Definition of RFID Tags & How they Work

What are RFID Tags?

An acronym for Radio-Frequency Identification.

RFID tags are the most commonly utilized within the supply chain materials management industry, and is currently experiencing widespread adoption within the automobile, retail, security and defense industries.

RFID utilization benefits include reduced costs, improved efficiency in inventory control; additionally, RFID serves as electronic keys that provide real-time information.

How does RFID Work?

A low-frequency radio transmitter signals a tag that has been applied to a product (usually in the form of a bar code) that is read from distances up to 1,000 feet.

There are several types of ‘readers’ available from hand held scanners that are common in grocery stores to more sophisticated tracking systems that are processed via GPS (Global Positioning System) and satellite.

The related information being tracked is then broadcast to a secure computer system for logging and processing as required.

Should I Implement and RFID System?

For a significant majority of companies, the answer is ‘Yes’. The pace and range of business in today’s economy is global. Goods and services are commonly created and shipped around the world.

In order to manage this complexity, many of the larger businesses and retailers are standardizing on RFID technology and are requiring their partners and providers to do the same.

If you are in the business of selling, transporting or storing materials, or have the need to authorize access to these commodities, then you need RFID.