Forward Vision Analytics

Switching from barcode to RFID can save on labor cost, product loss

Supply chain and logistics news

Dive Brief:

  • The use of RFID by a Turkish denim manufacturer resulted in reduced labor cost and product loss, according to a 2017 paper published in The International Journal of Advanced Manufacturing Technology.
  • Researchers estimated the monthly savings added up to 5,454 euros ($6,059) for workforce, and 15,625 euros ($17,357) for product loss and penalty costs. The initial investment for the manufacturer, which produces two million denim products per year, was 312,233 euros ($346,852). (Though this could have changed since the paper was published as the technology is becoming less expensive.) The company was transitioning from a barcode system for tracking its work in progress inventory.
  • Part of the research involved determining if RFID tags can survive the harsh denim product process, which involves abrasion, washing and baking at temperatures near 300 degrees Fahrenheit. Researchers tested silicone, plastic and epoxy tags, concluding the epoxy ones were easiest to connect to the denim and could survive the manufacturing process.
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Source: Switching from barcode to RFID can save on labor cost, product loss | Supply Chain Dive