Security and Reliability of RFID Technology in Supply Chain Management

Abstract

RFID (radio frequency identification) technology can be expressed in the most universal manner as wireless identification technology, which does not need the line-of-sight to be read or written. It offers enhancement of identification technologies like barcode technology. Optical barcode technology was developed in 1948 by Silver and Woodland at Drexel Institute of Technology and first commercially used in 1966 (Adams, 2002). Barcode technology stores data in the widths and spacings of printed parallel lines, or in patterns of dots, concentric circles, and hidden within images. The most extended is UPC code which was invented in 1973 and since then became everyday part of our life. Other commonly used types of barcodes are Code 128, Code 93 (Groover, 1980) and DataMatrix 2D barcode. At this time, mostly the barcodes are keeping inventory and shipments moving. RFID technology has several advantages for managing and collecting object’s data or tracking it as it moves through the supply chain (SC). Two of them are related to the increased abilities of security and reliability of the identification systems. These two properties of identification technologies are equally important for their use in supply chain management (SCM). The purpose of this chapter is to highlight selected areas of this technology that may be critical specific aspects of further RFID development and applications. We have also discussed about differences between RFID and barcode technologies especially in terms of their use in SCM and concluded this article with expectations of further development of this still progressive technology.