In both intra- and inter-logistics, RFID tags are placed either on the pallet or the part being transferred. The tag is read automatically and logged into a system helping to identify the location, the time it left or entered the location, and in some cases the condition it was in when it left or entered. Typically, Ultra-high Frequency (UHF) RFID systems are used due to their ability to read tags at longer distances.
RFID in logistics is essential to:
- Maintain tight flow control with multiple sub suppliers
- Reduce time and potential errors when receiving components
- Maintain high level of visibility and traceability from sub suppliers to finished products
- Maintain regulatory compliance