RFID is used to automate the process of capturing batch production information for lot tracking. This eliminates the manual scanning typically required with a bar code solution through the use of container and location-based RFID tags interacting with readers on material-handling equipment.

RFID Reader(interrogator) is a vital RFID system component. A transmitter/receiver that reads the contents of RFID tags in the vicinity. Also called an "RFID interrogator." The maximum distance between the reader's antenna and the tag vary, depending on application.

In addition, readers can be fitted with an additional interface that converts the radio waves returned from the RFID tag into a form that can then be passed on to another system, like a computer or any programmable logic controller.

Generally speaking, RFID readers can be divided into two kinds by data collection features. One what is called smart RFID reader with advanced data collection features — such as filtering of redundant tag data, is capable of controlling peripheral devices based on data read from the tag. Another what is called simple RFID reader with a lower price, is need to attach to a separate local server or a programmable logic controller for local decision making.

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