RFID technology plays an instrumental role in shaping the modern warehouse environment. Featuring a powerful mix of readers and tags, this technology may seem simple at first glance — but it draws on complex processes and can produce a wealth of information to support warehouse management systems and boost inventory tracking.
These systems are more diverse than many people realize, and they present huge opportunities beyond their already impressive contributions to inventory management. From asset tracking to order fulfillment, RFID can be integrated into nearly any logistics strategy imaginable and can even be used in sectors ranging from agriculture to education and beyond.
RFID technology has existed in some capacity for decades, but it has seen a huge expansion in recent years, alongside the growth of the Internet of Things (IoT). This is now a fundamental part of the warehousing industry and it promises to drive change in many other fields.
Across industries, leaders are quickly discovering what has long been recognized in warehousing and the supply chain: RFID tags and readers are far more powerful than in the past and are becoming more cost effective as well. We will reveal this in detail below, along with examples of sectors that stand to benefit from implementing RFID technology.
What Is RFID Technology?
Radio frequency identification (RFID) leverages electromagnetic fields to track tags attached to a variety of objects. Digital information is encoded in these tags, which feature serial numbers or other identifiers — and the items to which they are attached. Unlike barcodes, RFID readers do not require a line of sight to read the tags.
RFID systems also rely on high-level software and powerful integrations to ensure that data is fully leveraged.
Types of RFID Systems
While all RFID systems include the basic components of tags and readers, how they are implemented can vary significantly from one system to the next. In general, however, the main types of RFID tags involve two key categories:
- Passive RFID. Typically relied upon for smaller-scale operations, passive RFID tags operate without internal power sources. Their signal range may be limited compared to their active counterparts, but passive RFID solutions tend to be the most affordable and have the best longevity.
- Active RFID. Integrating power sources so that they can continuously share signals, active RFID tags contribute to powerful real-time tracking solutions. Their ability to transmit data is impressive, as is their range. Active RFID solutions require more of an upfront investment but can produce an amazing ROI.
RFID systems may also be categorized according to their frequency range, with primary examples including low frequency, high frequency, and ultra-high frequency (UHF).
Components of an RFID System
RFID systems rely on a few basic components to ensure that all items are tagged and tracked — and to ensure that data gathered by these systems promotes improved inventory management. Essentials include:
- Tags or Labels. RFID tags and labels are electronic markers affixed to — or embedded in — items to track their location and improve visibility in warehouses and other environments. These tags and labels leverage radio frequency technology and transmit radio waves containing data about the object to readers. Each tag’s data is stored within a microchip, with the antenna transmitting signals and the housing of the tag or substrate of the label protecting both the microchip and the antenna.
- Readers. Meant to gather data from tags, each RFID reader also includes an antenna. The reader is sometimes referred to as the ‘brain’ of the RFID system, as it captures data and drives communication with tags.
- Antennas. Capable of converting signals into radiofrequency waves, the simple antenna plays a crucial role in facilitating RFID benefits. Without RFID antennas, it would be impossible to send or receive necessary signals.
- RFID software platform. Offering critical support for RFID systems, targeted software solutions optimize tag data capture and analysis. These may integrate into enterprise solutions such as WMS, with the goal of improving real-time visibility and operational efficiency.
How RFID Is Used in Real Life: Examples
RFID has transformed the modern warehouse, delivering a level of visibility and oversight once thought impossible. These systems produce a wealth of data to support today’s increasingly automated systems. Beyond this, however, RFID can make a transformative difference in nearly any industry. To illustrate this versatility, we have highlighted a few of the most influential RFID applications and use cases below:
Retail & Supply Chain Management
As in warehousing, retail-based RFID systems help avoid common issues such as overstocking or stockouts. These systems can reveal inventory levels in real-time and may bypass the painstaking processes of manual stocktaking. RFID also proves useful in the omnichannel era, as tags help to promptly identify items for buy-online-pickup-in-store (BOPIS).
Within the conventional brick-and-mortar environment, RFID may be crucial for loss prevention, as tags and readers can help to detect shrinkage. Meanwhile, RFID-enabled return merchandise authorization (RTA) optimizes the return process to improve customer satisfaction. Within the modern supply chain, RFID influences operations and distribution while streamlining workflows to achieve peak efficiency.
Healthcare
RFID systems have long been a central component of asset management in warehousing and logistics, but they also have a powerful role to play in tracking equipment within healthcare facilities. These tags can be attached to critical instruments or devices to reduce the risk of loss or theft.
In addition to asset tracking, RFID systems can play into efforts to track patients, thereby boosting security and even reducing the risk of medical errors. Many medical centers, for example, look to RFID technology to promote safety by identifying and tracking at-risk patients. Moving forward, advancements in RFID solutions may reflect increased adoption in telehealth, especially given the rapid rise of wearables for remote patient monitoring.
Transportation & Logistics
If attached to pallets, RFID tags can enable tracking through every stage of the supply chain. This represents an important expansion of real-time tracking beyond the confines of the warehouse or distribution center. As pallets or products move from one location to the next, RFID systems ensure that their whereabouts and status remain known. RFID-enabled systems can verify shipments while optimizing data capture at loading docks.
In transportation, RFID tags can enhance toll collection. RFID-based systems have already been implemented in many states, offering far greater efficiency than can be achieved with typical cash-based toll systems. This dramatically improves driver convenience by limiting toll-related traffic.
Manufacturing
Visibility is just as important in manufacturing as it is in warehousing, and, with RFID solutions, this is easily achieved. RFID tags can be affixed to components, thereby boosting work-in-process (WIP) tracking as various tasks are completed within manufacturing facilities.
By tracking key materials or components, RFID systems ensure that manufacturing essentials are consistently in the right place and at the right time. This makes it easier to automate manufacturing processes and streamline workflows via integrated enterprise resource planning (ERP) systems.
Although commonly used in automotive manufacturing, RFID also holds important implications in the food and beverage industries, as strong visibility can prevent foodborne illness by boosting quality control and strengthening recall processes.
Agriculture
Capable of monitoring crop growth and even tracking and monitoring livestock, RFID boasts many far-reaching applications within the agriculture sector. RFID tags and readers may play a key role in driving the new era of precision agriculture, in which a series of sensors collects data that can be analyzed to detect patterns and adjust farming practices accordingly.
As in many other fields, RFID can also prove useful for agricultural asset tracking. This provides optimal oversight regarding the real-time location and status of tractors, fertilizer equipment, and more. Many agricultural RFID tags are designed to be uniquely rugged so that they can withstand harsh conditions.
Government & Public Services
Long relied on for border protection and transportation, RFID systems are beginning to make their mark within many government agencies, where their versatility is valued. At the federal, state, and municipal levels, this technology can promote high-level asset tracking, offering oversight for everything from fleet vehicles to laptops. With disaster evacuations or emergency response, RFID can boost resource allocation while tracking relief efforts.
With public transit, RFID-enabled cards allow for contactless payments or may even automate fare collection. These systems can also improve reliability by offering insight into bus or train locations, along with details to keep passengers in the loop if delays occur.
Education
Offering hassle-free alternatives to traditional attendance management and security systems, RFID solutions provide versatile options that can impact all areas of K-12 and higher education.
Administrators are increasingly eager to leverage these systems, which may quickly become an important part of the modern classroom and will even be found within libraries, gyms, and cafeterias.
The asset management implications are clear: this is a great option for tracking library items and loaned media equipment. RFID technology can even boost access control, so that only authorized individuals are capable of entering certain areas or using high-value equipment.
Event Management
From trade shows to music festivals and even sporting events, RFID systems can streamline many previously inefficient and downright frustrating processes associated with event management.
Event-based RFID systems provide a wonderful alternative to conventional ticketing and check-in processes by helping to track crowd destiny and foot traffic. RFID can also play into event planning with insights from RFID-generated data encouraging optimized layouts.
Theme parks also rely on RFID systems, which limit the need for paper tickets and can even enable convenient cashless payments for merchandise or experience upgrades.
For Full-Scale RFID Solutions, Trust Peak Technologies
Across numerous industries, we are witnessing the tremendous impact of RFID systems, which promise to make everyday processes more safe, secure, and convenient. From warehouses to farms, schools, and even theme parks, there are many ways to harness the power of RFID technology. Moving forward, widespread adoption can be expected, along with simplified integration with software advancements.
With this versatility, however, comes a significant challenge: tailoring RFID systems to meet the unique needs of each organization or facility. Strategic selection and integration are paramount, as the wrong types of tags or readers, for example, could prevent RFID solutions from reaching their full potential.
Our experts at Peak Technologies can bridge the gap. We offer customized RFID services, including consulting, design, testing, and deployment. Get in touch to learn how we can bring the benefits of RFID to your organization.
Sources
https://www.himss.org/resources/benefits-and-barriers-rfid-technology-healthcare
https://www.packagingdive.com/news/rfid-traceability-walmart-fda-packaging-supply-chain/692869/
https://www.agritechtomorrow.com/article/2019/12/how-rfid-technology-is-used-in-agriculture/11872/
