What is the Application of RFID in Automobile Industry?

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Radio Frequency Identification, or RFID, is a term that is used for technologies that make use of radio waves for the automatic identification of an individual or item, generally through a serial number that uniquely identifies a person, object and the other information which is stored on a microchip that is attached to an antenna, together called as RFID tag. The reader gets the information from the chip with the help of the antenna and the reader changes the radio waves from the RFID tag into digital information that can be used as and when required from the computers.


RFID technology has found its application in safety products, smart fitting rooms, health solutions, animal tracking, customer interactive marketing, livestock management and much more. It is evident that this technology has great potential to enhance as well as protect the lives of the users, and also change and improve the way companies do business. RFID, the most flexible and easy-going auto-identification technology, can track and monitor the physical activities, if put into use properly.


With the RFID technology, you can identify where an object is and its condition as well, and share related data and respond to it; which has made RFID necessary for the growth of Internet of Things However, RFID tag and labels are designed to enable data to be viewed on a real-time, which makes it suitable for automobile industry. 


The automobile industry has complex supply chain operations. To set off potential impediments, RFIDs are now being used to detect and assess the problems faced during production and correspond to a downstream system. However, due to increasing globalization, the competition is rising at a faster rate. In the Automobile industry, RFID technology takes the stage even before merchandises are shipped to the manufacturers for assembling. The tagging of individual item is done by the supplier that enables automated receiving at the next part of the chain. Moreover, the goods can be matched up to the data present in the ERP system which helps in increasing the accuracy of shipping and also offers cost recovery, in case the shipments are incorrect. The RFID tag is actually the part of the integration on the entire manufacturing production as well. They can be used to harmonize the flow of manufacturing so that all the materials required in the manufacturing are present whenever and wherever they are needed, keeping the work-flow smooth. RFIDs are employed in industries to keep things organized and monitored efficiently.

Last update: Aug 19, 2016

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