RFID works by emitting a radio wave that is reflected back to a transceiver that reads the information. This information can be used in tracking, identification and time coding arrival and departures of shipments.

A system called passive RFID works by using a small reader that transmits a low-wattage signal on the tag frequency and receives information from the tag. There can also be stationary portals that read the tags and their information.

Mike Ronchetti, president of RFID Complete LLC and Smart Inventory Management LLC of Anchorage, says the technology improves efficiencies.

Alaska Airlines is using an active version of RFID for the military that is being employed in Anchorage, Fairbanks and Seattle.

Called SAVI, the system is tracking certain military shipments as they come in or go out at Alaska Airlines' cargo facilities.

"We are using RFID exclusively for certain types of military shipments," said Howard Fisher, cargo service manager for Alaska Airlines in Anchorage. "There are readers that detect their arrival and send the information to the branch of the military that shipped it."

The information from the shipment is "interrogated" by SAVI hardware and sent to a database system by Unisys software, according to Ronchetti of RFID Complete, which monitored the installations two years ago. This type of RFID is called "active."

The information from the shipments can be accessed by the military worldwide, Ronchetti said.

But before committing to buying RFID equipment and getting set up, a special test is necessary.

Recently, Harman's Repair Station Inc., a local cargo pallet and igloo repair station, tested its location at Ted Stevens Anchorage International Airport.

"We needed to do a spectrum analysis to see if there was any interference that might cause problems later," owner Donald Harman said.

One of the first steps was to check for existing radio frequencies that might exist from machines, lights or equipment.

RFID operates on high frequency, in the range of 902-928 megahertz. A spectrum analysis of the facility located across the street from FedEx and behind the new DHL facility was done both as an experiment for the use of the technology and for a University of Alaska logistics class.

In this case, Harman wanted to check for interference that might be problematic for passive tags on the 915 MHz frequency. Harman has proposed that his clients tag their equipment, basing his logic on the fact that the Federal Aviation Administration is requiring that operators know where their equipment is at all times, and in some cases will have to prove it. This technology will help them identify and know where the igloos, carts or webbing are located.

"What better way than to code a pallet or igloo, so you know when it was purchased and by whom," Harman said.

"Our job is to help a business build a case for using RFID," Ronchetti said. "This not only improves tracking and traces shipments, it streamlines labor costs and saves businesses money."

Helping the client find that they can be more efficient and showing them how to implement an RFID system has been a challenge for Ronchetti's companies.

"We have been a little ahead of the curve on this, but things are just now starting to come around," Ronchetti said. "Cost and evolving technology have been the biggest issues that keep cargo and airlines from embracing this."

Two years ago, the readers, or data collection devices, cost around $5,000 each. Today, the price is down to $2,000. The passive tags range from 25 cents to $8, depending on how they are mounted and if they need to endure a harsh environment.

After the spectrum graphic scan of Harman's Repair Station, Harman determined that his location is free of interference and that RFID could be used by his business.

"Now all we need is a customer to say that they want it, and we are ready to go," Harman said.