1. Executive Summary
This paper attempts to discuss the benefits of using Radio Frequency Identification Tag and the potential challenges it faced. It will examine what is used before Radio Frequency Identification Tag is invented and the disadvantages that are caused by the previous technology. It will also look at what are some of the uses of Radio Frequency Identification Tag and it advantages of using it. It will then discuss on how Radio Frequency Identification Tag will shape the future. In addition, the paper will also address the issues and challenges faced by using Radio Frequency Identification Tag.
2. Background/ Introduction
RFID stands for Radio Frequency Identification and it is used to track, trace, monitor, trigger and perform an action. It is an automatic contact-less identification and data capture using radio frequency signals. RFID is a technology that makes use of radio waves to uniquely identify an object and communicates data. The RFID device holds a small amount of unique data which maybe a serial number or any other unique attribute of the item. The data can be read from a distance and no contact and line-of-sight are required. RFID enables individual item to be individually tracked from manufacturing to consumption of the product. RFID provides very fast, efficient and convenient ways for the tracking of products and it is expected to revolutionize the warehouse and inventory management. RFID is a revolutionary technology that increases the efficiency of production lines and contributes to the success of big retail companies.
RFID system is made up of a reader, transponder which is the tag as well as the processing unit as shown in Diagram 1. A RFID tag acts like a label that is attached to an item or product which is being tracked. It consists of two basic parts which is the antenna and microprocessor ship. The antenna is used to transmit and receive signals to and from the RFID reader whereby the microprocessor chip is the memory and it is there to validate and decode received data.
There are a few types of RFID tags; it can either be passive, active or semi-passive tags. Active tags uses own internal power source to power up any integrated circuits and generates the outgoing signal. It may have longer range and larger memories than passive tags and it also has the ability to store additional information sent by the receiver. It contains a radio transceiver and has high signal strength but it is also able to economize power consumption. Active tags are more costly and it usually used for tracking high-value goods. On the other hand, passive tags do not require battery; they generate energy from the RFID reader. It is a small two-way radio which receives signal, power on chip and broadcast information in the Electronic Product Code. Its long life and lower cost makes it good for tracking of high-volume goods such as electric toll collection and baggage handling. The semi-passive tags uses battery to run the chip’s circuitry but communicates by drawing power from the reader’s power waves. It is more expensive than passive tags and hence it is used for tracking high-volume goods that needs to be scanned over long ranges.
The function of a RFID reader is to interrogate the RFID tag. The reader which consists of an antenna emits radio waves to the tags to request for information contained in the chip. There are both stationary and mobile readers. Mobile readers are similar to hand-held barcode scanner, it is portable and information scanned will be tethered to processing unit. In contrast, stationary readers are located at a specific location to read tags automatically as objects or products passes readers.
The RFID reader will emits radio frequency waves and creates an electromagnetic field. When a RFID tag enters the electromagnetic field, the RFID tags generates an induction current which powers up the RFID chip and it will generate a low-powered wireless response. It will then conduct checks to determine if the reader had the rights to the information; if it is authorized, the chips will then call for the data from its memory and transmits it to the reader. The data captured by reader will be sent to PC, server or processing unit via wired or wireless means.
3.Historical Perspective
This section will look at what type of technology that was used in the past; before RFID technology was invented. It will also cover the areas that this technology was implemented as well as the disadvantages of this technology. In the past, before RFID technology was innovated, barcodes were used. People of the past use barcode which is attached to the products, postal mail or identification card to identify a particular product number, location or person.
Barcodes which is an image made up of many bars uses a sequence of verticals bars and spaces to represent data. A barcode reader that will emit a laser beam must be used to read the code. The laser beam is sensitive to the reflections from the line and the thickness of the spaces. The barcode reader will then carry out the translation of the reflected light into digital data that is later being transferred to a computer for storage.
Barcode were used in many different areas before RFID was invented. One of the areas that barcode was used is in the supply chain. Supply chain management is the managing of the whole interconnected businesses which includes the storage as well as the movement of inventory, raw materials and finished goods from the starting point to the final point of consumption. It includes activities with customers, service providers and suppliers. Hence, before RFID was invented, the barcode has made supply chain management much easier to manage. Barcode helps in the identifying of products and tracking of the products’ movements and sale till the time where it is transported to the customers. Barcodes are read at points of ownership transition and accounting. They are either read by stationary readers in situation where the material handling systems are automated or it is read by mobile readers if human operators are requires to control products movement. The data collected will then be decoded and communicated to business computer systems. By using barcode, accurate and detailed information will be provided to suppliers and vendors which success to a business venture. The inventory levels can be maintained at a low level since the products or stock can be replenished only when it is necessary. Barcodes cuts down the cost incurred to maintain high inventory levels for customers products and reduces the cost that is required to correct errors made during manual data entry.
However, there are quite a number of disadvantages that exist with using barcode system in supply chain management. The barcode system requires each inventory item to be counted individually which means that every single item must be scanned individually. This would make the process very taxing and time consuming. Employees will also be exhausted by scanning large volumes of inventory and will be prone to make errors. Another disadvantage will be that the barcodes must be reachable and visible in order for it to be scanned; line-of-sight is necessary. The products need to be shifted to ensure that the barcode is accessible and hence it results in a waste of time. Other than that, real-time information is not provided by barcode system and it will be unreadable when the barcode is damage.
Another area that barcode had been used before RFID innovation is in the library. Library used barcode technology and security strips. Every single item in the library will have a barcode and these enables the library management system to keep records of all the various activities such as borrowing, lending and shelving status of books, tapes or DVDs. The barcode system requires each item to be borrowed to be scanned individually. Besides having a barcode on each library’s item, there is also an electromagnetic security strip that is attached to each item. The function of the electromagnetic security strip on the library item is to tag the item’s movement; to make sure that the library materials are not stolen. If this electromagnetic security strip is sensitized by the sensitizing or desensitizing machines, the alarm will go off when it passes through the security gates that are located at the library entrance.
The usage of barcode technology and electromagnetic security strips has their limitations. Using barcode in library slows down the check-out process; makes it less efficient. It is because it requires line-of-sight and that each item has to be scanned individually. The electromagnetic security strip is also prone to sabotaging by thieves. Therefore, all these will lead to irreparable loss to the library and their valuable inventory stock.
On top of that, before the used of EZ-link card which uses RFID technology, magnetic strip fare card were used. The magnetic strip fare cards for taking trains and public buses were introduced when the train was first started in 1987 and was extended to buses in 1990 so as to bring convenience to the commuters.
Commuters will have to slot in the magnetic fare car into the validator installed in each bus and they will have to select the correct fare. The magnetic fare card’s cash balance is checked by the validator and the validator will then deduct the appropriate amount and returned with a ticket.
Singapore public transport is always improving and since the public transport network had been expanded, there was more information. This meant that there is an increased amount of information that has to be stored in the magnetic fare card. This brings us to the greatest drawback of magnetic fare card. The magnetic fare card has a small memory capacity and with the opening of the third rail line, the magnetic fare card would have inadequate amount of memory. Hence, the magnetic fare cards will limit future data tracking capabilities. Also, since the fares were selected by the commuters, problem of underpayments arises because bus drivers were not able to see how much are they paying. As long as bus inspector does not appear, commuters will be able to ride the whole journey with the lowest fare.
4. Current Situation
Currently, RFID is used for the tracking and identifying of products or assets. There are quite a number of advantages that comes with using RFID and it had now gained massive attention in quite a number of industries and areas. Since there are an increasing number of industries and places that have adopted RIFD, there is no doubt that people have started to realize the benefits of using RFID. However, the fact is that there are certain industries or areas that have yet adopted RFID. This could be due to the challenges which will be mentioned in the later part of this paper.
4.1 RFID In Supply Chain Management
RFID had become very attractive for use in supply chain because of its great performance. RFID provides a great opportunity to bring the supply chain performance to a higher level. It is able to provide more reading and data content advantages as compared to bar code system. With all the significant benefits to the users, retailers such as Wal-Mart had mandated RFID tag labeling on its products to be received from their suppliers starting in the year of 2005.
RFID system is used to monitor and manage the products’ movement throughout a supply chain. A RFID tag is either attached to each product or the boxes that carry those products. The RFID reader that is placed throughout a facility is use to track the products’ location as well as the products’ movement, hence providing real time information.
By using RFID in supply chain management, the users will be able to enjoy from all the benefits of RFID. RFID promises a more effective asset management because it provides the users will real-time information on the assets’ locations making sure that employees will have the tools or equipment when they need them. All the users of RFID system in supply chain management such as distributors, manufacturers and retailers can all share the same RFID tags so as to reduce implementations costs. This is because RFID tags can be read through packaging; they do not require line-of-sight between the reader and the item. They can also withstand heat and the exposure to heat unlike barcodes. Besides that, RFID can deliver current and accurate information on inventory level which ensure that companies are able to deliver what they promised. On top of that, with better inventory control and highly accurate and real time information, manufacturers will be able to improve confidence and visibility of their inventory reducing the inventory level and level of safety stocks. RIFD also allows employees to find a misplaced item within a shorter amount of time as the worker that uses a mobile RFID reader to scan for the item or the fixed position reader can automatically search for the item.
4.2 RFID in Library
RFID are implemented in a library as well. RFID system would aid librarians in locating items such as books and videos. With the RFID system, many of it processes will be automated. It is a system that has a database system that keeps a record of all the items in the library which includes items that are checked out. This enables an efficient and integrated library management system. One RFID tag will be attached to all new or existing library items and these items can be easily located using a RFID reader.
Since RFID’s ability to read its tags without concern to the orientation or position and being able to read through physical materials, it can provide huge advantage to the check-out process. A number of items can be read at one time using RFID system. This would mean that the check-out process can be completed much faster than with using barcode system where each item has to be scanned individually. There will be shorter queues at the check-out counter and it enhances the customer service.
RFID is also advantageous to the check-in process. With RFID system, several books can be return in at one time; RFID reader can be fixed to book drops and effectively checking in items as the passes through the book return slots. This save a substantial amount of time in view of the fact that librarian does not have to check-in those returned items manually.
The inventory process is also positively impacted by the RFID system. The fully-tagged collection permits inventory to be located with a portable reader; the reader will be able to able to pick up individual signals from the items’ tag without having to remove the items out from the bookshelves. Also, RFID is very useful and cost-effective in locating of misplaced items.
Furthermore, the RFID system can benefit item security in a library. This is more secured than electromagnetic security strip which is prone to sabotaging. Each RFID tag will be enabled with a theft-detection. With proper check-out, the theft-detection will be deactivated and reader will then be able to being the items pass freely through the RFID-powered security gates. When the item is returned and checked-in, the theft-detection will be reactivated.
4.3 RFID Used In Fare Cards
With the RFID technology, magnetic fare cards had been replaced by contactless card. Since 2002, EZ-link card had replaced magnetic fare cards. EZ-link card is a contactless smart card that has electronic memory or an embedded integrated circuit. This allows it to process data, store data and communicate with a terminal through radio waves. Commuters will tap their EZ-link card against the card reader that when boarding or alighting. The system automatically calculates the correct fare that is to be deducted.
The advantages of using EZ-link card greatly outnumbered the advantages of using magnetic fare cards. EZ-link card has a greater data storage capacity and it is also able to calculate mathematical formulas and process information. Hence, this makes EZ-link very beneficial for the public transport since it will be the public transport network will be expanded. This will also bring convenience to the commuters because they do not have to insert the magnetic card and select the fare. This, in a way, will benefit the bus company as they do not have to worry about commuter underpaying as the fares deducted will be based on the total fare stages traveled. Besides that, contactless card requires very little maintenance because it had does not contain any moving parts and it does not require any point of contact.
5. Future Considerations
RFID are expected to grow strongly due to the huge benefits that it brings. RFID will be adopted in many other industries or many other areas in the future. It is believe that RFID will coexists for many years and perhaps in the future it will be further enhanced into a more advanced technology. RFID leads to a reshaping of business models which generates new value creation opportunities and hence the business will be able to gain a competitive advantage. With the use of RFID, the world will be very different. It will definitely enhance the future and it will be beneficial to both consumers as well as businesses.
5.1 RIFD in Sports Industry
RFID can be adopted in the sports industry to bring a transformative impact on the game itself as well as the fans’ experience. The RFID will increase the accuracy to the particular sport and will be able to provide an unimaginable real-time richness to the sports.
RFID can be used in a most popular sport which is football which is also known as soccer. This is to provide a complete or clear visibility to the football field. RFID tags will be fitted on both the balls and each of the players and RFID readers will be located at various positions to scan the entire football field. The position of the players and the ball will be read by the RFID readers from time to time. This way, the referees will be able to consult the data and hence they will be able to make correct decisions such as correctly calling disputed goals. Other than that, soccer clubs and soccer fans will be able to access the players or teams performance.
5.2 RFID in Car Manufacturing
In addition, RFID will be able to help in the manufacturing of cars. Cars manufacturers can identify and track the various parts of the cars within the manufacturing. The identifying of specific cars parts within then manufacturing process can be done using passive tags. Through regular maintenance, the used car dealers can determine if a certain part was replaced or had to be replaced. Cars owners that uses dealerships for regular car maintenance is able to regularly update the car manufacturer’s records on the car for accidents, part changes and the factory or third party parts that have been used on the car. This will increase the manufacture’s ability to focus on the life cycle of their parts and try to come up with longer life parts where they find high wear conditions.
5.3 RFID in Retail Industry
The retail industry can also benefit from RFID technology. A supermarket that uses RFID promises an added value services for its customers. This results in customer to have a preference for companies that uses RFID over companies that uses the old barcode system. It will results in positive impact on revenues of companies that uses RFID. RFID in supermarkets can shorten the queue at the counter or cashier and increases the transaction efficiency. With RFID, manual scanning of each product at the counter will not be required. The RFID reader that is position at the counter will be able automatically scans all products that the customers wanted to buy instantaneously. Hence, the payment processes will be executed quickly. In this manner, it would be time saving for both labors as well as customers.
Also, at time when one bought the wrong items, items that has flaws or clothes that does not fit, they have to produce the receipt before they are allowed to make an exchange. However with RFID, situation would change for the better; receipt will not require for an exchange. The unique identifier in the RFID tag which is attached to the item will reference to a database record with the date, time of purchase as well as the original price. The detailed information regarding customer’s return can also aid the stores to refine its inventory selections.
5.4 RFID in Hospitality Industry
RFID can be adopted in the hospitality industry as well. RFID system can be implemented in hotels to provide better services to its guests. Upon checking-in to the hotels, guests will be given a card with RFID tags and it can be read by readers that it located in lifts and lift lobby. As guests apaches the lift lobby, the lift will be activated automatically. In addition, when the guests enter the lift, the designated floor will automatically be triggered. The guests are not required to press any of the buttons; it will be much more convenient.
6. Challenges / Issues
Although RFID brings plenty of advantages, it also comes with some challenges and issues. Due to all these challenges and issues together with the fact that RFID industry is changing rapidly and being very volatile, businesses are caught in a dilemma on whether to implement or not to implement RFID. With all these challenges and issues, it all comes down to whether businesses still deem the act of implementing RFID system as useful and valuable. Businesses will nevertheless still choose to implement RFID system if the advantages outweigh the issues and challenges.
6.1 Cost of RFID
Generally, RFID system is considered quite costly. The cost of implementing RFID is not only the costs of tags but it also consists of labor costs, learning curve and the costs of the software. The RFID system is like a custom project that involves expensive consulting to bring in the required expertise such as programming of software code that have to be written for the customer’s system. Besides that, the costs of RFID tags are still quite high and the price is not expected to drop anytime soon. The key for businesses to make investment in RFID technology is the drop in prices because businesses avoid major investments whenever possible. However, the main question now is more on whether companies would be interested in this technology is whether the benefits of RFID will exceed the costs.
Perhaps in order for more businesses or industries to start implementing RFID systems, they should be educated on what how RFID works and the benefits that it could bring. They should be aware that RFID brings in more opportunities for sales and reduces costs significantly. This way, they can weigh the benefits against the costs and will eventually stop avoiding investing in RFID.
6.2 Infringement of Privacy
RFID is a good and convenient way to track products and helping to cut down costs. But there is an increasing trend that people starts to exploit this technology. Instead of using it to track products, they start to use it to track people and thus causing privacy issues. Those read and write type of RFID tags can be read by RFID readers have information such as customer’s name and other information added to the RFID tag. This makes RFID tags just like “spy chips”; people can now make use of RFID to track people, their shopping preference, activities as well as their personal information. RFID tags are promiscuous as information that is stored in the RFID tag can be read by other entities besides than the owners without the owner’s knowledge. Other enitites may include business competitors; the RIFD tags make it easier
for them to gain unauthorized access to customer preferences and used all these to gain a competitive advantage. Something that make it more dangerous are that the RFID tags is not able to store the history of past readings and that humans are not able to sense the radio frequency radiation that are used to read tag. Furthermore, the RFID tags as well as the RFID reader can be covertly embedded in the environment.
One of the ways to prevent the unauthorized access of information is through strong encryption. The information that is stored in the RFID tags could be encrypted or encoded. Encryption refers to the converting of plain information into a form known as cipher text that cannot be easily interpreted or understood by unauthorized people. Thus the competitor must be able to know how to decrypt or decode the information before they can make sense out of the information. Decryption means the
converting of information back to its original state.
Besides that, RFID system can also allows the setting of password. The RFID tags will contain sufficient resources to verify the passwords. This would means that the tag will only emit the information only if it received the correct password. For example, at a retail store, upon checking out of the items, the tags will be programmed to respond to a specific password emitted by the RFID network in a consumers’ home. Hence, the consumers’ privacy between the retail store and the
consumers’ home will be protected.
6.3 Tag Interference VulnerabilityTag interference issue is not a very serious issue; however, it still affects the business decision on whether to implement or not to implement RFID systems. Although RFID tags can read through some materials, it cannot be read through all materials. It cannot be read through metals because radio waves cannot pass through metals. If the product is wrapped up by a few layers of aluminum foil, it will defeat the security system. Also, if two RFID tags were place near to each other, it can interfere with the signal and hence disabling the reading capability of the RFID reader.
6.4 Tag Collision Another issue is RFID tag collision; not a big issue but since it is a problem, it also affects the business decision. RFID tag collision will take place it there are too many tags in a small area. The RFID reader will be confused if there it were to receive several signals at the same time. Although the reading time is very short
which means that it is easy for vendors to come up with system that ensures that only one tag responds at one time, the vulnerability issues still remains. However, this issue is not that common.
7. Conclusion
RFID is a revolutionary technology that brings about changes to the way people do things. Presently, RFID is being used is some areas and industries. All companies, industries or other areas that uses RFID are able to enjoy all the benefits of RFID. Perhaps one of the most important benefits is that RFID does not require line-of-sight. Without line-of-sight, transactions or processes such as checking-out can be done more efficiently and effectively. Companies that use RFID will find it beneficial to the business as well as their customers, hence making their business more profitable. Due to all these benefits, RFID will get more common in the future; it will be implemented or will be used in more areas or industries.
Despite the benefits that it could bring, it cannot be denied that it also comes with a few challenges. There is no doubt that RFID comes with negative social implications such as the infringement of privacy which had formed one of the main concerns of it users. In order to ensure an ethical balance between privacy, convenience and efficiency, the new technology which in this case is RFID technology should be questioned and consumers should understand the technology as well as its potential impacts before allowing technological advancements to be implemented in their everyday life. We should not avoid these challenges and issues that come with RIFD for the betterment of the society but instead we can come up with ways to counter the challenges and issues. Hence, on the whole, it is definitely true that RFID benefits outweigh those challenges and issues that accompany it.
8. References
