In the early 2000s, Walmart and the United States Department of Defense required major suppliers to attach radio-frequency identification (RFID) tags to shipping pallets and cases, aiming to track goods automatically through warehouses and distribution centers without line-of-sight barcode scanning. RFID tags could be read in bulk at a distance, offering potential improvements over barcodes for inventory accuracy and shipment visibility. Adoption among suppliers was uneven and costly in its first years, and barcodes remained dominant for individual item-level tracking. RFID nonetheless became established for tracking pallets, containers, and high-value goods across global logistics networks.
Relevance to Trade History
RFID mandates pushed the logistics industry toward automated, wireless tracking of shipments, extending the data-driven supply chain visibility that barcodes had begun.
Read the full story in our article Barcodes and the Automation of Product Tracking.
Source: MIT Auto-ID Center / MIT Sloan School of Management. See our Sources & Methodology page for how we select and verify references.