How RFID Technology Is Changing Business by Matt Smith
The article “How RFID Technology Is Changing Business” by Matt Smith outlines the significance of Radio Frequency Identification (RFID) technology in the business environment. Although launched more than 4 decades ago, the practical usage of the RFID in the business environment only began less than a decade ago because of the high cost related to the equipment. According to Smith, the RFID technology has brought a revolution in the business arena since it has replaced the old proprietary systems with standardized, open, and efficient systems. This means that the technology has made the supply chain and other departments in a company more efficient.
The aspect of efficiency results in increased profit margins. This means that the components of shipping, inventory, and receiving tasks are now more accurate and easier to track. From a business perspective, companies are now able to maintain explicit visibility of different products or units in different locations since the RFID tags can send information about the consignment through wireless technology. This data may be analyzed and packaged to give the business a head start on the best strategies for micromanaging its inventory.
In summary, Smith notes that RFID technology has the potential of increasing the visibility of the inventory, creating room for proper reporting, and accurately tracking the tagged item on transit in order to increase efficiency, save on time, and magnify the existing competitive advantage. Thus, companies that have integrated RFID have experienced better collaboration, cost reduction, accelerated processes, increased revenues, and lowered levels of inventory. In my opinion, the RFID technology would improve the way accountants work in the future by providing the necessary backup for accurate reporting, inventory control, and fastening the inventory management process from a single server or location.