RFID (Radio Frequency Identification) is an automatic identification technology that uses radio waves to read and capture data stored on a tag attached to an object. Unlike barcodes, RFID does not require line-of-sight between the reader and the tag—a reader can detect hundreds of RFID tags simultaneously through boxes, pallets, and packaging within its RF field. An RFID system consists of three components: a tag (a microchip with an antenna), a reader (which emits RF energy and receives tag responses), and middleware software that processes and routes the captured data to a business system.

RFID operates across several frequency bands, each suited to different applications. Low Frequency (LF, 125–134 kHz) is used for animal tracking and access control, with read ranges of a few centimeters. High Frequency (HF, 13.56 MHz) is the basis for NFC and library systems, with read ranges up to 1 meter. Ultra High Frequency (UHF, 860–960 MHz) is the dominant standard for retail and supply chain, enabling read ranges of 1–12 meters and bulk reads of 1,000+ tags per second. Passive UHF tags (which harvest power from the reader's RF field) cost as little as $0.05–$0.15 per tag, making large-scale deployment economical.

In warehouse and retail environments, RFID dramatically improves inventory accuracy—from typical barcode-based accuracy of 63–85% to RFID-enabled accuracy of 95–99%. Zebra's FX9600 fixed RFID reader and the MC9300 mobile computer with RFID sled are commonly deployed for dock-door receiving and cycle counting. The GS1 EPC (Electronic Product Code) standard governs RFID tag data encoding, ensuring interoperability across trading partners. When evaluating RFID versus barcode systems, consider that RFID offers faster throughput and no line-of-sight requirement, while barcodes have lower infrastructure cost and work with a wider range of existing equipment.