Abstract

RFID (Radio frequency Identification) is not a new concept. RFID tags consist of silicon chips and an antenna that can transmit data to a wireless receiver. With the help of wireless reading device, hundreds of tags can be read in a second. RFID tags are classified into active and passive. Former are costly ranging from Rs. 65/- per tag and the latter are cheap in the range of Rs. 25-30 per tag. Passive tags cannot give complete data but are rather brief. RFID has pervasive applications and in this paper the author discusses the potential applications of the technology in different fields of business and also suggests certain approaches to tap the maximum potential.

Introduction: Concept Of RFID And Its Origin

Radio frequency Identification (RFID has been there since World War II). The technology used in RFID has actually been around since the early 1920s. A much more related technology, the IFF transponder, went into operation in 1939 and was routinely used by the British during World War II to identify airplanes as friend and foe. RFID became a reality after three years of advances in many different fields. In simple, RFID tags consist of silicon chips and an antenna that can transmit data to a wireless receiver. Therefore the radio Id tags do not receive line-of-sight for reading that is the RFID tagged product need not be held close to the scanner to read the data of an RFID tag. Within the field of a wireless reading device, it is possible to automatically read hundreds of tags a second.

RFID Advantages

Although RFID implementations are not without costs and risks, typical companies in manufacturing, warehousing and distribution and retail have been known to achieve 200 per cent ROI (net benefits divided by costs) or more from these projects. What this means is that for every dollar invested in RFID, companies are getting back $2 in incremental benefits (the original dollar invested, plus two more).

RFID provides persistent, real-time identification information with minimal human intervention, allowing more frequent data collection and greater information capture. The competitive advantage and bottom-line business benefits are significant to the supply chain that implements RFID to its advantage. Early estimates indicate that a comprehensive RFID solution can generate an additional 2 to 7 per cent increase in revenue, improve handling productivity by 20 to 30 percent, reduce operating expenses by 2 to 5 per cent and reduce days in inventory by 1 to 2 percent. Financial improvements such as these are significant, and it is for this reason that many companies are moving forward with RFID, sooner than later.

Thus, RFID is being implemented, along with key business-process improvements in many industries, to reliably track goods of all kinds-from cases, pallets and individual items in manufacturing, wholesale distribution and retail applications, to equipment and supplies in government applications, to overnight mail packages and passenger luggage in transportation and shipping. Many of these early adopters have experienced the benefits of bar codes, but realise that RFID can take supply chain management to the next level. The network effects of a synchronised supply chain will result in numerous benefits, including improved scan reliability, process automation and real-time information access.