From manufacturers to retail chains, hospitals to shrimp exporters, the buzz in corporate India is Radio Frequency IDentification (RFID) technology. This cutting edge technology has tremendous potential in improving supply chain management and tracking inventories.

How does RFID works?

A tiny wafer-thin dot chip ( read tag ) is embedded in packaging labels and affixed to shipping cases. These tags can be read by wireless handheld scanners or scanners fixed in a strategic locations like toll naka. Each RFID tag emits a distinct radio signal that allows tagged items to be tracked individually. Unlike a bar code with 14 digit code, RFID can be programmed to store information up to 2 KB. At present, a single RFID tag costs 15 cents and the price is expected to come down by 1 cent.

With retail industry in India is set to zoom, the microchip could truly have macro gains. The RFID chip can be used in any place where a huge amount of materials are to be tracked like at railway stations, airports, petrochemical plants, huge cattle sheds and even during marathons where runners can be tracked from one point to another by embedding RFID chip in their shoes.

Pharmaceuticals

Microchips can make it easier to track bulk drugs, ensuring that spurious and outdated stuff don't enter the supply chain. This would be beneficial especially in tracking vaccines.

Defence

Movement of arms, ammunitions and even clothing from depots to the battlefield can be tracked.

Airports

Come easy, go easy could well be the motto of airline travel. A tiny chip is attached to bags, permitting instant tracking from check in counters to various points in baggage systems.

This high-end technology has huge benefits for consumers. A stolen car with RFID tags can be tracked even if the thief replaces vehicle's nameplate. Also, in planting RFID chips inside surgical instruments will ensure that they're not left inside a body during an operation. The boomerang has truly come back to chip in with India's future.