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
How Can Manufacturers Reduce Incoming Quality Risks When Supplier Quality Is Unstable?
Supplier quality directly affects production stability, delivery performance, and customer satisfaction. Learn how supplier qualification, incoming inspection, performance monitoring, and collaborative improvement help manufacturers reduce quality risks before materials reach the production line.
Headline
Knowledge
Why Do Quality Issues Keep Recurring? The Real Problem May Be That Corrective Actions Never Reached the Shop Floor
Corrective actions only create value when they become part of daily operations. Learn how root cause analysis, CAPA, standardized work, and continuous improvement help manufacturers prevent recurring quality issues and strengthen long-term quality performance.
Headline
Knowledge
Why Do Operational Differences Persist Even After Standardizing Production Processes?
Creating SOPs is only the first step. Learn how standardized work, effective shop floor management, continuous training, and ongoing improvement help manufacturers achieve consistent quality, productivity, and operational excellence.
Headline
Knowledge
How Does Excessive Changeover Time Affect Capacity and Delivery Performance?
Long changeover times reduce equipment utilization and delay production. Learn how manufacturers can apply SMED, standardized work, and lean principles to shorten setup time, increase capacity, and improve on-time delivery.
Headline
Knowledge
Vane Pump Cartridge Kit Maintenance: A Practical Pump Rebuild Guide for OEM Service Teams
For OEM service teams and distributors, knowing when a hydraulic vane pump may be rebuilt with a vane pump cartridge kit rather than replaced outright can help reduce repair cost and equipment downtime.
Headline
Knowledge
Popping Boba Technology: The Encapsulation Science Behind the Trend
The performance of popping boba depends on encapsulation chemistry: the gel membrane has to deliver the intended bite while remaining compatible with the product's storage, filling, and processing conditions.
Headline
Knowledge
Standard vs. Custom Coil Winding Machines: When Do You Need a Bespoke Turnkey Solution?
From Standalone Machines to Automated Lines: Understanding the Timing and Benefits of Custom Winding Solutions
Headline
Knowledge
A Comprehensive Guide to Industrial Power Factor Correction: Reducing Energy Costs and Penalties
Electricity costs in industrial operations are influenced by more than just total energy consumption.
Headline
Knowledge
Retrofitting vs. Replacing: When Should You Upgrade a Legacy Rubber Calendering Machine?
How to Determine Whether Your Legacy Calender Still Supports Safe, Consistent, and Cost-Effective Production
Headline
Knowledge
How to Choose the Right CNC Cylindrical Grinder: A Precision Buyer’s Guide
Choose for Proven Part Performance, Not the Biggest Specification or Lowest Price
Headline
Knowledge
How CNC Swiss Lathes Revolutionize Medical Device Manufacturing
CNC Swiss-type lathes deliver the precision and production efficiency medical components demand.
Headline
Knowledge
How Can Digital Twins Help Manufacturers Optimize Production Processes and Equipment Management?
How Digital Twin Technology Improves Production Efficiency, Predictive Maintenance, and Smart Factory Management
Agree