Radio Frequency Identification (RFID) is effective automated object identification and data capture via radio frequency technology, typically using frequencies at 125 kHz (Low Frequency), 13.56 MHz (High Frequency) or 800-900MHz (Ultra High Frequency).  An RFID system consists of two main elements – a tag (chip with antenna) and a reader that communicate through radio transmission.  Any information stored on the tag is transmitted via radio waves to an RFID reader over a distance of a few meters.  This information is then integrated into the enterprise computer systems.

RFID has been in existence for more than 40 years where it has been used extensively in applications such as access control, automotive immobilization devices, industrial laundry, toll gates, and animal tracking. In recent years, the momentum and adoption of the technology in more mainstream industries such as the retail supply chain and pharmaceutical industries has increased exponentially as a result of overcoming technical constraints, reducing costs, and the issuing of powerful mandates by major stakeholders such as Walmart, US Department of Defense, and the Federal Drug Administration (FDA).


The RFID benefits include:

• substantial operational and financial gains due to absolute visibility and accountability at every point in the business process.
• improved and optimized speed and reliability of the business processes.
• enhanced security, and reduced theft, fraud and counterfeiting.
• real time information flow and data integrity.
• comprehensive asset management.
• inventory control and distribution.
• product availability.
• productivity gains in distribution and receiving.
• reduced inventory losses and write-offs.
• labor cost reductions.
• item level RFID tagging.
• reduced administrative errors.
• market intelligence and brand protection.

Contribution revenue of these parameters is significant and reflects the high yield potential of the technology.

Components of a RFID System

An RFID tag consists of a chip attached to an antenna. RFID tags are developed using a frequency according to the needs of the system including read range and the environment in which the tag will be read. Tags are either active (integrating a battery) or passive (having no battery). Passive tags derive the power to operate from the electro-magnetic field generated by the reader.

An RFID reader can be fixed or handheld, and is usually connected to Management Information System or Personal Computer. The RFID reader handles the communication between the Information System and the RFID tag.

An RFID antenna connected to the RFID reader can be of varying size and structure, depending on the communication distance required for a given system’s performance. The antenna activates the RFID tag and transfers data by emitting wireless pulses. 

An RFID station is made up of an RFID reader and an antenna. It can read information stored in the RFID tag and also update this RFID tag with new information. It generally holds application software specifically designed for the required task. RFID stations may be mounted in arrays around transfer points in industrial processes to automatically track assets as they are moving through the process.