RFID (Radio Frequency Identification)

RFID (Radio Frequency Identification) uses radio waves to identify and track objects fitted with electronic tags, without requiring line-of-sight scanning like barcodes. In distribution, RFID tags are attached to crates, pallets, or vehicles, and fixed readers at dock doors or handheld readers in the warehouse detect them automatically. A truck passing through an RFID gate can have its entire load inventoried in seconds rather than the 30-45 minutes manual scanning takes.

In Indian dairy and beverage distribution, RFID is most commonly deployed for crate management. Returnable plastic crates are high-value assets (Rs 150-400 each), and large distributors lose 5-15% of their crate pool annually to theft, misrouting, or retailer hoarding. RFID-tagged crates create an automatic audit trail: the system logs when a crate left the plant, which distributor received it, which retailer got it last, and whether it came back, all without a single manual scan.

While RFID tag costs (Rs 8-25 per passive tag) have historically limited adoption to large operations, prices are falling steadily, and brands like Amul, Coca-Cola, and Pepsi already run RFID-based crate tracking at scale in metro markets.