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RFID (radio frequency identification) chips or tags as they are better known are the size of the smallest coin in your purse, but they can hold huge amounts of information that can be manipulated in methods that can do fantastic things.

For instance, RFID tags are in most office identity tags and in a few passports, allowing the holder to pass through security quickly while keeping the building or the country secure.

They are a modern version of the bar code. Remember before bar codes and bar code readers? When a shop assistant had to key prices into the cash register, correct errors and look up prices that they could not remember? People do not have any time for that anymore.

It is OK at the newsagents, but picture a teenager typing in your two trolleys of weekly shopping at the superstore every Saturday. You would still be there on Sunday! Supermarkets have thousands of articles and dozens of special offers - no-one could remember that lot.

No-one could, but bar codes make it straightforward and so do RFID tags. Bar codes work well, but they have to be seen to be read. RFID tags send out their information on a unique frequency which can be read out of line of sight. In other words, an RFID scanner does not need to be able to see the tag to read it.

The scanner can see what is in your trolley without you having to unload it and as you pass by that scanner and pay for your things, they are deducted from stock straight away so that the warehouse manger can see what people are buying and what nobody wants to buy. So, if one brand of cat food is selling better than another, the manager will see that on the computer print-out and buy more of that make, thus keeping more people happy.

This use of RFID in inventory control or asset management to give it its more official title, can translate itself into other uses too. An RFID tag can be placed under your cat’s fur or in its collar so that you can find him if he gets lost. The police and the wardens scan stray animals for a tag as part of their routine these days. Zoologists have been doing this with wild elephants, big cats and other endangered species for years. Now you can have it done with your pets also.

Company vehicles, as assets of the business, often carry RFID tags and you can have one placed in your car to aid recovery if it is stolen. Baggage handlers at airports or bus terminals can (and do) use them to avoid lost luggage.

The US government requires RFID tags be used on all vehicles carrying explosives or dangerous substances and have done for nearly ten years. The US military is in fact the principal user of these tags in the world. RFID tags are used to track military assets such as armaments, battle tanks, fuel, containers, guns, you name it.

Some people are anxious about RFID technology. Where is the line between their convenience and their personal information? For example, they do not like getting junk emails from people that have been able to trace the purchases they made with their credit cards.

Owen Jones, the author of this article writes on several topics, but is now concerned with the RFID asset tracking. If you would like to know more, please go to our website at Active RFID Management.

In order to illustrate how RFID tags can greatly sway the fortunes of a business for the better, we shall look at a theoretical case below. Let us take the example of a furniture maker that specializes in supplying furniture to a hotel chain.

This may sound like an example with no relevance to typical small businesses, but in fact, hotel chains are awfully choosy and have no loyalty, so if you can satisfy these people, you can please anyone.

The main requirements of the hotel chain are that orders are met and on time, the quality of the supplier’s goods has already been determined by means of compulsory ISO 9000 quality control and factory visits.

The hotel furniture manufacturer decides to introduce passive RFID tags to follow its items from the point of manufacture to the point of delivery, that is the hotel or its storage area.

Under previous conditions the producer had employed a few people to walk around with bar code readers and clip boards carrying out quality control and tracking the fulfillment of orders.

The problem was that the system was still subject to human error and items still went missing, which lead to management compensating by over manufacturing and over stocking ‘just in case’.

That is a common enough phenomenon., but the difficulties are multiplied when you think of all the separate items of furniture that are involved in a hotel room, bathroom or lobby and if they are kept in a 200,000 square foot warehouse. Items get lost, forklift drivers make errors, people forget to fill in inventory forms, get sick and take holidays.

In short, running a warehouse like this is a nightmare with too much stress on key employees. It sometimes leads to imperfect deliveries or worse, incomplete delivery tickets. Sometimes the order might be complete but the hotel would think it was not because the delivery ticket was incorrect.

If this company were to initiate RFID asset control they could affix an RFID tag to completed sticks of furniture. The tag would say where it is, what it is, whom it is for, when it has to be delivered and what else makes up part of the order. The tag is being read continuously by the warehouse’s RFID readers forewarning when orders are running late or are still incomplete.

Not only that but the tag can say what else has to be manufactured and whether the item itself has passed quality control. It can also tell you which defects someone has found with it. In short, instead of a couple of people walking around the warehouse hoping that they have covered everything, you could have radio sensors analysing every tag in a warehouse the size of a football pitch, reporting back to a central computer where the storehouse manager can have access to real time information, not just the state of affairs at close of business the previous day.

This should enhance the manager’s chance to manage, cut down on waste, ensure complete orders delivered on time and so higher levels of customer satisfaction, which should lead to more repeat orders.

Owen Jones, the author of this article writes on several topics, but is currently concerned with the RFID asset management. If you would like to know more, please go to our website at Active RFID Management.