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What Are RFID Tags and How Do They Work?

RFID has rightfully earned its reputation as a technology for efficiently tracking large numbers of items. This capability has become increasingly important in dealing with post-COVID supply chain issues. But what is an RFID tag, and how do they work? To understand RFID tags, it is first important to understand the elements of an RFID system.

An RFID system consists of an RFID reader, software, and a tag affixed to each item. The RFID tag transmits information about the item and its location to the reader. As the item moves past the reader, the reader collects the data from the tag and reports it to the RFID software, such as an enterprise RFID inventory management system. The software compiles the data and makes it available, so you know where every item is at all times. RFID tags now track everything from electronics, eyewear, and apparel.

How RFID tags work

Most RFID tags are passive, meaning that they contain no power of their own. As they pass the RFID reader, the reader’s energy activates the tag, enabling it to send its information to the reader. RFID tags can be “inlaid” or stuck to the item as a label. They can also be a hard tag made of plastic or metal affixed to the article.

Active RFID tags contain a battery that needs to be replaced every 3-5 years. These tags are great for live tracking, as in toll or cargo tracking applications. They typically have a more extended read range than passive tags, and they also tend to be more expensive.

One of the biggest factors retailers have to consider when adopting an RFID inventory management system involves selecting the size and form factor of the RFID tags.

How to select the right RFID tag form factor

In addition, SML has developed RFID-friendly packaging that has solved the problem of RF interference caused by liquid or metal in specific retail applications. This development means that retailers can now use RFID to accurately track small cosmetic and perfume containers.

SML’s tags and software, combined with our partners’ RFID chips, allow retailers to benefit from RFID inventory tracking without compromising their branding or design. Please check out our How to Choose an RFID Inlay white paper to learn more about our selection of RFID tags.