RFID Technology for Supply Chains

RFID Technology: Supply Chains for CPG Brands

ByHaley Seiberlich

In the retail industry today, CPG brands need to operate efficiently while meeting sustainability goals. Radio Frequency Identification (RFID) is a technology that’s reshaping how companies address these challenges, enabling better retail inventory tracking and streamlining logistics in supply chain operations. RFID inventory management helps CPG brands enhance logistics and better manage inventory.

Understanding RFID Technology

RFID Technology uses radio waves to identify and track items. Think of it as a high-tech barcode system that doesn’t need line-of-sight. Here’s an overview of the key types of RFID tags:

  1. RFID Tags: These are small RFID chips attached to products or packaging. They come in various types:
    • Passive tags: These have no power source and are activated by the reader’s radio waves.
    • Active tags: These have a power source and can transmit data over longer distances.
    • Semi-passive tags: These use a battery to run the chip’s circuitry but rely on the reader to communicate.
  2. RFID Readers: These devices send radio waves and receive signal signals from the tags. They can be handheld, mounted on walls or ceilings, or even integrated into smartphones. RFID readers enable real-time information about product movement and inventory levels.
  3. Data Management System: This software processes and analyzes the information from the tags, turning raw data into actionable insights. RFID tags for inventory tracking provide unprecedented visibility into the supply chain.

CPG brands use RFID logistic solutions in their supply chain to track products from manufacturing all the way to store shelves and beyond. This helps improve their monitoring capabilities. The technology can track individual items, cases, or pallets, providing real-time visibility into the supply chain. The advantages of RFID in supply chain management are numerous, from improved inventory accuracy to enhanced efficiency.

RFID Graphic

The Growing Importance of RFID Inventory Management

Walmart’s RFID Mandate

In recent years, major retailers like Walmart have started requiring RFID tags on certain products. In 2022, Walmart announced that suppliers must use RFID tags for inventory tracking on products sent to its stores and distribution centers. This mandate has significantly impacted CPG brands, pushing many to adopt RFID technology quickly.

Categories affected by Walmart’s mandate include:

  • Apparel
  • Automotive
  • Sporting Goods
  • Toys and Games
  • Home Goods
  • Home Improvement
  • Electronics

At Meyers, we’ve helped many brands transition smoothly to meet these new requirements. Our expertise in packaging, labels, and RFID technology allows us to create integrated solutions that satisfy retailer mandates while enhancing brand aesthetics and functionality.

Benefits of RFID for CPG Brands

  1. Improved Retail Inventory Tracking: Traditional inventory methods typically achieve around 65% accuracy. RFID inventory management can increase this to over 95%, reducing stockouts and overstocks. This improvement can lead to a 2.5% increase in sales by ensuring product availability when customers want them.
  2. Enhanced Supply Chain Visibility: RFID technology allows you to track products in real-time throughout the supply chain. A study from Auburn University shows that better visibility can improve inventory accuracy by 30%. RFID and product movement tracking provide unprecedented supply chain transparency.
  3. Faster Operations: The benefits of RFID technology extend to operational speed. RFID can reduce the time spent on inventory counting by up to 96%. Imagine reducing a task that previously took 8 hours to a mere 20 minutes!
  4. Improved customer experience: Accurate inventory data helps ensure products are available when and where customers need them. This can increase customer satisfaction and loyalty, especially in the e-commerce and retail sectors.
  5. Sustainability Improvements: By optimizing inventory management and transportation, RFID logistic solutions can help reduce waste and lower carbon emissions. Studies have shown significant environmental benefits. For instance, research from the University of Parma found that RFID in supply chain management extended the shelf life of perishable goods by nearly a week, reducing waste. Additionally, RFID systems helped avoid expired goods due to improper replenishment, with the carbon savings far outweighing the carbon cost of the RFID tags themselves. These improvements in retail inventory tracking and waste reduction contribute to overall sustainability in supply chain operations.
RFID Supply Chain for CPG Brands

Meyers’ Approach to RFID Inventory Management

At Meyers, we understand the challenges CPG brands face when implementing RFID technology. Our approach focuses on:

  1. Custom Solutions: We tailor our RFID logistics solutions to each brand’s specific needs and products. This could involve making special RFID labels that are compatible with your packaging. It could also mean developing specific tagging methods for different products.
  2. Seamless Integration: Our team ensures RFID technology integrates smoothly with existing systems and processes. We work with your IT team to connect RFID data to your inventory, ERP, and warehouse systems. This connection enables automation and digital improvements.
  3. Sustainability Focus: We help brands leverage RFID to meet their sustainability goals. This could involve using eco-friendly RFID materials, optimizing processes to reduce waste, or developing strategies to improve overall supply chain sustainability.

The Future of RFID in Supply Chain Management

The future of RFID inventory management. The global RFID market is expected to reach $40.5 billion by 2025, growing at an annual rate of 14.7%. Emerging trends include:

  1. Integration with IoT: Combining RFID with other Internet of Things (IoT) technologies for even greater supply chain visibility. Linking RFID data with sensors for temperature, humidity, and shock helps maintain product quality in the supply chain.
  2. Enhanced Analytics: Advanced data analytics and artificial intelligence will help derive deeper insights from RFID technology Predictive analytics could help forecast demand more accurately, further reducing waste and improving efficiency.
  3. Sustainable RFID Tags: Developing more environmentally friendly tag materials, including biodegradable options. Some companies are exploring paper-based RFID tags as a more sustainable alternative to traditional plastic tags.
  4. Expanded Applications: Use of RFID beyond retail inventory tracking, such as in smart packaging for consumer engagement. RFID packaging can help consumers access product info, instructions, and interactive content on their smartphones.
Future of RFID in supply chain management

How Meyers Can Help Your Brand Leverage RFID Technology

Meyers specializes in both sustainable packaging and RFID logistics solutions, making us the ideal partner for CPG brands. Our services include:

  1. UHF RFID Labels: High-performance UHF RFID labels offer extended read ranges, making them ideal for tracking and managing inventory across large areas, from warehouses to retail stores.
  2. NFC & Other RFID Labels: NFC and specialty RFID labels enable close-range communication for seamless interactions, perfect for consumer engagement, secure transactions, and smart packaging solutions.
  3. Flexographic, Digital, and Hybrid Printing Capabilities: With advanced flexographic, digital, and hybrid printing technologies, we deliver precision, quality, and customization for RFID tags for inventory tracking, ensuring vibrant, durable designs that align with your brand.
  4. Encoding and Data Management: Our encoding and data management services ensure your RFID labels are accurately programmed, allowing for smooth integration into your existing systems and optimal performance in the field.
  5. Material Selection: We offer expert guidance in selecting the best materials for your RFID labels, considering factors such as durability, environmental conditions, and application surfaces to ensure reliable performance.
  6. Label Construction Engineering: Our engineering team customizes RFID labels tailored to your specific needs, balancing form and function to optimize performance, durability, and compatibility with your products.

Transform your supply chain with RFID tags for inventory tracking. Contact Meyers today to learn how we customize RFID logistics solutions for brands like yours. Let’s work together to create a smarter, greener future for your brand and the planet.

Meyers creates sustainable packaging and labels that help shape a better future for people, products, and the planet. Trusted by leading brands like Hormel, Ulta Beauty, and Microsoft, Meyers combines innovation with a commitment to sustainability. Contact us today to learn more.

Haley Seiberlich