Published September 2004

Keep track of your inventory with RFID tags

By Lionel Contreras
Guest Columnist

It’s likely you’ve heard of Radio Frequency Identification, or RFID, one of the fastest growing new business technologies. But have you considered what it could do for your business?

Using RFID allows a wide variety of applications, such as warehouse employees using RF transceivers to “read and write” shipments tagged with imbedded RFID tags, or using the chip to track and store information along with the equipment.

What’s the difference between barcodes and RFID? Barcodes are passive. You need to have visual — and at times physical — contact with a barcode label to read fixed data. An RFID tag can store and transmit modifiable data and can be hidden out of sight.

An “active” RF chip contains a small battery, which allows it to store and transmit a fair amount of data. A “passive” chip is powered by a transceiver and can hold a unique identification, with each chip being more limited then an active chip. An “active” chip can broadcast up to 300 feet away, compared to a passive chip’s 30-foot range.

Governmental contractors and large corporations have swapped over to the new system because of its powerful ability to prevent inventory shrinkage and to produce exact inventory counts, allowing for smoother, just-in-time deliveries.

By using RFID to track products or parts from storage to the floor and out the door, as well as calculating changes in inventory totals, businesses know exactly what to order, when and how much at any given time.

When a company has multiple facilities, adding RF transaction information to a computer database ensures knowing up to the minute where certain items are in the network of storage centers. Also, the use of RFID tags allows companies to operate in real time with detailed information, which speeds up orders and deliveries, since RFID tags make it easy to automatically route shipments to their destinations with detailed information attached.

There is good news for the smaller guy. As RFID takes off, the tags themselves are dropping in price — to as low as 25 cents per chip, depending on quantity. This makes the smaller company’s operations compatible with the larger network and supply lines.

Along with the supply-chain benefits of using RFID tags, the technology can be a boon to your small-business operation, whether it’s a production outfit with a large inventory, or a bricks-and-mortar retail outlet.

There are more advantages to using RFID systems than simplifying inventory and reading unseen tags inside packages or crates. For instance, they’re very useful for a business that needs to handle items that need inspections or where there are critical quality-control documentation issues.

To take a step into the world of RFID tags and transceivers — and get more detailed information about how it can fit your business procedures — go to www.rfidjournal.com. You will find a comprehensive list of suppliers and consultants that can help you get up to speed on the latest equipment.

Lionel Contreras is an information systems technician with The Herald.

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