Radio Frequency Identification (RFID) is a currently accessible technology that makes auto-identification of different objects possible. In other words, it is a system, also known as Auto-ID, that relies on the exchange of data without contact communication. As it comes from its name, the technology works on radio frequency, where electromagnetic waves serve as a data carrier. In general, the entire system consists of three components: transmitter, receiver, and software. RFID reader (receiver) sends a radio frequency signal to the transponder (transmitter) to receive feedback from it (Scherf 2019). RFID transmitter, also known as a tag, is a small computer chip with an antenna that is attached to the specific product. This technology has a broad scope of application in logistics and business because it helps to increase profits and improve operational efficiency.
In logistics, after building reliable information links, the next important step is to ensure a stable, full-fledged data flow. RFID technology is a superior solution that is able to show where shipped goods are at any time of the delivery process. Thus, it can provide reliable real-time information both for contractors and clients. O’Neale’s Transport Inc., a logistics management enterprise operating in St. Croix, US Virgin Islands, can successfully apply RFID technology and improve its performance. Potential advantages include a faster exchange of information, more rapid inventory tracking in comparison to barcodes. Individual identifiers can be put on unusual shipments, boxes instead of a single barcode for the class of products (Scherf 2019). The most crucial advantage is the continuous real-time update of the inventory management system. It allows managers to enter the fresh database created by faster scanning and inventory control and check how many products are delivered or stay in stock.
The main disadvantage of using RFID technology is that the cost of the system is higher than the price of a barcode-based accounting system. One reader could be bought for $3000, but the logistics company will need a network of them (Ray 2018). The system must be installed by experts who will then test the entire process. In terms of tags, every tag will cost 50 cents that would not propel the firm’s expenses. The software (real-time location system) requires the most significant costs concerning RFID implementation. Although the barcode system is cheap, RFID technology is the most superior and advanced solution in logistics at the moment.
Ray, B. (2018). . Air Finder. Web.
Scherf, J. (2019). . ETMM. Web.