As the name suggests, RFID devices (Radio Frequency Identification) are used to track identification and tracking of the person, tools, inventory or products by using radio waves. They compromise of interrogators (readers) and tags (label). These are small electronic devices consists of a small chip and antenna which help you to trail the person or products. These RFID devices serve the same purpose as bar code or magnetic strip at the back of your debit card.
Today a large number of offices and organizations such as warehouses, hospitals, automotive companies, Government are using RFID devices to track their goods and merchandise. Warehouses require RFID very often and it is important also because they transfer their merchandise everyday from one place to another. Hence, RFID devices are great aid to them. Government use these devices for maintaining traffic, the automotive companies require them for tracking product management. In some countries like Norway and Italy RFID payment system is equipped in all public toll roads.
It is a fast emerging technology which helps companies and business to have a complete business transparency. Today companies can easily locate its products, tools, inventory, and people and can optimize business processes. However, every technology has its own advantages and disadvantages, let us first discuss the merits of RFID devices.
RFID is indeed a great technology to track products and people. They are very beneficial for the armed forces, retailers, suppliers, firms and consumers. These RFID tags have the information on the products that can be accessed and read easily. These devices also help in reducing man-force, human errors and saves time spent in checking products. RFID devices are boon for the military forces and the army of many developed nations is saving a lot of money by using this system. By using this technology for communication and transportation, the Army is able to fix problem in a faster way.
RFID devices are great hit in retail companies as they improve their productivity and reduce labor cost. Companies which have a demanding supply chain can achieve a good advantage by using RFID technology. In shipping companies these devices can be used to view various components and calculate the time of each arrived piece of product.
RFID devices have made business world very easy and small as they have not only reduced their labor but also theft in the store and warehouse. The RFID technology is booming and many people are using it everyday without realizing the benefits that are receiving from it.
However, RFID devices have pitfalls as well. Companies like Wal-Mart and Target that are the large user of this technology face many issues. It has no proven infrastructure which makes difficult for the suppliers to meet the increasing demand of RFID devices by these companies. If the supplier is not able implement RFID devices into a business, then the retailers would not be able to view supply chain. The armed forces face a threat to their security from their enemies and terrorists. The tag contains complete product information which can pose a big risk. The enemies can get entire information by pulling off the tag which could lead to fatal consequences. The tag would give all the information regarding the flaws and strength of the armed forces and also provide enemies a view to attack on their weakest point.
A privacy issue is one of the biggest disadvantages of this technology. Other than this technological imperfections, cost of technology and no exact way to set up RFID system in a company are other pitfalls in RFID technology.
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