Radio frequency identification, RFID, offers real-time data on the location of goods. While a boon for large retailers who would be able to manage their goods more efficiently, there are a variety of barriers in the way of RFID technology. The cost alone will delay its full implementation for some time, but the larger issue of privacy has many individuals and groups fighting RFID technology.
RFID Defined
RFID consists of two parts: an RFID tag and a RFID reader. The tags are small microchips connected to an antenna. The antenna usually looks like copper wire going in a uniform pattern around the microchip. Readers stimulate the tags through electromagnetic energy, causing the tags to emit a radio signal containing a unique identification number associated with the product. The radio signal is then picked up by the reader. These tasks are automated and do not require human management once the reader and tags are in place.
Goals for RFID
The goal for RFID technology from the corporate end is to have greater control over the supply chain. RFID would allow a retailer to know exactly how much of a certain product is on hand, how much is in the warehouse, and how much inventory is in route. All this information could be obtained in real time, and would help retailers and manufacturers of goods more accurately meet the needs of their customers with less guesswork.
RFID Obstacles
The primary barrier to RFID technology is the cost. With a cost per unit of about 25 cents as of 2011, it is still cost prohibitive to place RFID tags on every product. The goal of the industry is to create tags with a cost per unit of five cents. However, because the technology has to be widely adopted in order for price to drop, there are still barriers to ubiquitous RFID tag use.
RFID Concerns
RFID technology raises many significant privacy concerns. Each RFID tag contains a unique number to ID the product. This is different than barcode technology, which uses the same number for every product of a certain type. If that identifying number is then tied to a reward card number or a credit card number, people and products could be identified with a RFID reader. Additionally, RFID tags are small and usually hidden. They are already used in the supply chain, and it is likely that you have them in your home. Since they are always on, it is possible for anyone with a RFID reader to pick up the unique ID numbers of your goods, or even track your movements by strategically placing RFID readers in the community.
Tags: RFID technology, RFID reader, card number, cost unit, every product, goods more
