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What is RFID?

Suzanne Loker, Ph.D., Professor, Cornell University
Paul Chandary, Paxar

What is RFID?
Radio Frequency Identification, or RFID, is an identification or tagging method that is similar in function to a bar code on an apparel product or shipping carton. The tags can be read through packaging and cartons without the line of sight necessary for reading barcodes. RFID technology has three components: microchip tags that carry the data, antennas that send the data, and readers that interpret the data. Cartons or products using RFID technology carry a transponder made from a microchip attached to an antenna like the one pictured here. It can be very small but read distance performance will depend on size. These tags can be placed in an apparel product without affecting its comfort or look, for example, the tag might be in a seam or hem or in a paper carton label. The RFID readers can be placed in the entry of a warehouse and, depending upon the size and frequency of the RFID used, it can be read up to 20 feet though most in use today read only about 2 to 10 feet.

How is RFID affecting the apparel and sewn products industry?
RFID labels are smart labels that can provide information for a number of applications in the apparel supply chain. Their unique information can be captured automatically once the labels are applied at product inception, and the information is highly accurate and secure. Some RFID can be modified at stages of the supply chain using the interaction between the microchip and reader software. RFID is traceable or can be tracked to provide a production and inventory control system, used for “smart shelves” real time inventory, retail security system, and even as an authentication to identify counterfeiting of brands.

What needs to happen before RFID use is widespread?
RFID is in its infancy and there are several roadblocks to its sweeping implementation. First, there are many versions of RFID technology that operate at different radio frequencies and require different software and readers. One or several frequencies need to be agreed upon so that there can be interoperability between retailers, manufacturers, and distributors using only one set of technologies. In addition, the cost of the technology needs to be reduced. Right now, it costs about 40 cents per chip as compared to 4 cents for a barcodes. The cost of RFID readers and software also need to be considered.

Standardization is underway in the organization of data into an Electronic Product Code (EPC), currently a voluntary standard. The EPC, similar to the UPC for barcodes, includes a header and three sets of data: manufacturer id, SKU, and item unique code, for a total of 96-bits of information.

Privacy has become an issue as the microchip will remain in the product for its lifetime. Several consumer activist groups are concerned that the consumer’s privacy will be compromised as their activities with the product could be followed by the technology. Industry has countered this concern by developing systems to automatically deactivate the microchips at time of purchase.

When will RFID be implemented?
RFID will be implemented at the carton level first, as this is where the greatest cost benefit lies and where it will be the easiest to implement. Wal-Mart and Target have both announced that their 100 largest suppliers, including some apparel suppliers, will be required to label their cartons with RFID technology by January 2005. This requirement will no doubt speed up the technology development and standardization that needs to be in place for widespread adoption.


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Last Site Revision:
April 19, 2005