How radio technology works

A computer chip, a special reading device, suitable software and a database – RFID systems are made up of simple elements.

The Smart Chip or transponder, a tiny computer chip with an antenna, is at the heart of Radio Frequency Identification (RFID). The consumer goods sector and retailing integrate the chips in special tags on logistic units, retailing units and individual products. The chips hold a number, the Electronic Product Code (EPC), which facilitates the dispatch of units and articles. The EPC gives authorized users with access to special software information about manufacturer, dispatch date, price and weight. The RFID reader then records the EPC in the process chain and the number code is collated in the retailer’s merchandise management system, and the information is automatically updated. This allows companies to precisely check what stage of the supply chain the Smart Chip is currently at.

The Electronic Product Code (EPC) integrates the barcode number pattern and adds an additional serial number. The binary structure means that every article can be given its own unique number in the future. The EPC is divided into sections of different lengths, each encoding different information. In this way the data header offers information about the EPC version. The filter value shows whether the chip is fitted to a pallet, a box or an article, while the base number reveals which company manufactured the product.

Internationally consistent specifications for RFID are crucial for the technology’s successful implementation. To this end, the standardization organization  EPCglobal was founded in 2003, an organization in which METRO GROUP is represented. Representatives and experts work together to develop universal technical and business standards for RFID worldwide, helping guarantee optimal coverage and quick data transfer.