Science and technology are developing and humans are progressing. With the in-depth research on RFID, the use of RFID has effectively improved people’s lives. Today, products developed by RFID technology can be found everywhere in people’s daily lives. So do you know what RFID is and what are its best uses in business?

What is RFID?

Various uses of RFID
Various uses of RFID

RFID stands for Radio Frequency IDentification. It is a type of automatic identification and data collection technology. It achieves non-contact bi-directional data communication through electromagnetic signals. It uses radio frequency to identify a specific target (electronic tag or radio frequency card) to exchange data. It is different from the ordinary barcode. It does not need to be attached to the surface of the item being tracked all the time. People can embed it in its body. It is more efficient than using a barcode. Using a reader can read hundreds of RFID labels at a time.

RFID technology has become an essential tool for businesses requiring efficient product tracking. Two types of RFID readers are primarily available: fixed and mobile.

Fixed RFID readers are typically installed in a specific location, such as a warehouse. It will capture RFID tag data as it passes through the reader’s RF zone. For example, Amazon Go stores use fixed readers to automate checkout. It allows customers to walk through the store and have their purchases automatically charged to their accounts.

On the other hand, mobile RFID readers are handheld devices that offer flexibility and convenience, as they can be taken anywhere. These devices are ideal for businesses that require on-the-go tracking or need to perform inventory checks in various locations.

Regardless of the type of reader used, the RFID tracking process typically involves four phases:

  • Information is stored on an RFID label and attached to an item, such as a product or asset.
  • The antenna recognizes the signal of a nearby RFID label.
  • A reader wirelessly connects to the antenna and retrieves the information stored on the tag.
  • The reader sends the RFID data to your database, where it is stored and analyzed.

RFID tags come in different types, each with its own advantages and limitations. The two most common types are active and passive RFID tags.

Active RFID tags have their own power source and can be read from a range of 100 meters or more. They are typically used in applications where asset location or logistics improvements are critical. For instance, companies that need to track high-value assets across a large area may use active tags to get real-time visibility into the location and status of these assets.

On the other hand, passive RFID tags don’t have a power source and rely on electromagnetic energy from the reader to power up and transmit data. As a result, their read range is limited to a few meters, typically up to 25 meters. However, they are lower in cost and can be embedded into adhesive labels or directly into the object itself. For example, when you receive a case of products from a supplier, they may attach passive tags to the case for easy tracking and inventory management. Once you remove the products and discard the case, the tags are disposed of.

Semi-passive tags are another type of RFID tag that combines the principles of passive and active tags. They have a battery that helps extend their communication range, but they still rely on the reader to provide power for data transmission.

RFID technology is widely used across various industries, including healthcare, automotive, and transportation. In retail settings, RFID technology has many uses that can improve store operations. This enhances customer experience and increases sales.

One way RFID can enhance store operations is by improving inventory management. With RFID, retailers can easily track product movement and automate replenishment. For instance, RFID tags can notify employees when a specific product is out of stock or has low inventory. It shows them where to find the product in the backroom and how many to pull. This helps to avoid stockouts and reduce overstocking, improving sales and profitability.

RFID can also analyze in-store traffic patterns and improve store layout. By tracking item movement throughout a store, retailers can learn about their store’s high-traffic areas, popular products, and customer behavior. This information can be used to optimize store layout, promotions, and product placement. It ultimately leads to higher sales and better customer experience.

Another use of RFID in retail is creating virtual fitting rooms. Retailers can track the item and show available colors and styles using a geo-locating RFID tag. It recommends complementary clothes and provides relevant product information. This helps to personalize the shopping experience, improve customer engagement, and increase sales.

RFID technology can also enable contactless payments, which are becoming increasingly popular in retail. Customers can walk through an RFID checkout and verify their identity using biometric scanners. They can pay for items without touching a keypad or interacting with a cashier. This improves the customer experience, reduces checkout time, and increases throughput.

In addition to these uses, RFID technology can assist with stock picking in warehouses. RFID-enabled drones, such as the RFly, can scan RFID tags and locate products inside a warehouse, even if stacked on high shelves. This helps to improve efficiency and reduce labor costs.

RFID can also be used to monitor the temperature of goods, especially perishable products that need to be stored at specific temperatures. Sensors within RFID tags can monitor temperature and keep a log of it. It ensures the products are stored under the right conditions and reduces waste.

Lastly, RFID can improve stock accuracy in-store, reducing the time and effort required for inventory management. With RFID, retailers can instantly check entire shipments rather than rely on individual package scanning and blind receipts. RFID can also find items, reduce cycle count time, and auto-reorder products at safety stock levels. It helps them to reduce stockouts and improve customer satisfaction.

How to Use RFID?

The RFID system comprises a reader, electronic tag, and data management system. The reader is generally used to reading the data of a specific electronic tag. Different readers can read and write different types of electronic tags. The electronic label is the tool for storing data. The electronic label body uses the chip to be different, may store the data capacity, and may have a difference.

The data management system refers to the reader after reading the data of a specific electronic tag. It is transferred over the LAN to the database on the server. It can be as small as a chip that can be embedded in the body of an animal, or it can be transformed into a travel essential such as a bus card or ID card. It has many uses. People can use it in material management, production line automation, parking control, etc.

Benefits Use of RFID

RFID is a versatile technology that offers many advantages over traditional identification methods. By using RFID, companies can save time and money. It also helps businesses improve accuracy and efficiency. Some of the key benefits of RFID include improved tracking, inventory management, and customer experience. You can also improve security, identity, and asset management by using it.

Use of RFID for Asset Tracking

RFID is an increasingly popular method of tracking assets. Companies can use RFID tags to track and monitor the location of their assets in real time. This helps reduce inventory errors and ensures that assets are where they should be. RFID can also show when assets have been moved from one location to another. It will help companies quickly identify any discrepancies that may occur.

Logistics Management

Most companies will use RFID to improve logistics management. By attaching RFID tags to goods, companies can quickly locate and monitor their products at any point in the supply chain. This helps to reduce delays and improve accuracy. It also provides an easy way to track and manage inventory. RFID tags can also monitor temperature and humidity levels. It ensures that goods are kept in the best possible condition while in transit.

RFID is a highly versatile technology that Company can use in all aspects of the enterprise. From the manufacturing process of products to regular equipment maintenance and repair. The company can use late goods tracking and distribution and even the entire industry’s asset management.

Business Use of RFID

The ubiquity of RFID is especially evident in commercial use. On March 4, 2020, Auburn University‘s RFID Lab completed a study with GS1 in the United States. They are a proof-of-concept study for “blockchain and RFID technology to improve data sharing in the retail industry.” The project is called “Chain Integration Project Proof of Concept (CHIP).” The study results show retailers can share encoded product data in RFID tags on a blockchain network. It demonstrates that the use of automated serialized product data exchange is reliable. It can increase supply chain productivity more effectively. It can reduce the cost of manual review. Typically, RFID tags act in the merchandise of a retail store. It prevents employee stealing and shoplifting and allows customers to self-checkout. It will reduce checkout queues.

In 2010, Vail Resorts opened the door to a new world in the ski industry by using RFID tags in ski passes. That same year, RFID made its debut at Facebook’s annual conference and has been used in the form of RFID cards at most of their live events since then. 2011-2013, more famous automotive brands used RFID for social media marketing.

RFID can also be used in other areas, such as identification cards. A person with an RFID identification card can be identified by approaching the RFID reader within a certain distance. Of course, company can also use this for vehicle travel in the garage. The driver only needs to place the RFID tag on the license plate or the car’s more conspicuous part. And when the vehicle reaches the reading range of the machine, it can be verified easily.

The use of RFID is prevalent
The use of RFID is prevalent

Some Common Uses of RFID Applications:

RFID vs. Barcodes

This Table Describes the Differences Between RFID and Barcodes:

Data storage capacityHighLow
Reading rangeLong range (up to 100 meters)Short range (up to 10 cm)
Reading speedHighLow
ApplicabilityCan read multiple items at onceCan only read one item at a time
Data securityHighLow
Comparison of RFID and Barcodes

This Table Describes the Advantages and Disadvantages of RFID and Barcodes:

AdvantagesCan read multiple items at onceLow cost
Long reading rangeWidely adopted
High reading speedEase of use
High data storage capacityQuick implementation
High data securityEase of integration with existing systems
DisadvantagesHigh costLow data storage capacity
Not widely adoptedShort reading range
Requires specialized equipment and trainingLow reading speed
Security vulnerabilitiesSusceptible to damage and wear
Note: The advantages and disadvantages listed in this table are not exhaustive and may vary depending on the specific use case and context of implementation.


This Table Describes the Differences Between RFID and NFC:

Frequency band125 kHz, 13.56 MHz, 868 MHz13.56 MHz
Reading rangeLong range (up to 100 meters)Short range (up to 10 cm)
Data transfer speedLow to highHigh (up to 424 kbps)
CompatibilityOne-way communicationTwo-way communication
SecurityCan be susceptible to hackingMore secure due to encryption
CostHighLow to moderate
Comparison of RFID and NFC

This Table Describes the Advantages and Disadvantages of RFID and NFC:

AdvantagesLong reading rangeHigh data transfer speed
Can read multiple items at onceTwo-way communication
High data storage capacityEnhanced security through encryption
DurabilityEasy integration with smartphones
Compatibility with various frequenciesEasy to use
DisadvantagesCan be susceptible to hackingShort reading range
Requires specialized equipment and trainingLimited range for data transfer
Limited data transfer speedLimited compatibility with frequencies
High cost
Note: The advantages and disadvantages listed in this table are not exhaustive and may vary depending on the specific use case and context of implementation.

What Companies Use RFID?

The famous Amazon has already adopted RFID technology to achieve “Just Walk Out.” All you need to do is download the Amazon Go app on your phone and log in to your Amazon account. Showing your account to the scanner device when you enter the store. When you pick up the item you want to purchase and leave the store, the cost of the product will be charged directly to your Amazon account. You don’t need to find a human or machine to do the payment operation. It makes shopping easier and faster.

Zara, a retail giant in the apparel industry, uses RFID for inventory management. When the item is sold, the warehouse will be notified immediately, and the inventory will be replenished in time. The goods are always kept in sufficient condition.

BJC HealthCare has also used RFID for many years. They use RFID to track the hospital’s surgical medical supplies, drug inventory, expiration dates, and more. It can also track assets and effectively prevent accidents such as shortages and loss of medical supplies.

Multiple industries use RFID
Multiple industries use RFID

The use of RFID in the correct position according to the enterprise’s needs is to realize the maximum benefit of the enterprise. It is believed that in the future, as RFID keeps pace with the times, companies will fully utiliz it in more and more places.

More Question About Use of RFID

  1. What are the Advantages of Using RFID Compared to Traditional Barcode Systems?

    RFID technology offers several advantages over traditional barcode systems. Such as faster read times, the ability to read multiple tags at once, and the ability to read tags from a distance without a line of sight. Additionally, RFID tags can store more data than barcodes and can be read in harsh environments, such as high temperatures or moisture.

  2. What Types of RFID Tags are Available, and How do I Choose the Right One for My Application?

    Several types of RFID tags are available, including passive, active, and semi-passive tags. Passive tags do not have a battery and rely on the reader’s energy. Active tags have their own power source and can send data over longer distances. The tag choice depends on the read range, durability, and cost.

  3. How do I Install and Set Up an RFID System in My Facility?

    Setting up an RFID system requires several steps, including choosing the right equipment, installing antennas, setting up a database, and testing the system. It is recommended to consult with an experienced RFID integrator to ensure proper installation and setup.

  4. How can RFID Technology Improve Asset Tracking and Security in My Organization?

    RFID technology can improve asset tracking and security by providing real-time location and status information. It allows for better assumptions and reduces the risk of loss or theft.

  5. What are the Potential Privacy and Security Risks Associated with RFID, and How can I Mitigate Them?

    Some potential privacy and security risks associated with RFID include the unauthorized reading of tags, data breaches, and tracking of individuals without their consent. Mitigation measures include using encryption, limiting access to data, and implementing policies and procedures to protect against unauthorized access.

  6. How do I Integrate RFID Technology with other Systems and Software like ERP or WMS?

    Integrating RFID technology with other systems and software involves mapping data from the RFID system to the existing system and ensuring compatibility. This can be done through APIs, middleware, or custom software development.

  7. What are the Common Challenges Associated with Using RFID, and How can I Overcome Them?

    Common challenges associated with using RFID include tag placement, interference from other radio signals, and data accuracy. These challenges can be overcome through careful planning, testing, and optimization of the RFID system.

0 Comment
Inline Feedbacks
View all comments