Key to Success in RFID Implementation in Manufacturing Industry

After you understand RFID definition, we will provide some examples of RFID Implementation for the Manufacturing Industry.


What is returnable asset tracking? Returnable asset tracking is tracking process for assets that can be returned. Tracked assets are usually in the form of product containers for goods delivery to customers. This container will then be returned to the company empty for reuse. By some companies, these containers are called “RC”. “RC” stands for two terms, namely Returnable Container for containers shipped outside the company and Reusable Container for containers used internally.

RC can take various forms, depending on the product it accommodates. RC can be shaped like wooden pallets, plastic pallets, metal pallets, gas cylinders, plastic boxes, gallons, plastic containers, drums, cages, sacks, and others. Some types of RC are usually very difficult to monitor. This is due to the shape uniformity of the container and the absence of a unique serial number/ID to distinguish each container. This can cause financial loss for the company.

The purchasing department of several companies buys RC continuously without being able to monitor with certainty the number, location, and condition of the RC they currently have. Lost or damaged RC also cannot be identified. The solution to this problem is the implementation of a “unique ID” on the asset in the form of a Barcode or RFID so it can be monitored and tracked easily.

With this marking we will get 6 benefits, namely:

  1. Clarity of RC Asset Position (Traceability)

With the RFID Implementation on each RC, we can read and record RC position in every transitional transaction points. We can find out whether an RC is in the process of being sent to the customer, returned, at assembly, at product QC, or in the middle of transaction process at the finished product warehouse (Finished good).

This way, transaction logger data information of each RC’s unique ID can be obtained. This transaction logger can also be in the form of a zone/area. With data loggers, we can monitor the position and number of RCs in each zone on the database. Companies can identify the number of RCs in the customer zone, receiving zone (returned & empty asset RC), production zone, storage zone, and ready-to-ship zone. The total number of RC’s from each zone is the company’s Total RC.

     2. Excess Stock Assets

As explained in point A above, reports on the number of empty RCs can be obtained easily. Companies can obtain RC availability data for the next business activity by processing data from reports on the number of empty RCs and from reports on the future number of production plans.

This way, the company can find out whether the number of RCs returned/empty is sufficient, less or more. Clear logger data regarding the number of RCs owned will prevent the purchasing department from rushing to buy RC because of demand from the production department that has RC shortage before shipment process. There is a chance that, during the product opname process the number of RCs was sufficient.

     3. RC Productivity

With the application of ID on each RC, the usage history can be reviewed again to see the exact productivity of each RC, from purchase to destruction phase. That way, we can know for sure the performance index of the RC.

     4. Settlement of Disputes (Customer Disputes)

Disputes are problems that often occur in every shipping transaction to and from customers. Usually the customer or supplier does not have an exact record of each RC. It can even be mistakenly switched with other suppliers’ RC. Often there is an excess, deficient, or loss of RC. As a result, there is a penalty / replacement for the lost RC.

By recording the ID of the RC at the time of delivery, the customer will get information on the ID No of the RC that was sent. So that when the customer receiving it, they already have the RC ID data and it will serve as recipient proof on the customer side. Vice versa, when sending an empty RC back to the supplier, the customer will send the RC ID data returned to the supplier. The supplier will match the RC ID when receiving a RC return shipment from the customer. That way you can be sure of that the amount sent and received. If there is a discrepancy, it can be easily traced when the discrepancy occurs and who is responsible for the discrepancy.

     5. Monitor the Duration of Use (Lifecycle Monitoring)

By recording the RC ID number from registration to write-off phase, a history of RC usage, like how long it has been used and who made the RC, will be obtained. This data can be used to review RC performance.

     6. Prevent Loss

The recording of the RC ID number is carried out in every transaction based on zones, which will make it easier to trace in the event of a loss. The location, date, time and who is responsible for the loss be easily identified.

The role of RFID implementation is vital because in the identification process the company can retrieve data automatically without touching only by using a code or tag. In addition, the RFID implementation will increase the effectiveness in storing or tracking data and information. With RFID, companies can keep track of all assets in just a few seconds. Naturally, this will greatly save costs and energy.

Contact ACS Group, a pioneer and leader in Auto-Identification solutions and barcode systems since 1991, for RFID Implementations that can increase the efficiency and productivity of your business and organization.

For more detailed information, please watch the video on ACS Group’s Youtube channel “Development & Benefits of RFID and Barcodes for Industry”

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