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RADIO
FREQUENCY IDENTIFICATION (RFID) TECHNOLOGY
RFID is a
type of auto ID technology that uses radio waves (as the
name Radio Frequency Identification denotes) to identify,
monitor and manage individual objects as they move between
physical locations. So, RFID is a smart sensing
technology. The RFID Technology has been compared with the existing
and well-established competing Bar-coding Technology.
Radio Frequency Identification (RFID) is enabling
companies to see further into the supply chain than ever
before, providing more accurate real-time information and
improvements in process efficiency. The increased
visibility can result in faster inventory turns, less
shrinkage, reduced labor and higher material flow through
your warehouse or distribution center. Greater efficiency
means RFID enabled
processes take less time and effort; entire pallets of
product can be recognized in seconds without the need
to break them down, and cycle counting inventory can
be accomplished in hours or even minutes instead of
days.
Components of RFID: There are two major devices supported
by the interfacing software.
RFID Tag: It is a very small device having a chip that
holds stored digital information and an tenna that
communicates with the receiver.
RFID Reader: It is a comparatively larger device that
communicates with RFID tags to check the stored data. When
the RFID reader excites the tag using radio waves, the tag
responds by transmitting the code that is stored inside
it.
How does
RFID Technology work ??
For utilizing RFID technology, it is obvious that one has
to tag all the concerned items, pallets or cases. This is
also known as “e-tagging”. When these tagged objects pass
through reader or scanner, data recorder on the tag is
captured and scored in the computer. No line of sight is
required for reading the data. Various combinations of
these tags & readers can be availed in multiple
situations. This leads 10 reduction of labour costs; more
efficient business
processes and improves connections with business
partners like suppliers. RFID devices and
software are also to be supported by an advanced software
architecture that enables
the collection and distribution of location based
information in real-time.
Tags or Transponders ??
RFID tags are barcodes having electronically programmed
unique information. A finished tag encapsulates all the
information and the small chip and the antenna mounted on
it.
The tags can be applied to containers, pallets, cases or
individual items. Tags can be classified based on three
criteria: Power Source, Frequency and Encoding Method.
Depending upon the applications and environment, RFID tags
have different range of durability. Paper-thin tags
referred as “Smart Labels” can be used for disposable
applications also. On these tags special Radio Frequency
enabled printing is done.
Bar-coding V/s RFID:
Bar coding is the currently adopted technology. It seems
that RFID and Bar coding are competing technologies. But,
in fact, both the technologies are complementary to each
other. It is more economical to replace the barcodes on
every item with RFID tag. To start with ,both the
technologies can be used simultaneously and gradually the
whole infrastructure for RFID can be developed. The reason
for advocating the usage of RFID is the significant
advantage provided by it over and above the bar coding.
Barcodes must be scanned at specific orientation to
establish line of sight. But RFID does not require it.
RFID tags need only to be in the range of reader to be
read or scanned.
Barcode technology doesn’t work if label is damaged
while RFID tags can withstand chemical and heat
environment.
RFID tags have read and write capabilities and can be up
dated while barcodes contain static information that can
be updated by reprinting the code.
RFID tags can potentially contain a great amount of data
compared to barcodes.
RFID tags do not require any human intervention for data
transmission whereas barcodes do.
Advantages of RFID : The advantages to various
stakeholders are as under :
Greater supply chain visibility through real-time
monitoring of virtually any resource
Reductions in stock-outs, required inventory levels
and unnecessary reorders
Automatic data harvesting to provide a foundation
for more accurate forecasts, trend analysis and
demand planning
Quicker reaction times to sudden
fluctuations in inventory levels
Capabilities to keep a full audit
train on each
tag, and therefore each item or container
Ability to read multiple tags simultaneously through
a variety of materials lets you perform non-invasive
quality control instantly
Sharing EPC information quickly with a vast number
of partners helps keep your efforts coordinated and
accurate
Benefit to Customers :
Get information more than that given on
packing
Relaxation from waiting in queue at checkouts
Hassle-free shopping by Interactive shelves
and easy accessibility
Quicker response to requests made
Items can be located conveniently
Saves time
Benefit to Retailers :
Helps in inventory tracking without line of sight
with much more accuracy
Provide support in excellent customer service
Makes environment of store more secure and 40-50%
reduction in losses due to theft
With RFID tags no hand counting or individual scanning
is required which saves the labor and the time taken to
locate each barcoded , label and scan it
To Manufacturers :
Improved demand planning and forecasting
Faster cash to cash cycle-from raw
material purchases to payment for finished
goods-to reduce working capital
requirements
Stricter quality control resulting in
improved product quality
Improved vendor managed inventory and
consignment management
Tracking and identifying gray market goods and counter feits
Though initially it seems that RFID technology is expensive, but if the
entire gamut of supply chain is taken into consideration,
it turns out to be cheaper and operationally efficient.
This technology can be extensively used in the following
domains of business :
Retail, Supply Chain Management and Warehouse Management
Logistics, Tracking of goods and trucks
Shipping, Container Tracking, Cargo Tracking
EPC Industry for all Materials Management operations
Animal Tracking
Toll Plaza for collection of toll taxes etc
Hospitals particularly for infant tracking or patient
tracking
Security systems for cars etc
While exporters are concerned about RFID, domestic IT
companies are all set to tap it to boost their bottom
lines. According to Frost & Sullivan, the market for RFID
hardware, software, and services will exceed $ 5 billion
in 2007. According to another industry projection, one
trillion RFID tags will be required by 2012.