RFID- Radio-Frequency Identification- is a small electronic device that consists of a chip and an antenna. The chip can carry 2,000 bytes of data. It works much like a barcode or a magnetic strip on the back of a credit card, but better! RFID can be used to identify an object or a person wirelessly, using radio waves. This way one can capture data on the tags and transmit it to a computer system.
RFID is being used on a world wide level, a popular benefit of RFID in regards to e-business is the increasing efficiency in the supply chain management. It can be used to uniquely identify each container, pallet, case and item being manufactured, shipped and sold, which means an increased visibility throughout the supply chain, also, it has the potential of helping retailers maximize sales and profit by reducing out of stocks.