RFID or Radio Frequency Identification is a system that transmits identity in the form of a unique serial number of a product wirelessly. Passive RFID do not have transmitters, reflect back radio waves that originate at the reader antenna, lack power source and transmitter, requires no maintenance and are less expensive than active RFID tags. Active RFID has a microchip as an antenna, they are placed on products and information is then accessed using a reader to pass the information to a computer and they are used for large assets including cargo containers, rail cars and other containers that are transported long distances.
Some of the benefits of using RFID include reducing labor costs, inventory errors and inaccuracies, inventory handling costs, waste, claims, and deductions, need for manual checks and counts, and out-of-stocks. Using RFID improves order fill rates, distribution center productivity, more adaptable supply chain, business processes, theft prevention, and distribution and sale of counterfeit products.
RFID tags and labels can be attached during production such as in the apparel industry so that data can be read throughout the entire supply chain. Use RFID technology with web-based management tools to monitor assets and make critical business decisions from anywhere in the world. Web-based applications ensure that manufacturers, contractors, and others can be granted access to update access data, such as inspection history, maintenance records and more to ensure that the end-user has accurate real-time data. Item level retail uses include improved efficiency, product availability and acts as a form of electronic surveillance. It is also used for high-value cargo and precious metals.
Inventory systems provide accurate info about current inventory despite size, shape and environmental concerns. It helps ensure the security of the inventory and use case and pallet tracking. It can help organizations track and audit their records.