What technologies are trucking companies using to lower costs and improve outcomes for customers?

Never underestimate the high cost of trucking industry errors. If a freight shipping logistics company sends a truck to the wrong destination or with the wrong assortment of items, they will need to go all the way back and get the right items. Not only does this make customers wait days or even weeks for what they ordered, but it raises costs, leading to higher prices down the road. Logistics companies are thus eager to adopt any technology that reduces the rate of errors. One innovation that has been highly effective is RFID.

What is RFID?

Radiofrequency identification, or RFID, is the process of storing information in a tag and then reading or transmitting it by radio wave. This typically occurs in the following ways:

  • You store data within a microchip, which is placed in an RFID tag
  • The device that needs to read that tag transmits an electromagnetic signal to it
  • Upon receiving the signal, the RFID tag transmits radio waves back to the reading device
  • The reader receives the radio waves and interprets them

RFID is similar to bar code scanning, but unlike that method, the reader does not have to have a direct line of sight to the tag. As a result, organizations that use this method enjoy greater flexibility, allowing them to transmit accurate information in a range of different contexts.

How does RFID enhance transportation logistics?

Logistics companies can use RFID to enhance a host of different activities, including:

  • Load Identification– Shipping companies can use RFID tags to determine what vehicles are carrying as soon as they arrive at their destination. They can then assign the necessary personnel to unload those vehicles. If a vehicle has brought its contents to the wrong destination, RFID tags inform the driver immediately. This lets them correct the mistake more quickly and without first going to the trouble of unloading.
  • Load Association– Besides determining whether a vehicle has arrived at the right location, logistics companies can use RFID to determine which loads need to be delivered with each other. This way, if truckers need to carry multiple trailers, the company can keep those trailers together and prevent the driver from leaving with one of the wrong trailers in the mix.
  • Pricing Precision– Transportation companies can use RFID tags to determine the geographic location where a truck departed as soon as it arrives at its destination. This lets them calculate the total number of miles traveled instantly, eliminating any ambiguities over the price they need to pay their drivers.

These and other RFID applications lead to fewer errors and higher rates of efficiency in the logistics industry. For this reason, RCX Solutions has adopted radiofrequency identification for all of our vehicles, and takes advantage of any advance in this technology as soon as it becomes available. For more information, contact us by giving us a call today at (866) 336-9697.