Introduction

In todays fast moving environment, security is the key factor for all industries including
government sectors.

Government focuses more on development of advance security process while other industries
invest more on automation processes. Barcode system is the most common adopted by most
industries but it has its own limitations such as 1) distance restriction 2) Data Restriction. RFID
also known as Radio Frequency Identification was introduced to improve the productivity of
inventory and to order monitoring.

The main concern from the public was due to its non-privacy nature as the technology can used
applied to movement.

What is RFID?
RFID also known as Radio Frequency identification is a technology that does not involves contact
identification. It can be recognize the target whether in the form of object, human or animal
without any labor involvement. It can perform in fast moving environment with high
performance.

Being a simple wireless system, reader and tags forms the basic components. Monitoring in
terms of control, detect and tracking are the features of the system.

What are the basic components of RFID?

Tag: Consisting of microchip, and each tag has a unique electronic code, attached to identify the
target or an object.

Reader: Read and also can be write information. The device tag information, and can be
designed for handheld or fixed.

Antenna: RFID signal transfer between the tag and reader.

How does a RFID system works.

RFID is a simple technology which does not involve any complexity. Radio frequency from the
passive tag in the magnetic field, by virtual of the energy induced current obtained sends out
product information. Reader processes the information by decoding and sent data to central
information system.

Reader and Tag transponder forms a complete RFID system. Specification, test results, end-
user documentation, maintenance records forms the components of application software
system.
RFID VS Barcode
Compare with the traditional barcode identification technology, RFID has the following
advantage:

(1) Quick Scan RFID identifier simultaneously read multiple RFID tags and barcode only
can be read manually and one at a time.
(2) Small size and shape of diversification In the RFID read information is not limited to
the size and shape, so do not need to be read with accuracy and a fixed size and print
quality of paper. In addition, RFID tags can be more compact and to develop diverse
forms, in order to apply to different products.
(3) Can be reused Barcode after printing up cannot be changed, RFID tags can be repeat
to add, modify and delete data stored in the RFID tags to facilitate updating of
information.
(4) Large memory capacity of the data Capacity of a one-dimensional bar code is 50Bytes,
the largest storage capacity for storing a two-dimensional barcode 2-3000 characters,
RFID is the maximum capacity of a few MegaBytes. With the development of memory
support, data capacity also has a growing trend. The amount of data needed to carry
future articles will become increasingly large, the label can expand capacity.
(5) Security Since RFID is carrying electronic information, the data content via a password-
protected, so that its contents cannot easily be forget and altered.
Limitations of RFID
(1) The effect of metal and liquid environments for radio frequency identification RFID UHF
(UHF) tag by electromagnetic backscatter characteristics of metals and liquids sensitive
environment, can lead to this kind of work frequency passive tags is difficult to work in
an environment with an object or liquid metal surface, but such problems with the
development of technology has been fully resolved.

(2) Due to the risk of using RFID tags without direct contact with the transceiver, users will
unknowingly be reading the information stored in the tag others, pose a security
concern.

Wal-Mart
Wal-Mart projected a cost savings of 8.35 billion dollars by converting their manual process to
automation. RFID known as Radio-Frequency Identification was introduced to Wal-Mart in 2003.
Through the automation process, manual process such as manual view of bar code is replaced;
staff headcount has been reduced, thus contributing to labor cost reduction.

Others like human errors were also reduced, theft prevention is strengthened and inventory
efficiency has been increased as well.

Assessment of the technologys prospect for success in the

marketplace
Competitive advantages remain the core objectives of many companies. To attain this objective,
many organizations have been focusing in Effective Supply Chain (SCM). The aim is to maximize
all functions and activities involved in the value chain.

Efficient supply chain technology solution is a must especially when supply chain networks
become more mature and complex. RFID is the introduced technology that applies radio waves
to uniquely track items ranging from objects to human and animals. With this capacity and given
its real-time identification, it has indeed provided efficiency thus providing greater collaboration
capabilities.

Conclusion

RFID technology is still in a development stage, but its potential growth and prospects will go
beyond what is forseen.
In the IT environment, acquisition and processing are very attractive. To be a fast, efficient and
accurate provider of information in the near future, RFID technology will need to be in line with
other technology which can improve our lives.

Publicity efforts should be implemented to promote its popularity so that it can improve our
efficiency and economic benefits.

In contrast, I still think for the management of RFID application and standardization work will
need to catch up. Otherwise many manufacturers their own ways, creating a fait accompli, and
then unified management will be very difficult. Now RFID international standard has not yet
been completed. Only some of the industries standards will bring certain difficulties to
standardization. But from a strategic point of view, this problem is increasingly urgent.