Radio frequency identification, RFID is a method of tagging products that helps in various business processes like inventory tracking, sales checkout, asset tracking, loss prevention and stock management.
Until now, RFID and technology is considered to be the domain of mainly large businesses. However, since the cost is the only restricting factor for small businesses, the potential for small businesses to use this technology is growing with the passage of time because the overall cost is coming down.
In order to use radio frequency identification, RFID, smart tags are fixed to individual products or to the pallets of merchandise. These tags are capable of absorbing and reflecting radio waves that can be read by an RFID scanner.
The nature of this technology allows a huge range of information to be stored on the tag such as the date of manufacture, date of shipment, price, contents and much much more.
One of the sought-after features of radio frequency identification, RFID is that it allows for a completely automated checkout in stores.
Using the magnetic tag on the various products RFID scanner can scan an entire cartload without the need to scan each different product during checkout. Customers can simply walk past the scanner and have their total ready for payment. Similarly, when RFID tagged merchandise is received by a business from the supplier, they can be easily scanned in bulk and the information automatically updated in the inventory tracking software. This is of great use for larger retail stores.
This technology is becoming so popular that large retailers like target and Walmart and even government agencies like the Department of Defense require RFID tagged merchandise from the suppliers.