An RFID system comprises various components. These include the transmitter for radio waves (reader), antennae (receiver) and the RFID chip that contains the required information. These components may be linked to the company’s own ERP system or to an inventory management system. The RFID readers and receivers are used e.g. in goods-in areas.

The heart of radio-frequency identification is the transponder. This comprises a microchip and an antenna. The microchip works as a storage unit. The information is saved by default in the form of an EPC (Electronic Product Code). This corresponds to a unique identifier for e.g. the logistical units (SSCC or also NVE). The transponder is applied, e.g. to a label which in turn is attached to a pallet.

If an RFID transponder on a pallet is passed through the RFID components in goods-in areas, the RFID reader records the EPC on the transponder; the numerical code (SSCC) is then decoded and sent along with a time stamp and further information to the corresponding inventory management system (IMS) of the trading company. 

The Electronic Product Code is a globally unique number for identifying objects of any kind. The EPC comprises a data header with controller data, an EPC manager, which identifies the distributor of the EPC, an article reference to identify object groups and a serialized number part to identify individual objects.

To ensure that the EPC is uniform across the entire company and the industry, standardised specifications were created in collaboration with GS1, industry, trading companies and the technology sector. Information and background on this is provided on the GS1 website. The standard GEN2 for RFID transponders represented a major milestone in today’s widespread use of RFID labels.