What is RFID & How Does RFID Work?

What is RFID?

Radio frequency identification, more commonly known as RFID, has been around since World War II and used in many settings and applications. It wasn’t until recently that developments in technology have made RFID available for loss prevention in the retail industry.

How RFID Works

RFID consists of an RFID reader and a tag with an RFID chip and antenna. The reader sends out a radio frequency (RF) signal and waits for any tags in range to respond. One of RFID’s greatest advantages is that it does not need to “see” a tag to detect it. This means a tag can be read through product packaging, inside a shopping cart or even through clothing.

An RFID tag also contains information about the asset, compared to traditional EAS tags which cannot carry information at all. This means that the company will always know where an asset is, which is a great benefit in asset protection.

RFID Applications

RFID was first introduced as a way to improve inventory accuracy, not to reduce shrink. However, at one major retailer who introduced RFID to their store locations, shrink was reduced by an average of 55 percent and theft by as much as 75 percent in some locations.

RFID tags and systems act in the same role as traditional EAS tags and systems while providing more information to the retailer. For example, if an asset with an RFID tag leaves the store without being paid for, not only will the tag trigger the alarm, but employees can see exactly which product left the store, making it easier for them to ensure all the missing items are recovered.

RFID technology is also a huge advantage for supply chain management. RFID tags can provide important data for lost items because assets can be tracked from factory to sale. Considering that many assets begin their journey with overseas manufacturers, then pass through several ports, customs checks and logistical channels before actually reaching a store floor, RFID can be an invaluable technology for supply chain asset protection.

RFID Systems & Tags

RFID systems can be tricky and expensive to install. However, here at CONTROLTEK, we make the process easy. From start to finish, we focus on your business goals and budget so you can prevent theft from your store. And with our First Time Right ™ approach, over 97 percent of our installations are fully completed on the very first visit. Contact us today for a free quote!