• What is RFID?

Radio-frequency identification (RFID) is an automatic identification method, relying on storing and remotely retrieving data using devices called RFID tags or transponders. An RFID tag is an object that can be attached to or incorporated into a product, animal, or person for the purpose of identification using radio waves. All RFID tags contain at least two parts. One is an integrated circuit for storing and processing information, modulating and demodulating a radio frequency (RF) signal and perhaps other specialized functions. The second is an antenna for receiving and transmitting the signal.

The RFID tag can automatically be read from several meters away and does not have to be in the line of sight of the reader. The current thrust in RFID use is in supply chain management for large enterprises. RFID increases the speed and accuracy with which inventory can be tracked and managed thereby saving money for the business.

The RFID market is rapidly expanding in applications such as supply chain management, logistics, and other retail systems. Although the first phase of RFID adoption has been occurring in pallet and case level logistics so far, greater benefit is expected in item level adoption. However, in addition to technical issues like RF interference and tag cost issues, it is unclear how to create profitable systems which directly benefit consumers.
To better understand and overcome these problems, we have been integrating RFID into retail application concept systems. This integrated system will serve as a test bed for identifying the RF issues in real store environments and proposing new applications to benefit both consumers and retailers.

The smart shelf system uses RFID tags which are attached to the items and RFID readers which are embedded underneath the shelf. The readers periodically interrogate the tags so that the system can manage real-time shelf inventory. Furthermore, the system can detect the removal of an item when a customer picks it up. The "pick-up" event changes the content of a computer-driven display to show advertising and information related to the item. Thus, the system provides benefits beyond simple inventory management by attempting to directly influence sales. At the same time, the "pick-up" events are recorded in the database and can be used for off-line marketing analysis and real-time analysis for interactive sales promotion on the shelf display.