RFID system has three components, there are RFID Tag or smart label, RFID reader and an antenna. RFID tags has an electronic chip with an antenna in order to give information through the interrogator. This Process is called an inlay and packaged with various form, so RFID can withstand in all condition when operate. An integrator or RFID reader converts that radio waves into usable form of data. The information which has converted into usable form of data, will transferred to computer host through the communication interface, where data can be stored in database and analysed.

RFID is belong to group Automatic identification and data capture (AIDC). ADIC works by automatically identify object, collect the object data, and enter those data directly to computer automatically and without any human intervention. RFID works by utilize radio waves.