A Primer on What RFID Is and How It Works

Published: Mar 1, 2025 by Kurt Wolf

RFID Basics For Pharma

• A Primer on What RFID Is and How It Works

• RFID in Pharmaceuticals
• Open RFID Tag Standards and DSCSA Compliance
• GS1 Tag Data Standard (TDS) for Unit-of-Use Pharmaceuticals

Radio Frequency Identification (RFID) is transforming how pharmaceutical products are tracked, authenticated, and managed across the supply chain. From reducing manual errors to enhancing patient safety, RFID has quickly become a foundational technology in the drive toward automation and compliance—especially in regulated industries like healthcare.

But before diving into how RFID is used in pharmaceutical applications, it’s helpful to start with the basics: What is RFID? How does it work? And why is it uniquely suited to solving long-standing challenges in drug logistics?

What is RFID?

RFID stands for Radio Frequency Identification. It’s a technology that uses radio waves to transmit data between a tag attached to an object and a reader device that scans that tag. Unlike barcodes, RFID tags do not require line-of-sight and can be read in bulk, at a distance, and often through materials like cardboard or plastic.

At a high level, an RFID system consists of three main components:

1. Tag (Transponder) - A small electronic device embedded in or attached to an item. It contains a microchip for data storage and an antenna for communication.
2. Reader (Interrogator) - A device that emits radio waves to power the tag and receive the data stored on it.
3. Middleware/System Software - Connects the RFID reader to databases or enterprise systems to interpret and act on the data.

How Does RFID Work?

Here’s a simple step-by-step of how RFID functions in practice:

1. The RFID reader sends out a signal on a specific radio frequency.
2. The RFID tag receives the signal and uses that energy to power its microchip (in passive tags).
3. The tag responds by transmitting its data, typically a unique identifier such as an Electronic Product Code (EPC).
4. The reader captures that data and passes it to connected software systems, which may log it, trigger alerts, or match it to other data (e.g., expiration date, batch/lot number, etc.).

Types of RFID Tags

RFID tags come in several types, with the most common being:

• Passive RFID - No onboard power source. Activated by the reader’s energy. Widely used in pharma due to low cost.
• Active RFID - Battery-powered tags that continuously broadcast signals. Useful for high-value items or cold chain tracking.
• Semi-Passive (Battery-Assisted Passive) - Use batteries to power the chip but not to transmit, bridging the gap between passive and active.

RFID also operates on different frequency ranges, with UHF (Ultra High Frequency) being most common for pharmaceutical logistics due to its read range and data rate.

Why RFID is Important in Pharmaceuticals

The pharmaceutical industry faces increasing regulatory scrutiny (e.g., DSCSA in the U.S., FMD in the EU) requiring serialized tracking and full traceability at the unit level. RFID enables:

• Automated inventory management - Faster, more accurate scanning compared to barcodes.
• Expiration and recall tracking - Real-time insight into stock nearing expiration or involved in recalls.
• Tamper and diversion prevention - Serialized tags help verify authenticity and flag anomalies.
• Cold chain compliance - When paired with sensors, RFID can log and transmit temperature exposure.

Closing Thoughts

RFID isn’t just another buzzword in healthcare logistics—it’s a pivotal enabler of safer, smarter pharmaceutical supply chains. As this blog series progresses, we’ll explore how RFID fits into global compliance frameworks, what encoding standards like GS1 EPC mean for drug labeling, and how facilities can take practical steps toward implementation.

Whether you’re a pharmacy leader, IT director, or supply chain analyst, understanding the RFID basics is the first step in future-proofing your operations.