Complete Guide of RFID: Definition, Types, How It Works, and Its Benefits

The implementation of RFID (Radio Frequency Identification) technology has been widely adopted by companies across various industries to simplify the process of inventory recording and stock management. RFID technology has become the solution to stock recording processes that were previously done manually.

In general, RFID devices are capable of identifying a large number of objects simultaneously using radio waves. Additionally, this technology can be integrated with other business software such as WMS, which helps improve the accuracy of inventory recording and warehouse stock management.

What is RFID?

RFID is a wireless technology device that has the ability to identify specific targets or objects, read, and input data through radio signals. An RFID device consists of two parts to operate: an RFID scanner and an RFID tag.

The RFID tag contains a chip that can store unique information. In practice, the tag is usually attached to the object to be monitored and counted using RFID. Meanwhile, the RFID scanner functions as the signal receiver from the RFID tag and transmits the received information to the system in use.

Types of RFID Tags

RFID tags are one of the key components of an RFID system because they are responsible for storing various information that will be read by the scanner. RFID tags come in several types, including:

1. Passive RFID Tags

Passive RFID tags do not have their own power source and will only activate when powered by the RFID scanner. The advantage of passive tags is their lower cost; however, they have limited read range and are less stable because they rely on the scanner's power.

2. Active RFID Tags

This type of RFID tag has its own power source, such as a battery, allowing the information to be transmitted to the scanner at a longer range and more stable compared to passive tags. The advantage of this type is its ability to transmit information over a longer distance, making it easier for users to read various objects in a room at once. However, in terms of cost, this tag is more expensive than the passive type.

3. Semi-active RFID Tags

Semi-active RFID tags combine the benefits of both active and passive RFID tags. These tags have their own power source that only activates within a specific frequency range from the RFID scanner. This allows for faster and longer-range data reading compared to passive tags, while consuming less power than active tags.

How RFID Technology Works

As previously explained, RFID devices can only function with two components: the RFID tag and the scanner. First, the tag must be attached to the object to be identified or read. The tag contains a chip capable of storing information along with an antenna to transmit the data via radio waves to the RFID scanner.

The way RFID works begins with the scanner sending an electromagnetic signal to the RFID tag. This signal activates the chip in the tag. Once the RFID tag chip is activated, the tag transmits its unique stored information to the scanner for reading or to update the tag’s information.

Second, the RFID scanner that receives the tag's information will send it to the system in use, such as a WMS. This system functions as the central hub for processing and storing all the information received from the RFID tags, such as recording or updating stock data in the WMS.

This identification process can be done remotely, depending on the signal quality of the RFID scanner and the type of tag used.

Benefits of RFID Implementation in Companies

RFID or Radio Frequency Identification is a wireless technology that uses radio waves to identify an object through an RFID tag attached to it. The use of RFID provides various benefits for companies in many industries, such as distribution, manufacturing, retail, and more. Here are some of the benefits of RFID implementation:

1. Optimized Stock Management

RFID technology helps companies increase control over warehouse activities through more accurate, efficient, and effective stock management. As a result, staff can search and manage the warehouse more optimally.

2. Full Asset Control

RFID is not only used as a stock tracking system but also helps companies manage all assets quickly and accurately. This will improve the company’s visibility over the resources needed for operations.

3. Improved Service Quality

In retail or distribution businesses, RFID implementation helps improve service quality by speeding up the order fulfillment process and ensuring accurate information is delivered to end users in real time. Moreover, companies can track consumer demand through transaction data connected to the WMS. This allows them to provide the right quantity of products based on market demand.

4. Enhanced Security

For companies, RFID can also serve as a security system by enabling real-time asset tracking and comprehensive visibility into warehouse operations.

Achieve Efficient and Accurate Warehouse Management with RFID Technology

RFID technology offers numerous benefits to business performance, especially in warehouse management. With this device, companies can automate warehouse management processes—from inbound stock, stock taking, to tracking all business assets. This way, companies will gain full visibility over their operations.

The improved accuracy and efficiency in warehouse management processes will certainly benefit businesses. By implementing RFID, companies not only gain better visibility but also enhance customer service through real-time updated information. This accurate data helps companies fulfill customer demand quickly and precisely.

To maximize the use of RFID and gain all its benefits, companies can also integrate this technology with software such as WMS. The function of software connected to RFID is to serve as a centralized hub for data management and storage.

As a startup provider of configurable WMS and RFID systems tailored to a company’s needs, Prieds Technology offers warehouse management solutions that operate effectively through the integration of hardware such as RFID devices with software. The wide range of features offered by Prieds WMS and Prieds DERAS RFID helps companies manage warehouse inventory and perform stock management accurately and efficiently within a single system.

You can learn more about RFID implementation and warehouse application integration through a consultation with the experts at Prieds. Get Prieds WMS and RFID solutions equipped with comprehensive features, top-level security, and ease of use tailored to your company’s specific needs.