What does RFID technology primarily improve in supply chains?

RFID technology primarily enhances supply chains by significantly improving the tracking of the movement of items. This technology utilizes radio frequency identification to automatically identify and track tags attached to objects. As products move through the supply chain—from manufacturing to distribution and retail—RFID allows for real-time visibility of inventory.

Implementing RFID systems can lead to more accurate and efficient inventory management, as it reduces the chances of human error associated with manual tracking methods. Companies can monitor stock levels, identify product locations, and streamline logistics processes more effectively. This level of tracking not only improves operational efficiency but also enhances customer satisfaction by ensuring that items are in stock and can be located quickly.

While production speed, pricing strategies, and employee performance are important aspects of supply chain management, they are not the primary focus of RFID technology. The real value of RFID lies in its ability to enhance visibility and tracking, allowing organizations to make more informed decisions based on accurate data.