Currently where competition is at its peak, companies cannot afford to make a single mistake that could potentially harm their business. With this in mind, companies must constantly update and improve their system to provide superior service and retain client’s trust and confidence in their company.What is RFID Technology?Radio frequency identification or RFID is a technology that uses radio signals or frequencies as a means to transmit and receive information. There are two types of RFID tags namely the passive and active tags. Active tags are more expensive because they are able to transmit information directly due to their built-in battery system while passive tags need an external power source to be able to transmit data. This technology has been in use for quite some time but because of the expensive cost of implementing it, not everyone is familiar with this technology. However, research and developments are in progress to make RFID technology cheaper and more accessible to the market due to its numerous benefits.Why use RFID Technology?In the long term, RFID technology will pave the way for a faster, more effective and efficient way of sharing data and information.Durability. RFID tags are made to withstand harsh environment and weather conditions. This ensures that wherever the tagged items go, the mailroom can track its movement and will not easily be lost.Different Features. RFID tags come in different shapes, sizes and types. This is to better suit the products and items to which the tags are attached.Security. Information on tags is not replicated easily thus preventing theft and increasing security. If clients were to send an item through mail, they can be rest assured that it would not be easily copied or stolen.Capacity to store. RFID tags have greater storage capacity than the normal barcode allowing additional information to be stored for better tracking purposes. Mailrooms can easily track each and every individual tag because the different additional information would lead them to different tracking numbers.Tracking. It is easier to track items with RFID tags because they have different information that makes every item unique. It also enables faster tracking, management and monitoring of goods in terms of inventory and transportation.Wireless. RFID technology uses radio frequencies to transmit and receive information even at a greater distance unlike barcodes, which require physical interaction between barcodes and barcode readers. Since the reading is done automatically, mailrooms can do this in bulk thus making it easier for them to sort items and deliver faster.Several factors should be weighed when making a decision to implement RFID technology aside from being expensive. However, with technology becoming more sophisticated and updated it could only be a couple of years before older technologies become outdated and obsolete.
With continued economic turmoil keeping the focus on procurement, newer technologies are continuously being sought to ensure the delivery of great savings and reduction of costs. Below is a look at some of the future drivers of technology in procurement.Intelligent ReportingProcurement technology of the future is set to shift its focus towards reporting that is more accurate. This will drive better business agility, as they become more responsive and predictive so as to allow for the reduction of costs.Mobile ProcurementProcurement systems are set to break out of the desktop PC/ large application model, thereby becoming more mobile. This will apply both for the search-order-approve cycle, as well as the analytics on-the-go.Secure Cloud TechnologySecurity will become of paramount importance to procurement systems. This will especially apply to cloud based providers who will need to demonstrate that their solutions are just as secure as the traditional on-premises implementations.Accuracy of DataIncreasingly, data will be recognized as a key enabler of procurement technology, and not just its output. Procurement functions will be out seeking solutions for the identification of ways to deliver their savings targets. And the only way in which they will be able to achieve this is through accurate supplier data that they will have normalized across the supply chain.Social ProcurementDriving improved purchasing through buyer interconnectedness is set to increase even more in coming years. This will involve the harnessing of cloud architecture with the knowledge of past purchases thereby allowing for the formation of connections. In this way, efficiencies will also be created in purchasing between and within organizations.Death of Procurement!Although not quite – what experts predict to be the “death of procurement” is a situation that results as a natural consequence of active spend management. Here, technology and tools become so easy to use and procurement best practice is embedded within the organization so much that it practically runs itself.Organizational ChangeProcurement technology offers the possibility for businesses to shift from legacy processes through gradual change. The good news is that leading technology providers are set to offer solutions that are even easier to use, thereby enabling enterprises to easily drive change in practice.The future of procurement technology is also looking bright with the introduction of reporting tools and unified data sets that are increasingly sophisticated, both between and within organizations and sectors. This will in turn drive intelligent spend data management and forecasting.