Supply Chain Glossary

This supply chain glossary terms provides detailed explanations through our mini blogs. Continue reading to increase your vocabulary and gain insight into the supply chain visibility with these terms!

Automatic Identification and Data Capture (AIDC)

Last updated: June 2, 2025
Logistics Supply Chain
A

Automatic Identification and Data Capture (AIDC) refers to the use of digital technologies to capture and record data within the supply chain. AIDC systems employ various methods, such as barcode scanning, radio-frequency identification (RFID), and biometrics, to automatically collect data, eliminating the need for manual entry. This technology is essential for tracking goods, managing inventories, and simplifying logistics processes in real-time.

How Automatic Identification and Data Capture Works

AIDC works by integrating digital tools like barcode readers, RFID tags, and sensors with existing supply chain systems. Items within the supply chain are tagged with barcodes, RFID chips, or QR codes. When the item passes through a scanner or sensor, it automatically captures the data and feeds it into a centralized system. This system records the data, such as product details, location, and status, enabling real-time visibility into the supply chain. The system can then trigger necessary actions based on the data captured, such as inventory updates, shipping notifications, or alerts for exceptions.

Key Features of Automatic Identification and Data Capture

Improved Data Accuracy


AIDC reduces human errors associated with manual data entry by automating the capture and transfer of information, ensuring more accurate and reliable data across the supply chain.

Real-Time Tracking


With AIDC, every product movement is recorded in real time, offering immediate visibility into inventory levels, shipment status, and location of goods, leading to better decision-making.

Increased Efficiency


By automating the data capture process, AIDC reduces the need for manual labor, speeding up operations and enhancing overall supply chain productivity.

Benefits of Automatic Identification and Data Capture

Faster Operations


AIDC technologies simplify the identification process, leading to faster product scanning, inventory checks, and order fulfillment, which speeds up the overall supply chain operations.

Cost Savings


Automation reduces the need for manual labor and minimizes costly errors, resulting in long-term cost savings for businesses in terms of time, labor, and materials.

Enhanced Traceability


AIDC provides complete traceability for products throughout their lifecycle. This transparency is vital for tracking goods, ensuring compliance, and resolving issues quickly.

Improved Inventory Management


Real-time data from AIDC systems allows businesses to maintain accurate stock levels, reduce overstocking or stockouts, and optimize inventory turnover.

Conclusion


Automatic Identification and Data Capture (AIDC) revolutionizes supply chain management by automating data collection and improving accuracy. By enhancing efficiency, providing real-time visibility, and reducing errors, AIDC helps businesses optimize their supply chain processes, reduce costs, and increase customer satisfaction.