We often mention the Internet of Things in this space because, as business technology goes, it is one of the most untapped resources that companies have presently. One of the most useful IoT tools is the RFID sensor. Today, we will explain what an RFID tag is and how it can work to improve your business. 

What is an RFID?

RFID, or Radio Frequency Identification, is a wireless technology that is used to identify and track objects. It is part of a bigger set of technologies: Automatic Identification and Data Collection (AIDC). RFID has seen its use over the past several years expand fairly rapidly and is now a crucial component in a lot of Industrial IoT applications and supply chain management controls. For full transparency, RFID isn’t really used to track the location of an item the same way GPS does—you can’t actively monitor an item using an RFID chip as it moves around—but your staff can scan RFID chips with a device when scanning, counting, or transporting an item.

The technology’s main use is for inventory management, but with only a short period of use, businesses can glean a lot of useful information from the analysis of RFID movement. Overall, the use of RFID can help lower labor costs, improve operational efficiency, and thoroughly track inventory. 

That’s just scratching the surface of its capabilities. 

As RFID becomes commonplace, it becomes much more affordable, and therefore allows smaller businesses to take advantage of RFID’s ability to help identify and track just about anything. This makes the applications for these sensors vast and helpful in controlling different elements of a business. 

How Does RFID Work

RFID is a pretty simple technology that has four basic parts. The first part is the sensor itself. The RFID “tag” can be fashioned onto just about anything and is identified through an antenna just like your average radio tuner. This signal is read by an “RFID reader” and that information is sent to a connected database that can be accessed by end users. 

It’s a pretty simple system, but it can have immense benefits, especially in terms of operational efficiency. Obviously, for companies that have a lot of product or component turnover, this information can keep stocks at optimal levels and work to provide the data needed for decision-makers to strategize better. 

The more accurate information is available, the better decision-making is going to be. If you would like to talk to one of our technology professionals about the Internet of Things, RFID sensors, or any other technology that can be easily deployed and help you make better business decisions, give Dresner Group a call today at (410) 531-6727.