IntroductionRFID stands for Radio Frequency Identification. RFID systems enable contactless identification of objects. An RFID system consists of three parts: the RFID tag itself (also called a transponder), a device that reads the tag, and an IT system (backend) that looks up the ID on the tag with a database record to identify and describe the object. The RFID tag consists of a silicon chip, containing a unique identification number and an antenna that communicates with the reader device. This communication occurs via radio frequency waves. RFID tags can be passive or active. Passive tags have no battery and use energy stored in the reading device to communicate with the tag via reflection. Active tags have a battery and can therefore send a stronger signal which allows these tags to be read from a greater distance. Wal-Mart is credited with boosting the use of RFID technology with its June 2003 mandate to introduce RFID tags on cases and pallets. Prior to the mandate, RFID technology had found limited use. Wal-Mart was soon followed by the Department of Defense and retailers such as Best Buy. (Delen, Hardgrave, & Sharda, 2007) These systems have since found popular use in, among other things, access control, credit cards, contactless smart cards, smart tickets, sports equipment, toys , in games, in the automotive industry in electric vehicles, anti-theft systems, etc. The focus of this paper, however, will be on the use of RFID in supply chains where it has been used in inventory management, identification of reusable containers, tracking of fixed and mobile assets, identification of items of high value, in the airport baggage handling etc. (Hill, 2013). The two main advantages provided by RFID system...... middle of paper ......f Technology Management & Innovation.Chang, S.-I., Hung, S.-Y., Yen, D.C., & Yi-Jiun, C. (2008). The determinants of RFID adoption in the logistics industry: A supply chain management perspective. Communications of the Association for Information Systems. Delen, D., Hardgrave, B. C., & Sharda, R. (2007). RFID for better supply chain management through improved information visibility. Production and operations management companies.Gaukler, G.M., & Seifert, R.W. (2007). Applications of RFID in Supply Chains .Hill, J. (2013). RFID: Making it real for you. Material handling and logistics.Ustundag, A. (2010). Evaluating RFID Investment in a Supply Chain Using the Labeling Cost Sharing Factor. International Journal of Manufacturing Research .Xerafy, O. /. (2013). Five myths about RFID in aerospace and the reality of how the technology helps suppliers .