Most Automotive Businesses Are Now Implementing RFID Tracking Systems - Here’s What You Need To Know

The Internet of Things, or IoT technology, has largely remained the biggest driver of RFID technology, or radio-frequency identification, a technology that is now employed in almost all sectors by most organizations that rely heavily on assets. And for a highly competitive industry like the automotive industry, the widespread application of RFID tracking and its other technologies is more essential now than ever. RFID technology works by encoding digital data in RFID tags or smart labels, which are subsequently read by a reader using radio waves. RFID is quite similar to barcoding, although it has significant advantages over barcoding. RFID tag data, for example, can be read outside the line of sight, whereas barcode scanners must be appropriately aligned under the optical scanner to be readable.

How RFID tracking systems work

Here's how an RFID system works if you're curious about it. RFID systems are composed of three main parts: an RFID tag/smart label, an RFID reader, and an antenna. RFID tags have an integrated circuit and an antenna for transmitting data to an RFID reader. After that, the reader turns the radio waves into a form of data that may be used effectively. All of the data collected from RFID tags is subsequently sent to a host computer system via a communications interface. This information is then saved in a database and assessed later on.

RFID systems are changing the automotive industry: Here’s how

Not only is the global automotive industry fiercely competitive, but it also has a complicated supply chain and logistics management system. Even if the sector has progressed and improved operational efficiencies in different areas over the years, there is always the potential for improvement. This is where RFID tracking in the automotive industry comes into play. Over the last two decades, asset management systems have gained widespread acceptance and expansion, with every major industry, including healthcare, manufacturing, and retail, adopting this IoT-enabled monitoring solution. As a result, the global asset tracking market share has expanded significantly. The market is expected to be worth $36.3 billion in less than five years.

Benefits of RFID tracking systems

Here are some benefits of the RFID tracking system in the automotive industry, which have made it a huge success.

1. Better integration

The most significant advantage of an IoT-based asset monitoring system in the automobile industry is that it uses a single "integrated strategic system," which aids in the development of a sound organizational model. As a result, consumers who were previously offered merely tentative delivery dates for when their vehicle would arrive, rather than the original and actual date, would see a significant gain. Organizations will gain from this as well, because not only will they have better real-time access to data on transit stations, road conditions, projected delivery dates, and so on, but they will also be able to strengthen their brand image.

2. Reduced costs

The automotive industry and enterprises under it can never have enough parts, tools, and other equipment to meet customer demands. As a result, when these components and tools are in limited supply and difficult to locate, it results in wasted labor hours and effort, asset replacement expenses, and even potential errors—all of which can have a detrimental impact on operations. Implementing RFID monitoring systems for securing parts at the right time increases a company's ROI while also resulting in significant cost savings. Tracking the movement of various products and goods becomes relatively simple, and all related information can be safely and automatically uploaded to information or financial management systems, thereby partially or even eliminating the need for human manual intervention.

3. Easy management and tracking of inventory

Another great benefit of RFID asset tracking comes in inventory and asset management. The entire process of identifying and managing assets becomes considerably streamlined. Parts, components, and other items may now be traced back to their original locations. Counterfeiting also becomes easy to detect with proper inventory management. Another significant advantage is that the RFID scanning process decreases the number of errors that occur while manually tracking goods with barcodes. Apart from these major advantages, RFID tracking technology also allows for improved data accuracy of asset management software, enhanced quality and traceability, insightful management information relating to production and operations, and improved health and safety as well. The automotive industry can certainly reach greater heights with the implementation of IoT technology-enabled RFID tracking systems.

RFID Tracking in Asset Management

Assets are vital to any organization, especially during the production process. At this point, various assets such as equipment, tools, and machinery will be needed according to demand. To ensure the smooth flow of manufacturing operations, it is critical to know the whereabouts of assets and ensure that they are appropriately maintained. RFID tracking plays a major role in asset management through RFID tags. They connect physical assets to various data collection tools like asset management software. Essentially, they improve asset visibility and give a suitable medium for tracking preventative maintenance and repair, among other things. Each asset will have its own RFID tag, which will store data in various forms, including name, amount, location, weight, and so on. RFID will then be used to automate data on movement, check-in, check-out, etc. These tags will also be used to identify the asset for maintenance or after-sales services, with the unique ID assisting in retrieving asset information from the database. One major advantage of RFID tracking in asset management is that it allows you to read many tags at once, allowing you to track multiple assets at once and improving organizational efficiency and performance. It also allows you to collect data in real-time and even track down missing or misplaced assets, allowing businesses to boost their reputation and customer service functions.

RFID Vehicle Tracking Systems

RFID vehicle tracking systems are an excellent solution to the automobile industry's present challenges. RFID tags will allow systems to electronically identify automobiles regardless of their current location. With an identified load, they may be checked in and out automatically. As a result, manufacturers may improve the traceability of shipments and the management of the distribution and material handling chain. It also allows for better access control, keeps unauthorized vehicles in the building and parking lots out of the system, improves yard management systems of vehicle manufacturers, and improves manufacturing plants’ in-house logistics. To summarise, RFID vehicle tracking systems have several benefits in the automotive industry. These can undoubtedly improve an organization’s performance, whether through reducing labor costs, improving efficiency and productivity, or increasing security and availability of real-time information.