RFID Technology: Definition, Uses And Benefits

RFID Technology Definition Uses Benefits

What is RFID technology? RFID technology is one of the most revolutionary technologies in recent years. It has changed the way corporations and other establishments do business by making transactions faster and more efficient.

It is a wireless system that uses electromagnetic waves to identify and track tags attached to objects. In other words, RFID technology allows things like computers or pallets of goods to be tracked without requiring the use of barcodes or GPS. It’s been around for decades but has only recently been implemented in commercial settings. This article discusses what RFID is and how it can be used in practical applications today. 

What Is RFID?

RFID stands for Radio Frequency Identification. It’s the wireless transfer of data that typically includes identification, location, or timestamp. Most RFID tags are passive devices that identify who owns the tag with stored information on an integrated circuit without requiring access to a wireless network or power. Some can also transmit short transmissions, so they aren’t limited to just reading one’s identification.

It is similar in purpose and use as barcodes, but it uses electromagnetic fields to transfer data instead of laser beams as barcodes do. Therefore there is no need for a direct line of sight which makes them very promising for next-generation product labels called smart labels (or NFC (Near Field Communication) labels. The potential advantages of RFID include cost efficiency and greater speed. 

How Does RFID Work?

RFID uses radio waves to read and write data to a tag attached to an object. The tag contains electronically stored information, and with it, the ability to be remotely read. The tags usually come in the form of a microchip, which is embedded in a label or card. When an RFID reader sends out a radio wave, the tag responds by sending back its unique identification code and other data, such as the package’s temperature or the number of times it has been handled.

The distance between the reader and tag can vary, but it’s usually about a foot or so. RFID tags can also be read through various materials, including glass, plastic, metal, and even human skin.

RFID Technology Definition Uses Benefits

Types Of RFID

There are three types of RFID tags: active, passive, and semi-passive. 


Active tags require extra batteries, so they typically stay in one place. They are often used to track the location of valuable items like laptops. Because active tags broadcast a signal at all times, anyone who has an RFID reader within range can read them.


Passive tags don’t have their own power supply, so they rely on the reader to provide energy. This makes them smaller and less expensive than active tags. Passive tags are often used for tracking items in a supply chain or library books. 


Semi-passive tags have limited internal power but still receive energy from an RFID reader’s waves. This means that semi-passive tags can receive, store, and transmit information at a distance. Semi-passive tags are best for applications that require medium-range but do not need the flexibility of active tags.

What Are RFID Tags And Smart Labels?

RFID tags and smart labels are two types of electronic tags that can be used to identify and track objects. An RFID tag consists of an antenna and a chip, while a smart label also includes a memory chip and a sensor.

RFID tags are used to track items in stores and supply chains and manufacturing processes. Smart labels can be used to track individual items, such as pharmaceuticals or food, as well as the environmental conditions around them, such as temperature or humidity.

Applications Of RFID Technology

RFID technology has a wide range of applications. Some of the most common are:

Access Control

RFID tags can be used to identify authorised personnel and grant them access to restricted areas.

Asset Tracking

RFID tags can be used to monitor the location of assets. This ensures assets are kept in the right place at all times and enables logistics managers to optimise resource usage.

Transportation Management 

These are used for tracking shipments along supply chains. RFID technology is able to automatically monitor the progress of goods through transportation systems which improve management of logistics.

Road Traffic Management

RFID tags can be used on vehicles to improve traffic management. By tracking the speed, location, and direction of vehicles, authorities are able to optimise traffic flow and reduce congestion.

Smart Buildings 

RFID technology is an integral part of many intelligent buildings, which allow operators to monitor heating, lighting, elevators, and even window blinds.


Active, passive, and semi-passive are all the different types of RFID tags, each of them has its specific use. RFID technology is a widespread phenomenon and is being implemented in different areas for better functioning. It has already proved its worth in various fields and will only become more ubiquitous with time. 

For more information about RFID tags,  please visit our website. Our team would be happy to discuss your needs and to help you build new, more efficient workflows that will support the best operation of your warehouse or store.

We have the right tools for companies of all sizes and will work to accommodate your business, supplying you with technologies that are tailored to suit your business to help improve your efficiency and accountability. We are the market leader when it comes to the development of customised and packaged solutions.

This includes Inventory Management, Portable Barcode Readers, Supply Chain Management, Time and Attendance and Asset Tracking to name but a few.

Please call us today on 03 9578 7600 or 1800 061 642 or contact us through our website.