RFID (Radio Frequency Identification) in general terms can be described as a means of identifying a person or object using radio frequency transmission. RFID is not new; it’s been around for over 10 years and is already in use in applications such as access control and transport ticketing. What has made the difference this time is the creation of EPC (electronic Product Code) coupled with lower tag costs. The use of RFIDcombined with the EPC promises to provide data about products never available before. The Wide adoption of RFID across the supply chain will bring significant benefits leading to reduced operational costs and hence increased profits. Many analysts suggest that this will happen in three primary areas like reduced inventory and shrinkage, benefit from a reduction store and warehouse labor expenses and a reduction in out of stock items.

This paper is aimed at both technical and business professional who want to understand how RFID basically works, the various building blocks and the potential the technology has for the supply chain.