What is RFID?

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RFID Definition

RFID stands for Radio-Frequency IDentification. The meaning of RFID is a small chip accompanied by a small antena that is able to communicate data through radio frequency and able to store up to around 2000 bytes of data.

RFID Uses

RFID serves the same purpose as barcodes and magnetic strips on cards such as ATM or credit cards – the label is scanned and therefore allows each product/person/animal/inventory to be tracked and identified. Many countries have started to use RFID in their passports. Other uses include tracking race times of marathon participants, tagging animals in labs and research, tracking books in libraries, used in musuems hospitals and schools, and even in some clubs for tracking and identifying VIP customers.One very common use of Radio Frequency Identification is in transportation payment.

The main advantage of using RFID over barcodes is that you are able to scan it from couple of meters away while with barcodes you must actually swipe the code almost physically. The technology has been around for nearly 50 years but only recently has the price dropped to warrant its use in everyday business.

RFID in Supply Chain Management

RFID in Asset Management

RFID is already being widely used in plants to manage a company’s assets. Not only does this kind of asset management reduce labor costs but it also reduces the number of errors due to it completely removing paperwork from the equation. This kind of asset management also enables managers to have clear statistics and information from anywhere in the world granting them a clearer, more accurate, and more cost effective picture of a company’s assets.

RFID in Product Tracking

RFID has started to replace barcodes in most products being tracked by businesses. Finished products, half products, pallets, shipments, equipment, inventory..nearly everything can be tracked very efficiently with RFID technology.

RFID in Integrated Supply Chain

Usage of RFID can create greater synergies between companies and establish an integrated supply chain. For example if several companies within the same value chain use a joint pallet with RFID technology then all members of the value chain can track and be aware of the state of this pallet. This will mean that the responsibility of this asset is share between the members of the chain and will asure a greater ownership of the assets. Greater information, usage, and win-win mentality will result in a more efficient and more successful supply chain.