Introduction to RFID Tags: The Significance of RFID in Modern Retail Supply Chains
Knowledge

Introduction to RFID Tags: The Significance of RFID in Modern Retail Supply Chains

There are two types of RFID systems: passive and active. For those unfamiliar with RFID, you may be curious about the distinctions between these types and which one suits your application best. In the following, we offer a brief explanation.
Published: Nov 17, 2023
Introduction to RFID Tags: The Significance of RFID in Modern Retail Supply Chains

What is RFID tag?

RFID tags are a form of tracking system utilizing smart barcodes to identify items. RFID, an abbreviation for "radio frequency identification," employs radio frequency technology. These radio waves transmit data from the tag to a reader, which then relays the information to an RFID computer program. While commonly used for merchandise, RFID tags also find applications in tracking vehicles, pets, and patients with Alzheimer’s disease. An RFID tag may also be referred to as an RFID chip.

Active RFID vs. Passive RFID

Passive RFID systems utilize tags without an internal power source, drawing power from the electromagnetic energy transmitted by an RFID reader. These tags are employed in applications such as access control, file tracking, race timing, supply chain management, and smart labels. The lower cost per tag makes passive RFID systems economically viable for various industries.

Active RFID systems use battery-powered RFID tags continuously broadcasting their own signal. Frequently employed as "beacons" to accurately track real-time asset locations or in high-speed environments like tolling, active tags offer a longer read range but come at a higher cost.

The Role of RFID in New Retail Supply Chains

The evolution of new retail trends globally, particularly in China, is driving the adoption of cutting-edge technologies. RFID, with its ability to encode digital data in tags or smart labels, is gaining significance. Initially hindered by cost concerns and a lack of global standards, RFID is now finding its place in the new retail sector. As accuracy in data and inventory planning becomes crucial in omnichannel retailing, RFID's technical characteristics make it suitable for these demands.

Retail plays a pivotal role in propelling the RFID industry's growth, representing around 10% of the 15 billion ultra-high frequency RFID tags globally. RFID is increasingly addressing challenges in retail supply chains related to visibility and accuracy. The technology enables an interactive in-store experience, offering details on products and facilitating automated checkout. By optimizing distribution and sales procedures through RFID and big data analysis, the retail sector is enhancing customer experiences.

RFID is particularly valuable for the younger demographic, providing detailed and trackable information about product provenance. While QR codes are considered alternatives to RFID, both technologies can coexist, with RFID optimizing supply chains and QR codes enhancing consumer interaction.

In addition to retail, technology applications are expanding to the smart home industry, hospitals, and education as part of the broader Internet of Things trend.

Published by Nov 17, 2023 Source: atlasrfidstore Source: camcode Source: technode

Further reading

You might also be interested in ...

Headline
Knowledge
Custom Molded Rubber Selection Guide: EPDM, Silicone, NBR, or Viton?
Material selection is one of the most important decisions in custom molded rubber parts manufacturing.
Headline
Knowledge
Beyond Door Count: What Inputs, Outputs and Network Protocols Change in Access Control Panels
A practical guide to the specifications that determine monitoring, control, integration and security.
Headline
Knowledge
Circular Economy Creates New Opportunities: How Manufacturers Can Build Sustainable Competitiveness
Discover how circular economy strategies help manufacturers reduce costs, improve resource efficiency, strengthen ESG performance, and create long-term competitive advantages through sustainable manufacturing.
Headline
Knowledge
CBAM Takes Effect: How Manufacturers Can Address New Carbon Management Challenges
Learn how manufacturers can prepare for CBAM through carbon accounting, ESG strategies, digital carbon management, and low-carbon manufacturing to remain competitive in global supply chains.
Headline
Knowledge
Why Fresh-Produce Packaging Needs Gentler Infeed and Sealing Than Rigid Consumer Goods
How product fragility, moisture, irregular shapes, and respiration change packaging-line design
Headline
Knowledge
How Can Small and Medium-Sized Manufacturers Adopt Smart Manufacturing on a Limited Budget?
Smart manufacturing doesn't require a large budget. Discover how SMEs can improve production efficiency, strengthen digital capabilities, and build a scalable smart factory through affordable digital tools and process optimization.
Headline
Knowledge
Why Does Your Equipment Keep Breaking Down? The Key to Preventive Maintenance
Unexpected equipment failures can disrupt production and increase costs. Learn how preventive maintenance, equipment monitoring, and data-driven maintenance strategies help manufacturers improve reliability and maximize operational efficiency.
Headline
Knowledge
Quality Problems Are Prevented in the Process—Not Found Through Inspection
Quality is built into the manufacturing process—not achieved through final inspection. Learn how process control, standardized operations, and real-time monitoring help manufacturers prevent defects and improve production quality.
Headline
Knowledge
Why Is Your Factory Busier but Not More Profitable?
A busy factory doesn't always mean higher profits. Discover how manufacturers can improve profitability by reducing hidden costs, optimizing production processes, and increasing operational efficiency.
Headline
Knowledge
Beyond the Basics of NSF/ANSI 61: The Hidden Compliance Risks in Sourcing Plumbing Components
Many plumbing projects already screen for lead-free requirements, but that is only part of the compliance picture. When a component is intended for drinking water systems, NSF/ANSI 61 raises a more difficult question: does every water-contact material in the finished assembly remain within the approved compliance scope?
Headline
Knowledge
I Global Supply Chain Reshaping: How Manufacturers Can Build More Resilient Supply Chains
Discover how manufacturers can strengthen supply chain resilience through diversification, digital transformation, AI, and smarter risk management strategies.
Headline
Knowledge
Smart Factory Investment Boom: Key Considerations Before Implementation
Learn the key technologies, investment considerations, implementation challenges, and best practices for building a successful smart factory.
Agree