Radio frequency identification technology (RFID) is a revolutionizing method of remotely tracking, storing and retrieving data from so called RFID tags. An RFID tag is a small object which can be attached to virtually any type of packaged product.
Usually it is an adhesive sticker that has a computer chip and an antenna, which transmits data from the tag to the read/write device, or interrogator tuned to the same frequency as the tag antenna.Of course, the main field of RFID technology application is the supply chain management environment. And its introduction brings both benefits and disadvantages to retailers and distributors using RFID tags on the different segments of supply chain. The main positive impact concerning a pull based supply chain is that RFID tags gradually started to replace a UPC (Universal Product Code) or EAN bar-codes, having a number of important advantages over the older bar-code technology.RFID codes are long enough so that every RFID tag may have a unique code, while UPC codes are limited to a single code for all types of a particular product.
A RFID tag code uniqueness provides individual tracking of rhe product as it moves throughout the supply chain, finally ending up in the consumer's hands. This enables companies to avoid theft and other forms of product loss. There are some more reasons why the bar-code replacement with RFID tags should eventually happen.There are two types of RFID tags.
An active tag uses its own battery power to contact the interrogator, but it has a quite large size while passive tag does not require a battery, but it works over less greater distance than active tags. A passive tag derives its power from the electromagnetic field created by the signal from the RFID interrogator. This generates enough power for the tag to respond to the reader with its information.In contrast to the barcode, RFID tags can be read from a larger distance and unlike optical barcode scanners, the RFID chip can be read from a reading device not in its line of sight. While a barcode needs to scan products one at a time, an RFID reader can read hundreds of chips in a moment, speeding up the loading and delivery processes in the supply chain.On the other hand, the use of RFID technology has created considerable controversy felt on the supply chain management environment.
Most concerns revolve around the fact that RFID tags attached to products remain functional even after the products have been purchased, and thus can be used for surveillance, and other purposes unrelated to their supply chain inventory functions. Although RFID tags are only officially intended for short-distance use, they can be interrogated for nefarious reasons from greater distances by anyone with a high-gain antenna.Even short range scanning is a concern if all the items detected are logged in a database every time a person passes a read/write device. Even after disposal, an item can leak unexpected information about a person if it has permanent RFID serial numbers. Thus, while RFID technology provides some considerable benefits to the pull based supply chain management, (individual tracking, instant reading etc. ) the same benefits can turn into problems outside as well as inside the supply chain.
