Radio Frequency Identification (RFID)
Definition
Radio Frequency Identification (RFID) uses small tags that transmit their identity via radio waves, allowing items, cases, or pallets to be identified and counted without line-of-sight scanning.
In Practice
Unlike a barcode, an RFID tag does not need to be seen to be read: a handheld or portal reader can capture hundreds of tags per second as goods pass a dock door or a worker sweeps an aisle. Passive UHF tags now cost only a few cents, which made item-level tagging economical for apparel and general merchandise.
The operational payoff is speed and accuracy of inventory counts. A store associate can cycle count an entire department in twenty minutes instead of a day, pushing inventory accuracy from the low 60s to above 95 percent — which directly improves online order promising from store stock.
Example: a major apparel retailer tags every garment at source; DCs verify outbound cartons through RFID tunnels without opening them, and stores count weekly, feeding accurate availability to the OMS.
Related Calculators
Related Terms
Barcode scanning is the use of optical scanners to read printed codes (UPC, Code 128, QR, GS1 labels) that identify items, cartons, locations, and shipments, confirming every physical move in the system.
Internet of Things (IoT)The Internet of Things (IoT) refers to networks of connected sensors and devices — on trucks, containers, pallets, machines, and shelves — that continuously report location, condition, and status data.
Track and TraceTrack and trace is the capability to follow products forward through the supply chain (tracking) and reconstruct their history backward (tracing) at the shipment, batch, or serial-number level.