Radio Frequency Identification (RFID) is not a novel technology as its applications can be traced back to World War II, when it was used by the British to recognize a fighter plane as a friend or an enemy. It is a futuristic wireless technology and in the current IT era, it is being used effectively in several business applications. It is also called as `the next generation bar code' or `smart label'. Its non-line of sight and unique serialization properties significantly help supply chain partners in enhancing visibility of material flow.
The advantages offered by this serial nature of the RFID are powerful, for both the product manufacturer and the seller or user of the product. These advantages are focused on product traceability for anti-counterfeiting applications, warranty tracking and product recall information. Product traceability is very important in pharmacy and healthcare applications. Wal-Mart, United States Department of Defense (DoD), Metro Group of Germany, Marks & Spencer and Tesco of UK are the major users of this technology. It is considered as a breakthrough development in tracking the technology.
At present, RFID is used in highway toll collection systems, the next generation of passports and credit cards, vehicle ignition key, anti-theft systems, library book or bookstore tracking, pallet, cartoon or box tracking in warehouse management and supply chain system, controlling building access, airline baggage tracking, beer keg tracking and identification badges for firm employees and college students. The technology is also employed to identify missing pet animals, check vehicular traffic and track livestock for preventing outbreaks such as mad cow disease and help pharmaceutical firms to fight spurious drugs.
The major benefits of this technology emerge from reductions in unsaleable goods, product shrinks, inventory write offs, shipment errors, out-of-stocks, labor and inventory holding costs. RFID adoption may result in better customer-centric strategies, superior shopping experience, learning benefits, innovation skills, reduced risk and improvements in shareholder value. The concept of RFID is getting popular since its large-scale deployment at Wal-Mart for its pilot project study. More than 1,000 Wal-Mart retail locations were started using this technology. In response to Wal-Mart mandate, its 600 largest suppliers have already started RFID tagging. |