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Radio Frequency Identification (Rfid) Essay

817 words - 4 pages

Radio Frequency Identification (RFID)

Radio frequency identification, or RFID, is a generic term for technologies that use radio waves to automatically identify people or objects. There are several methods of identification, but the most common is to store a serial number that identifies a person or object, and perhaps other information, on a microchip that is attached to an antenna (the chip and the antenna together are called an RFID transponder or an RFID tag). The antenna enables the chip to transmit the identification information to a reader. The reader converts the radio waves reflected back from the RFID tag into digital information that can then be passed on to computers that can ...view middle of the document...

The aim is to reduce administrative error, labor costs associated with scanning bar codes, internal theft, errors in shipping goods and overall inventory levels.

If RFID has been around so long and is so great, but not all companies are using it. Many companies have invested in RFID to get the advantages it offers. These investments are usually made in closed-loop systems-that is, when a company is tracking goods that never leave its own control. That's because some existing RFID systems use proprietary technology, which means that if company A puts an RFID tag on a product, it can't be read by Company B unless they both use the same RFID system from the same vendor. Another reason is the price. If a company tracks assets within its own four walls, it can reuse the tags over and over again, which is cost effective. But for a system to work in an open supply chain it has to be cheap because the company that puts the tag on case or pallet is unlikely to be able to reuse it.

Thousands of companies around the world use RFID today to improve internal efficiencies. Club Car, a maker of golf carts uses RFID to improve efficiency on its production line (subscribers see Golf Car Maker Scores with RFID). Paramount Farms-one of the world's largest suppliers of pistachios-uses RFID to manage its harvest more efficiently (see Farm Harvests RFID's Benefits)....

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