As Vietnam’s e-commerce sector continues to grow rapidly, logistics has become the “heart” of the entire supply chain. Warehousing, transportation, sorting, and tracking all demand high speed, accuracy, and strong processing capacity. However, when order volumes surge 3–5 times during peak seasons, traditional methods such as barcodes, manual recording, and human-based inventory checks reveal many weaknesses: slow operations, high error rates, and lack of real-time visibility.

This is why RFID (Radio-Frequency Identification) has become the “backbone” of digital transformation projects in logistics. With its ability to identify objects automatically—without contact, at high speed, and in large quantities—RFID is reshaping how warehouse operators and 3PL providers manage their fulfillment and distribution processes.

This article explores the role, benefits, applications, and future of RFID in logistics, providing deep insights for businesses aiming to upgrade their operational efficiency.

1. What is RFID and Why Does Logistics Need It?

RFID is a wireless identification technology that includes:

• RFID Tags: attached to goods, pallets, cartons, forklifts, and containers

• RFID Readers: devices that read tags (handheld, fixed readers, UHF gates)

• RFID Antennas: amplify and direct radio waves

• RFID/WMS Software: processes and displays real-time data

RFID can:

✔ Read through carton boxes
✔ Read while goods are moving
✔ Read hundreds–thousands of tags simultaneously
✔ Capture data automatically, without manual scanning
✔ Track items in real time

This is exactly why logistics—where speed and accuracy are critical—needs RFID more than any other industry.

2. Major Logistics Challenges Before RFID

2.1. Inventory takes too much time

A warehouse with 10,000 SKUs may take 4–8 hours for manual inventory counting.

Each inventory cycle requires:

• Extra labour

• Partial warehouse downtime

• High risk of >10% discrepancies

2.2. Product loss is difficult to track

Barcodes require manual scanning → no real-time monitoring → losses go undetected.

2.3. Errors in receiving, picking, and dispatching

Human error can lead to:

• Wrong barcode scans

• Missing items

• Incorrect data entry

• Forgotten scans

2.4. No real-time tracking capability

In a large warehouse:

• Item locations are unclear

• Status of inbound/outbound goods is hard to verify

• Pallet locations become confusing

This results in delays, order mistakes, and rising costs.

3. Benefits of RFID in Logistics

3.1. Inventory in minutes – without stopping operations

Instead of 8 hours, RFID reduces inventory time to:

• 5 minutes for small warehouses

• 15 minutes for medium warehouses

• <30 minutes for large warehouses

Using handheld RFID readers, staff simply walk along the aisles while the system automatically captures data.

→ Save up to 90% inventory time.

3.2. Fully automated inbound/outbound processes

When goods pass through an RFID gate:

• Readers automatically detect all items

• Warehouse entry/exit is recorded instantly

• No manual barcode scanning required

Example:
A truck with 200 boxes passes the gate → all items are scanned in 3 seconds.

3.3. Locate items in seconds

Handheld RFID devices work like a “radar”:

🟢 Getting closer → stronger signal
🔴 Moving away → weaker signal

Instead of 10–30 minutes, finding an item now takes 10–20 seconds.

3.4. Reduce product loss by 95%

Real-time RFID tracking records:

• Who moved the item

• When it was moved

• Where it was taken

• Its movement path

Everything is logged → maximum transparency.

3.5. Reduce receiving/picking/shipping errors

RFID confirms:

• Correct pallet

• Correct SKU

• Correct order

If wrong → immediate alert.

→ Reduce errors from 8–12% to nearly zero.

3.6. Boost order processing speed

RFID helps the warehouse:

• Pack faster

• Pick faster

• Verify faster

• Eliminate bottlenecks in picking zones

Result:
50–70% increase in labour productivity.

4. Practical RFID Applications in Logistics

4.1. Pallet & carton management

RFID tracks:

• Which rack a pallet is on

• Where it moves

• Whether it has been dispatched

One tag per pallet = full lifecycle visibility.

4.2. RFID-based picking

Warehouse staff use handheld RFID readers:

• Go to the correct aisle

• The reader detects matching SKUs automatically

• The system displays “correct – incorrect – missing – excess”

Picking errors are eliminated.

4.3. Forklift RFID management

RFID readers installed on forklifts can:

• Automatically identify the pallet being lifted

• Record movement logs

• Prevent lifting the wrong pallet

Smart forklifts = faster, safer operations.

4.4. Container tracking & transportation

RFID seals can:

• Track container movements

• Trigger alerts if tampered

• Authenticate containers at entry/exit points

Especially useful for:

• Ports

• ICDs

• Industrial parks

• Logistics hubs

4.5. Postal bags – parcels – sorting systems

Carriers such as Viettel Post, GHTK, and Lazada Logistics can:

• Tag postal bags with RFID

• Automate sorting

• Automate check-in/check-out

→ Reduce peak-season pressure by 40–60%.

5. RFID Deployment in Vietnam

5.1. E-commerce sector

Warehouses of 10,000–50,000 m² often:

• Handle 50,000–200,000 orders/day

• Require fast check-in/out

• Need near 100% accuracy

RFID becomes essential for scaling.

5.2. Retail and fashion

RFID enables:

• Store inventory in 5 minutes

• Reduced shrinkage

• Automated size/colour management

Global fashion brands already use RFID extensively.

---

5.3. Food & cold-chain logistics

RFID supports:

• Cold storage tracking

• Temperature-sensitive alerts

• Product lifecycle monitoring

Critical for Vietnam’s expanding cold-chain market.

6. Challenges When Deploying RFID in Logistics

6.1. High initial cost

But ROI typically returns within 6–12 months.

6.2. Complex warehouse environments

Metal and liquid cause interference → experts needed for optimization.

6.3. SOPs must be standardized first

RFID will not work if warehouse procedures are inconsistent.

6.4. Requires collaboration between IT and operations

Hardware + software + networking must work seamlessly.

7. The Future of RFID in Logistics (2025–2030)

RFID will integrate with:

• AI → predictive inventory

• Computer Vision → pallet recognition + RFID verification

• Robotics → robots pick using RFID guidance

• IoT → smart container tracking

• 5G → unlimited real-time connectivity

Within the next 5 years, RFID will become the industry standard for:

✔ E-commerce warehouses
✔ Major 3PL providers
✔ Smart warehouses
✔ Modern retail chains

Conclusion

RFID is not just another technology—it is the core infrastructure enabling logistics to operate with unmatched speed, accuracy, and scalability.

Businesses that implement RFID correctly can achieve:

• 20–50× faster inventory

• Near-zero operational errors

• 50–70% productivity boost

• Significant reduction in shrinkage and labour costs

• Full real-time visibility of goods flow

In today’s fast-moving logistics environment, RFID is no longer optional—it is essential for any business that wants to stay competitive and lead the market.

📧 Email: info@beetech.com.vn
🌐 Website: https://beetech.com.vn