OrganicID is dedicated to the commercialization of low-cost, printable, plastic (organic)-based radio frequency identification (RFID) tags. A RFID tag is a small, integrated circuit that communicates with a reader via radio communication. RFID tags do not require contact with the reader, nor do they require the line of sight that bar code technologies rely upon. As a result, RFID has the potential to replace bar codes by improving visibility of inventory in near real time, and materially changing how inventory is managed in warehouses, in transit, in distribution centers, and even on store shelves and checkout counters.

Major consumer product companies and retailers ship hundred of billions if not trillions of units of goods annually. To the extent that RFID can become the tracking method of choice for an increasingly larger percentage of that volume, there is considerable upside potential relating to the RFID space. Although used more and more in inventory management today, RFID technology has not become a replacement for optical bar codes primarily due to the relatively high cost of producing each tag. Currently, RFID tags are produced with traditional silicon technologies at a cost of $0.30 - $1.00 per tag. In order to become a ubiquitous replacement for bar codes, it is estimated that the purchase price of the tags must come down to a few cents or less. As traditional silicon RFID technology is unlikely to ever achieve such price points, OrganicID is developing low-cost printable integrated circuits using organic materials. It expects to bring price points down to less than $0.01 and thereby enable the use of RFID tags in item level tracking.

The advantages offered by low-cost, item-level RFID tag technology are significant and include the ability to:

  • Scan multiple objects in a shopping basket with one single action rather than handling each object separately.
  • Identify, count, and manage inventory on shelves automatically, ensuring sufficient available stock at all times.
  • Eliminate or dramatically reduce shrinkage as items can no longer be hidden in consumers' bags or clothing.