In the fast-paced world of supply chain logistics, accuracy and efficiency are everything. One of the most critical—and often overlooked— areas where businesses lose time and money is during the receiving process and through chargebacks. These chargebacks, often triggered by discrepancies in shipments, can significantly impact vendor relationships and bottom lines.

Enter RFID (Radio Frequency Identification), a game-changing technology that’s transforming how businesses manage inventory, verify shipments, and reduce costly errors.

In this blog, we’ll explore:

• How RFID is used in receiving and chargebacks.
• The benefits RFID brings to receiving and chargebacks.
• How RFID can seamlessly integrate with systems like ASN (Advanced Shipping Notice), auditing tools, and VAS audit stations enabling key benefits.

Traditional receiving processes rely heavily on manual barcode scanning and paperwork, which are prone to human error. When items are missed, mislabeled, or miscounted, it leads to chargebacks—financial penalties imposed by retailers on suppliers for non-compliance.

RFID technology automates and simplifies receiving by embedding RFID tags in products or packaging. Entire shipments can be verified instantly without opening boxes or scanning individual items, speeding up the receiving process while ensuring up to 99% accuracy and reducing chargebacks.

How RFID Improves Receiving:

1. Tagging at Source: Products are tagged with RFID labels during manufacturing or packaging.
2. Shipment with ASN: An Advanced Shipping Notice (ASN) details the shipment contents.
3. Automated Receiving: RFID readers instantly scan shipments upon arrival, comparing them to the ASN.
4. Real-Time Validation: Discrepancies are flagged immediately for resolution.
5. Data Logging: All scanned data is recorded for compliance and auditing.

This process eliminates manual checks, reduces labor costs, and ensures that orders are accurate.

To maintain precision on the outbound side, VAS (Value-Added Services) audit stations ensure shipments meet vendor specifications. RFID readers verify items as they’re packed, flag discrepancies, and log every scan to create a digital audit trail. This prevents errors, strengthens vendor trust, and reduces chargebacks.

Customer Benefits:

• Faster Receiving: Hours of manual work reduced to minutes.
• Improved Accuracy: Near-perfect inventory validation.
• Fewer Chargebacks: Discrepancies are minimized.
• Stronger Vendor Relationships: Transparency builds trust.

RFID integrates with existing systems to maximize efficiency:

• Sync with ASNs for automated shipment validation.
• Log scans for auditing and compliance.
• Defend against chargebacks with accurate data.

RFID isn’t just a technology upgrade—it’s a strategic investment in operational excellence. Automating receiving, validating outbound shipments, and integrating with ASN and auditing tools helps businesses operate smarter, faster, and more profitably.