Benefits of radio frequency identification

Benefits of Radio Frequency Identification (RFID)

RFID has been useful in the following areas:

  • Animal tagging
  • Road toll collection
  • Postal tracking
  • Airline baggage management
  • Vehicle immobilizers and alarms
  • Manufacturing companies
  • Hands Free -RFID makes automatic reads, as a result of this accuracy increases and also labor is reduce, you do not need to start carrying it anywhere you move in your store, it will automatically detect and read the tagged items.

    Line of Sight -It uses radio signal, unlike bar codes, RFID will not require line of sight, and it has been proved that RFID can still count an item in a grocery bag. You do not need to be near the items before it will be detected and read, even though there is obstacle blocking the items, it will still detect it.

    Read Rate -Unlike bar codes, RFID can read several hundred items per second depending on its configuration. You do not need to bother about how you track thousands of items in your store again as RFID can read them in just milli-seconds.

    Implantable -It is Implantable mostly in animal; this feature enables farmers to monitor thousands of heads of cattle and the Zoologists to monitor the movements of fish, birds, etc. It is also understood that it can be implanted in human beings.

    Traceability -When you use RFID, the tagged items creates its own history, for example lost items, expire medicine and any item of inventory may be traced to its last know location. If an item is taken away or stolen, it can create the time, date this incident happened

    Improved Productivity and Cost Avoidance -When using RFID to identify items, it is less work when compared to barcode. Also the cost of identifying items by RFID is less than barcode.

    Reduced Rework -Due to the accuracy of scanned result, errors will be drastically reduced as well as the issue of retrying will no longer is needed. The issue of rescanning the items often is reduced as one scan will give the expected result without any error be recorded.

    Reduced Business Risk & Control of Assets -Better audit and asset control are sure in when you use RFID to tag items. Assets can be located easily because of RFID ability to track trace items in better way.

    Improved Security and Service -Security is increased due to the ability that RFID has to validate information relating to an item. Counterfeiting and fraud are prevented due to the ability that RFID has to authenticate information.

    Improved Utilization of Resources -Planning can be improved from the information gathered from the scanning done by RFID; this could lead to time saving also assets being utilized better.

    Increased Revenues -Revenue is increase with the help of RFID because the issue of being out of stock will be drastically reduced, it will be able to detect when an items are no more in the store, and this will at the end lead to more sales. Customers always feel disappointed when they come to buy an item and found that the item is not available, they may be tempted to go to your competitor but with the help of RFID you will be aware immediately that one item has finished and you can easily buy another one.

    Exception Management -With RFID in place decision taking on goods will be made easy, you will be able to know what decision to take on some certain goods scanned by RFID; this will also keep the Manager at alert on what to say in the management meetings.

    Reduce warehouse and distribution labor costs -The stress used to label and track pallets, cartons and other items by individual will be drastically eliminated because you do not to go near the items again with RFID in place, it can read and scan and at the time give you the result, the problem of bringing an inventory checker every time will also be eliminated and that saves for the company.

    Reduce inventory -The issue of taking inventory all the time will be reduced because RFID scanning will always give you accurate result of what is the store and what has gone out or even tell you the missing items.

    Improve forecasting and planning -In business without proper planning, your business will always be in danger, because RFID tracking ability is accurate, you will be able to know what are you being supplied and what you need in the days to come, this is possible because of a well tracked inventory done by RFID.

    Reduce theft -Theft will be drastically reduced because every item have been tagged, once it's taken out the store, RFID can trigger an alarm, detecting then location the item is at that moment. This is one of the most feature of RFID, both internal and external theft will no longer be there again, your goods will remain as you packed them in the store without someone taking any of them out.

    Reduce out-of stock conditions -Due to proper tracking and inventory, the issue of stock not being available will be a thing of past, it can alert the staff once the last item leaves the shelf and staff can take action immediately. It is not always good when a company is always saying they are out of stock, which will make the customers not have confidence on the company again.

    Asset Tracking -This is one of the most benefits of RFID, it can be able to track lost and stolen item no matter the distance.

    Payment Systems -It can be used for payment as we can see in the area of road toll.


    1. Antony Dan (2010) Benefits of Using RFID [Online] Available from (Accessed: 23 April 2010)

    2. Pisello Tom (2005) Benefits of RFID [Online] Available from,295208,sid63_gci1153220,00.html (Accessed: 23 April 2010)

    3. RFID Centre (2010) RFID Business Benefits [Online] Available from (Accessed: 23 April 2010)

Please be aware that the free essay that you were just reading was not written by us. This essay, and all of the others available to view on the website, were provided to us by students in exchange for services that we offer. This relationship helps our students to get an even better deal while also contributing to the biggest free essay resource in the UK!