Describes developments in radio frequency identification [RFID] techniques, using examples from existing applications in the motor industry, breweries and mail order companies. Looks at the miniaturization resulting from integrated circuit technology, the advantages of passive transponders and one of the latest versions of transponder, the Multipage [M/P], a tag which contains the equivalent of 17 individual transponders in a single unit. Concludes that the advent of low‐cost integrated RFID technology has enabled new solutions to production problems in the materials handling environment. Tagging brings improvements in efficiency, security and accuracy by uniquely labelling units with the production process.