An RFID tag is an object that can be applied to or incorporated into a product, animal, or person for the purpose of identification using radio waves. Some tags can be read from several meters away and beyond the line of sight of the reader.
Most RFID tags contain at least two parts. One is an integrated circuit for
storing and processing information, modulating and demodulating a (RF) signal and can also be used for other specialized functions. The second is an antenna for receiving and transmitting the signal. A technology called chipless RFID allows for discrete identification of tags without an integrated circuit, thereby allowing tags to be printed directly onto assets at lower cost than traditional tags.
Today, a significant thrust in RFID use is in enterprise supply chain management, improving the efficiency of inventory tracking and management. However, a threat is looming that the current growth and adoption in enterprise supply chain market will not be sustainable. A fair cost-sharing mechanism, rational motives and justified returns from RFID technology investments are the key ingredients to achieve long-term and sustainable RFID technology adoption.
How can it be applied within the transport sector?
Within transport sector the following benefits can be realized using RFID's unique capabilities:
- Greater visibility of goods and processes
- Improved decision making
- Faster processing
- Increased operational flexibility
- Reduced shrinkage
- Service-level improvement
- New services
Additionally, RFID technology is being used to provide critical additional security for goods and containers in transit - and is becoming a requirement for efficient and secure imports to the US. Tags can act as an evidence when and where goods or containers have been accessed and can initiate alerts when pre-set criteria are breached.
Where is RFID used?
There are applications today throughout the supply chain, in:
- Manufacturing
- Distribution
- Retail
- Consumer applications
There are many current examples of RFID in manufacturing, and distribution and retail is a hot trend - with Wal*Mart and Gillette among suppliers and retailers making recent announcements about RFID tracking of handling units. Retail/consumer, and consumer only, applications are perhaps further away and recent adverse publicity concerning the (mistaken) perception that RFID devices on consumer product can facilitate wide area tracking of that product and the owners will perhaps need to be addressed more fully in terms of open and accurate information before consumer confidence can be won and widespread uptake can occur.
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