Difference Between Transportation and Logistics

Published on July 11, 2025

• 7 min read

To a layperson, transportation, and logistics might sound the same. However, logistics is not just a fancy term for transportation. Transportation is a small aspect of logistics. Understanding the difference between transportation and logistics is necessary so that businesses can optimize their supply chains efficiently. In simple words, transportation is the movement of goods or people from one place to another. At the same time, logistics involves storing, managing, packing, and final movement of goods.

This article will explore the differences between transportation and logistics, their functions, and their challenges.

Table Of Contents

Transportation and Logistics Scenario in India
What is Transportation?
What is Logistics?
Logistics vs. Transportation: Key Differences
Challenges in Transportation and Logistics
WareIQ Presents a Smart E-commerce Solution For Seamless Transportation and Logistics
Conclusion
FAQs About Transportation and Logistics

Transportation and Logistics Scenario in India

The transportation and logistics sector has contributed to India’s GDP. According to a report by Statista, the market has grown immensely in recent years and is predicted to increase by about US $0.62 trillion by 2029. This value is derived from logistics costs, which are projected to have an annual growth rate of 2.67%.

This growth is expected due to the enhanced infrastructure, whether it is the vast road network spanning a massive 146 thousand kilometers (as of 2024) or the numerous ports in India, which are expected to develop further as the government is about to invest US$9 billion in the construction of Vadhavan Port.

What is Transportation?

In simple terms, transportation is moving people, goods, or animals from one destination to another. It is facilitated by various modes, such as road, rail, air, maritime, and pipeline transport.

Different transportation modes are used to move various kinds of goods.

Functions of Transportation

There are several functions involved in the smooth facilitation of transportation. Below are the key functions of transportation:

Mode Selection: The first step involved in transportation is deciding the mode of transportation through which the freight will be transported. The mode, such as railway, road, seaways, or airway, will be finalized based on several factors, such as type of consignment, distance, delivery timeline, and cost factors.
Routing: Selecting the most optimized route is necessary to save costs and time. Route optimization is needed, as well as finding routes with low traffic conditions that are safe and faster simultaneously.
Vehicle Management: Vehicle management is another important aspect of transportation as it requires deciding which fleet or motor vehicle would be the most suitable for transporting the goods. The selection can depend on factors such as the type and quantity of goods.
Scheduling deliveries: An essential step in transportation is scheduling the delivery. The delivery is not just restricted to customers, but also to different warehouses in different locations. A proper schedule must be in place so the customer receives the product on time.
Freight Forwarding: Freight forwarding is a vital means of transportation for import and export.

Suggested read – Top 10 Transport Companies in India

What is Logistics?

Logistics is a vast process encompassing different processes involved in the flow of goods. According to a study by McKinsey and Company, optimizing inventory and transportation can make logistics more efficient and reduce costs by 10 to 30%.

Functions in logistics

Logistics comprises different processes and functions that ensure seamless supply chain management. Below are the key functions involved in logistics:

Inventory Control: One of the key aspects of logistics is inventory control, which requires keeping stock as per demand. Inventory control also implies that businesses should be able to predict demand and keep inventory so that stock is available when needed.
Warehousing: Warehousing is the storage and management of goods before distribution. It includes receiving the shipments in bulk by forgetting them, preparing the goods for shipment, and maintaining the warehouse storage conditions as per the goods.
Order fulfillment: Fulfilling orders means receiving, handling, and delivering the products. It is an essential part of logistics that provides customers with goods and products.

Also check – Top 10 Best Logistics Companies in India

Logistics vs. Transportation: Key Differences

While transportation and logistics are correlated and, at times, used interchangeably, many aspects make these two processes are different from each other. Below is a quick table that explains the difference between transportation and logistics:

Aspect of Comparison	Transportation	Logisitics
Definition	Movement of goods from one place to another.	Includes storage, movement and distribution of goods.
Scope	Limited to transport	Encompasses several processes like inventory control, transportation and warehousing
Cost involved	Fuel and maintenance expenses	As there are several aspect, the costs involved in higher
Decision Making	Operational level	Strategic level
Additional functions	Limited to movement of goods	Can include additional functions like labelling and packaging
Technology used	GPS and route tracking	AI driven supply chain softwares

Challenges in Transportation and Logistics

With changing times, new challenges can often impact a business’s transportation and logistics. Below are the most common challenges:

Increasing Fuel Costs: The cost of fuel is on the rise. As per a report by Statista, compared to the prices in 2012, petrol increased by 64%. Increasing fuel costs can lead to cost management complications, impacting transportation and logistics.
Global Trade Dynamic: Situations like COVID-19 have massively affected exports and imports for almost every country. Such a situation can significantly impact transportation and logistics.
Poor Infrastructure: Inadequate infrastructure can cause a hindrance to transport and logistics in terms of time and money.
Sustainability Issues: Businesses must look for more sustainable solutions considering the increasing carbon footprint. It can create problems with the existing processes of transportation and logistics.

WareIQ Presents a Smart E-commerce Solution For Seamless Transportation and Logistics

WareIQ is a Y-Combinator-backed eCommerce full-stack platform offering multi-channel fulfillment across D2C, Marketplaces, Quick Commerce, and B2B (General Trade & Modern Trade)

Our solution offers:

Pan-India network of Seller Flex & FAssured compliant across 12+ cities operated by WareIQ and shipping partners for last-mile delivery across 27000+ pin codes

Multi-Channel Fulfillment Platform with plug-and-play integrations across marketplaces (Amazon, Flipkart, Myntra, Nykaa, etc.), D2C platforms (Shopify, Magento, Woocommerce, etc.), WMS, and ERPs to support fulfillment across distributors, flagship stores and eCommerce channels with analytics capabilities to assess operational performance

Inventory LogIQ: AI-led multi-channel inventory planning solution to minimize stockouts and automate replenishment

Leverage Tech-enabled returns QC solution to capture, centrally store, and auto-index HD media evidence of damaged or missing returned products and eliminate marketplace claims rejection.

A host of seller enablement and support – dedicated account manager, APOB/PPOB registrations, GST registration, NDR & COD verification, etc.

Conclusion

The primary difference between transportation and logistics is that transportation is all about moving goods from one place to another. In contrast, logistics involves several other processes like inventory control, warehousing, distribution, and also transportation. As both are correlated, businesses must streamline both aspects to increase efficiency and maximize profits. Knowing the difference will help companies understand that neither aspect would need the exact solutions. Also, with AI integration, businesses can improve transportation and logistics.

FAQs About Transportation and Logistics

How do fuel prices impact transportation?

An increase in fuel prices will ultimately increase shipping costs, which will, in turn, affect pricing and profit margin.

Why is transportation necessary in logistics?

Transportation is an integral part of logistics that helps in the timely delivery of goods, thereby increasing business efficiency.

What are the primary modes of transport?

The primary modes of transport included road, rail, air, maritime, and pipeline.

Which technology is majorly used in transportation?

During transportation, technologies like GPS and route tracking can significantly help.

What are the key functions of Logistics

The key functions of logistics include inventory control, warehousing, order fulfillment, and distribution.

Supercharge your fulfilment with WareIQ now, contact our team.

Author

Mariyam Jameela

Mariyam Jameela works as a content writer at WareIQ. With a proven track record of working with renowned brands such as GO Digit, Urban Ladder, Juspay, Hong's Kitchen, and many more. She actively contributes to the creation of blog posts centered on eCommerce operations, fulfillment, and shipping, in addition to providing insights on various strategies and techniques tailored for eCommerce sellers

Read all of Mariyam Jameela's Posts

Snapdeal Seller Portal: How to Sell Products on the Snapdeal?

E-commerce has been evolving rapidly in recent years. The primary reason for this exponential growth is the ability to buy something without even leaving home. In September 2024, almost 2.71 billion people worldwide preferred shopping online. According to a report by a Statistica, in 2023, the total number of people who shopped online was 2 50 million in India. This figure is predicted to increase to 425 million by 2027. If you are a seller looking to register on the Snapdeal seller portal to increase your sales, then this article is for you. Today, we will explain how you can register yourself as a seller with Snapdeal? Due to the increased number of people shopping online, many businesses are switching from traditional to online selling. Several online marketplaces facilitate a smooth selling process between a seller and a customer. One prominent online marketplace in India is Snapdeal, which has been connecting millions of sellers and buyers nationwide. Why Should You Join the Snapdeal Seller Portal? Founded by Kunal Bahl and Rohit Bansal in 2010, Snapdeal is one of the prominent online platforms and shopping destinations for millions of Indian users. Compared to other market players like Amazon and Flipkart, Snapdeal still maintains a respectable share of 6% of the e-commerce market in India. More than five lakh sellers on the platform have been benefiting from selling on Snapdeal. There are various reasons why a seller should register on the platform. Below is a list of reasons why Snapdeal is one of the best online marketplaces in India: Snapdeal has an extensive reach of over four crore customers nationwide. It has a great user-friendly platform with transparent processes and quick payments. Registration on the platform is entirely free. Snapdeal connects its sellers with photographers to capture attractive images, which appeals to more customers. Snapdeal offers preloaded features that help even beginners manage the logistics, reducing selling costs. What is the Eligibility to Become a Snapdeal Seller? All types of businesses looking to sell online can register. However, when it comes to eligibility, below is the list of criteria that every business needs to be aware of: A business should be legitimate and authorised to sell in India. A business that sells genuine products. Any business, whether a manufacturer, distributor, wholesaler, or retailer, is eligible to sell on Snapdeal. A business with all the required documents, such as a PAN card, GST number, TIN registration, and bank account details (With the company name). Product Categories Under Which Sellers Can Sell on Snapdeal Sellers selling any product can register on Snapdeal as it offers various product categories from which you can choose. Below is the list of product categories that a seller can select: Beauty and personal care Home and Kitchen Sports and Fitness Toys Baby products Electronic Lifestyle Luggage and travel Handicraft product Food and beverages Jewellery and watches Hygiene products Self roaming products How to Register as a Snapdeal Seller on the Snapdeal Seller Panel? Getting started as a seller on the seller portal is extremely simple. Below are the steps that you can follow to register yourself as a Snapdeal seller: Step 1: Visit the Snapdeal seller website - sellers.snapdeal.com Step 2: Enter your GST number and click on Register Now. Step 3: Fill out the details, such as your Company Name, Email ID, seller account password, Mobile Number, pickup pincode (for picking up products to be sold), Company PAN number, and GST number. After filling out these details, click on Sell Now. Step 4: You will receive an OTP on your registered mobile number. Enter the OTP to verify your number. Step 5: You also have to verify your email ID. You must have received a verification code on your email ID. Enter the code received to confirm. Step 6: Enter your bank account details, such as the account number, branch name, bank name, and IFSC code. Then, click on submit. Step 7: Upload your PAN card, Aadhaar card, GST certificate, and a cancelled blank cheque. Your account is now created. Step 8: Now upload your signature and click the submit button. You can now start listing your products. How to List Products on the Snapdeal Seller Panel? Although the seller platform on Snapdeal is straightforward to understand, it may not be very clear for new sellers. Below is a step-by-step guide that can help new sellers add products to the Snapdeal seller account: Step 1: Visit the Snapdeal seller page - sellers.snapdeal.com. Step 2: The Snapdeal seller login option is at the top right corner. Enter your email address and password, then click on Login. Step 3: Once on the dashboard, go to the catalogue section and click "add new products." Step 4: You can now enter the details of the product. First, select the product category, then the subcategory. You must now enter the product's name and necessary information, such as weight, size, material, and colour. You also have to mention the available stocks and the selling price for the product. Step 5: Upload product images, ensuring that they are high-quality Step 6: review all the information you have put in; once you are satisfied, you can click on submit. Also check - Top 10 Products to Export From India Take Your Online Business to New Heights With One-stop Solutions From WareIQ WareIQ is a Y-Combinator-backed eCommerce full-stack platform offering multi-channel fulfillment across D2C, Marketplaces, Quick Commerce, and B2B (General Trade & Modern Trade) Our solution offers: Pan-India network of Seller Flex & FAssured compliant across 12+ cities operated by WareIQ and shipping partners for last-mile delivery across 27000+ pin codes Multi-Channel Fulfillment Platform with plug-and-play integrations across marketplaces (Amazon, Flipkart, Myntra, Nykaa, etc.), D2C platforms (Shopify, Magento, Woocommerce, etc.), WMS, and ERPs to support fulfilment across distributors, flagship stores and eCommerce channels with analytics capabilities to assess operational performance Inventory LogIQ: AI-led multi-channel inventory planning solution to minimise stockouts and automate replenishment Leverage Tech-enabled returns QC solution to capture, centrally store, and auto-index HD media evidence of damaged or missing returned products and eliminate marketplace claims rejections. A host of seller enablement and support - dedicated account manager, APOB/PPOB registrations, GST registration, NDR & COD verification, etc. Conclusion Snapdeal is amongst the top online marketplaces in India. Given that more than five lakh sellers and four crore users are on the platform, it is an excellent choice for businesses to tap into the growing e-commerce market in India. Snapdeal ensures that the sellers have a smooth experience and has features such as a user-friendly platform, transparent payment systems, logistic support, excellence, seller support, and an easy registration process. Sellers can marginally improve their sales by registering on the seller platform and listing high-quality products while optimising the inventory and using various marketing tools. Related read - JioMart Seller Registration and AJIO Seller Central FAQs About Snapdeal Seller Portal Who can sell on Snapdeal?Legitimate businesses that sell genuine products and have all legal documents, such as GST numbers, PAN cards, and bank account details, can sell on Snapdeal.How does the shipping process work on Snapdeal?Courier partner, which makes the logistics easier. Sellers can choose to ship by themselves. They can also use third-party courier services.Is there a return policy for sellers on Snapdeal?Yes, in the case of returned products (as per Snapdeal's return policy), they will be returned to the sellers for inspection. If it is applicable, sellers can resell it.Can we get international orders on Snapdeal?No Snapdeal currently accept orders only in IndiaIs there a mobile app for sellers?The Snapdeal Seller Zone app allows sellers to manage orders, inventory, and payments.

July 10, 2025

Difference Between Centralised and Decentralised Purchasing

Businesses procure raw materials and then convert them into finished goods. For this aspect of the supply chain, purchasing is a fundamental function. It is essential for any business to make purchases efficiently in order to improve quality, productivity and reduce the overall cost to the company. There are two primary approaches when it comes to the purchasing aspect of a business: centralised and decentralised purchasing. Both types of purchasing have their advantages and limitations. The type that is more suitable for a business depends on its structure, size and its goal. In this article, we will explore the primary difference between centralised and decentralised purchasing and also look into its advantages and disadvantages. What is Centralised Purchasing? Several businesses have a procurement strategy called centralised purchasing. Under this strategy, decisions regarding purchasing goods are handled by a single team or department. The purchasing authority is centralised in one department in the business, thereby fostering cost control and improving overall efficiency. What is Decentralised Purchasing? Decentralised purchasing is a procurement strategy in which multiple departments or business units have the authority to make purchases for different processes. These departments or business units can make their own procurement decisions. The decentralised purchasing approach provides speed and flexibility in a business. Centralised Vs. Decentralised Purchasing: Detailed Comparison Centralised purchasing and decentralised purchasing are both procurement strategies. However, they are drastically different from one another. Understanding the differences helps a business to know which is the best strategy for meeting the business requirements. Below is a detailed comparison analysis between centralised and decentralised purchasing. Comparison AspectCentralised PurchasingDecentralised PurchasingDecision-making authorityUnder centralised purchasing, the decision-making authority lies with only one team or department.Under decentralised purchasing, the decision-making authority pertaining to procurements is delegated to different departments as per the departmental needs.Cost ControlAs procurement is centralised, the quantity of purchases is higher. Hence, it provides the business with the option to negotiate. This, in turn, reduces the overall cost.As the purchases are smaller and more individual in nature, there is less scope for negotiation, leading to higher costs.EfficiencyBulk purchasing helps increase efficiency in the overall business process.Decentralised purchasing allows us to attend to immediate procurement needs.CustomisationCentralised purchasing offers limited customisation of products as they are bought in bulk by a single department.Here, every business unit does the procurement based on their individual needs.SpeedIt can take time to complete centralised purchasing as different hierarchical approvals may be required.Decentralised procurement of goods is definitely faster as departments have to make their independent decisions.Vendor ManagementCentralised purchasing offers stronger relationships with suppliers as fewer parties are involved in the process.Multiple suppliers and decision-makers can lead to potential inconsistencies.Risk ManagementAs there is one point of contact, there is lesser potential risk and better oversight.As there are multiple points of contact for different procurement needs, it can lead to potential risks of miscommunications, inefficiencies and poor contracts.UniformityCentralised purchasing provides the opportunity for uniformity throughout the process.Whether it is the quality or the pricing, there is a lesser chance of uniformity as the decision-making authority is divided.AccountabilityOnly one department handles the entire procurement, and hence, only one department is accountable for any inaccuracies or inefficiency.Since different departments handle their procurement, the accountability is also shared. Every department is liable for the inaccuracies and inefficiencies in the procurement done by them. Advantages and Disadvantages of Centralised Purchasing Centralised purchasing involves various benefits and drawbacks in a business. Advantages of Centralised Purchasing Below are the benefits of centralised purchasing in a business: The centralised purchase helps to leverage economies of scale, which helps in better price negotiation, thereby reducing the overall cost. If procurement decision-making is limited to one department only, an organisation can have uniformity in product quality, contract terms, and compliance. Centralised purchasing also allows for smoother demand forecasting and procurement planning. As there are few suppliers in centralised purchasing, it helps foster long-term partnerships, which can help in better price negotiations over time. Under a centralised purchasing approach, procurement is entirely overseen by one department, which helps reduce risk related to fraud and supplier inconsistencies. Disadvantages of Centralised Purchasing Centralised purchasing also has certain limitations, as listed below: With centralised purchasing, it might become difficult to understand and cater to the unique needs of different business units and different departments. As there is mostly only one supplier, if the supplier fails, the entire procurement process will be impacted, and so will the different processes in a business. For the single department to move ahead with the procurement under centralised purchasing, several approvals are required, and hence, it can make the process lengthier. Advantages and Disadvantages of Decentralised Purchasing Advantages of Decentralised Purchasing Decentralised purchasing also has several benefits when done correctly, and some of the advantages of the approach are as follows: A decentralised purchasing approach offers more flexibility as different departments can adapt to different purchasing strategies based on their unique requirements. Overall, the process is faster as it eliminates approval bottlenecks. It allows for quick decision-making. Under this approach, different teams can experiment with new suppliers or technologies for their procurement strategies. Due to this reduced requirement, it is easier to get customised solutions and even fast deliveries. Decentralised purchasing offers the option for faster adjustments in dynamic environments. Disadvantages of Decentralised Purchasing Below are some of the drawbacks of decentralised purchasing for a business: The limitation of purchasing in smaller quantities can lead to higher prices for the products. The quality of products and compliance with the suppliers can vary from department to department. It is tricky to monitor decentralised purchasing for every department, and hence, it can lead to procurement fraud. Managing different suppliers for different needs can become complex and inefficient at times. Get Better Procurement With Smart Solutions From WareIQ WareIQ is a Y-Combinator-backed eCommerce full-stack platform offering multi-channel fulfillment across D2C, Marketplaces, Quick Commerce, and B2B (General Trade & Modern Trade) Our solution offers: Pan-India network of Seller Flex & FAssured compliant across 12+ cities operated by WareIQ and shipping partners for last-mile delivery across 27000+ pin codes Multi-Channel Fulfillment Platform with plug-and-play integrations across marketplaces (Amazon, Flipkart, Myntra, Nykaa, etc.), D2C platforms (Shopify, Magento, Woocommerce, etc.), WMS, and ERPs to support fulfilment across distributors, flagship stores and eCommerce channels with analytics capabilities to assess operational performance Inventory LogIQ: AI-led multi-channel inventory planning solution to minimise stockouts and automate replenishment Leverage Tech-enabled returns QC solution to capture, centrally store, and auto-index HD media evidence of damaged or missing returned products and eliminate marketplace claims rejections. A host of seller enablement and support - dedicated account manager, APOB/PPOB registrations, GST registration, NDR & COD verification, etc. Conclusion Procurement of goods is an integral part of any business. Depending upon requirements, a business can decide between opting for a centralised or decentralised purchasing approach. Both approaches play a crucial role in supply chain management. It is essential for businesses to choose the right approach as it can affect their cost efficiency and productivity. It is also possible for businesses to now adopt a hybrid purchasing model that can help them harness the strength of both centralised and centralised purchasing approaches. Suggested read - Sourcing vs Procurement: Understanding Key Differences in the Supply Chain FAQs About Centralised and Decentralised Purchasing What is decentralised purchasing?Decentralised purchasing is the approach where different departments or regional offices can make their own procurement decisions.What is centralised purchasing?Centralised purchasing is a procurement strategy where the complete procurement decision-making ability is centralised to one single department in a business.Is it possible to reduce costs with the help of centralised purchasing?Yes, centralised purchasing can help reduce the overall cost as the purchase is done in bulk.What are some of the risks involved in decentralised purchasing?Decentralised purchasing involves risks like higher costs, inconsistent qualities and potential procurement fraud.Can an organisation use both centralised and decentralised purchasing approaches?Yes, organisations can opt for a hybrid approach that can help them leverage the benefits of both centralised and decentralised purchasing strategies.

July 09, 2025

Types of RFID Tags and Their Applications in Supply Chain

RFID (Radio Frequency Identification) is a technology that is majorly used to optimise supply chain operations. It offers unparalleled visibility, accuracy and automation for all processes in a supply chain. RFID uses electromagnetic fields to identify and track objects that have RFID tags. Given that supply chain management is getting more complex, it is essential to understand the different types of RFID tags and how they are used in order to achieve complete efficiency in a supply chain. In this article, we will dive deeper into understanding RFID tags, different types, and different applications of RFID tags in supply chain management. What are RFID Tags? RFID stands for Radio Frequency Identification. RFID tag is a device consisting of a microchip and an antenna. It is designed to transmit data to the RFID reader. It can also store information about the supply chain, such as shipment, data, or serial numbers. Unlike the barcode, the RFID tag can be accessed without a direct line of sight, making it much more feasible for international shipments. Various types of RFID tag can be tracked across different frequencies, making them suitable for different types of usage. Different Types of RFID Tags There are several types of RFID tags that are different from each other based on the power source and the frequency range. Below are some of the commonly used RFID tags: Passive RFID Tag Passive RFID tag do not have an internal power source. They get the energy from the electromagnetic waves that are emitted by the RFID reader. Since there is no internal power, it is lightweight and cost-effective. However, there is a limited reading range that is only up to 25 feet. Also, passive RFID tags are much more durable and suitable for long-term use. It is usually used in inventory tracking and asset management. Semi-Passive RFID Tags A semi-passive RFID tag consists of an internal battery but it mainly relies on RFID reader power to send out signals. The lifespan of semi-passive is more prolonged than that of active types and is suitable for monitoring various environmental conditions. It is mainly used in cold chain logistics and pharmaceutical shipments. Active RFID Tags Active RFID tag has an internal battery that helps to transmit signals even over longer distances. It can transmit signals up to 300 feet. It is designed to store and transmit large amounts of data. It is higher in cost and requires maintenance from time to time. It is primarily used in container tracking, real-time location systems and fleet management. Low-Frequency RFID Tags Low-frequency RFID tags, also known as LF RFID tags, can operate in a frequency range of up to 30 kHz to 300 kHz. The low-frequency RFID tag is better for environments that have water or metal. Also, the frequency is quite low. The transfer rates for data are lower. It is primarily used in livestock tracking and for pet microchips. High-Frequency RFID Tag The high-frequency RFID tag is also known as HF space. The RFID tag operates on a frequency range of 3 MHz to 30 MHz. The data transfer via high-frequency RFID tags is much faster, and it is compatible with near-field communication (NFC). It is usually used in contactless payments, airline baggage, and the handling and tracking of library books. Ultra-High Frequency RFID Tags Ultra-high frequency RFID tags, also known as UHF RFID tags, operate on a frequency range of 300 MHz to 3 GHz. It has a longer frequency range, which is 12 m. The data transfer rate is exceptionally high on ultra-high frequency RFID tag. Due to the high-frequency range rate on which it operates, it is sensitive to environmental interference. It is mainly used in warehouse automation, vehicle identification, and supply chain logistics. Microwave RFID Tags The microwave RFID tag has a frequency range operation above 3 GHz. The transfer speed on microwave RFID is extremely high, and it only caters to specific users due to the short wavelength. It is primarily used in the toll collection system. RFID Tag Applications in Supply Chain Management The RFID technology is quite versatile. Different types of RFID tags can be used in various aspects of supply chain operations. Below are some of the most common RFID tag applications in the supply chain: Asset Tracking RFID tags are also used to monitor high-value assets since they can provide accurate location data. Ultra-high RFID Frequency ranges are used mainly for such purposes since they are also effective for large warehouses. It helps minimise the losses. Inventory Management RFID tag have access to various product details, such as the serial number and product specification. Hence, it becomes easier to track inventory with an RFID system. Warehouse Automation RFID technology helps in automating the complete process at a warehouse. It helps to track the inventory and identify and verify shipments as they enter or leave the warehouse. Retail Supply Chains Retailers also use RFID technology to keep inventory in check. This helps to reduce theft and also promotes a seamless checkout experience via self-scanning kiosks. Fleet Management Active RFID tags are used in fleet management to track vehicles and containers in real-time. It helps to enhance the visibility of the fleet that is in transit and also helps to optimise the planning of various routes. Cold Chain Monitoring For businesses that deal in pharmaceuticals or perishable food items, semi-passive RFID tags with sensors can be very helpful. They can help monitor temperature-sensitive goods while ensuring compliance with quality standards. Related - eCommerce Product Tags and Why is Product Tagging Important for eCommerce Businesses in 2025 Get Real Time Tracking of Diverse Processes With Smart Solutions From WareIQ WareIQ is a Y-Combinator-backed eCommerce full-stack platform offering multi-channel fulfillment across D2C, Marketplaces, Quick Commerce, and B2B (General Trade & Modern Trade) Our solution offers: Pan-India network of Seller Flex & FAssured compliant across 12+ cities operated by WareIQ and shipping partners for last-mile delivery across 27000+ pin codes Multi-Channel Fulfillment Platform with plug-and-play integrations across marketplaces (Amazon, Flipkart, Myntra, Nykaa, etc.), D2C platforms (Shopify, Magento, Woocommerce, etc.), WMS, and ERPs to support fulfilment across distributors, flagship stores and eCommerce channels with analytics capabilities to assess operational performance Inventory LogIQ: AI-led multi-channel inventory planning solution to minimise stockouts and automate replenishment Leverage Tech-enabled returns QC solution to capture, centrally store, and auto-index HD media evidence of damaged or missing returned products and eliminate marketplace claims rejections. A host of seller enablement and support - dedicated account manager, APOB/PPOB registrations, GST registration, NDR & COD verification, etc. Conclusion The use of RFID technology has become reasonably necessary in supply chain management. It offers efficiency, accuracy, and seamless integration. As there are various types of RFID tags, they can be used for various functions and processes in a supply chain. Businesses can harness the technology to streamline the operations in the supply chain while reducing costs and improving customer satisfaction. RFID technology is evolving every day, becoming more competent and helping the supply chain succeed. Suggested - What Are Shipping Labels & How to Create them? A Guide for Fulfillment in 2025 FAQs About RFID Tags How far can the RFID tags be read?The reading range depends upon the type of RFID in use. The active RFID tag can be read up to 300 feet, while the passive one can only read up to 25 feet.What does RFID stand for?RFID stands for Radio Frequency Identification.What is the difference between passive RFID tags and active RFID tags?Passive RFID tags rely mainly on the reader's power and have a much shorter range, while active RFID tags have internal batteries for a long range.Is the RFID technology secure?Yes, the RFID systems use encryption and authentication features and, hence, are entirely secure.What are some of the RFID applications in supply chains?In the supply chain, RFID tags can be used for inventory management, fleet monitoring, tracking, cold chain management, and retail supply chains.

July 08, 2025