A radio frequency identification system, and method of operation thereof, provides: a sensor for sensing the absence or presence of a radio frequency identification transponder at the radio frequency identification system; a supply system connected to the sensor for supplying the radio frequency identification transponder to the radio frequency identification system in the absence of the radio frequency identification transponder at the radio frequency identification system; and a programmer connected to the sensor for writing transponder content to the radio frequency identification transponder at the radio frequency identification system in the presence of the radio frequency identification transponder at the radio frequency identification system.