What does RFID mean?

RFID stands for “Radio Frequency Identification” and refers to a technology for contactless identification and localization of objects using electromagnetic waves. Unlike barcode systems, it enables automatic data capture without the need for direct visual contact between the transmitter and receiver.

How it works

An RFID system essentially consists of three components:

1. Transponder (RFID tag): A microchip with an antenna attached to the object that stores data.
2. Reader: It emits radio waves, reads the information sent by the transponder, and transmits it to an IT infrastructure.
3. Middleware/software: Processes the received data and integrates it into higher-level systems such as ERP or warehouse management systems (WMS).

Areas of application in logistics

RFID technologies are used in numerous areas of logistics, including:

• Goods receipt and dispatch: automated recording and posting of items upon delivery or shipment.
• Inventory management: permanent real-time monitoring of stock levels.
• Order picking: optimization of picking processes through automatic identification of items.
• Shipment tracking (tracking & tracing): - Seamless traceability of products along the entire supply chain.
• Theft protection: Identification of unauthorized goods movements.

Advantages of RFID

The use of RFID technology offers numerous advantages that lead to significant efficiency gains, particularly in logistics. A key advantage is the ability to read multiple RFID tags simultaneously, contactlessly, and in a very short time—without any line of sight. In addition, RFID chips are more secure and have a significantly larger storage capacity than conventional barcodes. This greatly reduces the manual effort required for data collection. At the same time, companies benefit from increased transparency and process reliability along the entire supply chain. Even in challenging environments, RFID systems impress with their high resistance to dirt, dust, and moisture.

Challenges and limitations

Despite its numerous advantages, the use of RFID is not without its challenges. Active RFID tags, which have their own power supply, in particular incur comparatively high costs for purchase and maintenance. There are also technical limitations: metallic or liquid materials can significantly impair signal transmission and reduce reading accuracy. In addition, automatic and contactless identification raises data protection issues, particularly in the retail sector, for example when personal information is also processed or consumers feel they are not sufficiently informed about the collection of data.