RFID.
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I’m sure they’ll be thrilled to know that daddy is watching their every movement on a radar screen while they're out on their first date.
What is RFID?
Radio Frequency Identification has been in existence for almost 50 years. This technology automatically identifies an object (or my friend’s daughters), by attaching a small transponder called RFID tags. These tags will contain a small antenna and a microchip. The microchip contains volumes of information about the object (or person) it’s attached to.
These tags should not be confused with barcodes. The most common barcodes are those black & white stickers we see on items in stores. They usually have several lines of varying thickness with a series of numbers underneath.
The advantage RFID tags have over barcodes is that the scanning device doesn’t have to be directly in line of sight. Standard barcodes only identify the product and manufacturer; not the history of the unique item. And example of this would be a package of cheese. A standard barcode would reveal product information, but not the expiration date.
The cost of a barcode is certainly cheaper than a tag.
The process of reading an RFID tag’s data is simple. And don’t worry, you don’t need lead pants. A device known as a reader or interrogator, reads the data off the microchip through radio waves. The data is transmitted to a computer.
There are two types of tags:
Passive : This tag does not have its own power source. Energy is activated when the microchip receives radio waves from the reader. Once the chip is powered up, data is transmitted. Basic passive tags cost between 20 cents to a few dollars.
Active : These tags use an embedded battery source to transmit data. The tags cost over $20 each and can broadcast data 300 feet or more.
In a supply chain environment, RFID tags are placed on pallets or cases of goods. Readers can be attached to forklifts allowing full pallets to be inventoried in seconds, and at warehouse entrances.
The fun you can have with RFID is endless: Retail, CPG, defense, aerospace, manufacturing, chemicals, geology, security, clothing, transportation & healthcare.
The applications are only limited by the ACLU and cost benefit analysis. We’ll stick with asset tracking and supply chain.
The EPC is the future of radio frequency identification. This unique number adheres to a global standard which identifies the manufacturer, brand, product type, unit of measure, etc. This specific number known as the GTIN (Global Trade Item Number), will track an individual item.
Inventory and Logistics Management : Major department store such as Target and Wal-Mart require their suppliers to provide RFID tags that identify goods at the pallet and case levels.
Retailers can inventory pallets of merchandise without breaking the load apart and scanning each case. Other visions of grandeur include: an instant inventory of an entire warehouse and as consumer products leave the shelves…..a restocking / reordering signal is transmitted.
Larger RFID readers are commonly used to track shipping containers, tractor / trailers and railroad cars. A goal is to provide real-time updates to customers who are having goods shipped from around the world.
Warranty and Service : Information about a product’s warranty, purchase authentication, and serial number can all be identified via the tag. When a service center receives a damaged laptop they can instantly figure out date of manufacture, history of repair and warranty coverage.
Manufacturing: RFID can ensure proper routing of components and raw materials during workflow. Work-in-process, just in time manufacturing can all be tracked when materials are identified with serial numbers.
Most companies use RFID in a closed-loop scenario. That is, the tracking of goods all happens within a company’s control. Aside from cost issues, there are technology compatibility issues when it comes to two different companies tracking goods between them.
When a firm tracks goods within its own four walls, it can reuse the tags. But once a pallet of goods is shipped to a customer, the likelihood of getting all the sensors back in the mail….is slim. In this case, the tags have to be cheap.
A common question about tags is, “Can they be read from a satellite?” Passive tags, the kind used on consumer products can only be read from a range of 20 feet. So, if you buy a tube of toothpaste, the government will not be able to track you home.
Active tags can be tracked by satellite; as long as there is minimal radio frequency noise and the signal is powerful enough. These tags are used on cargo containers and large assets.
On a side note, I believe large RFID companies will make good investments. You have a technology that spans several industries & the government; has proven cost benefits and provides competitive advantages. And to top it off, potential applications haven’t even been used yet.
Consumer privacy groups are vehemently opposed to “chipping”. Their case is, all your personal data can be accessed by anyone with a reader. My feeling is, as long as they don’t have my ATM card number, who cares.
I mean, how much information about your life can really be stored on the head of a pin. Someday we may find out. Or not………
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