How does RFID technology function in logistics?

RFID technology functions in logistics primarily by using radio waves to identify and track items. This technology involves tags that are attached to products or pallets, which contain unique identifiers and are activated by radio waves emitted from RFID readers. When the reader comes within range of the RFID tag, it activates the tag and receives the information stored in it. This allows for real-time tracking of inventory, enhancing visibility and accuracy in supply chain operations.

By employing RFID, companies can automate inventory management, reduce errors in manual data entry, and streamline processes, thereby improving efficiency. The ability to read multiple tags simultaneously also accelerates the inventory counting process, making it much faster than traditional barcode scanning methods.

The other options relate to different aspects of logistics management, but they do not accurately describe the primary function of RFID technology. For instance, while RFID can contribute to reducing shipping costs by improving efficiency, the core function of RFID lies in its capability to use radio waves for identification and tracking purposes.