Radio
Frequency Identification (RFID) technology has moved from obscurity into
mainstream applications that help speed the handling of manufactured goods and
materials. RFID enables identification from a distance, and unlike earlier
bar-code technology, it does so without requiring a line of sight. RFID tags
support a larger set of unique IDs than bar codes and can incorporate additional
data such as manufacturer, product type and even measure environmental factors
such as temperature. Furthermore, RFID systems can discern many different tags located
in the same general area without human assistance. In contrast, consider a
supermarket checkout counter, where you must orient each bar-coded item toward
a reader before scanning it. So why has it taken over 50 years for this
technology to become mainstream? The primary reason is cost. For electronic
identification technologies to compete with the rock-bottom pricing of printed
symbols, they must either be equally low-cost or provide enough added values
for an organization to recover the cost elsewhere. RFID isn't as cheap as
traditional labeling technologies, but it does offer added value and is now at
a critical price point that could enable its large-scale adoption for managing
consumer retail goods (Want, 2006).
RFID uses wireless
communication in radio frequency bands to transmit data from very small tags
that can be attached to or embedded in things such as ID cards, bracelets,
pallets, products, clothing, vehicles, livestock, and even people. RFID
technology can therefore be used to track personal behavior through objects
that individuals wear, use, touch, carry or hold (Eecke & Skouma, 2005).
Using RFID tags in pallets and cartons to facilitate
consignment, distribution and inventory management does not raise major privacy
issues (Mark, 2004). However, where tags are related to individual products,
there are legitimate privacy and security concerns. These will have to address
if RFID is going to find the same widespread acceptance as bar codes. As with
many new technologies there is potential for great benefit and misuse,
particularly in supply chain management. But before we see widespread adoption of RFID, tag prices will have to fall
significantly, clear benefits will have to be demonstrated and consumers will
embrace the technology (Roberts, 2006).