The Future of RFID in the Logistic Industry.

RFID (Radio Frequency Identification) is the way of the future for shipping and transportation industry.

What is RIFD and how will it benefit the supply chain industry? Radio Frequency Identification is an automatic devise that is used for identification purposes and is functions through tags or transporters. This small object comparable to the size of rice grain can be implanted or attached to any product or animal. It works on the basis of radio waves and is a chip-based devise. It requires no inner power source such as batteries or outlets.  This devise has a receiver and transmitter and allows for the shipment information to automatically be transmitted without mistakes.

The biggest hopes of RFID are more efficient traceability of equipment and products as they move from origin to destination.  It makes it easier to maintain control of on-the-road identification, tracking of trailers and containers, control warehouse inventory and offer better shipment visibility and information sharing with various supply chain.  The shipping industry will benefit from reduced labor costs,  automatically receiving shipments, and barcodes would no longer need to be scanned before storing the products.

Despite many useful factors, RFID there are a few negative aspects that need to be reviewed before committing to using RFID.  Equipping a warehouse with full RFID technology can be very expensive and can limit the number of carriers who can offer trucking services that are able to transmit RFID information.