Radio-Frequency Identification (RFID) is the use of radio waves to read and capture information stored on a tag attached to an object. RFID is used by many industries such as commerce, transportation, animal identification and so on. Moreover, the integration of RFID Inventory Tracking and Warehouse Management Solution enable the retail and manufacturing industry to identify and track inventory real-time and automatically.
Manufacturing companies using SAP can use RFID to track their products along the supply chain. During the inbound delivery process, the goods receipt will identify incorrect items and quantities sent by the vendor. During the outbound delivery process, the items can be tagged, loaded onto cases, and automatic goods receipt. When the item is stored in the plant, the item also can be tracked.
The technology of integration of SAP ERP and RFID is called SAP Auto-ID. It receives the data from the RFID reader and converts those data into ERP system. SAP Auto-ID also automatics the delivery process. It includes the flexible definitions and rule set environment. For example, if the data from a tag is captured for a goods receipt, then SAP Auto-ID would automatically generate a goods receipt based on the rules defined.