SATO CL408E User Guide

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Version 0.8 
 
 
 
21/10/2004 
 
 
    Page 6 of 44 
WHAT IS RFID?
 
RFID is best described as a wireless memory chip, or “smart tag”, that is attached to both 
the product and transport packaging.  
 
Q: How does an RFID system work? 
RFID offers higher data storage capacities, higher identification speeds, and greater 
immediacy and accuracy of data collection. RFID readers control the wireless reading and 
writing of information stored on an RFID tag by generating a radio frequency field around 
the antenna. The RF field gives the tag power (if passive tag), and a way to transfer data 
from the tag to the reader. The tag modulates the reader's RF field, and the reader can 
detect this. Likewise, the reader turns the RF field on and off in the right sequence in order 
to write the tag.  
 
Q: Why are supply chain management companies embracing this technology? 
An increasing number of supply chain management companies worldwide are embracing 
RFID technology to identify multiple items in a single container in an expeditious manner—
a feat that is not always possible with bar-coding systems. The technology’s enhanced 
accuracy and security in data collection makes it an ideal data collection platform for the 
healthcare, pharmaceutical, manufacturing, warehousing, logistics and retail sectors.  
 
 
Q: What was the first application of RFID? 
RFID can be traced back to World War II days, when the British military needed to find a 
way to identify whether an approaching aircraft was friend or foe. Even today, as more 
sophisticated navigation technology becomes accessible, the United States military is 
currently using various forms of RFID.  
 
Q: When was RFID first used to track inventory or livestock?  
In the 1980s, Compaq Computer had begun using RFID tags to trace components through 
the production process. The railroad industry has also used RFID to track nearly every rail 
car in North America, while the agricultural industry has used RFID tags to trace its 
livestock. 
 
Q: What was the first implementation of RFID towards consumer applications? 
Additionally, RFID has also been used for various consumer applications. Vehicle 
transponders use RFID to communicate with toll booths on bridges, expressways, or 
special toll roads to automatically deduct funds from the account holder of the transponder. 
 
Q: What is the driving force behind the initiative of so many companies to 
implement RFID?
  
One of the major reasons is because a few major retailers, along with the U.S. Department 
of Defense (DoD), have decided to utilise RFID technology within their supply chain 
management. The major retailers are mandating that their top 100 suppliers utilise RFID 
tags on all product deliveries by 2005.