The Benefits of an RFID Tag
Radio frequency identification (RFID) technology is becoming increasingly popular, thanks to a multitude of applications. From tracking a marathon’s top runners to managing medical equipment, the possibilities seem endless.
RFID systems consist of a tag, reader and communication infrastructure. Each one has its own costs and benefits. But how do you know which is best for your business?
Benefits
An RFID tag can be placed on a variety of items and has the capability to provide information on each item individually. This allows businesses to identify and correct any issue with receiving, storing or shipping goods such as incorrect items loaded onto a pallet or a wrong shipment sent to a customer. This level of stock visibility can help reduce costly errors, resulting in higher profit margins.
Unlike barcodes, RFID tags don’t need direct line of sight to be read. This reduces labor requirements and increases accuracy by allowing employees to focus on more productive tasks. Using handheld wands/readers, retailers can scan entire areas in seconds and automatically feed vital inventory information to an ERP or WMS. This can help reduce stock outs and ensure that customers receive the correct items on time.
The technology also helps to prevent theft or fraud in stores by making it easier to track the origin of returned merchandise. By tracing an individual item back to its original point of sale, it’s possible to identify and prosecute dishonest shoppers who return items they’ve stolen.
RFID is also used to streamline and automate the process of goods reception, eliminating human error and allowing workers to move around a warehouse more quickly and efficiently. In addition, a robust RFID system can eliminate the need for manual data logging and product replenishment, further reducing operational costs.
Applications
Many different industries use RFID technology. These applications range from tracking inventory to providing a more accurate picture of supply chains. RFID can help track temperature and movement, which can be especially useful for pharmaceuticals or other sensitive products that need to be stored at a certain temperature. RFID Tag It can also assist with stock-picking by locating specific items in a warehouse, or even allowing a drone to locate them.
Passive RFID tags don’t need a power source to work. They’re simply activated when radio waves at a specific frequency are detected by the tag. These signals induce an electrical current in the chip, which then transmits a signal to the reader. There are both fixed and mobile readers that can capture RFID tag data, including some with GPS capabilities. There are also readers that combine an antenna and transceiver into handheld devices, like smartphones or tablets.
RFID solutions can also help companies reduce costs by identifying and preventing equipment failures before they happen. For example, the auto industry replaces lost reusable packaging at a cost of $750 million per year, while job site theft costs Construction companies $1 billion annually. RFID can also help businesses improve sales and inventory accuracy, which may lead to better customer satisfaction.
Cost
The cost of using an RFID Tag varies significantly depending on the application, but the overall ROI can be significant. One benefit is reduced labor costs. RFID eliminates many time-consuming manual processes such as inventory check-in, counting, and shipment verification. This saves on the labor costs associated with these tasks, which can account for 50-80% of distribution center costs. However, the initial costs of implementing an RFID system must be considered as well.
The largest up-front cost is the purchase of RFID readers and tags. These devices can range from a handheld reader to a fixed, desktop model. Some models provide the ability to communicate with the RFID tags through a network connection, which can reduce the overall expense.
Other up-front costs include smart card manufacturer the installation of readers and antennas, as well as the cost of a database to store RFID data. Moreover, there are recurring expenses such as printer ribbons and software licenses that must be taken into account.
The cost of RFID tags can vary from 7 to 15 cents each, depending on the type and amount of memory on the chip, its packaging (whether encased in plastic or embedded into labels) and additional features like a sensor. In addition, RFID tags can be passive or active. Passive tags require a reader to activate them, while active tags have their own power source and transmitter to transmit signals on demand.
Technology
The system uses radio waves to identify objects and transmit data to a computer for processing. The tags are equipped with a small microchip and an antenna to receive and transmit signals. The reader, which is like the brain of the system, sends a signal to the antenna, which then emits radio frequency waves. When these waves reach the RFID tag, they activate the chip, which translates the signals into data and transmits it to the reader. The reader then transforms the information and can integrate it into any type of database or ERP system.
The technology has a variety of applications, including inventory management, access control, and animal tracking. It can also be used in payment systems, such as transit fare payment cards or electronic toll collection. Moreover, it can also be used to automate goods reception, saving employees time and increasing productivity.
The RFID system is more reliable than barcodes and can be used in a variety of environments. It can function in dirty or dusty conditions and is less likely to be damaged by electromagnetic interference (EMI), which could harm sensitive equipment such as medical devices. Additionally, RFID tags can be read at a distance and do not need to be within direct line of sight. This makes it possible to identify a product without needing to open its packaging or even remove it from its container.