Advantages and Disadvantages of RFID Technology

RFID is an acronym for Radio Frequency Identification. This technology uses radio frequencies for the purpose of identification and tracking of assets, animals and traffic.

Architecture of RFID Technology
Similar to any communication device, RFID technology consists of transmitters and receivers in the form of RFID tags. These are microchips that have all the necessary information on them. The information is comprehended with the help of an RFID card reader. An antenna is also provided on the tags that helps in the transmission of the signal. Active and passive RFID tags are the two types of RFID tags that are generally used. The active RFID tags transfer the information directly to the reader without the use of an external battery or source, whereas, the passive tags require external power for functioning.

Advantages of RFID Technology

RFID technology has a number of advantages.

• RFID tags are very simple to install/inject inside the body of animals, thus helping to keep a track on them. This is useful in animal husbandry and on poultry farms. The installed RFID tags give information about the age, vaccinations and health of the animals.
• RFID technology is better than bar codes as it cannot be easily replicated and therefore, it increases the security of the product.
• Supply chain management forms the major part of retail business and RFID systems play a key role by managing updates of stocks, transportation and logistics of the product.
• Barcode scanners have repeatedly failed in providing security to gems and jeweleries in shops. But nowadays, RFID tags are placed inside jewelry items and an alarm is installed at the exit doors.
• The RFID tags can store data up to 2 KB whereas, the bar code has the ability to read just 10-12 digits.

Disadvantages of RFID Technology

The RFID technology, though very beneficial, is expensive to install. Small and medium scale enterprises find it costly to use it in their firms and offices.

• It is difficult for an RFID reader to read the information in case of RFID tags installed in liquids and metal products. The problem is that the liquid and metal surfaces tend to reflect the radio waves, which makes the tags unreadable. The tags have to be placed in various alignments and angles for taking proper reading. This is a tedious task when the work involves big firms.
• Interference has been observed if devices such as forklifts and walkie-talkies are in the vicinity of the distribution centers. The presence of mobile phone towers has been found to interfere with RFID radio waves. Wal-Mart, the retail sector giant, has installed billions of RFID tags in their products throughout the world and they have encountered such problems.
• The USA and Europe, for instance, have different range of frequencies that allow RFID tags to function. This makes it mandatory for international shipping companies and other organizations to be aware of the working pattern of other nations also, which can be very time-consuming.
• RFID technology has been referred to as invasive technology. Consumers are apprehensive about their privacy when they purchase products with RFID tags. Once the radio chips are installed in the product, the customer can be tracked and his personal information can be collected by the RFID reader. However, many stores have a facility that deactivates the RFID tags after the product has been purchased.

RFID technology can be the next tool for success and management of various businesses. With more research, the flaws and limitations of this technology can be removed. This will make RFID technology very useful for diverse sectors like retail, transport and jewelry businesses.