Radio-frequency identification (RFID) is an automatic identification method, relying on storing and remotely retrieving data using devices called RFID tags or transponders.

An RFID tag is an object that can be applied to or incorporated into a product, animal, or person for the purpose of identification and tracking using radio waves. Some tags can be read from several meters away and beyond the line of sight of the reader.

Most RFID tags contain at least two parts. One is an integrated circuit for storing and processing information, modulating and demodulating a radio-frequency (RF) signal, and other specialized functions. The second is an antenna for receiving and transmitting the signal. Chipless RFID allows for discrete identification of tags without an integrated circuit, thereby allowing tags to be printed directly onto assets at a lower cost than traditional tags.

Today, RFID is used in enterprise supply chain management to improve the efficiency of inventory tracking and management. However, growth and adoption in the enterprise supply chain market is limited because current commercial technology does not link the indoor tracking to the overall end-to-end supply chain visibility. Coupled with fair cost-sharing mechanisms, rational motives and justified returns from RFID technology investments are the key ingredients to achieve long-term and sustainable RFID technology adoption .

History

Similar technology, such as the IFF transponder invented by the United Kingdom in 1939, was routinely used by the allies in World War II to identify aircraft as friend or foe. Transponders are still used by most powered aircraft to this day.

Another early work exploring RFID is the landmark 1948 paper by Harry Stockman, titled "Communication by Means of Reflected Power" (Proceedings of the IRE, pp 1196–1204, October 1948). Stockman predicted that "…considerable research and development work has to be done before the remaining basic problems in reflected-power communication are solved, and before the field of useful applications is explored."

Mario Cardullo's in 1973 was the first true ancestor of modern RFID; a passive radio transponder with memory. The initial device was passive, powered by the interrogating signal, and was demonstrated in 1971 to the New York Port Authority and other potential users and consisted of a transponder with 16 bit memory for use as a toll device. The basic Cardullo patent covers the use of RF, sound and light as transmission media. The original business plan presented to investors in 1969 showed uses in transportation (automotive vehicle identification, automatic toll system, electronic license plate, electronic manifest, vehicle routing, vehicle performance monitoring), banking (electronic check book, electronic credit card), security (personnel identification, automatic gates, surveillance) and medical (identification, patient history).