Radio Frequency Identification ( RFID ) is a method which is used in retail to tag a product and through wireless techniques bill the item at POS ( Point of Sales ). The information regarding item cost and other details are read wirelessly. RFID's are also used to assist SCM ( Supply Chain management). When a good is in transit it can be tagged and the inventory position can be accessed real time, by beaming the Radio Frequency Waves without physical counting. It also helps in avoiding pilfering of items from stores.
RFID's are currently at 5-10 Rs per ID and are relatively expensiveto use by small stores. But a number of organised players like pantaloon have adopted them successfully.