RADIO FREQUENCY IDENTIFICATION ( RFID )

WHAT IS RFID ?

Radio Frequency Identification or RFID is a term to any technology that uses radio waves to identify or track items. For example items are a container, an automobile, an animal or a person can all be automatically identified and tracked through RFID technology.

HOW DOES IT WORK ?

The RFID technology can be constructed in many ways, but the most common procedure is to store a serial number on a microchip and attach it to a coiled antenna. It is called inlays.

EXAMPLE COMPANY THAT USE RFID ?

Wal-Mart had required its top 100 suppliers to use RFID technology in shipping cases and pallets. But before it is announced, everyone questioned whether it really worked or not. Wal-Mart believes that it has the answer.

ADVANTAGE OF RFID

An RFID system provides many advantages for companies, suppliers and retailers. Below is a list of the benefits RFID can offer:

• ·        Reduced labor cost
• ·        Simplified business processes
• ·        Improved inventory control
• ·        Increased sales
• ·        Reduced shrinkage

ADVANTAGES OF RFID THAN BARCODE SYSTEM

• ·        A no contact, no-line-of-sight reading and tracking system
• ·        Reduction in the need for the manual scanning of products
• ·        Reduction the time required for labor-intensive duties
• ·        Reduce overall labor costs for companies
• ·        Reduce labor required for monitoring goods movement and inventory flow
• ·        RFID rags can be read through snow, fog, ice, paint and crusted grime
• ·        RFID tag also can be programmed to hold information such as the item’s serial number, color, size and current price

DISADVANTAGE OF RFID

• ·        RFID readers need high cost for company to implement.
• ·        RFID tags also quite expensives.
• ·        Active tags which use a battery to improve range and other capability also need higher costs.

RFID IMPLEMENTATION

Before implement the RFID system, companies should ask some question to themselves. Below are the example questions:

• ·        Does the company need RFID to keep pace with its competitor?
• ·        Will RFID offer a competitive advantage for the company?
• ·        Will RFID save the company money eventually (long term)?
• ·        Will RFID cost-effectively improve the ability of the company to serve its customers?
• ·        Will the company have the power to manage its business without accurate information about its processes and inventory that could be gained from RFID?
•     To integrate an RFID system successfully, a company must have a strong understanding of the basic elements of the system.