RFID is a technology that enables wireless data capture and transaction processing. There are two main areas of application, defined broadly as proximity (short range) and vicinity (long range).

Long range or vicinity applications can generally be described as track and trace applications, but the technology provides additional functionality and benefits for product authentication.

Supermarkets are tagging pallets, cases and other returnable transit containers, such as plastic crates used for fresh foods. The RTCs are capital assets, so visibility is essential. Tagging the crates gives total asset visibility and allows better management of the asset pool. The ability to write to the tag also allows the addition of information such as the contents of the crate, sell-by date and manufacturer. Linking this type of information to the store's inventory management systems can ensure that goods are moved to the shelves in strict rotation and reduce spoilage and out-of-stocks.

RFID is being used today in the postal environment to enable improved item tracking during the sorting and delivery processes. RFID doesn't require a line of sight for information transfer, so it allows postal items to be routed without concerns over item orientation. Multiple items can be read as they pass through the RF field.

Garment tags

Incorporating RFID tags into garment labels or even into the garment itself can be a valuable tool for brand owners. A tag inserted at the garment manufacturing plant can identify its source. By using the tag's unique identification number, the garment can be certified as authentic, which enables the identification and control of counterfeits. Grey market imports can be controlled through the use of source identity. The tags enable inventory visibility throughout the supply chain, reducing shrinkage and out-of-stocks, and the EAS function can reduce in-store theft. Finally, where warranty information is needed for after-sales service, the tag can be written to at the point of sale.

RFID is used in many libraries to automate the issue and return of books, videos and CDs and to give real-time visibility for library inventory. Until recently, books and CDs have been identified using bar coded labels, each of which had to be read individually with a bar code reader. Inventory control and reconciliation has been a laborious and time-consuming operation. With RFID, books and CDs can be checked in and out automatically and inventory control can be automated using scanners on shelves or with their hand-held counterparts. The result is a reduction in the need for personnel and a much higher degree of accuracy in inventory management.

Many airlines have run RFID trials over the past few years to prove the efficacy of the systems employed in the air transport environment. Tests have shown first-read rates of over 99% with RF tags compared to less than 90% for bar code-only tags. The additional functionality offered by the re-write function on the IC allows information to be changed at different points in the airline system. This makes it possible to hold bags for security checking and release them for loading when checked, provided the RFID system is linked to the baggage reconciliation systems. Similarly, RFID is already being used to track passenger progress through airports, reducing the number of passengers arriving late at the gate and in so doing ensuring that planes leave on time.