rfid
RFID uses a radio wave to automatically identify items. One method of identifying products branded with RFID is through a serial number or identification code, otherwise known as the Electronic Product Code (EPC). The EPC is the next generation of product identification. Like the Universal Product Code (UPC) or barcode, the EPC is divided into numbers that identify the manufacturer, product, version, and serial number. But, the EPC uses an extra set of digits to identify unique items. 
RFID tags can be embedded in a variety of materials for affixing to packages, and one advantage is that readers can scan tags through packaging – line-of-sight is not required, as with barcodes. The tag and its components are silicon-based. They are available from most suppliers raw, as thin, flexible inlays in strips or squares, or finished into “smart labels.” In these user-friendly smart label formats, inlays are incorporated into laminated paper or flexible plastic to create adhesive labels or cards. Inlays can also be integrated into uncoated paper and injection molding.
Each consumer product will have an RFID tag either on the product itself or on its packaging. The products are then packaged into corrugated containers that also have their own RFID tags and then onto pallets with their own tags. As pallets leave the consumer product company, contract packager or corrugated box manufacturer, an RFID reader positioned above the loading dock door hits the RFID tags with radio waves, giving them power.

Throughout distribution, the product location is continually monitored. When the product arrives at the retail distributor and at the retail store, it goes through RFID readers in the unloading area. There is no need to open the boxes to check the shipment for ID purposes. Stores will have their own readers at their docks and even on their shelves to monitor inventory levels. Eventually, the consumer will leave the store without having to stop at a cashier. The readers at the store's exit would recognize all the items and the customer will swipe his credit or debit card.
In a manufacturing environment, tracking of pallets and cases of products in warehouses and distribution centers is an issue that many manufacturers have difficulty in dealing with. Time and costs are some of the major issues faced by manufacturers in the goods tracking field. Nevertheless, experts in the manufacturing line believe that with the deployment of radio frequency identification (RFID) technologies on these product pallets and cases along the supply chain, millions of dollars can be saved.