RFID technology emerged in the 1940s, but people started using Radio Frequency Identification (RFID) more widely in the 1970s.
Lower RFID hardware costs have led to wider RFID adoption in many industries. This revolutionary identification system now plays a significant role in modern product tracking, inventory management, logistics, and supply chain visibility.

Radio Frequency Identification uses electromagnetic fields to automatically identify, and track RFID tags attached to objects. The system becomes powerful when combined with Electronic Product Code (EPC), a 96-bit code electronically encoded in RFID tags. This combination helps identify various trade products, from retail items to food products. EPC standards act as a unique identifier that lets objects be tracked individually across complex global systems, boosting supply chain management efficiency

RFID tag technology affects the entire digital supply chain. Active RFID tags provide longer read ranges than passive RFID tags because of their stronger power source. Passive tags need no internal power source and are more affordable. They typically cost between $0.10 to $0.50 per tag. These affordable solutions have reshaped how retailers manage inventory accuracy, create product authentication tags, and deliver better customer experiences.

This piece covers the surprising capabilities of RFID system, its core components, EPC’s vital role in product tracking, real-life applications in various industries, and the challenges that still need solutions.

Understanding RFID Technology and Its Core Components

Radio Frequency Identification (RFID) is a wireless communication system that uses electromagnetic or electrostatic coupling to identify objects, animals, or people uniquely. This technology lets you track and identify items automatically without needing a direct line of sight, unlike traditional barcodes.

What is RFID? A Simple Definition

RFID technology helps track products, assets, people, and animals automatically. The system uses radio waves through electromagnetic coupling to enable communication between devices. You can monitor goods remotely and learn about their status, inventory levels, and condition, improving overall supply chain automation

How Does RFID Technology Work in Practice?

An RFID system needs three main components to work: a scanning antenna, a transceiver, and a transponder. The middleware software combines the data smoothly and connects with enterprise systems.

The RFID reader sends radio signals through its antenna to activate nearby tags. Passive RFID tags use this electromagnetic field as their power source. The activated tag sends data back to the reader, which then processes and forwards this information to a host system. This simple process helps identify tagged items uniquely and automatically.

RFID Tags: Active vs Passive vs Semi-Passive

RFID tags come in three main types:

1. Active Tags: These tags have their own power source, usually batteries that last 2-5 years. They can transmit signals up to 100+ meters away and work independently.
2. Passive Tags: These tags work without an internal power source by using the reader’s radio waves. Though they work only up to 20 meters, they’re cheaper, costing as little as $0.08 per tag.
3. Semi-Passive Tags: Also known as battery-assisted passive tags, they use batteries to power the chip but need the reader for communication. This design works better while keeping costs reasonable.

RFID Frequencies: LF, HF, UHF, and Microwave Explained

RFID systems work in four main frequency ranges:

• Low Frequency (LF RFID): These systems work at 30-300 KHz (usually 125 KHz) and can read up to 10 cm away. LF RFID works well with liquids and metals, making it perfect for access control and animal tracking.
• High Frequency (HF RFID): Working at 13.56 MHz, these systems can read between 10 cm and 1 meter. Libraries, public transport, and inventory tracking systems often use HF RFID.
• Ultra-High Frequency (UHF RFID): These systems operate at 300 MHz-3 GHz and can read items up to 12 meters away or more. Supply chain management and retail inventory systems rely heavily on UHF RFID.
• Microwave RFID: Systems above 3 GHz offer long-range reading and fast data transfer, making them ideal for toll collection.

The Role of EPC in RFID-Based Product Tracking

Modern RFID-based tracking systems rely heavily on the Electronic Product Code (EPC). This revolutionary system provides a universal identifier for every physical object across global supply chains system. Companies and brands can now track products, pallet tracking, carton tracking, and serialization in ways that were impossible before.

What is EPC and Why It Matters

The Electronic Product Code stands as a universal identifier that gives unique identity to physical objects, assets, and locations in the supply chain.
MIT’s Auto-ID Center created this technology, and GS1 standards have managed to keep it running smoothly since then. The system has boosted supply chain efficiencies by creating near-perfect visibility. Products can now communicate directly with inventory systems, which cuts down human error in inventory management from manual data entry. Readers placed throughout facilities automatically record the movement of goods from production lines to consumers.

EPC Structure: Header, Filter, Partition, and Serial Number

The EPC uses a well-laid-out structure with several key components:

• Header: Identifies the EPC version number and encoding scheme
• Filter Value: Indicates packaging level (pallet, case, item)
• Partition: Defines boundaries between fields
• Company Prefix: Identifies the manufacturer (20-40 bits)
• Item Reference: Identifies product type
• Serial Number: Provides unique identification for individual items

This EPC structured system gives global uniqueness to entities of all types.

EPC Memory Banks in UHF RFID Tags

UHF RFID tags store the EPC in their EPC memory bank (MB01), which contains serialized identification keys. The memory bank features a minimum of 96 bits of writable memory and typically encodes up to 24 hexadecimal characters.
GS1 standards let users either reversibly lock the EPC memory with password-protected future changes or permalock it to prevent any modifications.

EPCglobal Network: EPCIS, ONS, and ALE (Application Level Events)

Several components work together to boost EPC functionality in the EPCglobal Network. EPCIS (EPC Information Services) captures event data about tags: what, when, where, and why.
The ONS (Object Name Service) works like DNS by resolving EPCs to network addresses.
ALE (Application Level Events) then filters raw data into meaningful business events. This setup effectively separates applications from physical infrastructure.

Real-World Applications of RFID in Product Tracking

RFID technology brings clear benefits to businesses of all sizes through better tracking and smoother operations. And these benefits create measurable value in many different sectors.

RFID in Retail: Boosts Inventory Accuracy and Shrinkage Reduction

RFID technology helps retailers boost their inventory accuracy from 65-75% to 93-99%. Big names like Walmart, Zara, and Tesco now use RFID systems to improve logistics management and keep better track of stock

and avoid running out of products. The system cuts inventory-related work hours by 10-15% and lets staff check stock levels without manual counting. This technology helps curb theft, which costs US retailers over $112 billion each year.

RFID in Pharmaceuticals: Serialization and Compliance

Drug companies need RFID to meet Drug Supply Chain Security Act (DSCSA compliance) standards.

Pfizer led the way by putting RFID tags on Viagra shipments to stop counterfeiting. The technology makes pharmaceutical tracking better with product authentication and faster scanning – it reads 800 tags per second compared to 1-2 seconds for each barcode. During the pandemic, RFID in Pharmaceuticals helped track COVID vaccines’ lot numbers, doses, expiration dates, and locations.

RFID in Logistics: Enables Pallet and Carton Tracking

RFID tracking at the pallet level changes how logistics works by showing the whole supply chain clearly. Companies can track inventory with 99% accuracy and cut misplaced items by half. Staff can scan multiple RFID in Logistics tags at once without needing to see them, which speeds up loading and shipping.

Products that need specific temperatures stay safe with RFID tags for cold chain monitoring that have sensors to check storage conditions as they happen.

RFID in Healthcare: Improves Asset and Equipment Management

Hospitals use RFID to find critical equipment faster and avoid unnecessary rentals. Staff can track important items like infusion pumps, heart monitors, and surgical tools. RFID in Healthcare wristbands also makes patient identification safer and reduces medication mistakes. One hospital saved “hundreds of thousands of pounds and thousands of hours of nurses’ time” by using RFID in Healthcare.

RFID Standards: Security, Privacy, and Technical Challenges

RFID systems offer many benefits, but some technical challenges still affect how well they work and how many people adopt them.

RFID Systems: Reader and Tag Collision Issues

Multiple tags that respond to a reader’s query at once create RFID label collision. This causes signal interference and stops proper data decoding.

This problem takes place especially with dense tag environments like warehouses and retail stores. The same goes for reader collision – overlapping signals from multiple RFID readers corrupt data and make readings less accurate.

These issues lead to wrong inventory counts and unhappy customers in retail stores.

RFID Systems: Data Privacy Concerns in Consumer Applications

Privacy challenges are a major concern with RFID technology.
Someone could track you through tagged items without your knowledge.
Your collected data might end up being used for targeted ads, surveillance, or identity theft if proper controls aren’t in place.
Companies that use RFID need to follow privacy laws like GDPR and CCPA. Consumer privacy stays protected through security measures like encryption, authentication protocols, and turning off tags after purchase.

RFID Systems: Encryption Limitations in Low-Power RFID Tags

Power limits on RFID tags make security features hard to implement.
Passive tags must collect enough power to run encryption, with only 20 μW available for security tasks. These tags usually work with just 250-3000 logic gates for security.
Lightweight encryption methods like Salsa20 improve cybersecurity and show promise – they use 82.4% less power than AES while keeping security intact.

RFID Standards: ISO, IEC, and EPCglobal Guidelines

Standards groups created frameworks to handle security and compatibility issues. EPC global released Gen2v2 protocol in 2013 to boost data security and privacy protection. Equipment from different manufacturers works together because of these standards, which helps grow the RFID ecosystem.
The EPC Gen2 protocol uses anti-collision systems based on slotted ALOHA protocol. This allows readers and tags to communicate in an organized way.

RFID Technology in Product Tracking & Supply Chain Management: the New Era

RFID technology has changed product tracking in industries of all types since becoming mainstream in the 1970s. RFID technology has transformed supply chain management, product authentication, and digital supply chain visibility. This wireless identification system works through electromagnetic fields to track objects automatically without needing line-of-sight scanning.

Active, passive, and semi-passive tags each serve different application needs. Active tags work at longer ranges but cost more. Passive tags are affordable for short-range applications. The various frequency options (LF, HF, UHF, and Microwave) let businesses pick the right RFID solution that matches their needs.

Electronic Product Code forms the foundation of modern RFID systems. It gives unique identifiers to physical objects in global supply chains. This standard approach works universally and improves visibility a lot while cutting down human error.

Ground applications show RFID’s value clearly. Retailers now have inventory accuracy rates of 93-99%. Pharmaceutical companies meet their compliance requirements easily. Logistics operations can see their entire supply chain. Healthcare facilities track important equipment better.
These improvements lead to real cost savings and better operations.

RFID Adoption faces some challenges too. Reader and tag collisions can affect system performance in crowded spaces. Companies need proper security measures to handle data privacy concerns. Low-power tags’ encryption limits create technical hurdles that researchers are working to solve.

RFID technology will blend more into business operations as costs drop, and technical issues get fixed. Organizations like ISO, IEC, and EPC global standards keep developing better standards. Their work improves how systems work together and stay secure. This makes RFID a valuable tool for product tracking and supply chain management in today’s digital world.

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