RADIO FREQUENCY

IDENTIFICATION(RFID)
&
PRODUCT IDENTIFICATION.
 ABSTRACT
The seminar concentrates on automation of retail process that involves every member in
the demand-supply chain ranging from manufactures down to the final consumers. The
benefits of this technology to retailers are outlined in relation to the error free product
identification cum price calculations offer by RFID. The ability of RFID to reduce security
personnels and sales representative needed at retail store will also be looked into.
Keywords: RFID, Retails, E-commerce, Product Identification, RFID tags, RFID readers.
 TABLE OF CONTENT
Introduction
What is RFID?
How is RFID designed.
Uses of RFID
RFID applications in the public sector
RFID versus barcode technology
RFID in ecommerce
RFID for product identification
Conclusion
Recommendation
References
 INTRODUCTION:

Radio frequency identification technology, known as RFID, has been described as “tech’s
official Next Big Thing.” (Jo, 2004). RFID is not actually a new technology, but it is being
applied in new ways, spurred by technological advances and decreased costs. Once used
during World War II to identify friendly aircraft, RFID is now being used in a variety of
public and private sector settings, from hospitals to the highway.

In RFID systems, an item is tagged with a tiny silicon chip and an antenna; the chip plus
antenna (together called a “tag”) can then be scanned by mobile or stationary readers, using
radio waves (the “RF”). The chip can be encoded with a unique identifier, allowing tagged
items to be individually identified by a reader (the “ID”). Thus, for example, in a clothing
store, each particular suit jacket, including its style, color, and size, can be identified
electronically. In a pharmacy, a pharmacist can fill a prescription from a bottle bearing an
RFID chipped label confirming the authenticity of its contents. On the highway, cars with
RFID tags on their windshields can move swiftly through highway tollbooths, saving time
and reducing traffic congestion. At home, pets can be implanted with chips so that lost
animals can be identified and returned to their owners more readily. In each case, a reader
must scan the tag for the data it contains and then send that information to a database, which
interprets the data stored on the tag. The tag, reader, and database are the key components
of an RFID system.

Radio-frequency identification (RFID) uses electromagnetic fields to automatically

identify and track tags attached to objects. An RFID system consists of a tiny radio
transponder, a radio receiver and transmitter. When triggered by an electromagnetic
interrogation pulse from a nearby RFID reader device, the tag transmits digital data, usually
an identifying inventory number, back to the reader. This number can be used to track
inventory goods.

Passive tags are powered by energy from the RFID reader's interrogating radio waves.
Active tags are powered by a battery and thus can be read at a greater range from the RFID
reader, up to hundreds of meters. Unlike a barcode, the tag does not need to be within the
line of sight of the reader, so it may be embedded in the tracked object. RFID is one method
of automatic identification and data capture (AIDC). (RIFD, Wikipedia)

RFID proponents believe that the ability of these systems to deliver precise and accurate
data about tagged items will improve efficiency and bring other benefits to businesses and
consumers alike. One major retailer has already announced a mandate for its largest
suppliers to begin tagging cases and pallets of merchandise. Other companies in the U.S.
and abroad reportedly are exploring similar directives. Spending on RFID implementation
in the retail supply chain alone estimated at $91.5 million at a particular year – an amount
expected by some to exceed $1 billion by 2007. Outside the retail sector, libraries across
the country reportedly are already tagging books, and the FDA has announced that it is
actively encouraging pharmaceutical manufacturers to use RFID to fight drug
counterfeiting.

While these developments may offer significant benefits for industry and consumers, some
applications have raised privacy concerns. The capacity to encode unique identifiers at the
individual item level may have revolutionized thinking about inventory management, but
it has also raised fears that this technology might be used to track individual products out
of the store and into consumers’ homes or otherwise monitor individual consumer
behaviors. As with the Internet and other data-intensive technologies, these concerns must
be addressed so that they do not hinder the development and deployment of RFID in the
marketplace.

On June 21, 2004, the Federal Trade Commission explored these issues at a public
workshop entitled “Radio Frequency Identification: Applications and Implications for
Consumers.” The Workshop brought together technologists, RFID proponents, privacy
advocates, and policymakers to discuss the range of applications for RFID, the future of
this technology, and its implications for consumers.
What is RFID?

In brief, Radio Frequency Identification (RFID) is a technology which uses a

semiconductor (microchip) in a tag or label to store data. Data is transmitted from, or
written to the tag or label when it is exposed to radio waves of the correct frequency and
with the correct communications protocols from an RFID reader. Tags can be either active
(using a battery to broadcast a locating signal) or passive (using power from the RFID
reader for location). A firm may use a combination of fixed and hand-held readers for
reading RFID tags to gain as complete a picture as has ever been possible on exactly what
is in their store and where it is. Since the tag sends an electronic signal, it can transmit
information when buried under several layers of products and shipping material, through
concrete walls or even underwater. With this degree of visibility, it is possible to
electronically read an entire pallet or truckload of material in seconds by passing the
products through an RFID reader. Tags also can withstand dirt or moisture better than
printed barcodes. Reading and writing distances range up to 100 feet, and tags can be read
at high speeds. (Michael, Daivd, & Jeff, 2005)

How is RFID designed:

A radio-frequency identification system uses tags, or labels attached to the objects to be

identified. Two-way radio transmitter-receivers called interrogators or readers send a signal
to the tag and read its response. RFID tags are made out of three pieces:

• A microchip (an integrated circuit which stores and processes information and
modulates and demodulates radio-frequency (RF) signals)
• An antenna for receiving and transmitting the signal
• A substrate
The tag information is stored in a non-volatile memory. The RFID tag includes either fixed
or programmable logic for processing the transmission and sensor data, respectively. RFID
tags can be either passive, active or battery-assisted passive. An active tag has an on-board
battery and periodically transmits its ID signal. A battery-assisted passive tag has a small
battery on board and is activated when in the presence of an RFID reader. A passive tag is
cheaper and smaller because it has no battery; instead, the tag uses the radio energy
transmitted by the reader. However, to operate a passive tag, it must be illuminated with a
power level roughly a thousand times stronger than an active tag for signal transmission.
This makes a difference in interference and in exposure to radiation. (Wikipedia, 2022)

Another important feature of RFID tags is their “read/write” capacity, or “read-only”

status. These terms refer to a tag’s ability to have data added to it during its lifetime. The
information stored on a “read-only” tag cannot be altered, but a writeable tag (with
read/write capacity) can receive and store additional information. Read/write applications
are most prevalent when tags are re-used. They are usually more sophisticated and costly
than read-only applications. In addition, read/write applications have shorter read ranges.
Read-only tags are well-suited to applications like item-level tagging of retail goods, since
they are less expensive and, as part of a networked system, can provide a great deal of
information by directing the reader to the associated database(s) where information about
the tagged item is maintained. (Deborah & Orson, 2005)

Uses of RFID:

Workshop participants described a number of RFID applications that consumers may

already be using. For example, some consumers are familiar with employee identification
cards that authenticate the pass-holder before permitting access. A related use of RFID is
for event access – to amusement parks, ski areas, and concerts, where tagged bracelets or
tickets are used. Panelists also explained how RFID is being used in a variety of
transportation related contexts. Many automobile models already use RFID tags in keys to
authenticate the user, adding another layer of security to starting a car. Another example,
the “Speedpass,” allows drivers to purchase gas and convenience store goods from
ExxonMobil stations. RFID is also transforming highway travel, with the advent of E-
ZPass in Northeastern and Mid-Atlantic states and similar programs in other regions of the
country that allow drivers to pass through tolls without stopping to pay. An active tag on
the vehicle’s windshield lets a reader installed at the tollbooth know that a tagged vehicle
is passing through; information flows from the tag, to the reader, and then to a centralized
database, where the prepaid or checking account associated with that vehicle is charged.
(Deborah & Orson, 2005). RFID has found its way into several fields to which it is
currently applied in several parts of the world. Some of the numerous applications of RFID
are listed below:

Access control: RFID tags are widely used in identification badges, replacing earlier
magnetic stripe cards. These badges need only be held within a certain distance of the
reader to authenticate the holder. Tags can also be placed on vehicles, which can be read
at a distance, to allow entrance to controlled areas without having to stop the vehicle and
present a card or enter an access code.

Advertising: In 2010 Vail Resorts began using UHF Passive RFID tags in ski passes.
Facebook is using RFID cards at most of their live events to allow guests to automatically
capture and post photos. Automotive brands have adopted RFID for social media product
placement more quickly than other industries. Mercedes was an early adopter in 2011 at
the PGA Golf Championships, and by the 2013 Geneva Motor Show many of the larger
brands were using RFID for social media marketing. (Wikipedia, 2022)

RFID applications in the public sector:

Panelists also discussed how RFID is being used or contemplated for use by government
entities to meet objectives similar to those their private-sector counterparts hope to achieve.
Workshop participants discussed a variety of ongoing and proposed government RFID
applications, from the U.S. Department of Defense’s (“DoD”) October 2003 mandate
requiring its suppliers to use RFID tags by January 2005 to local library systems deploying
this technology to track and trace their books. DoD’s initiative reportedly will affect 43,000
military suppliers. And, according to panelists, public libraries in California, Washington
State, and elsewhere have implemented internal RFID systems to facilitate patron usage
and manage stock. One Workshop panelist, representing the U.S. Food and Drug
Administration (FDA), highlighted that agency’s RFID initiative. Although the FDA itself
is not using this technology, it recently announced an initiative to promote the use of RFID
in the pharmaceutical supply chain by 2007. For now, drug manufacturers will primarily
tag “stock bottles” – those used by pharmacists to fill individual prescriptions – but
eventually consumers may be purchasing packages labeled with RFID chips. The core
objective of this initiative is to fight drug counterfeiting by establishing a reliable pedigree
for each pharmaceutical. The FDA believes that this goal can most effectively be
accomplished by its target date through the adoption of RFID, which offers distinct
advantages over other identification systems that require line-of-sight scanning and are not
as accurate or fast.

Another government entity turning to RFID is the U.S. Department of Homeland Security
(“DHS”). One program described by a DHS official at the Workshop uses RFID for
tracking and tracing travelers’ baggage. Both individual airports and airlines will use RFID

technology to identify and track passenger luggage, from check-in to destination. Another

DHS initiative addressed at the Workshop involves the agency’s “US-VISIT” (U.S. Visitor

and Immigrant Status Indicator Technology) program. That initiative will test RFID at the

country’s fifty busiest border-crossing locations by using RFID to read biometric

identifiers, such as digital photographs and fingerprint scans, embedded in U.S. work visas
issued to foreign nationals. According to the DHS representative, this program is expected
to facilitate some of the approximately 330 million border-crossings each year by getting
“the appropriate level of information to the right people at the right time.” (Deborah &
Orson, 2005)

RFID versus Barcode Technology:

The advantages of RFID over bar code technology are summarized in Table 1. RFID tags
have been described as being a “quantum leap” over bar codes. Inc. Magazine
characterized (Valentine, 2023)RFID versus bar codes as “like going from the telegraph to
the Internet.” The main benefit of RFID is that handling costs are reduced because boxes
do not have to be manually staged to obtain the line of sight necessary for barcode reading.”
Another major advantage is that the RFID tag can carry more information than the bar code
system, meaning that it can uniquely identify a single item rather than an SKU only
(Mitchell & Chappell, 2003; Booth-Thomas, 2003). Electronic tags can carry important
information such as lot number, date the product was manufactured (or in the case of fruit
when it was first picked), customer information, or a wealth of other data that the
manufacturer wishes to store on the tag. A major distinction between tags and bar codes is
the tag’s ability to both transmit and store new data, meaning that updates can be written
to the tag/item as it moves through the distribution process. These features of RFID systems
appear to offer value to several retail functions, which are discussed below.

BAR Codes RFID Tags

Bar Codes require line of sight to be read RFID tags can be read or updated without
line of sight
Bar Codes can only be read individually Multiple RFID tags can be read
simultaneously
Bar Codes cannot be read if they become RFID tags are able to cope with harsh
dirty or damaged and dirty environments
Bar Codes must be visible to be logged RFID tags are ultra-thin, and they can be
read even when concealed within an item
Bar Codes can only identify the type of RFID tags can identify a specific item
item

Table 1. Comparison between Bar codes and RFID tags (Michael et al, 2005)

RFID in Ecommerce:

RFID is applicable for several areas in the electronic commerce field, its application ranges
from product identification to product ordering and purchase. Since 1995, and especially
after RFID mandates from the American Ministry of Defence and the American retailer
WalMart, the number of applications of RFID technology in a wide range of sectors has
systematically increased. the main focus of RFID applications is identification of objects
or persons. There are however different ways of realising identification in industrial or
service sector settings.

Industrial and E-Commerce applications of RFID include: retail, logistics, construction,

manufacturing, health care, the pharmaceutical industry and animal detection. RFID
technology has been applied in the retail industry in several ways. Firstly, in the apparel
industry RFID tags are typically attached to individual garments and in the early stages of
RFID adoption were used only for theft prevention. Recently, applications of RFID in the
apparel industry provide supply chain visibility, inventory management and on shelf
availability. Secondly, in food retail RFID is used to enhance food safety standards, track
shelf life, provide traceability and manage inventory. Lastly, RFID technology provides
the beverage industry with the possibility of making operational improvements, improving
stock visibility, shrinkage prevention and alcohol pouring control. Examples of RFID
applications in retail and E-Commerce include: apparel tracking in the men’s department
in stores, traceability systems used by producers of Parmigiano Reggiano (the famous
Italian cheese) and the proposition of a glass refill system based on RFID technology.

Developments in RFID technology have been enthusiastically received by logistics

practitioners, especially due to new demands posed by increases in E-Commerce activities
and applied in various areas of logistics including: supply chain visibility, inventory control
and management, pallet tracking, container management, and tracking returnable transit
items. The construction industry is a challenging and harsh environment which demands
AIDC technologies be able to withstand these conditions. Studies have found RFID to be
especially suited for the construction industry due to its long reading range and durability.
Examples of RFID applications in construction include: concrete processing and handling,
cost coding for labour and equipment, and materials control. Furthermore, tracking pipe
spools, identification of pipe-work joints, tracking structural steel parts, valuable asset
tracking (theft prevention) and location of buried assets may be also achieved with RFID.
Manufacturing is another area with increased interest in RFID applications. In
manufacturing RFID is used for real-time parts and tool location, material visibility,
inventory control and tracking items through production processes. Health care and
pharmaceutical industries have also benefited from the use of RFID technology. Examples
of applications of RFID in health care include tracking assets in hospitals, tracking patients
and visitors, tracking environmental factors of transported blood bags. The pharmaceutical
industry typically uses RFID for tracking high value drugs and attempts have been made
to automate and track drug dispensing to patients. RFID applications in animal detection
are fairly mature and examples include cattle ranching and RFID tagging of domestic
animals for purpose of tracking and veterinary management. RFID technology is also
increasingly being applied in both service and public sectors. The service sector, especially
the leisure and tourism industry, uses RFID for access control, payments collection and
prevention of counterfeit tickets. Additionally, RFID is increasingly used for tracking
children at amusement parks, thus preventing them from being lost. Public sector
applications of RFID include tracking library collections, providing customized museum
tours and information guides, and collecting public transport payments. (Witold & Brian,
2006)

RFID for Product identification:

RFID in the e commerce sector has proven to be indispensable especially in term of product
identification, since unique tags can be assigned to specific product, necessary products
information can be read from the tags. The possibilities achievable with RFID for product
identification are numerous. Some of the applications of RFID for product identification
are further discussed.

Store Inventory Management with RFID product identification: The process of retail
store inventory replenishment is complex and labor–intensive, and, one which affords itself
to errors and inaccuracies. RFID is expected to yield reduced handling cost, increased
inventory accuracy, reduced inventory costs, and increased “real time” tracking
capabilities. “Retail analysts estimate that Wal-Mart could save $8.35 billion annually by
using RFID--mostly in labor costs from not having to manually scan the bar codes of
incoming goods”. In another study conducted by the Grocery Manufacturers of America,
A.T. Kearney Inc. estimates that retailers and manufacturers each lose $2 million for every
$1 billion in sales due to bad data. They predict that eliminating bad data could save $10
billion per year.

Improved Customer Service with RFID for product identification: The Metro Group
“store of the future,” mentioned earlier, worked with NCR to develop a system called
“Fastlane” checkout. RFID tags on products eliminate the need for scanning each bar code
in self-checkout. According to information released from the Metro Group, customers are
able to check out without emptying their grocery cart. This service was recently suspended
however, due to protests from privacy groups. Other customer service contributions of
RFID are reduced stock shortages and more responsive stocking of shelves.

Supply, Purchase and Expiry date using RFID for product identification: A core
capability of RFID, which barcodes do not offer, is the ability to link date received of an
item to date-sold. By implementing RFID readers at the receiving docks and at the point-
of-sale, retailers can know when specific items arrived at the store, and when they are sold.
For perishable products such as food, this allows the reduction of losses due to spoilage.
By positioning RFID scanners within the store, retailers can better understand which
products are selling from which locations within. For example, batteries might be found in
three locations within a store, but bar codes would not allow knowledge of which in store
location accounted for most sales.

Security and Loss Prevention using RFID for product identification: One of the
costliest problems is retailing is loss due to employee theft or shoplifting of merchandise.
The industry wide net loss in2002 was $31.3 billion. A 2003 retail security survey report
indicated that employee theft accounted for 47% of retailers’ inventory shrinkage that year,
down from 48% in 2002. Statistics for the remaining three major sources of shrinkage were:
shoplifting, 32% (no change); administrative error, 15% (no change); and vendor fraud,
6% (up from5% in 2002). Armed with more accurate information about what is on the
shelves, what is in storerooms, and what is on its way from distribution centers, retailers
can better determine sources of loss. High-priced goods such as consumer electronics,
apparel and pharmaceuticals are more suited to RFID systems, and firms retailing such
items are experimenting with the tags.

Authentication /Protection Against Merchandise Counterfeiting using RFID for

product identification: A problem in the distribution of some products such as designer
apparel or pharmaceuticals is counterfeiting. The pharmaceutical industry estimates that
between 2 percent and 7 percent of the drugs sold globally are counterfeit. In February
2004, the FDA issued a recommendation to the pharmacy industry that RFID technology
be implemented in the supply chain due to the ability of technology to verify the pedigree
of a product. Wal-Mart is currently testing RFID with its pharmaceutical suppliers, as is
Rite Aid and CVS. Another potential benefit of the RFID tags in pharmaceutical
distribution is the reduction of mistakes in the administration of medication. Special tags
being tested now can record when a container was last opened and send a signal to readers
notifying them of inventory changes and updates in the contents. (Michael, Daivd, & Jeff,
2005)

Digital rights management using RFID for products identification: In digital rights
management systems, some methods to checking authorization of content consumer and
checking originality of content. We use RFID as a tool for digital rights management
(DRM), wherein technologies are employed to protect media files from unauthorized use.

• Method based on digital mediums: This method embeds mediums with an RFID
tag and players with an RFID reader so that the tagged mediums would play only in
RFID-enabled players and only if the reader could authenticate the medium's tag.
Through this structure, digital contents will be authenticated and its play will be
authorized. In the RFID tags attached to digital mediums, we store information
related to the digital contents such as a tag id, the content meta-data and fingerprint
 as a reference. When the digital medium is put into the player with a RFID reader,
the RFID reader checks whether the use of the digital contents contained in the
digital medium is authorized or not.
• Method based on digital contents: The goal of this subsection is checking
originality of content. In this method that work based on digital content, we use
fingerprinting as a tool for content-based identification. It characterizes the digital
content based on its representation such as feature or signals and matches the result
to an entry in a database. Content provider use a function for creating fingerprint of
digital content. After using function on digital content, output (fingerprint) will
write on RFID and function will send to license administrator to be stored and be
used when content consumer wants to employ digital content. When a medium is
inserted into a player with a RFID reader, its RFID tag is identified by the player.
And from the URL stored in the RFID tag, the player downloads the function which
was used to create the fingerprint by the content provider. With the downloaded
function, a fingerprint is calculated by the player from the digital content stored in
the digital medium. The player compares it to the fingerprint of the original digital
content stored as a reference in the RFID tag. (Hamzehei, 2008)
 CONCLUSION:

It has been proven beyond doubt from the analysis made above on RFID for product
identification and its application in e commerce generally that this technology is the next
generation to cumbersome and complex nature of commercial activities in all parts of the
world. The ability of this technology to assign unique tags to items will sure solve the
problem of product grouping or categorization and many more issues in e commerce.
 RECOMMENDATION:

From the analysis made on RFID for product identification, the following
recommendations are expressly advised to every stakeholder involved in commercial
activities.

• Research should be made to explore new areas of applicability for RFID beyond
product identification.
• Cost of purchasing and configuring RFID devices used be subsidized for widespread
availability which equals increased usage of the technology.
 REFERENCES

Deborah, P. M., & Orson, S. (2005). Radio Frequency IDentification: Application

and Implication for consumers. United State of America: Federal Trade
Commission.

Hamzehei, A. (2008). Digital Rights Management Using RFID in an e-commerce

environment. World Applied Science Journal, 4.

Jo, B. (2004). Cheat Sheet,RFID. Silicon.com.

Michael, A. j., Daivd, C. W., & Jeff, W. T. (2005). The Adoption of RFID in
supply retail chain. The Coastal Business Journal, 2.

Valentine, L. (2023, April 20). The new wireless supply chain. Retrieved from
newsfactor.com: http://cio-
today.newsfactor.com/story.xhtml?story_id=22376.

Wikipedia. (2022). RFID. Wikipedia.org.

Witold, B., & Brian, P. (2006). Radio Frequency Identification and its application
in ecommerce. IGI Global.