The RFID technology is not a recent technology, rather it has been used for decades by different organizations. However, initially, the cost of implementing RFID technology was very high. This is the reason, why very few people knew about the technology. The RFID technology is advancing day-by-day and researches are on to help reduce the cost that can lead to easy availability of the RFID services.

     The radio frequency identification (RFID) uses the radio frequency tags and reader for transmission and reception of the radio signals. The RFID tags are of two types, viz. active tags and passive tags. The active tags are tags that have an in-built battery in them. These tags are expensive due to the type of battery used. The passive tags are simple ones, with no internal battery. They are much cheaper than the active tags.

     The RFID technology is rapidly replacing the barcode system, which has been popular until now. The applications of the RFID technology are known to have many benefits over the other automatic identification technologies.

     The RFID tags are made rugged and robust so that they can be used in any harsh environment and temperatures. The oldest application of RFID technology is animal husbandry. Earlier, plastic tags were used for tracking the animals. These plastic tags easily worn out after a few weeks. These have been soon replaced by the RFID tags. The RFID tags provide easy tracking of the animals. Injectable RFID tags are also available these days. The injectable RFID tags can be used for tracking the animals easily. These tags have the information about the age of animal, medical history and vaccinations. Any other system does not provide the facility of maintaining all the information in addition to keeping track of the animal. RFID technology has made many tasks in animal husbandry, very easy.

     The rapid advancement in the RFID technology has made it possible to manufacture RFID tags in many shapes and sizes. Also, the information written on the RFID tags cannot be duplicated easily. RFID tags are thus, superior than the barcode because easy duplication is not possible and can be more effectively for security purposes. Many of the retail shops and stores (especially jewelry stores) used the barcode system, earlier. The barcode system used for security purposes, has known to have failed many times. Even the CCTV cameras do not prove to be helpful, in many cases. These systems are not very effective in avoiding theft. Instead, these systems are used for identifying the thieves after a theft has already occurred. RFID, on the other hand, provides an anti-theft mechanism to the stores. The RFID tags are used with every item in the stores. The RFID reader is usually kept at some place near the exit door of the store, with an alarm system attached to it. The RFID systems are particularly deployed for expensive items to prevent the theft of these valuables.

     Misinterpretation is always witnessed in case of paper or plastic tags. These human errors can be eliminated using the RFID technology. This is the reason, RFID tags are widely used in blood banks. The labels on the blood banks are sometimes identical and misinterpreted due to panic situations. The blood banks embed the RFID tags on the label of the blood packets or bottles. When a paramedic staff wants a particular blood group, the RFID reader can easily let him know the correct packet.

     The storage capacity of the RFID tags is greater than that of the barcode. The barcode just gives us the manufacturer and the product type. Additional data related to the product can be stored in the RFID tags and they can form a better tracking system. In retail stores, the customer has to go empty-handed when a certain item or product is out of stock. This situation is tackled by the RFID tracking system. The store-keeper or store in-charge is given an alert when the last item of a particular product in a store is purchased, so that adequate stock is always available. This helps to improve customer service and satisfaction and thus, can prove to be advantageous for increasing the business profits.

     Lastly, the RFID tags are unique. This makes the system highly reliable and error-free. The RFID system reduces the labor cost of the company by providing a good tracking system. The operations like tracking the pallets, cases and cartons can be efficiently done using the RFID technology. The RFID tags are attached to each carton or case and the related information is written on the tag. This technology can be effectively used in stock management.

     The RFID system has a numerous benefits, but the technology is still quite expensive. The costs have indeed reduced since the inception of the technology. However, RFID technology is still not very cheap and is not affordable for small businesses. This is the primary reason for RFID technology not being incorporated in every possible field. The RFID technology has several pros and cons. Nevertheless, the technology is progressing with a rapid speed.