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RFID in the digital warehouse management in the apparel industry

In the apparel industry, fashion products are shipped out of factories daily. However, the cost of manual inventory management, out-of-stock handling, and theft prevention continues to rise. Retailers face increasing pressure to maximize the return on investment in their business processes. With Radio Frequency Identification (RFID) technology, business intelligence becomes accessible across the entire enterprise value chain, enabling quick and accurate decision-making. RFID has evolved into a proven solution that provides a clearer and more precise view of inventory, reducing stockouts, increasing sales, and minimizing the effort required for cycle counting.

Challenges Before RFID Implementation

As production and sales volumes continue to grow and product varieties increase, several issues have emerged:

Cumbersome Manual Processes

Managing the wide range of goods entering and exiting warehouses manually is highly labor-intensive. Manual barcode scanning and data entry require multiple confirmation steps, leading to inefficiencies.

Low Batch Processing Efficiency

Manual scanning processes are slow and cannot meet the demands for fast and accurate inventory tracking.

Time-Consuming Bulk Order Management

For bulk orders with multiple packages, boxes often need to be opened and inspected individually, which is laborious and prone to human error.

Brand Imitation and Counterfeiting

The rise in brand imitation and counterfeit goods has significantly impacted companies’ economic interests and brand reputation, highlighting the need for more robust anti-counterfeiting measures.

RFID Solutions for Warehouse Management

To address these challenges, RFID technology has been integrated into digital warehouse management systems, streamlining the entire process of purchasing, selling, and inventory management. By integrating with existing enterprise information systems, these solutions create a modern, efficient warehouse management system. Key benefits include:

Improved Logistics Operations

RFID supports large-scale, high-speed logistics operations while ensuring seamless data exchange across the supply chain.

Enhanced Transparency

By tracking goods from suppliers to enterprises, RFID increases transparency throughout the supply chain.

Cost
Efficiency

RFID reduces labor costs and significantly improves the management of supply chain processes.

Operational Improvements with RFID

The introduction of RFID technology enables automatic data collection during key warehouse operations, including:

  • Arrival inspections.
  • Storage and allocation.
  • Stock transfers.
  • Inventory audits.
  • Outbound processes.

This ensures:

  • Faster and More Accurate Data Input: RFID enhances the speed and accuracy of inventory management, enabling businesses to maintain real-time visibility of stock levels.
  • Inventory Optimization: Enterprises can maintain reasonable inventory levels and minimize waste through precise tracking.
  • ERP Integration: RFID integrates seamlessly with enterprise ERP systems, allowing automatic batch and source tracking, inbound and outbound item comparison, and real-time alerts for anomalies.
  • Improved Location Management: The system tracks the exact location of inventory, boosting warehouse management efficiency.

Sucess Story: Meibang

In recent years, Meibang has scaled its operations dramatically, producing over 100 million garments annually, managing 3,000 stores, and operating 300,000 square meters of warehouse space. However, this rapid expansion placed significant strain on its supply chain, particularly in inventory processing and warehouse operations.

  • Previous Challenges:
    • High inbound and outbound volumes reduced warehouse inspection and selection efficiency.
    • Frequent stockouts, misdeliveries, and over-deliveries disrupted operations.
  • RFID Implementation: After implementing RFID, Meibang eliminated the need for box-by-box inspections. RFID scanners achieved a 100% read rate for a box of 100 garments within a 50-100 cm range. The system identified and processed goods in batches, significantly improving throughput.
  • Outcomes:
    • Warehousing efficiency improved drastically.
    • Bottlenecks in the supply chain were eliminated, ensuring smooth operations.
    • Manual errors were minimized, enhancing overall accuracy.

Retail-Side Benefits

Retail operations have also benefited from RFID implementation:

  • Streamlined Receiving: Pre-set item types and quantities allow for quick and efficient receiving processes with minimal staffing.
  • Faster Inventory Audits: RFID inventory tables enable instant visibility of item variety, color, size, and quantity.
  • Proactive Stock Management: The system notifies store staff of low-stock items, ensuring shelves are restocked promptly and reflect customer demand.

Program Objectives

  1. Establish an RFID Automatic Identification System:
    • Equip clothing products with RFID tags.
    • Use fixed readers, handheld devices, and other tools for automatic data collection during goods movement.
    • Enable real-time inventory tracking and anti-counterfeiting capabilities.
  2. Develop a Business Process Management Platform:
    • Integrate RFID systems with existing enterprise information systems.
    • Connect logistics data with enterprise scheduling systems.
    • Improve supply chain transparency and reduce operational costs.

System Architecture

The RFID electronic tag management system includes:

  • Access Server: Centralized control for RFID data.
  • Warehousing Client: Interfaces for warehouse operations.
  • Handheld Terminals: Portable devices for data collection.
  • Communication Network: Ensures seamless data exchange across all components.

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