The advancement of technology in supply chains has only added in getting the latter smarter by the day. Supply chains across the world, every day, need to ensure that their processes are devoid of issues related to material flow disruption, quality, data visibility, and integrity to name a few. RFID as a technology holds the power to handle such disruptions and much more.
Since its first commercial use as a security tag in 1966, RFID (Radio-frequency identification) has continued to make significant performance shifts across supply chains of different industries. RFID is known to be an advanced version of Barcodes and displays faster and efficient results. Unlike barcodes, RFID tags can be read from anywhere in their electromagnetic field range along with the capacity to read multiple tags at one time. This not only promotes higher read rates but also reduces human intervention significantly, making them error-free.
Typically, businesses use any one of the two types of RFID tags, namely Active RFID and Passive RFID tags. Active RFID tags require a power source and have a higher implementation cost. Passive RFID tags, on the other hand, rely on power sources within external RFID tag readers. Passive RFID tags are therefore read when a product is sold, leaves or enters a store, or moves through other connected “read points.” In a properly controlled situation, like a store, passive RFID can increase the visibility without the expensive costs of an active RFID tag.