RFID Technologies
Radio-frequency Identification (RFID) tags are used to uniquely identify items. There are different types
of tags. The type used on cartons or pallets consists of a small microchip and antenna embedded into a
tag or label. The tags are then read by RFID readers which emit radio signals. All of the RFID tags
within range of the radio signal respond with their unique IDs. The RFID reader passes this information
on to a database which determines the product’s identity. In many cases the unique ID stored on the
tag is an Electronic Product Code (EPC) which identifies the products manufacturer, product type (SKU),
its unique number, and updated tracking information.
The advantages of RFID integration include:
- To meet the RFID compliance requirements of major retailers and the Department of Defense
- Faster receiving, pack-out, and shipping operations
- Increase inventory tracking levels
- Immediate confirmation at shipping
- Quality control of each carton and its contents
- Enhanced security to reduce inventory shrinkage
- Complete historical tracking provides an audit trail for each RFID tag
At some point, as the costs of tags and readers continue to decrease, it will be economical for
manufacturers to apply the tags during the manufacturing process and someday replace the bar code.
As RFID becomes more economical and as it is required for compliance, many new and existing material
handling systems will need to add RFID technology along side their bar code scanners.
An EPC RFID tag used by Wal-Mart