Introduction to Information Systems

BOXES

[Start TECHNOLOGY INSIGHT 1.1 box here]

TECHNOLOGY INSIGHT 1.1

Radio Frequency ID Tags

Bar codes revolutionized the tracking of merchandise and shipments by including an easily readable label to identify a product or shipping container full of products. Bar codes dramatically cut the time needed to inventory packages, items within packages, and even truck-sized shipping containers. Because the codes were standardized, this technology also improved the accuracy with which products could be tracked and accounted for.

Now another technology is appearing that will take this revolution a step farther. Radio Frequency ID Tags (RFID) are intelligent chips that can be embedded in or attached to a product. These chips transmit descriptive data through packaging and shipping containers, so humans need not open and physically examine each item. The more advanced (and expensive) versions of RFID periodically send out signals identifying their location, reducing further the need for human intervention or timeconsuming searches for particular products or shipments. They are also much faster to scan than their bar code equivalent, especially since an entire container's contents can be assessed at once, in the same time a single bar code could be scanned manually.

RFID is being used by the military to track shipments to war zones. It is also being investigated as a way to track radioactive or dangerous materials during transport. But the most widespread and commonplace applications of RFID will likely be in manufacturing and distribution, where the devices are being investigated to track everything from automobiles as they proceed through the assembly line to items of clothing in the stock room of a retail store.

RFID will improve a company's ability to track inventory throughout all processes. Savings related to reduced need for humans to track inventory, less need for excess inventory, and better awareness of supplier and customer shipment location and times will propel more companies to investigate this emerging technology.