Question

Explain how location-tracking technologies, such as RFID, can contribute to a more effective management of a firm's resources.

Give one example to show how this improvement can be achieved.

Answer 1

Location tracking technologies help a firm to continuously keep track of its items and assets effectively and efficiently. RFID (Radio Frequency Identification) is one such technology that tracks item location by using powered tags.

How R.F.I.D can contribute to the more effective management of a firm's resources:

1. It can be used in both general asset tracking of the firm and in inventory management.
2. Gives scope for real-time tracking of valuable assets.
3. Facilitates quick and easy access to inventory.
4. Increases asset visibility by enabling to locate misplaced or lost assets.
5. Gives the possibility to know the exact whereabouts of shipments.
6. Facilitates an easy change of decision by quickly rerouting the assets.
7. Eliminates manual error and oversight.
8. Employees are no longer required to do mundane, repetitive tasks like keeping track of items.
9. Mitigates loss and theft of valuable assets.

Example:

A company ABC cannot keep up with tracking its items. It deals on a large scale and its employees are careless and let things slip. By adopting RFID technology, it can keep track of its items at all times through real-time tracking. The employees are no longer required to keep track of the items. The manager can do it through the use of this technology. The technology also allows the company to keep track of its materials during logistics. It also ensures that no item is lost or stolen. After adopting RFID technology, ABC company is gaining back its opportunities that it had earlier lost due to material mismanagement. Through the successful implementation of location tracking technology, this was possible.