How Is RFID Technology Used In The Shipping Industry

The use of Radio Frequency Identification technology in shipping and transport has had a drastic impact on both industries, mainly through improving efficiency and tracking throughout the process. As technology improves and caters more to the needs of specific industries, trucking and shipping are feeling the benefits of a smoother operating and more streamlined method of transporting goods around the world.

Simply put, an RFID tag is an easier way of tracking and cataloguing goods or merchandise as they are moved. The RFID tags use a radio frequency to communicate relevant information to a device or reader, which is gathered through an antenna. Once the information is collected, it is then sent along to a computer that is able to collate and organize the data so that it can be assessed and archived.

The applications of RFID technology are far reaching and touch virtually segments of commerce and logistics. Anything from cycle counting inventory at a retail store to receiving and tracking international shipments can be improved with the implementation of RFID tags. Businesses and even entire industries have been quick to jump on the new technology as the benefits of its usage have become more clear, especially in regards to eliminating paperwork and the ability to quickly assess and track shipment loads.

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The Difference Between GPS and RFID Technology

Now that we’ve touched on the general applications of RFID technology in the field of logistics, let’s take a closer look at how it works in auto transport and home moving. The main purpose of RFID chips in logistics is to make sure that any inventory (goods, belongings, vehicles, etc.) are accounted for when they’re shipped and when they’re received.

The usage of RFID chips is often confused with GPS technology used in tracking vehicles, shipments, and cargo containers. GPS allows the real-time updated information of a shipment or load to be tracked, whereas an RFID chip only contains information about the load. This is an important distinction since one (GPS) operates throughout delivery, and the other (RFID) is only used to indicate what and how many of something are being delivered.

RFID Resources

• RFID Journal - An independently run website that covers the latest news and information about RFID technology and its application to business systems and processes. The site features several sections, many of which extend into broader topics related to RFID.
• How RFID Works - An explanation of how RFID technology works, broken down into simple and easy to digest chunks that are accessible to any reader. The article goes into some good depth and detail and provides resources for further reading if you want to know more.