RFID Solutions
RFID FAQs
What is RFID?
Radio Frequency ID (RFID) is a means of automatically identifying objects. RFID technology involves RFID tags that emit radio signals and devices called RFID readers that pick up the signal. RFID tags or labels consist of an electronic chip which sends radio waves to identify a pallet or carton of products. An RFID label can be smaller than a postage stamp or as large as a brick.
How does RFID work?
RFID tags are made up of a microchip and an antenna. Product serial numbers or other information stored on the microchip is transmitted via radio frequency when the tag comes within range of a wireless receiver's energy field. The receiving device reads the transmission and forwards it to a host computer in real time.
Why is RFID getting so much publicity today?
Wal-Mart announced that, by January 2005, they want their top 100 suppliers to use RFID labels on pallets of products shipped to three of their distribution centers, and they want all suppliers compliant by January 2006. The Department of Defense has also announced initiatives to require this technology. When entities of this size begin to make demands of their suppliers, the technology industry is spurred to action.
Will RFID replace bar code labels?
Probably not. Bar codes are inexpensive (at under 1 cent per label) and effective for individual product units. RFID chips today cost 30-40 cents each, even when ordered in quantities of several million chips. Until the cost of a chip is reduced by factors of 10, it is unlikely to be used for individual item labeling.
Most applications being proposed in the US include using RFID labels as a "license plate" to identify an item or the contents of a pallet or carton of products. RFID chips are cost-effective today on some high-ticket items like automobile tires (for potential recalls), or expensive retail goods (as a security feature).
In summary, bar code labels and RFID tags are likely to co-exist for many years.
Are retailers eager to implement RFID?
Yes and no. Billions of dollars of investment have been made by businesses in the current generation of printed bar code labels, hand-held, fixed mount and wireless scanners, bar code label printers and software, so it would take many years before businesses would move exclusively toward a new technology.
However, some retailers are becoming interested in RFID (1) as a security device for their high-ticket goods, (2) to reduce inventory cost by having faster, real-time update of inventory flow, and (3) to one day facilitate instantaneous check-out where customers' goods are read by a device transmitting information to their point-of-sale register.
Is RFID new?
RFID is a proven technology that's been around since the Second World War. Until now, it's been too expensive and too limited to be practical for many applications.
The most common RFID applications today include access to buildings with RFID security badges and the automobile Speed-Pass system used to track cars moving past toll-booths and across borders.
Is RFID better than bar codes?
RFID is not necessarily better than bar codes. The two are different technologies with different cost profiles and applications, which sometimes overlap. Most of the time reading a bar code requires action by a person, whereas RFID tags can be read by a passive device without human intervention.
Why is RFID usage not more widespread?
Two reasons: economics and lack of standards. The cost per RFID label of 30-40 cents has been too high compared to bar code labels costing from 0-1 cent each.
Most current RFID solutions are company-specific, meaning that an RFID tag made by one company is designed to that company's standard, and cannot be read by a reading device sold by its competitor who uses a different standard.
Why are standards important?
If all equipment makers involved in the RFID solution come to agreement on the type of and format for data to be stored on the chip and a set of common product specifications for RFID reading devices, consumers will be more willing to adopt the technology. Common standards will allow products to flow throughout the supply chain regardless of the particular brand-name-solution chosen by the supply chain player. Standards will also reduce the cost to manufacture RFID products.
The International Standards Organization (ISO) and the Uniform Code Council (UCC) have been working to establish a set of standards that would bring compatibility between the RFID tag and the reading device.
What is the significance of the term "EPC"?
EPC stands for "electronic product code", and it is an emerging RF identification standard to identify a case or individual package in the retail space.
Where can I find out more information about RFID?
For additional information about RFID technology, please refer to the following web links:
AIM (Association for Automatic Identification and Mobility) web site.
RFID Journal web site.
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