Ive heard RFID can be used with sensors. Is that true?

Yes. Some companies are combining RFID tags with sensors that detect and record temperature, movement, even radiation. One day, the same tags used to track items moving through the supply chain may also alert staff if they are not stored at the right temperature, if meat has gone bad, or even if someone has injected a biological agent into food. (Subscribers, see RFID sensors: From battlefield intelligence to consumer protection)