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Streamlining business processes with RFID and Odoo/ERP integration

RFID, Radio Frequency Identification Device, has modernized different facets of industries starting from manufacturing level to distribution and retailing.

4th Jul 2018
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RFID, Radio Frequency Identification Device, has modernized different facets of industries starting from manufacturing level to distribution and retailing. It has become one of the widely used wireless technologies, after phones. According to financial experts, RFID is helping organizations save millions of dollars by offering quick and precise data of multiple items located in different locations in real-time.

The tag of RFID is a small chip, which is wireless, with radio circuit wherein digital data is encoded. It is quite similar to the bar code technology, however instead of utilizing optical scanning on bar codes, radio waves are used, in order to capture the data from tags.

Two Types of RFID tags:

Active Tags: Tags with their own power source

Passive Tags: Tags without their own power source.

How Does RFID System Works?

The reader communicates with a tag, containing digital information. A collection of wireless and wired network constitutes the communication infrastructure, which executes out a series of action for information transfer to deliver the data saved in a tag to the reader.

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Here, the Readers are just like the barcode sensors that broadcast a radio signal via an antenna to the tag. Once it is done, the tag responds to the radio wave, enabling the data to be read from tag chips. The tags may contain ROM (Read Only Memory), volatile read, RAM (Random Access Memory) or WORM (Write once/read many memory) for data storage.

ROM stores the security data, whereas RAM stores the data during the transponder interrogation and response. The data contains:

1: A unique identifier

2: An operating system

3: Data storage (volatile or non-volatile)

4: An EPC

Simultaneously, the data from numerous tags can be analyzed. Readers decrypt the signal specified by the tags and then, transfer it to the CPU. Usually an ERP, like Odoo, collects and interprets the information gathered through tags. Along with this, data can be collected and saved with higher accuracy as compared to existing barcode systems.

How can RFID with ERP/Odoo do Wonders in Numerous Industries?

There is no doubt that the integration of IoT with ERP/Odoo (Enterprise Resource Planning) is bringing revolution in most of the industries. In fact, numerous companies have coupled these technologies to optimize supply chain & cost, shorten the throughput times and assist different departments to share & update the information in real-time effortlessly. RFID with ERP/Odoo can be used in manufacturing, inventory, warehousing, control, automatic object tracking, distribution, supply chain management, logistics, etc.

Key Benefits

In manufacturing: RFID can be utilized to prevent product and component mixing, along with mixing of multiple accessories. It is used to read, as well as write data directly to a tag on any object in real-time. This makes the manufacturing process flexible because of the quick delivery of data to numerous manufacturing cells. In addition, real-time visibility enables the close monitoring of the products and processes as with the instant update of the product status in ERP/Odoo can potentially save a huge time.

In Inventory: Counting the inventory is a highly tedious, inefficient, time-consuming and inaccurate method. RFID is used to reduce or eliminate the requirement of ‘hand-scanning’, resulting in significant and immediate enhancements in inventory tracking. Once the object is ready and taken out from the inventory, it will automatically update the status on ERP through RFID tag linked with that particular object. This directly impacts on the customer experience and lead to more control.

In Logistics: RFID system track and trace the consignment throughout its logistical cycle, from shipment to receipt. Customers have the real-time tracking of the consignments with the help of RFID and IoT device connected with ERP/Odoo, at the blackened. At the time, when inbound deliveries reach a plant with RFID, all the tagged items can be processed via automated goods receipt, along with the validation of GRA (Good Receipt Note).

Another important use-case for logistics is prevention of tampering, theft and counterfeiting the goods during logistics. The RFID reader connected with IoT device will immediately send an alert with timestamp and location stamp to the head office monitoring on ERP/Odoo.

Basically, RFID can resolve the problem of sorting, as well as tracking the product supply, hence reducing the lead time during distribution. It can be used to regulate the stock for identifying the items quickly and accurately.

Wrapping It Up

RFID with ERP/Odoo gives a greater control and visibility as all the items can be automatically counted at every step of the supply chain. With the advancement of technology, organizations with theft issue can link their RFID with the security cameras, in order to track any of the items. If the total saving is calculated from the theft reduction, labor saving, wrong shipments, the ROI can be immediately realized.

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