What is the purpose of RFID technology in logistics?

RFID (Radio Frequency Identification) technology plays a pivotal role in logistics primarily by enabling the tracking and management of inventory and shipments. The use of RFID tags and readers allows companies to automatically identify and monitor items through radio waves. Each tag contains unique identification data, which can be read from a distance without direct line-of-sight, making the process of inventory management much more efficient than traditional barcode systems.

This technology enhances visibility across the supply chain, as businesses can obtain real-time data on the location and status of their products. By streamlining the tracking process, RFID helps to reduce errors, improve accuracy in inventory counts, and optimize warehouse and transportation operations. The quicker and more reliable tracking of items contributes to better decision-making and inventory control, ensuring that logistics remain efficient and responsive to demand changes.

While other options touch on aspects that may relate to logistics, they do not capture the primary function of RFID technology within the logistics framework as effectively as the ability to track and manage inventory and shipments does.