| Logistics assets that have a circular flow are an | | | | lower the total operational costs as well as improve |
| essential part of the distribution network of any | | | | the availability of assets. The use of these asset |
| business. These assets are often reusable such as | | | | management techniques has improved customer |
| totes, racks, bins and roll cages, shipping containers, | | | | retention significantly. This technique will help improve |
| gas containers etc. used to transport goods from | | | | visibility of assets in transit, availability management |
| one place to another. Procuring, maintaining and | | | | of much needed assets, transportation management |
| managing these assets often forms a significant part | | | | etc. these techniques have to be reviewed |
| of a company's annual expenses. Since theft, damage | | | | periodically to ascertain if they have effected a |
| and replacement erode asset productivity, these | | | | significant change as also to take necessary action |
| assets have to be managed in such a way as to | | | | where required. |
| minimize loss as possible. That is when RFID (Radio | | | | The use of RFID and logistic management techniques |
| Frequency Identification Devices) and logistics | | | | are especially useful for manufacturers, where parts |
| management comes into effect. | | | | bins feed parts in an automated plant, since the |
| Using RFID to Manage Assets: | | | | placement of the right part in the right place is critical. |
| Businesses have resorted to using radio frequency | | | | The company can use these techniques in areas |
| identification devices come in handy. These devices | | | | where they have expertise whereas professional help |
| or tags are helpful in locating these reusable assets | | | | can be sought for areas where they lack control |
| as well as have control over them. This greatly | | | | such as transportation, delivery, pick up etc. |
| reduces loss due to theft as well as misplacements. | | | | Companies should consider implementing RFID and |
| It is also useful in locating particular containers | | | | logistics management techniques, as they will greatly |
| containing specific products etc. Their use has greatly | | | | benefit from it. It will reduce cost, increase control |
| reduced costs such as replacement costs as well as | | | | and availability, decrease chances of loss of assets |
| avoiding shrinkage. It has also helped reduce capital | | | | due to various factors as well as prove to be very |
| costs, increase customer satisfaction, as well as | | | | economical. Most of them are currently using manual |
| ensuring the assets are in the correct place at the | | | | techniques, which is not as efficient as RFID. They |
| right time. An added advantage is the reusability of | | | | have to understand that asset management will be a |
| these tags, so companies, which want greater | | | | key factor in improving customer satisfaction as well |
| control over assets and their management, have | | | | as help in customer retention. |
| opted to use RFID and logistics management | | | | Many firms offer professional help as well as |
| techniques. Using RFID and logistics management | | | | products to run a business efficiently and effectively. |
| strategies will serve to improve capital utilization | | | | |