Radio Frequency Identification or “RFID” is a data collection technology which uses radio signals to transmit information about an item, such as a serial number or name. While RFID technology has been used for many years to identify aircraft, automobiles, farm animals, and other large items and assets, it has recently gained a great deal of attention in cost-sensitive applications like baggage tagging, in-transit pallet and case identification, and even “radio barcode” tagging of consumer goods.  Many feel that we are on the verge of seeing RFID become ubiquitous as the technology matures into a low-cost, general technology supported by the world’s rapidly developing wireless infrastructure and web-based software application base.

The motivation for developing a low-cost RFID technology arises from its potential as a truly automatic, completely unattended identification device.  Today’s optical barcodes (e.g., the UPC codes found on grocery store items) are very cheap to produce, but rather expensive to scan because scanning generally requires that a person handle the item.  Thus, optical barcodes are scanned only a few times in their lifecycle. RFID or “radio barcodes” on the other hand do not require handling. If the tagged item is in range of a reader (transmitter / receiver) antenna, it can be identified with no human attention.  This makes it possible to track items more or less continuously, provided the reader antenna density is sufficient and tag functionality is adequate.

RFID has the potential to allow the reduction of “safety stock” (excess inventory held because of uncertainty in store or warehouse inventory level), and also lead to fewer instances of out-of-stock items at store shelves.  Improved item tracability also enables new measures to fight supply chain fraud, counterfeiting, and product tampering.  New consumer information services are also enabled by the real-time item identification that RFID offers.  In cases where the history of an item must be known with great assurance (e.g., for pharmaceuticals and aircraft parts), RFID provides great value as a tracing tool.  There are even RFID applications being developed for the home, such as systems to assist seniors in remembering to take their medication, and re-order the prescription when necessary.

Because of its fundamental value as an identification tool, RFID has the  potential to impact modern life as much as the telephone and desktop computer have done.