Streamline your supply chain operations with Lowry Solutions. Catch live demos, meet us at Modex 2024!

What is RFID And How RFID Readers Actually Work?

By now, you’ve surely heard the buzz surrounding radio frequency identification, or RFID. Supply chain businesses around the world are using it to improve their productivity and increase the return on their investments. However, many companies are still unsure about RFID systems in general. They’re wondering what technology they include and how they will actually work in their warehouse or distribution center.

If you or your co-workers have wondered these same things, Lowry is here to help and explain. Follow this guide to find out what RFID is, what it does and how it can benefit you. A good managed it services firm should also be able to identify if you need an RFID solution for your business.

What is RFID technology, exactly?

RFID is a method of data collection that involves automatically identifying objects through low-power radio waves. Data is sent and received with a system consisting of RFID tags, an antenna, an RFID reader, and a transceiver.

How does RFID work?

Like barcode technology, RFID Scanner recognizes locations and identification of tagged items — but instead of reading laser light reflections from printed barcode labels, it leverages low-power radio frequencies to collect and store data. In a warehouse or distribution center, RFID technology is used to automate data collection. The transceiver reads radio frequencies and transmits them to an RFID tag. The identification information is then transmitted from a tiny computer chip embedded in the tag and broadcasted to the RFID reader.

Here are a few of RFID’s helpful features and functions:

    • Tags can trigger alarms when moved
    • Communication between readers and tags is not contingent upon orientation
    • Data can be automatically read and stored
    • Tags can carry unique or standardized product codes
    • Items can be individually labeled, but read in mass
    • Tag data is compatible with WMS and ERP systems
    • Tags are difficult to reproduce/counterfeit

What are RFID tags and smart labels?

RFID tags are small electronic devices that use radio waves to transmit data to an RFID reader. They consist of an antenna and a microchip, which stores information about the tagged item. There are two main types of RFID tags:

1. Active RFID Tags

Equipped with their power source, these tags can transmit signals over longer distances and store more data. They are ideal for high-value assets and real-time tracking.

2. Passive RFID Tags

These tags do not have a power source and rely on the RFID reader’s energy to operate. They are cost-effective and suitable for applications requiring shorter read ranges.

What Are Smart Labels?

Smart labels combine RFID technology with traditional labeling methods, such as barcodes or QR codes. They integrate an RFID chip with a printed label, allowing for electronic and visual data reading. Smart labels can be used for various purposes, including:

  • Product Information: Integrating comprehensive product details into the label, which can be accessed electronically for easy retrieval and updates.
  • Anti-Counterfeiting: Implementing security features within the label to confirm authenticity and deter tampering.
  • Environmental Conditions: Embedding sensors within the label to track and record environmental factors such as temperature and humidity.

What Different Types of RFID Systems Are Available?

RFID systems operate across various frequency bands, including low-frequency (LF), high-frequency (HF/NFC), and ultra-high-frequency (UHF). Each frequency band has distinct characteristics that influence its suitability for different applications.

RFID Frequencies

Frequency refers to the wave size used to communicate between the RFID components. The systems are divided into low, high, and ultra-high frequencies, each offering different benefits and limitations:

1. Low-frequency (LF)

Operates within 30 to 300 kHz range, with most LF RFID systems using 125 or 134 kHz frequencies. LF RFID offers a short read range of approximately 10 cm and slower read speeds but excels in resisting external interference. It is typically used in applications such as access control and animal tracking. However, LF RFID lacks global standardization, resulting in frequency and reading power variations.

2. High-frequency (HF)

Ranges from 3 MHz to 30 MHz, with most HF RFID systems using 13.56 MHz. These systems offer reading ranges between 10 cm and 1 meter and are moderately affected by interference. HF RFID is frequently used for ticketing, payments, and data transfer applications. Standards include ISO 15693 for object traceability and ISO/IEC 14443 for smart cards.

3. Ultra-high-frequency (UHF)

Spans from 300 MHz to 3 GHz, with RAIN RFID systems operating between 860 MHz and 960 MHz. UHF RFID systems provide long read ranges (up to 12 meters), fast data transmission, and are sensitive to interference. Recent technological advances have improved performance in challenging environments with metals and liquids. UHF RFID is widely used in inventory management, medication identification, and other applications. The UHF standard is regulated by EPC Global Gen2 (ISO 1800-63).

Passive and Active RFID Systems

Each RFID system and frequency band serves specific needs, making it important to choose the one that best aligns with your application requirements.

  • Passive RFID Systems:

These do not have their power source and rely on the energy emitted by the RFID reader to operate. Passive RFID systems are typically used in LF and HF frequencies and offer lower costs but limited range and functionality.

  • Active RFID Systems:

Equipped with their power source, usually batteries, active RFID tags can transmit signals over longer distances (more than 100 meters). These systems often operate in the UHF frequency band and are suited for tracking large objects or assets in extensive areas.

  • Semi-Active RFID Systems:

Also known as Battery-Assisted Passive (BAP) tags, these use a battery to power the tag’s electronics but rely on the reader for data transmission. BAP tags balance passive and active systems, providing enhanced performance with moderate range and cost.

Exploring RFID Applications and Use Cases Across Industries

RFID technology is versatile and can be applied across various industries to enhance efficiency, accuracy, and automation. Here are some prominent applications and use cases:

  • Healthcare Applications
  • Pet and Livestock Monitoring
  • Asset and Equipment Management
  • Inventory Supervision
  • Cargo and Supply Chain Management
  • Inventory Oversight
  • Vehicle Monitoring
  • Customer Support and Loss Prevention
  • Security Access Control
  • Shipping Management
  • Contactless Credit Card Payments
  • Manufacturing Operations
  • Retail Transactions
  • Enhanced Supply Chain Visibility and Distribution

What is the difference between RFID Scanner and barcode technology?

Barcode and RFID share similar functionalities, but they have one distinct difference: human intervention, or “line of sight.” This refers to the distance between the operator of the data collection device (barcode scanner or RFID reader) and the labeled or tagged item — in other words, whether or not they are close enough to the item to see it.

To get a good barcode read, operators must position their handheld scanner within the line of sight of the item. To collect data using RFID technology, operators are not as limited — they simply need to be within the range of the tag. This means that employees can collect data for any item within the read range without physically moving from shelf to shelf. This also means that more than one item can be read at once. For those reasons, many companies are looking to RFID to add even more value to their operations.

Feature RFID Scanner Barcode Technology
Technology Uses radio waves to transmit data Uses visible light (laser) to scan printed barcodes
Read Range Can read from several meters away Requires proximity (typically within a few inches)
Read Speed Fast read speed, can read multiple tags simultaneously Slower, reads one barcode at a time
Line of Sight Does not require line of sight Requires direct line of sight for scanning
Durability More durable, can withstand harsh environments Less durable, can be damaged by dirt or wear
Data Capacity Can store more data (multiple data blocks) Limited to a small amount of data (encoded in the barcode)
Cost Generally higher cost (tags and readers) Lower cost (labels and scanners)
Tagging Tags can be reused, can be active or passive Labels are usually single-use, need to be reprinted for updates
Update Capability Tags can be rewritten with new data Data encoded in the barcode is static and cannot be updated without reprinting
Read Multiple Items Can read multiple RFID tags simultaneously Can only read one barcode at a time, though some systems can scan multiple barcodes in succession
Privacy Concerns Can be more challenging to ensure privacy, especially with active tags that broadcast signals Generally less of a privacy issue since barcodes need to be scanned to be read

What are the benefits of using RFID?

With RFID, supply chain businesses can track the movement of their inventory items and assets. By eliminating labor-intensive inventory tracking processes that require human intervention and increasing visibility of your items and assets, RFID can help businesses cut costs related to manufacturing, distribution, inventory management, and asset tracking.

RFID automates your data collection process so that your employees can eliminate time-consuming procedures and spend more time on what’s important: customer service, shipping, and picking.

An automated data collection system — especially one that does not require human intervention — improves speed and accuracy so that employees can get more done in a shorter amount of time (and get it done right the first time). Because of this, RFID allows businesses to decrease their labor costs. And with improved accuracy, businesses can also increase their throughput, and therefore reduce their inventory carrying costs as well.

Not to mention, improved accuracy can yield even more benefits. When shipments arrive on time and in the right quantities, customers are bound to be more satisfied with your service.

Ensuring RFID Security and Privacy: Key Challenges and Best Practices

Addressing security and privacy concerns is crucial as RFID systems become increasingly integral to various operations. Here’s an overview of key issues and best practices:

  • Data Interception: RFID data transmitted over radio waves can be intercepted if not encrypted. Use strong encryption methods to secure data during transmission.
  • Unauthorized Access: RFID tags and readers can be vulnerable to cloning or unauthorized access. Implement robust authentication protocols and secure access controls to prevent misuse.
  • Data Integrity: Unauthorized modifications to RFID tag data can disrupt processes or falsify information. Use read-only tags where feasible, apply secure writing techniques, and conduct regular data audits.
  • Privacy Concerns: RFID tags can track individuals or items without their knowledge. Implement policies to limit tracking and inform individuals about RFID usage.
  • Physical Tampering: RFID tags can be tampered with or damaged. To protect against physical breaches, use tamper-resistant tags and secure enclosures.
  • Countermeasures and Best Practices:
    • Encryption: Employ strong encryption for data transmission.
    • Authentication: Use multi-factor authentication and secure access controls.
    • Data Integrity: Utilize read-only tags and secure writing protocols.
    • Privacy Policies: Develop policies to inform individuals about RFID technology and its purpose.
    • Regular Audits: Perform regular security audits and vulnerability assessments.

If you have any other questions, please contact an expert at Lowry Solutions. We’d be happy to help!

Frequently Asked Questions

An RFID system comprises three key components: RFID tags, which hold the information about the object being tracked; an RFID reader, which collects data from the tags; and an antenna, which enables communication between the tags and the reader. These elements work together to ensure the smooth identification and tracking of objects.

RFID offers several advantages in supply chain management, including improved inventory accuracy, reduced labor costs, enhanced visibility of assets in real-time, and faster processes like receiving, sorting, and shipping. It also helps minimize errors, optimize stock levels, and prevent losses due to theft or misplacement.

While RFID tags offer numerous benefits, they are not completely immune to counterfeiting. Modern RFID systems can include advanced security features like encryption and authentication measures to make counterfeiting more challenging. Additionally, organizations can implement anti-tampering mechanisms to safeguard the integrity of the information stored on the tags.

RFID typically offers a much longer read range than barcode scanners. Barcodes must be scanned from a close distance, usually a few inches away. In contrast, RFID systems can read multiple tags from several meters away without requiring direct line-of-sight.

Although RFID is highly effective, it does have some limitations. The initial cost of implementation can be high, and environmental factors such as metal or liquid can interfere with signal transmission. Privacy concerns and data security issues are also challenges, as unauthorized individuals might gain access to or alter the data on RFID tags.

RFID technology offers significant advantages across various industries, such as retail, manufacturing, healthcare, logistics, and transportation. It is beneficial for businesses that need real-time tracking of inventory, assets, or shipments or for those aiming to enhance supply chain efficiency.

Latest Blogs

Active RFID In Container Tracking
Improve Logistics Operations with Active RFID for Container Tracking
RFID in Transportation & Logistics
How RFID is Revolutionizing the Future of Transportation and Logistics
RFID Tags
How RFID Tags Streamline Your Inventory Tracking & Management