Due to increased operating costs, manufacturers have sought new ways to lower their costs and optimize their operations. Changes have been made to overcome extreme operating environments to make RFID a more viable solution for manufacturers. New and improved radio frequency labels have been designed to withstand extreme heat and cold, high pressures, dangerous locations and excessive moisture levels. Along with these improvements, costs decreased as the adoption started to increase on a much larger scale.

The benefits of IoT technology to production;

Inventory Traceability; Labeling raw materials, semi-finished products and products with RFID tags provides real-time visibility into production processes, thereby providing continuous data flow to speed up and improve production operators' decision making.

Equipment Traceability; Placing an RFID tag on an equipment helps locate lost and misplaced equipment needed for production setup and execution.

Production Scheduling; manufacturers help them increase equipment usage by tracking their idle equipment with RFID tags and planning production more effectively.

Waste and Fire Monitoring; Labeling inventory and final products helps manufacturers track waste levels on the production lines and possible sources of theft or loss.

Reduces Transport Cost; RFID application enables the manufacturers to apply just in time production (JIT - just-in-time) inventory management strategies by improving data accuracy. This helps to reduce inventory transportation costs, by replenishing products as needed instead of keeping them in large quantities on hand.

Logistics Guidance; RFID tags can carry data about predetermined shipping routes. As production is complete, this data can be used to assist in preparing outgoing shipments. This data accessibility speeds up the transport process and reduces the required labor.

Business Tracking and Security; Radio frequency identification can also be used to monitor and manage personnel activities. RFID badges can be used to access restricted areas and monitor employee productivity as they move throughout the facility.

Machine Integration; In some cases, manufacturers use RFID to control and monitor large machine activities. In this scenario, RFID is integrated with machine control systems.