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Radio frequency identification (RFID) System

Radio frequency identification (RFID) is a generic term that is used to describe a system that transmits the identity (in the form of a unique serial number) of an object or person wirelessly, using radio waves. It's grouped under the broad category of automatic identification technologies. For the universal term given to any technology that uses radio waves to identify and track items. Items such as a product, a container, an automobile, an animal, or a person can all automatically identified and tracked by RFID technology

Auto-ID technologies include bar codes, optical character readers and some biometric technologies, such as retinal scans. The auto-ID technologies have been used to reduce the amount of time and labor needed to input data manually and to improve data accuracy.

Some auto-ID technologies, such as bar code systems, often require a person to manually scan a label or tag to capture the data. RFID is designed to enable readers to capture data on tags and transmit it to a computer system without needing a person to be involved.

Advantages of RFID

Inventory Shrinkage Reduction 

• Track retail items between point of manufacture or purchase from supplier and point of sale.

• Real-time notification of security when RFID tagged items leave area without payment

• Saving money on theft allows to offer product at lower prices

RFID Smart Labeling

• Monitor unattended inventory

• Automatic item identification on mixed pallets

• "Smart Shelf" systems that are designed to provide real time tracking and locating of tagged items on shelves

• Shipping and Receiving applications

Shelf Stocking

• Real-time notification of stock out  items

• Improvement of product replenishment

• Retention of consumers who may turn to competitors if inventory item is out-of-stock

• Automated charting and tracking for improved product forecasting

Check-out Process 

• Reduce time spent in line production

• Reduce labor or time cost of employees

• Streamline check-out process with ability to scan multiple items and pay for them all at once

Overhead Reduction

• Track product shipping and receiving from point-to-point automatically versus manual tracking to save time and labor cost

• Know how many units of inventory or on-site via automated RFID system versus manual process, saving labor and time cost

• Efficiency in error reduction reduces manual labor cost

Disadvantage of RFID

·Expense

RFID systems are typically more expensive than alternatives such as barcode systems. While passive tag reading is similar to (and generally less expensive than) barcode reading, active tags are costly due to their complexity. Active tags consist of an antenna, radio transceiver and microchip, increasing the overall cost of an RFID system.

·Collision

Tag collision and reader collision are common problems with RFID. Tag collision occurs when numerous tags are present in a confined area. The RFID tag reader energizes multiple tags simultaneously, all of which reflect their signals back to the reader. This results in tag collision, and the RFID reader fails to differentiate between incoming data. RFID reader collision results when the coverage area managed by one RFID reader overlaps with the coverage area of another reader. This causes signal interference and multiple reads of the same tag.

·Security

RFID technology gives rise to numerous security concerns. Since the system is not limited to line-of-sight, external (and malicious) high-intensity directional antennas could be used to scan sensitive tags. Fraud is always a possibility when the technology is used for high-security operations, such as payment verification