RFID Technology: Types, Similar Technologies, Limitations, Use Cases and Implementation

RFID technology uses radio frequency signal to recognize and track tags attached with any object. This article explains the types of RFID tags, RFID systems, similar technologies like NFC and barcode, limitations of RFID, and use cases of RFID implementation in various industries. It also provides a detailed implementation guide for retail businesses.

Introduction
RFID stands for Radio Frequency Identification. As the name suggests, it uses radio frequency signal (or
electromagnetic fields) to automatically recognize and track tags attached with any object. These tags
store information electronically. History of RFID goes back to WWII where forces used similar technology
to identify if the plane was of enemy or their own. In 1973, Mario Cardullo patented and demonstrated
a passive radio transponder with 16-bit memory which can be used as toll device.
Technology
“RFID system is typically divided into two parts: a tag and an interrogator or reader. A typical RFID
system is explained in below figure, Tag or label consists of a microchip which stores and process
information and an antenna to send/receive signals. To access information on the tag, reader or
interrogator is used. Reader makes a two-way communication with tag by sending signals through an
antenna. The tag in return sends information it has. This information from tag via reader reaches to RFID
computer program.
(EPC-RFID, 2019)
Types of tag
1. “Passive tag: cheapest and simplest form of tag. It has only a microchip and an antenna and
needs RF energy from reader to get activated.
2. Active tag: an active tag also has battery along with microchip and antenna. It periodically sends
its identity for a reader to catch.
3. Battery assisted passive (BAP) tag: like active tag with a difference that it gets activated only in
presence of an RFID reader.

Also, tag can be of read-only or read/write configuration. Former having one-time factory fitted
information and later can be customized by the user.
Types of RFID System
RFID systems are generally classified on the basis of tag-reader combination. Following are the three
main combinations,
1. Passive reader active tag (PRAT): Here we have active tag clubbed with passive reader. The
range of information exchange between tag and reader is in the range of 0-600 meters. This is
one of the most flexible RFID configuration.
2. Active Reader Passive Tag (ARPT): Tag here is passive and is activated by the radio signal of an
active reader.
3. Active Reader Active Tag (ARAT): It is the combination of an active tag and active
reader/interrogator. Both in this case are battery powered.
(MakeUseOf, 2019)
Similar technologies
“It would be interesting to talk about two similar technologies here NFC and barcode. Near-field
communication (NFC) is built on RFC principles. NFC works in both direction; when two objects with NFC
support are brought near, they can send receive information sequentially. NFC is common these days on
smart phones, tablets, and speakers. I can also be used to do file transfer with data speed of around 424
Kbps. Passive NFC tags are used in retail sector to help customer to make payment for the goods they
bought using digital wallet on their smart phones. Goods with passive NFC tags when tapped in on
specified area of smart phone, results information exchange followed by payment through e-wallet of
the customer.
(Logoinfosoft.com, 2019)
Barcode on the other hand has again got similarities with RFID: both can track objects, are means of
collecting data and data in both the technologies can be retrieved by using hand-held or stationary
scanner. But then, barcodes and RFID are two different technologies and have some fundamental
differences as stated below,
 Barcodes can only be scanned one-by-one but RFID tags can be scanned in bulk.
 Barcodes can have much less data stored as compared to RFID tags.
 Line of sight is mandatory for scanning barcodes whereas it is not so for RFID tags.
 Barcodes are easily damaged as they are printed on paper or adhesive labels. On the other
hand, RFID tags are much stable and durable because its casing.
Limitations
“RFID has many advantages but it is not without limitations. Some of the main limitations RFID suffers
from, is listed below,

1. High cost: RFID system is quite expensive when compared with barcodes. The reader only costs
in the range of few cents (low end passive tags) to tens of dollars (high range active tags). This
means huge disadvantage for somebody who is looking for upfront cost benefit. But it is indeed
not the case if we consider long term gains. The efficiency and optimization RFID provides to a
business case is much more than any of the low cost solutions.
2. Collision: When RFID interrogator tries to read several tags at a time then we can have a case of
signal collision resulting into data loss. The situation is particularly concerning at it raises
question on the accuracy of the RFID system. As a solution there are many anti-collision
algorithms which are available which help in reducing overall read time and in turn maximizing
number of RFID tags which can be read at a time. But these features are mostly patented and
comes at extra price.
3. Security and privacy Issues: RFID uses radio frequencies to work. It is not very difficult by
somebody who is unauthorized, to tap or hack the information and misuse it for some other
purpose. It basically leads to risk of losing privacy and personal data. There are many forums in
world opposing RFID technology for the same reason. However, situation can be improved by
using encryption techniques to avoid unauthorized interception of RFID information.
(Pdfs.semanticscholar.org, 2019)
Use cases
Let us talk about some of the use cases of RFID implementation and how it helped the business. Here
are some examples which will highlight the value of RFID implementation,
1. “China International Marine Containers (CIMC) is a leading worldwide supplier of shipping
containers. They implemented passive RFID tags on their containers, which resulted in better
tracking of consignments. The project has cost of $128K resulting into annual saving of $126K.
The saving happened because of reduction in consignment losses, wrong deliveries, and better
use of storage yard.
(Journal, 2019)
2. “Apparel company C&A implemented RFID in its French outlets and after the observation period
of three years, decided to roll it out on its German branches as well. As per the company
officials, RFID implementation resulted in substantial customer satisfaction. RIFD tag is attached
on all their garments, resulting into better inventory management, lower out of stock situations
and effort savings for employees while managing inventories.
(ChiefExecutive.net, 2019)
3. “Taiwan government for its Kaohsiung port, the largest port in country, decided to use RFID seal
on transshipment containers (amounting to 45% of the total containers). The move was basically
to contain smuggling cases while movement of these containers from yard to port. The new
system saved inspection time, and escort fee for liner companies.
(Tsai and Huang, 2012)
4. “Passive RFID solution was used for tracking serial number of experimental seeds. This
information was for use of U.S. Department of Agriculture (USDA). Earlier this was an exercise
full of delay and manual mistakes. The implementation resulted into a reporting accuracy of

100% with much less time to complete the exercise.
(Barcoding, Inc., 2019)
5. Amazon Go store uses RFID technology to give unique shopping experience to its customers.
Customer here just take items off the shelf and leave. Money deduction and receipt generation
happens automatically using customer’s amazon account.
(Shopify, 2019)
Implementation in detail
“We will take retail as a case and see in what all ways RFID implementation can add value to the
business,
Inventory management
 Inventory accuracy: managing retail inventory is very manual, and effort taking exercise.
Researches have shown that that with 3% increase in inventory accuracy one can achieve 1%
increase in sales. With RFID, one can target up to 98% of inventory accuracy.
 Managing Supply: As RFID doesn’t require line of sight operations, supplies to the store can be
quickly and efficiently accounted for.
 Locating an item: with RFID fitted tags it is very simple to locate an item. The system works very
similar like a metal detector, that is, the increasing beep sound will lead one to the exact
location of the missing item.
Store operations
 Online orders: People these days use options such as buy online and pick from store and directly
order from store. In such cases, the store must ensure that its inventory is functioning in the
best possible manner which is very easy to do by using RFID technology.
 Managing different combinations on the floor: A store has variety of combinations, like a jeans
pant with matching shirt. RFID makes it very easy to notify support staff if particular
combination has exhausted or running low in volume.
 Employee control: RFID can help in great deal in tracking movement of the employees and
regulate things accordingly.
Checkout
 No queue: With RFIDs it is possible to avoid hassle of standing in queue for making payment for
purchased goods. This results in positive customer experience.
 Theft detection: Items with RFID based tags are extremely difficult to be stolen. Since RFID
doesn’t need line of sight operation, a suitably placed reader at the exit will easily notify when
somebody tries to ship any item without payment.
(Slalom, 2019)

Conclusion
As explained in above discussion RFID has enormous potential and benefit for the society, people and
industries. The technology has potential to transform areas ranging from manufacturing, to healthcare,
retail and much more. However, it is not without limitations like, high cost and security concerns. RFID is
still evolving and we will see many more use cases in future. The future of RFID is here, so both end
users and RFID manufacturers should be prepared to leverage these new technologies and ready
themselves for more widespread use of RFID
References
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[Accessed 4 Oct. 2019].
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[Accessed 4 Oct. 2019].
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