Radio Frequency Identification

Radio Frequency Identification (RFID) is an automatic identification method, relying on storing and remotely retrieving data using devices called RFID tags or transponders. An RFID tag is a small object that can be attached to or incorporated into a product, animal, or person. RFID tags contain silicon chips and antennas to enable them to receive and respond to radio-frequency queries from an RFID transceiver. Passive tags require no internal power source, whereas active tags require a power source.

Here's something you don't often hear – how are you dealing with ‘rifid'? OR RFID. If you DO often hear it, then this article isn't for you, it's far too simplistic. However, if you have never heard of RFID before, read on. It might just change your life, or at least the way you organize it. Radio Frequency Identification or RFID is the use of radio waves to identify objects; in English, the ability to track items without coming into contact with them. This is accomplished by a microchip attached to an antenna called transponders or ‘tags'. The chip transmits ID information to the receiver which converts it to a digital format which is then read by a computer.

RFID isn't new, its been with us in its current guise since the early 80s, and around since the 1920s – you know the tag that they stick on jackets in the clothes store to stop you stealing them… However, its just grown up; businesses can track products throughout the manufacturing process from start to finish. These items can be tracked while in trucks, on shelves, wherever.

The Benefits of RFID include:

• The ability to eliminate time consuming bar-coding or other tracking processes. Instead, all data can be collected along the production line. This also helps to lower production costs.
• Prevention of the distribution of counterfeit products.
• Elimination or reduction of theft and loss.
• Reduction of supply chain cost.
• Elimination of data entry and other tedious manual business process transactions.
• Increase in order fulfillment time.
• Less time spent in check out lines, as consumers will only have to push their shopping carts in front of the readers.

The predominant downside is the high cost of the RFID hardware. Where tags alone can cost twenty five cents each or more, many retailers won't get much of a return, if any, on their investment.

It's hoped that Wal-Mart, the Defense Department and others will start using RFID, which could cause the prices of the tags to drop to five cents each, making it a more affordable solution for many.