasted steps from the search.
Active inventory visibility relies on real-time data capture and analysis made possible by leveraging RAIN RFID and automation technologies. By integrating RFID readers throughout a facility supporting technology and inventory tracking and management software solutions, operators can gain continuous visibility into the locations and statuses of items. (And not just active inventory, but assets, too.)
This real-time tracking provides the data needed to optimize workflows, storage, picking paths, and labor allocation. When inventory positions and item velocities are clear, smarter slotting, picking, and replenishment all become possible.
Some of the inventory management benefits of active visibility that contribute to efficiency gains and increased throughput include:
All of this translates into faster order processing speeds, lower labor costs, and increased overall throughput.
To enable active visibility, inventory tracking and transactions must be automated. Manual processes like scanning barcodes—or pen-and-clipboard—can be too labour-intensive and prone to human error.
With RAIN RFID, shipments can be scanned automatically in bulk as they pass through typical chokepoints like receiving docks and staging areas. This provides a constant stream of data on item locations, and speeds processing through workflows that are often bottlenecks. Readers can be incorporated into handheld computers, fixed overhead or on furniture, or embedded at doors and gates—so inventory is constantly updated without constant human involvement.
And as more retailers mandate RFID tagging upstream in their supply chains, warehouse operators gain several advantages:
The data from real-time tracking isn’t just for immediate use. Analyzing this data can reveal buying trends, busy periods, and more, aiding in forecasting and better decision-making. Knowing which items consistently sell out during certain months can guide ordering decisions for the future.
Active inventory visibility powered by RAIN RFID effectively unlocks hidden capacity in existing warehouse infrastructure. Space is used more intelligently, labor is allocated more efficiently, and throughput can expand.
And as costs related to human resources, rent, and fuel continue to climb, RFID enables the implementation of new automation options to get more done, more efficiently, as well—without expanding a facility's footprint or resource consumption. And the data insights delivered over time can help operators know and understand what’s happening in every square centimeter of their operations, 24 hours a day.
Learn more about how to make the most of retailer mandates for RAIN RFID-tagged products in your warehouse or DC by downloading our free guide and getting started.
