> ... > Intelligence hub Operations management Radio frequency identification

Getting to grips with radio frequency identification (RFID)

Understand how radio frequency identification works and how to use it

What is radio frequency identification?

Radio Frequency Identification (RFID) is a form of wireless communication. It uses radio waves to identify and track objects using tags and tag readers. It allows you to relay information via electromagnetic waves from a tag to a reader, which is linked to a computer. The tag (or transponder) can contain a transmitter and receiver for communications with the readers. The readers or terminals can be fixed or can be portable, such as mounted on a forklift truck, an item of inventory, or in your hand.

RFID is part of a collection of technologies, called Auto Identification and Data Capture. Examples of these type of technologies include:

  • Barcodes
  • Biometrics (fingerprint or iris recognition)
  • Voice recognition
  • Image recognition
 

What can you use RFID tags on?

The RFID tagged inventory could include virtually anything. You can add the tag to equipment, pallets of stock, or individual units of product like clothing, books, and tickets. Radio Frequency Identification offers a real-time data capture of inventory levels.

 

How does RFID work?

Radio frequency identification consists of the following parts:

  • A tag (or transponder) which has been programmed with data
  • A scanning antenna
  • A reader to interpret the data
  • Central database to collate data and co-ordinate action

Here are the basic steps of how RFID works:

  • Data is programmed into the RFID tag's microchip and waits to be read.
  • The tag's antenna receives electromagnetic energy from an RFID reader's antenna.
  • Using power from its internal battery or power harvested from the reader's electromagnetic field, the tag sends radio waves back to the reader.
  • The reader picks up the tag's radio waves and interprets the frequencies as meaningful data which it sends to the central computer system. This data is then used to take management action.
  • Each RFID tag contains a unique, pre-programmed ID which helps set one tag apart from another.
  • The tag is attached to a specific item and the computer is informed to associate that unique ID with the item it has been attached to.
  • Tags can contain a combination of data of the customers choosing to identify specific products as well as some recognised numbering system that can represent a particular style or size or another characteristic such as use-by date, lot, or batch numbers.
  • They do not need batteries and can be used for years.
 

Advantages of RFID over barcoding?

So why are RFID tags used now more than ever?

  • Tags can be read over long distances and are fast to read
  • Large volumes of data can be held securely with password protection
  • RFID performance is reliable and requires minimal human intervention
 

Disadvantages of RFID over barcoding?

Despite the advantages of RFID, they have not replaced the traditional barcode due to:

  • RFID is an expensive technology due to the process of inserting the chip
  • Overlapping signals can cause errors in technology
  • Tags can be difficult to read through liquid and metals
 

What is operations management?

Operations management is a key area within any organisation. It plays a key role in keeping supply chains operational in today’s challenging environment. Discover the key to success when thinking about operations management. Find out more about Operations Management

Operations management key themes

Supply chain network design ABC classification Bills of material
Capacity management Failure mode effect analysis

Become a CIPS member

Achieve your potential by becoming a member today. Whether you want to become a studying member or want to upgrade your membership to MCIPS, you’ll receive support and guidance whatever career level you’re at.

Access the latest research, whitepapers and tools across a range of key procurement and supply topics.

Radio frequency identification guide

This document will provide you with a greater understanding of Radio Frequency Identification (RFID) as a technology, and the role this plays in supporting inventory management. the paper will also explore: the origination of RFID, Capabilities of RFID, Different uses for RFID technology & RFID performance VS barcoding

Vendor managed inventory

This document is designed to support you with the understanding of Vendor Managed Inventory (VMI), the efficiencies that can be brought about from working closely with critical suppliers and also some of the dependencies that can form due to implementing VMI processes.

Warehousing and inventory management guide

This document will provide you with a greater understanding of warehousing and inventory management, with an insight into the various methodologies.

Types of warehouse guide

This document will provide you with a greater understanding of warehousing facilities and the role they play in supporting supply chain activity. It will also explore: the different types of warehouses, the significance of location, the flow of good through a warehouse & the role technologies are playing in warehouse efficiencies.

Expand your value creation skills

Illustration of a gear with a dollar sign at its center, encircled by rotating arrows, set against a blue gradient background with abstract circular and dotted elements. Symbolizes value creation, economic efficiency, and the cyclical nature of skills development and financial growth.

Procurement Skills Training

Accelerate your learning and keep your knowledge and expertise up to date with our Value Creation training courses.

VALUE CREATION TRAINING

On this page