APPLICATION OF RFID IN AUTOMOTIVE PRODUCTION COST MANAGEMENT

The application of RFID in modern industrial production is no longer uncommon worldwide, and the automotive industry is no exception. Let's explore the application of RFID in managing automotive production costs and see if it brings any benefits.

Like most businesses today, the automotive industry is affected by competition, the impact of the pandemic, and therefore, the need to maintain profitability.  In this new contactless environment, the ability to digitize and connect the entire supply chain, making real-time collected information visible and actionable, can have a tremendously positive impact on costs and thus profitability.  While most manufacturing and logistics businesses already have some type of automated inventory system and/or barcode technology, is that enough?

While a tight market might seem like an unsuitable time to spend money on internal systems, this is precisely the right time to reassess the effectiveness of existing systems and find ways to improve them. RFID is reducing costs and improving accuracy and profitability for automotive businesses. Perhaps it's time to consider how improving processes with RFID or IoT technology could enhance your business results.

RFID systems can monitor incoming and outgoing shipments, facilitate picking and packing, and enable e-Kanban scheduling and refueling control, integrating with your existing systems and software.

A  Brazilian auto parts manufacturer  supplying bumpers for cars produced in Brazil implemented RFID, replacing manual systems. Because they could plan production, they saved 6% on raw materials. RFID has a unique code for every item, so they can quickly locate products in the warehouse. They achieved 100% accuracy in order picking and shipping processes and reduced delivery errors by 95%.

What can RFID do for you?

• Track assets and inventory in real time.  By attaching RFID tags to each piece of furniture and item in your warehouse, you'll know the location of every element. You won't waste time searching for missing equipment or inventory. With RFID, you have at your fingertips precise knowledge of what you have and what you need to order. Use RFID solutions  to bring efficiency, transparency, and security to incoming and outgoing shipments.
• Optimize your workflow.  RFID automates the workflow from  start to finish  . Incoming and outgoing shipments are easily tracked using UHF gateway solutions, delivering efficiency, transparency, and security. Automated RFID tracking is highly accurate, minimizing reading errors. Pick and pack using the appropriate  RFID scanners , hands-free, and with alerts indicating whether the item has been correctly picked.
• Reduce inventory for e-KanBan.  When you know exactly what you have, what's running low, and what you need to order, you keep your inventory to a minimum, but still have what you need when and where.  The live detection system controls material recall.
• Improve resource utilization.  RFID gives you the power to enhance your workforce. Inventory picking becomes an efficient process instead of a wasted manpower.

One thing we can be sure of is change – 2020 is a clear example. No one could have predicted the impact of the pandemic on our lives and businesses. Implementing RFID into your automotive manufacturing and warehousing operations provides you with the tools to remain agile and adaptable to whatever comes next.