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It's generally said that the history of RFID (Radio Frequency Identification) technology can be traced back to World War II. The Germans, Japanese, Americans and British were all using radar—which had been discovered in 1935 by Scottish physicist Sir Robert Alexander Watson-Watt—to warn of approaching planes while they were still miles away. The problem was there was no way to identify which planes belonged to the enemy and which were a country's own pilots returning from a mission.
The Germans discovered that if pilots rolled their planes as they returned to base, it would change the radio signal reflected back. This crude method alerted the radar crew on the ground that these were German planes and not Allied aircraft (this is, essentially, the first passive RFID system).
Since that time, the capabilities of Radio Frequency Identification have expanded exponentially. RFID technology has now been developed to the point where it can provide many types of businesses with precise information regarding the status of their valuable components and products. Such information can be utilized in terms of supply chain management, asset management, inventory control, as well as increasing safety and security. In addition, RFID technology has matured to the point where such systems can be implemented in a scalable and cost-effective manner, therefore ensuring significant return on our client's investment.
RFID can be explained in many ways, but one of the best explanations was provided by RFID Journal in Thomas Friedman's book The World is Flat:
"RFID is a generic term for technologies that use radio waves to automatically identify people or objects. There are several methods of identification, but the most common is to store a serial number that identifies a person or object, and perhaps other information, on a microchip that is attached to an antenna—the chip and the antenna together are called an RFID transponder or an RFID tag. The antenna enables the chip to transmit the identification information to a reader. The reader converts the radio waves reflected back from the RFID tag into digital information that can then be passed on to computers that can make use of it."
RFID technology will make organizations more effective by enabling real-time visibility of information regarding items in and out of the supply chain. Having more accurate and immediate information about the location of items, the history of items, and the number of items in their process will enable organizations to be more responsive to their customers and consumer needs through more efficient, customer-driven operations.
RFID enables manufacturers, distributors, and retailers to identify the exact location of their goods at any point in time. And better product visibility will enable the entire supply chain to be more focused on the end customer, producing and shipping goods based on demand and replenishing store shelves with products customers want to buy. Moreover, RFID technology can be effectively used to significantly reduce theft, loss, and time wasted trying to locate and account for valuable equipment
Performing a manual inventory process requires personnel to individually match tag ID's or serial numbers. This can be a very time consuming and prone to inaccuracies. Using barcodes speeds up the inventory process and makes it more accurate, but still requires each asset to be scanned individually. Many hand-held RFID readers for can read up to 20 tags or more simultaneously.
Both manual and barcode processes require that the tags be physically located and viewable. Another advantage of RFID is the ability to read tags that are not visible. Unlike barcodes and human readable tags that must be physically located and viewable to read, RFID tags do not need to be visible to be read. For example, tagging a PC up under a desk would require personnel to crawl up under the desk to physically locate and view the tag when using a manual or barcode process. Using an RFID tag would allow personnel to read the tag through the desk without even seeing it. There are some exceptions to this rule when metal and liquid are involved.
Physically inventorying and auditing assets can be a time consuming process that can pull valuable employees from their normal job responsibilities to participate in an inventory. In many cases these employees are over-qualified and over-paid for the task. At a minimum, pulling these personnel away from their responsibilities can affect the bottom line. Implementing an RFID solution can dramatically reduce the man-power required to keep track of your assets and provide better visibility.