The rapid development of communication technology is more exciting than science fiction, as such technology will soon be revolutionizing our daily lives. In the future, an intelligent refrigerator will order food on its own, while cell phones “talk” to movie posters or train ticket machines. Tickets will then be paid for via cell phone bills, making annoying waits at offices and counters a thing of the past. All of this will be made possible by radio frequency identification technology, or RFID, which is already opening up new dimensions in data transmission, and is now being tested in increasingly diverse areas. RFID can be found in the consumer goods industry, where it speeds up the supply chain and makes it more transparent. That’s because the technology can be used to track and control every stage of a product’s journey from the manufacturer to the store shelf.
RFID works as follows: A tiny computer chip with an integrated antenna—the transponder—is embedded in a merchandise label or plastic card. This chip stores a series of numbers, which, like a barcode, holds encrypted data about the product and its manufacturer. The chip also stores its own serial number, which means any object carrying such a transponder can always be identified unambiguously.
Special RFID readers register the stored numerical code even without physically touching or being in view of the chip, as transmission is carried out via radio. The reader sends out an electromagnetic field that activates the transponder. The code is then read and stored in a data processing system. When used in a supermarket, for example, the technology makes it possible to automatically conduct inventories with just the push of a button.
A groundbreaking innovation: RFID gives every object a “fingerprint” that enables it to communicate with computer systems around the world. With it, for example, a food importing company can find out exactly where a delivery is in real time. Such capability represents a huge advancement in the documentation and control of global flows of goods and data.
RFID offers the following benefits:
- Seamless traceability of food and livestock feed
- Better quality control and protection against product piracy
- Comprehensive product information made available at all sales outlets
- Demand-based production and greater availability of goods
- Faster payment processes
- Optimized warehouse and inventory management
- Transparent exchange of information between industry and the trade
RFID not only harbors huge potential for businesses; the technology can also make everyday life simpler and safer. However, some critics warn that increasing utilization of RFID could lead to personal data being collected without the subject’s knowledge. They are therefore calling for effective measures to safeguard privacy.
In any case, most RFID applications, such as those for logistics, do not involve the collection of personal data. In the retail sector, such data is only collected if customers use a customer loyalty card. Moreover, there are strict laws already in place to protect consumers’ personal data. These laws stipulate that consumers must agree to every instance of data collection, and can also withdraw their consent for the use of the data at any time. The European Commission is working to develop binding international RFID security standards, and many companies now voluntarily inform their customers of all uses of RFID technology.
