White Paper

RFID — Frequently Asked Questions

Radio Frequency Identification is a technology tool that can be used to enhance data collection capabilities in a number of real world system applications. RFID is not a new technology; it was first used in World War II to identify friendly aircraft to avoid accidental targets. Its use in tracking applications is not new either. Many toll road systems have successfully used RFID toll tags for years to accommodate traffic through busy gateways. All RFID applications thus far have been developed to track items that justify a high cost for the tracking device. RFID has not been extensively used in widespread tracking of individual items due to high infrastructure and component costs. Recent technology advances combined with concentrated efforts by various industry groups have increased the technology adoption rate in specific applications. The goal has been to lower costs so that RFID becomes feasible for tracking all items throughout a supply chain.

Current interest in RFID is being driven by recent announcements by very large corporations requiring RFID to be incorporated into vendor packaging in the near future. The RFID industry is quickly adapting to its potential uses, including some exaggeration of its potential capabilities. Like any technology, in order to achieve potential benefits from RFID the technology must be well understood by system integrators/developers. Goals and processes must be defined before project approval. RFID is a technology solution that is subject to the parameters and limitations inherent in all technology products. Potential users with limited technical capabilities and infrastructure, incorporating RFID for asset/warehouse/supply chain management systems will create efficiencies by orders of magnitude over current operations. However, users with very sophisticated technology and processes implementing RFID will achieve incremental advances of a smaller scale.

The Datamax RFID solution addresses current RFID market needs and opportunities, but is designed to evolve as standards and infrastructure changes occur and they will. This document is a discussion for AIDC channel members. These questions are designed to assist Datamax sales personnel and Datamax Partners in providing information for customers interested in deploying the technology.

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