RFID Supply Chain ...

From The Committee on Energy and Commerce, Mr. William Galione, Vice President and General Manager Marketing and Sales America, Philips Semiconductors, ...

... "Almost every item sold through retailers and supermarkets around the world today has a barcode printed on it. These codes are used extensively throughout distribution chains and are unique to the general type of item being sold. However, in recent years barcodes have begun to show their limitations, and a replacement approach based on RFID technology is gaining momentum. RFID technology relies on small computer chips and antennas integrated into a paper or plastic label -- called a tag -- that can be scanned by an electronic reading device. The scan allows automatic collection of data on the chip, which can include information on warranty, where the product was manufactured, or product details such as quantity, size, color, etc. First developed in the 1940s, RFID technology has proven itself reliable over time, with falling cost structures and further technology refinement allowing it to be used in more common applications today. Unlike barcodes, RFID tags are insensitive to dirt or scratches and can be scanned from a distance -- from a few inches to upwards of 20-25 feet -- all without requiring direct line of sight. RFID technology also allows multiple tags to be scanned simultaneously, even through external packaging. This presents a significant advantage over barcodes in distribution and retail environments, which is where the new generation of RFID technology is making major inroads. Adoption of RFID technologies is spearheading revolutionary gains in supply chain management, allowing businesses to improve supply chain logistics and customer service. Major retailers -- including co-panelist Wal-Mart and other organizations such as the Department of Defense -- that manage huge inventories are leading the supply chain transition to RFID technology. " ...