How RFID is used in automotive industry

A rising need for real-time visibility

Over the past five years, we have faced a series of significant supply chain disruptions driven by the pandemic, political conflicts, and economic instability. As uncertainty continues, the automotive industry is entering a ‘new normal’ that may last for the foreseeable future. Manufacturers will require enhanced real-time visibility, including tracking of material stock and inventory at suppliers and assembly plants, to minimize disruptions and reduce waste and emissions.

Tracking Every Part

For decades, manual scanning, particularly of barcode labels, has been the standard for parts and inventory identification in automotive manufacturing. However, challenges have arisen:

• Increased Complexity: Today’s manufacturers produce many more model variants, with numerous options, accessories, and electronics compared to 30 years ago. This causes challenges in the form of
  • Managing a growing number of SKUs to be stocked
  • Managing Just-on-Time deliveries, both on the side of the OEMs and Tier partners
  • A more complex quality control process
• Assembly Line Trade-offs: Mixed model assembly lines must manage high parts variety and frequency, leading to trade-offs in:
  • Pace of Production
  • Mass Customization
  • Operational Visibility

To address these challenges, new traceability technologies such as RFID and RTLS are emerging to overcome the limitations of traditional barcode scanning.

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