What is an RFID tag?

An RFID tag (or RFID chip) is an electronic device that transmits data wirelessly over short distances and is used to identify objects or people. RFID is the abbreviation for “Radio Frequency Identification”. The tags use electromagnetic waves to send data to a reader. This then transmits the information to the corresponding system.

The tags are often used in logistics. Here, they are primarily used to track and manage inventories, but also to optimize supply chains and prevent theft. The tags are also used in retail, healthcare and the automotive industry, for example.

RFID tag

What types of RFID tags are there?

The tags differ in their type of energy supply:

  1. Active RFID tag: Active tags have a built-in battery that enables them to transmit signals independently. Depending on the permitted transmission power, the range can be several hundred meters.

  2. Passive RFID tag: Passive tags do not require their own power source. During the reading process, power is supplied via the radio waves of the reader. The range is shorter than with active tags.

  3. Semi-active RFID tag: These tags combine the properties of passive and active tags. They have a battery to power the microchip. They use the energy of the reader for data transmission.

What are the advantages of the chip?

The main advantages include:

  • Automated identification: The tags enable fast and automated identification of objects or people. This speeds up your processes and reduces human error.

  • Radio connection: Thanks to the radio link, no direct visual contact is required. Detection can take place through packaging material or truck tarpaulins, for example.

  • Flexibility: RFID systems can be adapted to your specific requirements and locations.

  • Real-time tracking: Radio Frequency Identification allows you to track objects, which is particularly beneficial in the logistics industry.

  • Cost savings: By improving processes and reducing inventory losses, you can save costs and improve your profitability.

Although the technology offers many advantages, there are also concerns about data protection and security. However, security-relevant data and information is now transmitted in encrypted form, making the chips less easy to copy and intercept.

In conclusion

An RFID tag offers an efficient way of wirelessly identifying and tracking objects and people. This allows you to improve your business processes and save costs.

Want to find out more? With our mobile SAP apps, you can reduce manual processes by using barcode / RFID technology.