All about RFID Technology: What Is It and How Does It Work?

27 March 2023

RFID stands for Radio Frequency Identification and is a technology used to identify and track objects, animals and people. In recent years, RFID technology has become one of the most widely used technologies in the world of logistics, retail, healthcare and many other industries.

In this article, we will discuss what RFID technology is, how it works and the applications of RFID technology. After this, we will further discuss the benefits, challenges and future of RFID technology.

What Is RFID Technology?

RFID technology is a wireless technology that works via radio frequencies. It consists of three main components: the RFID reader, RFID tag and RFID antenna. An RFID tag is a small chip that contains information and has an antenna to send and receive signals. RFID tags come in different types, such as passive RFID, active RFID and semi-passive RFID.

Passive RFID tags do not have their own power supply and get their energy from the electromagnetic field generated by the reader. Active RFID tags have their own power supply and can be read at longer distances than passive tags. Semi-passive RFID tags have their own power supply, but only use it to transmit signals.

How Does RFID Technology Work?

The RFID system works through communication between the RFID reader and the RFID tag. When the RFID tag is brought close to the RFID reader, an electromagnetic field is created between the tag’s antenna and the reader’s antenna. The tag absorbs energy from this field and uses this energy to send its information back to the reader. The RFID reader interprets this information and sends it to a computer or other system that processes it.

Applications of RFID Technology

RFID technology is widely used for identifying and tracking objects and animals. It is also used in retail for tracking inventory and preventing theft, as well as in healthcare for tracking patient records and medicines. We use RFID technology in the Self-Service Counter and Staff Station solutions.

Inventory management: RFID technology is deployed in warehouses and distribution centres to manage inventory. RFID tags allow goods to be tracked and identified as they move through the supply chain.
Supply chain management: RFID technology can help improve supply chain efficiency by increasing the visibility of goods and materials and improving communication between different parties.
Asset tracking: RFID technology can be used to track the location and status of assets, such as machinery, vehicles and tools.
Retail and E-commerce: RFID technology is used in retail to manage inventory levels, increase productivity and reduce loss of goods. It is also used in e-commerce, where it can help track shipments and prevent fraud.
Healthcare: RFID technology can be used in healthcare to improve patient safety, increase efficiency and reduce costs. It can be used to track patient records, manage medications and keep track of medical supplies inventory.

Benefits of RFID Technology

RFID technology offers several benefits to companies and organisations in different sectors and industries. Below, we discuss the main advantages of RFID technology:

Accuracy and Efficiency

RFID technology offers higher accuracy and efficiency compared to traditional identification technologies (such as barcodes). RFID tags can store information such as serial numbers, product descriptions and prices, and this information can be read quickly and accurately with an RFID reader. This improves data accuracy and reduces errors that can occur with manual data entry. Moreover, scanning an RFID tag is faster and more efficient than scanning a barcode, as it does not require as precise aiming as barcode scanning.

Real-time Data Collection

Another advantage of RFID technology is its ability to collect information in real-time. RFID tags can be read as goods move through the supply chain, giving companies a better understanding of the location and status of their goods. This can help identify problems in the supply chain and take proactive measures to resolve them.

Moreover, RFID technology allows companies to collect real-time inventory data, allowing them to react quickly to changes in customer demand and optimise the delivery of goods.

Improved Security

RFID technology can also help improve supply chain security and reduce loss and theft of goods. RFID tags can be used to track the location and status of goods in real time, allowing companies to respond quickly to unwanted events such as theft or loss of goods.

Moreover, RFID tags can be used in combination with other security technologies, such as security cameras and alarm systems, to further enhance the security of goods.

Increased Productivity

RFID can help increase employee productivity by automating processes and reducing time spent on manual data entry and administrative tasks. In healthcare, for example, RFID technology can be used to manage medications and patient records, allowing employees to spend more time caring for patients.

Moreover, RFID technology can be used to automate processes and reduce turnaround time. In the logistics sector, for example, RFID technology can be used to track the status of goods in real time and automatically alert when goods need to be shipped or received. This reduces the time required for manual checks and optimises logistics processes.

Reduced Costs

As mentioned earlier, RFID can contribute to increased automation and provide better protection against theft. Moreover, RFID technology can help improve inventory levels and avoid unnecessary stock. All this can ultimately lead to reduced costs for companies that decide to apply RFID in their processes.

Challenges and Limitations of RFID technology

While RFID technology has many advantages, there are also a number of challenges and limitations associated with the technology.

Interference

One of the biggest challenges is interference from other devices emitting radio waves. These interfering radio waves can make RFID work less well. As a result , for example, tags may be scanned less quickly or information may be transmitted inaccurately.

Limited Range

Another disadvantage of RFID is the limited range of passive RFID tags. These tags can only be scanned within a limited radius (usually less than 10 metres). Objects outside the range of the RFID reader can therefore not be identified. Active RFID tags have a longer range than passive tags, but are more expensive and require more energy.

Costs

RFID tags and readers can be expensive, especially if large quantities are needed. This can limit adoption of the technology. For large companies, which benefit from economies of scale through adoption of the technology, cost may not be a problem. For small companies and organisations, however, cost may be an obstacle.

Lack of Standardisation

There are no global standards for RFID technology, which can make it difficult to integrate different systems with each other. This can lead to difficulties in sharing information and using different RFID systems within an organisation. To address this challenge, several organisations are working together to develop and implement global standards for RFID technologies.

ekz benelux, as a leading total supplier of RFID solutions to libraries, colleges and universities, has years of experience with RFID technology and the challenges it poses. Thanks to this expertise, ekz benelux is able to seamlessly coordinate different RFID systems within an organisation. We offer support in implementing and integrating tailor-made solutions, taking into account existing infrastructures and workflows. This allows our customers to benefit from a smooth and efficient operation of their RFID systems, regardless of the different technologies they use.

Conclusion

Summary of Key Points

RFID technology is a technology that allows objects to be identified wirelessly. This is done using radio waves. The technology consists of a tag, which is attached to the object and a reader capable of retrieving the information stored on the tag.

Reflections on the Importance of RFID Technology

RFID technology has many advantages, including accuracy and efficiency, real-time data collection, improved security, increased productivity and reduced costs. It is increasingly used in various sectors, including logistics, retail and healthcare, because of the many benefits it offers.

Final Thoughts on the Future of RFID Technology

RFID technology is likely to continue to evolve and develop, making it possible to create new applications and innovations. Integration with the Internet of Things (IoT) is likely to further drive the adoption of RFID technology and create new business opportunities. The future of RFID is promising and is expected to continue to change and improve the way businesses work.