How AIDC technologies are improving supply chain operations

Abhrasnata Das

In the 21st century, human operations are filled with barcodes and other automated identification and data capture (AIDC) devices. Due to their maturity, reliability, and decreased cost over time, they may be found everywhere from grocery shops to passports.

Invented in the 1950s, AIDC is now implemented in a wide spectrum satisfying the needs of broad-scale industries. In order to compete with the best-in-class businesses and adhere to industry-leading standards for materials management, AIDC is more crucial than ever as the internet of things (IoT) and sophisticated connectivity technologies (such 5G, low Earth orbit satellites) are deployed.

That being said, in this article let's look into the key use cases of AIDC products across three different segments.

RFID enabling Returnable Transport items (RTIs) tracking

Returnable Trasport Items (RTIs) are securing attention in the global supply chain network as businesses strive to revamp their sustainability journey, increase efficiency and minimize the cost of operation. The durable plastic RTIs are made to be reused in multiple shipments, requiring efficient management across the supply chain network for them to be actually returned and reused multiple times.

Unlike single-use alternatives, tracking and tracing the full fleet of RTIs is significant, especially when the fleet grows. For big companies with millions of fleets operating at a single time, RTIs become more susceptible to damage or theft, dwindling the return on investment of the assets.

Inept RTI tracking also damages the supply chain productivity while stressing the capital and warehouse space of the organization. For example, RTI shrinkage can create shipping problems as the product cant be shipped safely, pushing the organizations to stock single-use carriers to manage the shortfall.

Here, RFIDs can be crucial in effectively managing the RTIs under different conditions. The RFID tags also help in eliminate human errors, identify choke points and suggest changes to improve supply chain productivity.

For example, RAIN Alliance, and US-based company has developed RFID tags that have optimal read range with high accuracy. The tags provide unique, serialized, GS1-supported identifiers, helping the companies to gain real-time location updates of their assets.

Biometrics enriching Financing security

No doubt, fintech has had a significant impact on the financial and banking sector of India. From mobile banking to online verification, the finance industry has completely transformed itself from a pen-and-paper model to digital clicks and taps. With the financial industry extending its reach to the digital domain, protecting the security of clients is more important than ever.

Biometric technology to a major extent has helped the financial industry to add a security layer over 8-character passwords. This cutting-edge technology helps financial institutions verify clients based on unique traits like IRIS, facial, fingerprint, & palm-vein patterns.

Biometric authentication has also enhanced the customer experience while enabling users to bank with ease. According to studies, more than 60 percent of users opt for biometric security and think it's easier and faster than passwords. While more than 50 percent of the user reported considering leaving banks that do not offer biometric authentication.

Right from securing retail transactions to multi-factor authentication and enterprise data protection, biometric technology is now increasingly used in various domains across financial institutions. The organizations are also leveraging biometrics for protecting and securing internal operations.

For example, many organizations use RFID-enabled badges and IDs with biometric technologies to monitor staff members who spend disproportionately lengthy periods of time in restricted areas of the workplace.

Smart Label monitoring shelf life

Underling the shelf life of food products is one of the most important criteria for a company to ensure quality and safety. Governments across the globe have also played their part in enacting stringent norms to protect the well-being of consumers.

However, zeroing down to the actual shelf life of food items is next to impossible, as foods tend to be affected by different factors. The type and quality of ingredients used in the formulation, product pH, water activity, manufacturing process, and packaging format can all have an impact on the shelf life of food. According to reports one-third of all the food produced globally is wasted, which also generates 10 percent of the world’s greenhouse gasses.

In order to evade this challenge, companies are now exploring the potential of AIDC products to track the items right from the manufacturing site to customers' hands. In fact, through the help of smart labeling solutions, the manufacturers can point out the exact shelf life of the product and underline whether it is in a consumable state.

For example, Oil-tec a US-based company has developed new smart labeling solutions that is both temperature and time-sensitive. This intelligent technology can mirror the decay cycle of the product with a shelf life of between five to 15 days.

To conclude

After a half-century of use and advancement, AIDC technologies have evolved as an essential part of effective supply chain operations. Especially if they are manual and paper-intensive, warehouses without AIDC typically cost more and operate less efficiently than their industry rivals.

Materials management organizations that do not utilize these solutions are falling behind with every passing day, and more importantly, they are not setting themselves up for future IoT possibilities. Executives must take into account the finest technology for their firm, their needs, and their particular set of circumstances when deciding how to deploy AIDC.