RFID Labels What Do I Need To Know For Products

Posted by Hridoy Ahmed on November 25th, 2020

RFID labels, I hear the term but what does it mean and should I be thinking of using it for my business? RFID is radio frequency identification. Every product is identified somehow. A sign, a label, a barcode label, and an RFID label are all different ways to identify a product. Which one should I choose? If I own a lemonade stand chances are I'll make a sign to describe what's in the pitcher. If I manufacture gum, chances are that my label will have words to tell the consumer what it is, and a bar code for the cash register scanner to identify the product and price. RFID uses radio frequencies to transmit data to a reader which captures the data. The reader takes the digital information and downloads it to its computer so the data may be used and interpreted.

RFID tags or labels contain a microchip that can store about 2KB of data. This allows you to store more than just it's SKU and price. You can store other important information like which manufacturing plant it comes from, the date it was manufactured, and expiration date to name a few. why do we want to capture this information in this way? Business today is about profit, streamlining, and being the most productive you can be. If we can capture this data instantly then we can analyze it and make the right decisions quicker and more accurately. If we can reduce manual operations, we increase efficiency and reduce the chance for human errors, either by careless mistakes or wrong assumptions.

This sounds like a great system so why isn't everybody using it? It's not because it's a new technology because it isn't. Why change now? It has been around since at least the '70s and was primarily used in the army. The reason it hasn't become the accepted norm is the cost. The readers alone can cost 00.00 each and the labels themselves are considerably more expensive than bar code labels. Without mass acceptance and technological advancements, this technology was not thought of as a viable alternative.

Why change now? Basically, it comes down to one word, Walmart. Walmart has grown into such a huge company that to manage its logistics and supply chain it has become essential to be the most efficient and streamlined as possible. Walmart feels that this technology will help it control its inventory and procurement costs, thereby increasing it's profitability. It has thus dictated that it's top 50 suppliers start using this technology. This one decision has changed the evolution of RFID labels. Money is now being spent to increase RFID reliability and lower the cost for it's use. We now have second-generation RFID label which are cheaper, more powerful, and more reliable than the first generation. Like personal computers, this product should become more powerful and cheaper as time goes on. Other mass retailers are jumping on the RFID bandwagon not wanting to be left behind and be at a competitive disadvantage.