Asset Tracking
What Are the Top Reasons to Use RFID in Manufacturing Industry?

What Are the Top Reasons to Use RFID in Manufacturing Industry?

What Are the Top Reasons to Use RFID in Manufacturing Industry?

The manufacturing industry is one of the biggest industries in the world as almost all other industries are dependent on the manufacturing industry. It plays a crucial role in countries' growth and each manufacturing unit is equipped with lots of assets and equipment that are valuable to the organization. However, lots of manufacturing units do not keep track of their assets and as a result, their assets are lost, and operation delays occur frequently. It also increases unnecessary Purchasing in the organization. That is why the utilization of RFID in the manufacturing industry is essential.

In this blog we will know what the main reasons are to use RFID in the manufacturing industry! So let us begin but first, let us cover the basics.

What Is RFID Technology?

RFID stands for Radio frequency Identification. It is one of the most used asset tracking technologies. This technology uses radio waves to collect data RFID tag is equipped with a chip.

RFID has revolutionized the operations of various industries such as logistics, IT, and security industries along with the manufacturing industry by offering improved and cost-saving asset monitoring & tracking methods. Moreover, the use of RFID technology has risen in the healthcare industry after the pandemic.

According to Allied Market Research, “The global RFID market size was valued at $10.41 billion in 2020, and is projected to reach $25.47 billion by 2030, registering a CAGR of 9.6% from 2021 to 2030”.

Recommend To Read: What Are the Main Components of RFID Solution?

What Are the Reasons for Using RFID Technology in the Manufacturing Industry?

Reasons for using RFID technology in the manufacturing industry are discussed below:

Reasons for Using RFID Technology in the Manufacturing Industry

1. Accurate Asset Tracking

As we all know the manufacturing unit has lots of equipment and assets and it is important to keep track of every asset. As each asset has an individual goal to play that is significant and daily operations therefore it is important to keep track of every asset.

However, several times it has been seen that as it is not found and delay in business operation occurs.

With RFID asset tracking you can easily find each asset where it is located, who is using them, and so on. RFID also assists organizations in scheduling and performing effective auditing processes.

2. Asset & Inventory Security

If an organization is not equipped with any kind of asset tracking technology, then the chances of asset theft occurrence are greater. When asset theft occurs lots of organizations suffer from huge losses along with that business operations are also delayed as required asset is not available.

RFID technology provides security to assets and inventory, and you can get assets in no time. whenever any asset leaves the premises of the organization it will alert the responsible person moreover with

The RFID system you can find any asset within seconds. Our manufacturing unit has lots of valuable assets and inventory as well that need to be secured. RFID provides security to those assets and inventories.

3. Process Monitoring and Validation

There are several organizations that use RFID for monitoring business operations and validating them.

Here is an example there is a pharmaceutical organization that uses RFID in a unique way when they produce medicines. After production they put 1000 bottles on a metal reck then are shifted to the autoclave for disinfection at 120 Celsius. In this process, if there is any inaccuracy that occurs then the whole batch is dumped.

Missed To Read: How to Effectively Track and Audit Your Assets with RFID Tags?

A few years back when workers performed it manually, the chances of human error were greater. But now RFID technology verifies and monitors the process.

4. RFID Collects Data

While executing the RFID innovation in the manufacturing unit, the key isn't the RFID tag or the reader. Rather, information can be acquired from RFID technology is the key.

It can provide crucial information that manufacturing organizations managers can utilize to grow the business. most importantly it gives an extra edge to your business.

Data plays a crucial role in making informed business decisions as they are not based on assumptions. When you make a decision based on accurate information you get the expected results.

5. Track Maintenance

As the manufacturing unit has lots of assets it becomes necessary to maintain them. When you work manually then due to the asset quantity asset maintenance is skipped.

However, with RFID technology you can maintain assets and schedule maintenance proactively. If maintenance is not done on time, then it can lead to sudden asset failure.


RFID is a great technology it can provide assistance to store managers as they have a lot of inventory. Some of these inventories have a short life therefore they need to be sold before their expiration date. After that, it will be no good for business and for customers.

With RFID tags you can store data about expiry so that managers can receive alerts about the expiration date. RFID technology is also useful to an organization that uses the just-in-time (JIT) method for inventory management.

This assists with lessening stock conveying costs as things are replenished depending on the situation as opposed to keeping stock in hand that too in huge amounts.

For the best results, RFID is used with asset management software. It provides several benefits and gives your business an extra edge that will help in improving business activities and saving unnecessary expenses.

Also Read: How RFID Transformed Asset Tracking in Oil and Gas Industry?

Frequently Asked Questions (FAQs)

Q.1 - Can RFID Be Used for Employee Productivity Tracking?

Yes, RFID can be used for employee productivity tracking. You can also gain valuable information related to productivity.

Q.2 - How to Choose RFID Tags?

Nowadays there are several types of RFID tags available in the market that you must choose according to the environment. For instance, if an area is rainy then RFID tags should be waterproof. The tag should not be torn as it can become complicated while scanning the RFID tag.

Q.3 - What Are the Various Types of RFID?

There are two types of RFID. Active and passive RFID.

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