RFID Tracking Networks 101
Radio Frequency Identification (RFID) technology is an enabler for transportation and supply chain networks. RFID tags can be placed on product, packages, pallets, trailers, ocean containers, vehicles, and even rail cars for tracking purposes and much more. RFID tags are like bar codes in that they are machine-readable IDs to identify and track stuff, but they can do a lot more than just track stuff. RFID tags can be automatically scanned without being in the line-of-sight of a RFID scanner (interrogator), and RFID tags can store a lot more information as well as be integrated real-time with sensors and other computer technology.
How Does RFID Technology Work?
RFID technology consists of a RFID tag and a RFID interrogator. The RFID tag is secured to the item that is being tracked, and RFID interrogators (fix-site or hand-helds) read and interact with RFID tags. See posting, How RFID technology Works, for more details.
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Where RFID Fits in With Auto ID Technology and With Tracking Networks.
For decades, supply chain and transportation professionals have used bar codes to tag everything from a retail-level item to a shipping box to a pallet, and even trailers and railroad cars. With the advent of active and passive RFID tags, bar codes have the potential to be phased out for tracking and tagging everything from boxes of items to ocean containers. Bar codes will continue, at least for now, to be used at the retail item level. The key criteria for using a bar code versus passive RFID versus active RFID tag is cost and functionality required for a given supply chain or transportation tracking network.
- RFID Technology Taking the Lead in Automated Identification Technology. RFID is moving past pilot projects to take a prominent role within Automated Identification Technology. See posting, RFID Logistics – the Tempest is Moving Out of the Teapot,, for more information on RFID emerging role within Automatic Identification Technology.
- Where Does RFID Fit Within the Supply Chain and Transportation Networks? Active RFID tags are great for tracking ocean containers, for tracking high-value assets, and tracking things that need special sensors or other niche requirements. Passive RFID tags are great for tracking pallets, boxes, and there is great potential for them to replace bar codes at the product item level in the near future. See posting, Where Does RFID Fit Within the Supply Chain?, for more information on how best to leverage RFID technology for logistics and supply chains versus bar codes and GPS.
- RFID Implementation Challenges Over Bar Codes. One of the biggest challenges with RFID technology is implementing it. With RFID technology loaded with functionality and add-ons, it can be very challenging implementing a RFID solution when compared to implementing a bar code project. Find out more about Why RFID is Harder to Implement Than Bar Codes
The Benefits of RFID for Tracking Networks. RFID is not just a replacement for the bar code. There are many more benefits to RFID for supply chain, transportation and logistics operations than just improving identification of products, shipments, and assets. RFID technology has the additional benefits of reducing the decision-making cycle, optimizing supply chains, and transportation networks as well as improving the overall customer experience. Benefits include reduced clerical errors, increased asset visibility, increased efficiency, reduced thefts, reduced inventory, improved forecasting, reduced out-of-stock conditions, and improved overall customer experience. See posting, Benefits of RFID for Supply Chain and Logistics for the complete benefits of RFID technology.
Example Uses of RFID Technology. RFID has a lot of uses both within supply chains and without. Other areas where RFID technology is being used include asset management, law enforcement, retail, theft prevention, and much more. See posting, Example Uses of RFID Technology, for more information.
More RFID Logistics Sources: Wikipedia: Radio-frequency identification, HowStuffWorks: How RFID Works, Intermec White Paper: Supply Chain RFID: How It Works and Why It Pays, Modern Materials Handling: RFID Basics, University of Toronto: Managing RFID Data.




