What is RFID?

What is RFID, and is it right for my company? This guide explains the basics of RFID, what SAP doing with RFID in its products, and how you can build a business case for RFID.

RFID (radio frequency identification) is a technology that uses microchips to identify an object, animal or person. The technology has been in use since the 1970s, although it is relatively new to the commercial market, as it was previously too expensive. There are many examples of RFID technology currently in use, including the EZ-pass transponder that you may have in your vehicle.

RFID technology provides a more efficient way of identifying and tracking products as they move through the supply chain. The technology is becoming increasingly important to managers who wish to increase the efficiency -- and therefore the bottom line -- of their companies. Specifically, as products make their way through the supply chain, the RFID chips automatically capture product data, which then becomes available in real time to other supply chain processes, such as Advanced Shipping Notice (ASN), stock management and billing.

Get veteran IT expert Jim Connolly's take on the current status of RFID and ERP for SAP shops:
RFID overview

Read more about RFID applications in the supply chain:
Supply chain management for really smart people

Find out how SAP is incorporating RFID technology and supply chain management (SCM):
RFID boost for SAP SCM

Some say RFID technology is the next big thing:
IT market hears RFID message loud and clear

 


HOW TO BUILD A BUSINESS CASE FOR RFID

 Home: Introduction
  Getting started: What is RFID?
 Getting started: RFID evaluation: Can RFID technology work for you?
 Getting started: Determining the benefits of RFID for your business
 Getting started: Selecting the right RFID software vendor for your business needs
 Building the case: SAP and RFID: Incorporating RFID in ERP software
 Building the case: What other companies are implementing RFID technology?
 Building the case: What factors are holding up RFID adoption?
 Building the case: How do I calculate ROI for RFID?

 

This was first published in May 2006

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