Radio Frequency Identification is a technology that has no self-value but it creates valuable applications for companies. Internet is a perfect example of an enabling technology. Just as internet enables companies to sell, communicate, educate, and distribute various products, RFID helps companies to work out various things. Bear in mind that RFID helps in identification of projects and people. RFID does not require any human hand in its work since it can read tags even when a tag does not face the antennae of the reader.
The information that has been read can be transmitted in real time to computers. In fact, when a tag is read three things are passed to the computer system: the time of reading the tag, reader’s ID, and the tag ID. Companies have the ability to know where products are located if they know where the readers are.
One of the prevalent uses of RFID is asset tracking. Any lost assets, stolen, and underutilized can have tags so as to locate them anytime they are needed. Any type of RFID can play the role of asset tracking. For instance, a third party provides logistics services to its clients needed to have its containers tracked at California’s Long Beach. The company chose a tracking system that works real time, and the technology utilizes RFID beacons to locate containers within 10 feet.
Manufacturing plants have applied the RFID technology for over a decade in tracking parts, reducing defects, and manage production of dissimilar versions of same products. A company called Johnson Controls supplies car and truck interiors. The company supplies dashboards, seats, and other components to various automakers that need the components. In order to be effective the deliveries of the car and truck seats, Johnson Controls mounted a 13.56 MHz system. This system has so far recorded 99.9% accuracy.
Supply Chain Management
For several years, RFID technology has been instrumental in closed loop supply chains as well as automating the supply chain of a company. A distribution facility belonging to Procter & Gamble Company applied a 13.56 MHz to decrease shipping errors, augment throughput, and reduce labor costs.
Some of the retailers that are at the forefront in adoption of RFID technology are Metro, Wal-Mart, Best Buy, and Target. The aforementioned retailers focus their attention to enhancing efficiency in their supply chain. Moreover, they focus their attention on making sure that consumers get the products when they need them. Metro based in Germany and Tesco from the United Kingdom have done proper research to see whether RFID tags can be used in reduction of out of stocks. Potential applications that are talked about mostly are the ability to computerize the processes of checking out and the ability to reward consumers who enter into loyalty programs.
RFID is applied in the supply chain world mostly, but its application has been prominent in payment mechanisms. RFID has prevalently been applied in paying for road tolls without stopping anywhere. Several countries have used the RFID technology especially quick service restaurants in paying for meals sometimes through special windows.