.png)
RFID Solutions for Distribution Centers
The Challenge: Speed and Accuracy at Scale
Distribution centers are the engine of modern supply chains. Whether handling consumer goods, industrial parts, food and beverage, or e-commerce orders, the fundamental challenge is the same: move the right product to the right place at the right time with zero errors. As order volumes increase and delivery windows shrink, the margin for error narrows.
Manual processes and barcode scanning have served distribution operations for decades, but they are reaching their limits. A barcode scanner reads one item at a time, requires direct line of sight, and depends on a human operator to aim, trigger, and verify each scan. In a high-volume DC processing 50,000 or more cartons per day, these one-at-a-time bottlenecks add up. Mispicks, mis-ships, and receiving errors cost distributors an average of $50 to $300 per error when factoring in return shipping, restocking labor, replacement product, and customer relationship damage.
Inventory accuracy in barcode-based warehouses typically ranges from 63% to 85%. For distributors serving customers with strict compliance requirements, such as major retailers with chargeback programs, that accuracy gap translates directly into financial penalties.
How RFID Transforms Distribution Operations
Receiving and Inbound Verification
When pallets arrive at the receiving dock, RFID dock door portals read every tagged case and item as the pallet passes through. In seconds, the system verifies the inbound shipment against the advance ship notice (ASN), flags any discrepancies (missing items, extra items, wrong SKUs), and updates the warehouse management system (WMS) with confirmed receipt. This replaces the manual case-by-case barcode scan that typically takes 15 to 30 minutes per pallet.
​
Facilities using RFID receiving report 90-95% reduction in receiving labor time and near-elimination of receiving errors that propagate through the rest of the operation.
Putaway and Location Tracking
As products move from receiving to storage, RFID readers at aisle entries, zone boundaries, or mounted on forklifts track the physical location of every pallet and case. The WMS always has an accurate picture of where inventory is located, enabling optimized pick paths and reducing the time operators spend searching for misplaced product. Phantom inventory, where the WMS says product is in a location but it has actually been moved, is one of the leading causes of stockouts in distribution. RFID eliminates it.
Order Picking and Verification
During picking, RFID enables a "scan as you go" workflow where items are verified as they are placed into totes, cartons, or onto pallets. For case-level picking, an RFID reader on the pick cart or at the packing station confirms every item in the order without the operator needing to individually barcode-scan each case. For piece-level picking in e-commerce fulfillment, RFID-tagged items are verified in aggregate as the tote passes a reader, catching mispicks before they reach the shipping dock.
Shipping and Outbound Verification
RFID dock door portals at outbound dock doors perform a final verification of every shipment. As a loaded pallet or cart passes through the portal, the system reads all tagged items and compares them against the shipment manifest. Any discrepancy triggers an immediate alert, stopping the load from departing. This final checkpoint catches the mispicks, shortages, and overages that would otherwise become costly customer complaints.
Distributors using RFID outbound verification report shipping accuracy improvements from 97-98% to 99.5%+, with corresponding reductions in chargebacks, returns, and customer complaints.
Cycle Counting and Inventory Accuracy
Traditional cycle counting requires operators to physically visit each location and scan every item. With RFID, a single operator with a handheld reader can scan an entire aisle in minutes, reading hundreds of tags through case packaging without opening cartons or moving pallets. Some facilities deploy RFID-equipped drones or automated guided vehicles (AGVs) that perform cycle counts during off-hours with no human labor required.
​
RFID-based inventory accuracy typically reaches 95-99%, compared to the 63-85% common in barcode-only operations.
Key Benefits for Distribution Centers
Receiving speed: 90-95% reduction in inbound verification time with automated dock door portal reads.
Shipping accuracy: 99.5%+ outbound accuracy, dramatically reducing chargebacks and customer complaints.
Inventory accuracy: 95-99% accuracy enables better demand planning, reduces safety stock requirements, and prevents stockouts.
Labor efficiency: Reduce manual scanning labor across receiving, picking, and shipping. Facilities report 25-40% labor reduction in material handling operations.
Retailer compliance: Meet retailer RFID mandates from Walmart, Target, Nordstrom, and others that require item-level or case-level RFID tagging.
Assets Tracked in Distribution Centers
Pallets, cases, and individual items (depending on tagging level)
Reusable totes, bins, and containers
Forklifts and material handling equipment
Dock door assignments and trailer locations
Returnable transport items (pallets, slip sheets, dunnage)
Picking carts and staging containers
Why Distribution Centers Choose Rocket RFID
Rocket RFID provides the complete RFID infrastructure for distribution operations. Our Rocket Shipped platform handles automated shipment verification at the dock door, while Rocket Tracked manages asset and inventory visibility across the facility. We design dock door portal installations, configure antenna arrays for your specific dock layout and product mix, and integrate with your existing WMS and ERP systems. Whether you are starting with a single shipping dock pilot or deploying across a network of distribution centers, Rocket RFID delivers the hardware, software, and engineering support to get you operational.