Analysis of the origin and development history of RFID technology

RFID technology is another means for people to obtain information from "objects." The introduction of RFID technology into the public eye originated from a radical policy by Walmart. On June 19, 2003, at the Retail Systems Exhibition held in Chicago, USA, Walmart announced its plan to adopt RFID technology. According to the plan, 100 of Walmart's suppliers were required to attach RFID tags to their packaging (pallets) starting from January 1, 2005, with gradual expansion thereafter. Suppliers failing to meet these requirements by 2008 would lose their eligibility to supply to Walmart. This initiative made Walmart the first company to formally roll out RFID technology, thus positioning it as a major driving force behind RFID adoption. Starting in 2004, Walmart applied RFID technology to its logistics supply chain. Field inspections revealed that after implementing RFID technology in retail stores and distribution centers, Walmart experienced a 16% reduction in out-of-stock items, a 10% improvement in inventory management efficiency, and a threefold increase in product replenishment speed. Store (supermarket) stocking efficiency improved by 63%, and average inventory levels in retail stores and distribution centers decreased by 10%. At the management level, Walmart achieved the following benefits through RFID technology: reduced costs and improved accuracy in product and warehouse management; significantly enhanced employee productivity; increased real-time visibility and transparency in the supply chain; improved responsiveness leading to higher customer satisfaction. All of these strengthened Walmart's core competitiveness. Today, RFID technology is widely used in production, sales, logistics, transportation, and other fields, enabling dynamic, fast, and precise identification and management of materials on a global scale. As a result, it has garnered significant attention from governments and industries worldwide, becoming one of the key technologies driving the development of the Internet of Things (IoT).

RFID is considered a data auto-capture technology that will replace barcodes. In the 1970s, the application of barcode technology sparked a commercial revolution. The use of barcodes reduced the labor intensity of retail employees, improved work efficiency, and provided customers with a comfortable and convenient shopping environment. However, barcode technology has inherent limitations that fail to meet modern demands. For example, during the distribution process, manual intervention is required to ensure barcodes are oriented toward laser scanners. Goods must be manually scanned upon delivery or arrival at stores to determine accurate quantities or identify losses. This process is prone to repeated or missed scans. Additionally, barcodes typically only reflect the manufacturer and product type (or model), with information such as expiration dates requiring manual input. Manual data recording is error-prone, leading to shortages or overstocking. Although two-dimensional barcodes have emerged in recent years to address information storage limitations, they still rely on light sources for reading and require item-by-item scanning. Table 2-1 provides a comparison between barcode technology and RFID technology.

Compared to barcode technology, RFID offers the advantage of automatic identification. However, in the short term, RFID cannot completely replace barcode technology. RFID is more suitable for the automatic identification of items, while barcodes remain better suited for low-cost, disposable items.

RFID is not a sensor but a mechanism that uses radio waves to retrieve information pre-embedded in objects or object tags. RFID consists of two main components: tags and readers. Additionally, RFID includes a microchip for storing and processing information and an antenna for receiving and transmitting signals. The reader decodes the information on the tag using a bidirectional radio transmitter/receiver, sending signals to the tag via the antenna. The tag responds with the information stored in its memory, and the reader transmits the results to an RFID computer program.