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While most of us are familiar with barcodes (we encounter them at grocery stores and retailers), consumers are less acquainted with radio frequency identification (RFID) tags.
But even if we’re not aware of them, RFID technology is being used by many of the businesses we patronize. RFID tags are already used by retailers, financial service providers, the government, and the healthcare industry. The market for RFID technology is expected to exceed $35 billion by 2030.
In this article, we’ll explain how radio frequency identification technology works and how RFID tags are used to track assets as well as fixed inventory. We’ll also walk through some examples of how businesses use RFID asset tags and the asset management software that works with them.
Main Takeaways From This Article:
- RFID (Radio Frequency Identification) tags are a sophisticated form of asset labeling that utilizes radio frequency to track and manage assets.
- Unlike barcodes or QR codes, RFID tags do not require a direct line of sight for scanning, allowing for more efficient and flexible asset tracking across various industries, including retail, healthcare, government, and finance.
- The RFID system consists of tags, readers, and antennas working together to manage data and track asset locations in real-time.
- RFID tags come in three main types—passive, active, and semi-passive—each with distinct ranges, power sources, and use cases.
- RFID technology revolutionizes asset tracking and fixed inventory management by providing real-time data, reducing loss, and improving workflow efficiency. It supports various applications, from supply chain management to access control, enhancing security and operational efficiency.
- While RFID offers many advantages, challenges include initial setup complexity, higher costs compared to traditional tracking methods, potential signal interference, and the need for ongoing maintenance, especially for active tags with batteries.
- Asset tracking software like RedBeam is essential for the effective use of RFID technology. It allows businesses to maintain comprehensive asset histories, monitor condition and value, and integrate RFID data with other business systems for improved asset management.
What Are RFID Tags?
RFID tags are a type of asset label that uses radio frequency identification (RFID) to identify assets or property. Most businesses own equipment, tools, and other property that they need to keep track of, and RFID is a technology that helps them do so.
Asset tags are usually used to label and track fixed assets. Fixed assets are property a business uses to create value for more than one year. The unique identifier can be an RFID tag, or it can be a barcode or QR (quick response) code.
The Components of An RFID System
A typical business RFID system consists of three essential components: RFID tags, RFID readers, and RFID antennas. These components work together to deliver seamless and efficient asset tracking and data management.
1. RFID Tag
At the heart of RFID technology lies the RFID tag: a compact component that stores crucial asset data. The tag comprises a microchip and antenna, and its primary function is to store, manage, and send data when an RFID reader scans it. This allows for easy tracking and tracing of assets and equipment.
2. RFID Reader
The RFID reader uses radio waves to communicate with the RFID tag. It emits a signal that activates the tag, prompting it to transmit the information it's carrying. This exchange happens virtually instantaneously, providing real-time data for effective asset tracking.
3. RFID Antenna
The RFID antenna plays a crucial role, serving as the conduit for signal exchange between the RFID tag and the reader. It sends electromagnetic waves from the reader that activate the tag, which in turn communicates its information back to the reader, enabling successful data transmission.
How Do RFID Tags Work?
While barcodes and QR codes provide a unique visual for the scanner to read with a camera or reflecting light, RFIDs don’t require a direct line of sight because they use radio waves to identify a tag.
RFID tags include a chip with a minuscule antenna and a CPU with stored data. RFID readers send out an electromagnetic radio pulse, which triggers the tag to transmit data. Depending on the industry, businesses may use handheld RFID readers or fixed readers, which are often placed in doorways to track asset locations.
Types of RFID Tags
There are three main types of RFID asset tags. Let’s explore how they differ and what they’re used for.
1. Passive RFID Tags
Passive RFID tags are the least expensive option (as little as $0.10), but they're also less powerful. These tags have no power source or battery of their own, so they don't constantly emit a signal. Instead, when you use an RFID reader, a passive RFID tag draws energy from the waves emitted by the scanner.
Because passive RFID tags rely on the scanner’s power, they have a smaller signal range, meaning you can usually only read the tag from a few feet away. Their low cost and lightweight design make passive RFID tags popular among retailers and businesses that must process large inventories.
2. Active RFID Tags
Unlike passive tags, active RFID tags include their own battery, which allows them to emit a radio signal regardless of whether or not a reader is being used. To make the battery last longer, active tags may emit a signal every few seconds or in response to a reader.
That internal power source and the fact that active RFID tags typically operate at a higher wave frequency give them a much greater signal range. Some active RFID tags can be read from more than 150 meters away, making them useful for real-time location tracking in a production facility. Active RFID tags are also commonly used for identifying vehicles to collect toll fees. The drawback is that an active RFID tag is significantly more expensive than a passive one, and it needs to be replaced when the battery dies.
3. Semi-Passive RFID Tags
As their name suggests, semi-passive RFID tags serve as a middle point between passive and active asset tags. Like active RFID tags, they do have an internal battery, but their signal range (as much as 100 feet) isn’t as large. Sometimes called semi-active RFID tags, they provide both a functionality and a price point between the two extremes. They’re a good option for warehouses and other large facilities.
RFID Tag Frequencies
The frequency an RFID tag uses greatly affects how well it works and how effectively it can be applied. Let's explore low, high, and ultra-high frequencies.
1. Low Frequency (LF RFID)
Due to their short-range capabilities, low-frequency RFID tags operating at 125-135 Khz are utilized in both handheld and embedded applications.
They are especially useful in various sectors, such as animal tracking, for their robustness against metallic or water interference, providing an effective means to manage and monitor individual assets.
2. High Frequency (HF RFID)
High Frequency (HF) RFID tags, specifically the 13.56 MHz type, are great at handling medium-range applications. They're tremendously beneficial for tracking library books and enhancing the security and convenience of ID badges.
These tags help keep things organized and secure, automating processes and improving operational efficiency.
3. Ultra-High Frequency (UHF RFID)
Ultra-high frequency RFID tags, ranging between 860–960 MHz, are excellent for tracking assets over long distances, making them very useful for managing logistics and supply chains.
They can be read from up to 40 feet away, which is great for keeping track of items as they move through the supply chain. This helps make operations run smoothly and ensures that assets can be easily found.
What Are RFID Tags Used For?
RFID tags have revolutionized multiple industries by significantly improving asset tracking and monitoring for organizations.
Their applications go beyond mere identification and qualification, offering comprehensive solutions for various operational needs.
1. Asset Tracking and Management
RFID tags allow businesses to track their resources in real-time. This technology helps organizations find and monitor their assets constantly, reducing loss and improving workflow. For an example of how RFID asset tracking allows businesses to manage their tools and equipment better, you need only look at your local hospital.
Some hospitals and other medical facilities use RFID tags to mark tools like portable ultrasound machines or patient monitoring equipment. Then, by placing fixed RFID readers in doorways, they can track where the equipment was last used. In a hospital with dozens or even hundreds of rooms, the ability to pinpoint a device can save hours of searching, as well as loss, theft, and unnecessary duplicate purchases.
2. Fixed Inventory Management
RFID tags are crucial for managing fixed inventory effectively. They help keep track of your stock accurately and reduce the risk of losing items. When used together with fixed inventory management software, RFID systems make processes more efficient and automated.
For instance, education is one industry where RFID tags can save tons of time while reducing asset loss. In many elementary and high schools, students check out textbooks for the school year and return them before the summer. With RFID tags, the librarian can scan dozens or hundreds of books at once, saving hours that might have been spent reading each barcode one by one.
3. Supply Chain Management
RFID technology makes supply chain processes more effective. By attaching RFID tags to goods or containers, businesses can smoothly track assets at each stage of the supply chain. This assures timely delivery and helps keep a sharp eye on fixed inventory. What's more, vital product data can be stored on RFID tags, reducing the chance of mistakes and loss and confirming the authenticity of items.
Let's consider a practical example from the manufacturing industry. Car manufacturers, for instance, use RFID to track parts on the assembly line. If a part is defective, the system can swiftly find its source. This quick response reduces waste and time spent fixing issues, helping the company save money, boost production, and keep up with quality standards.
4. Access Control and Security
RFID tags have become essential in boosting security and creating smooth access systems in many areas. These small yet powerful tools are often used in systems that control access, letting only authorized people enter restricted zones. For instance, when an employee's ID card is equipped with an RFID tag, agencies can keep accurate track of their staff's movement, even in vast facilities.
For example, government agencies use RFID-enabled tags to beef up security, controlling access to highly secure areas. When a tag is scanned by an RFID reader, the system verifies the user's security clearance and either grants or denies access. This helps safeguard the organizations' resources and data and contributes to staff members' safety.
Benefits of RFID Technology
RFID technology offers various advantages over traditional tracking methods like barcodes. Here's a breakdown of its key benefits:
- Enhanced Asset Tracking: RFID tags enable precise monitoring of asset locations across multiple sites, significantly reducing loss and theft. This technology is utilized by various sectors, including retail, financial services, government, and healthcare, underscoring its importance in modern asset management practices.
- Condition and Value Monitoring: Asset tags and tracking systems help monitor the condition and value of assets, facilitating effective maintenance and extending equipment life. Platforms like RedBeam allow for maintaining a comprehensive history of assets, including all maintenance and repairs, which are essential for lifecycle management and budget forecasting.
- Comprehensive Asset Histories: With RedBeam, businesses can keep a full history of their assets, allowing for better care and extended asset life. Tracking the lifecycle of different assets aids in anticipating replacement costs and creating more accurate budgets.
- Error Reduction: RFID asset tags, along with barcodes and QR codes, significantly reduce or eliminate human error associated with asset documentation, allowing for asset audits to be performed with greater speed and accuracy compared to manual entry methods.
- No Line of Sight Required: Unlike barcodes and QR codes, RFID tags do not require a direct line of sight for scanning. This feature makes it easier to scan asset tags without worrying about the exact label location, enhancing the flexibility of asset tracking efforts.
- Extended Read Range: RFID technology offers varying read ranges, from a few feet to over 150 meters, depending on the type of RFID tag used. This variability in range enhances the adaptability and effectiveness of asset-tracking efforts across different environments.
- Simultaneous Tag Reading: One key benefit of RFID tags over barcodes and QR codes is the ability to read multiple tags simultaneously, improving efficiency and streamlining the fixed inventory and asset tracking processes.
- Specialized Functionality: Some RFID tags come equipped with additional features like temperature sensors, which are vital for managing perishable goods and sensitive assets. These tags offer specialized functionality that goes beyond basic tracking.
RFID tags are a transformative force in modern asset management practices. With their cutting-edge features, such as precise asset location tracking, comprehensive asset histories, error reduction, no line-of-sight scanning, variable read ranges, and simultaneous tag reading, these tags are revolutionizing business operations and enhancing the effectiveness and efficiency of asset tracking efforts.
RFID Tag Disadvantages
While RFID tags have many benefits, they have drawbacks, too. It's crucial to have a balanced view of this technology to make an informed decision about whether it's the right fit for your operations.
Set-up Issues
Setting up an RFID system can be a lengthy and demanding process. It requires careful testing of different hardware and tag systems to find the best fit, a task that can extend over months. In addition to the cost of the RFID system components like tags and scanners, you should also be aware of the increase in time and labor expenses associated with the setup.
Higher Cost Compared to Barcodes and QR Codes
Given the advanced technology packed into each RFID tag, it's no surprise that they're more expensive than traditional barcodes or QR codes. Although the prices have decreased over the years, the cost can still be prohibitive for some businesses, especially those with tight budgets.
Potential Signal Interference
While RFID technology is powerful, it can still be affected by certain types of interference. Factors like metal and liquids have the potential to disrupt signal transmission, making tag reading in certain environments a challenge.
Maintenance and Battery Replacement for Active RFID Tags
Understanding the requirements for maintaining your active RFID system is essential. While the costs and effort may seem significant, the return on investment from the benefits of quick and accurate asset tracking can far outweigh these challenges.
- Battery Life: Active RFID tags typically have a battery life of 3 to 5 years, but this can vary based on usage. Some high-end models may last up to 7 years.
- Replacement Costs: When a battery's life is exhausted, the entire RFID tag typically must be replaced. This is an ongoing cost that must be factored into your budget.
- Maintenance Efforts: Frequent checks are required to ensure your active RFID tags are working effectively. Battery failure could mean losing valuable tracking data.
The Value of RFID Asset Tracking Software
RFID asset tags are one of the more advanced options for businesses that want to track and maximize the returns on their property. But for RFID tags to be effective, you also need asset-tracking software.
Asset tracking software (also known as asset management software or an asset tracking solution) is a system that holds all the asset records and data that correspond with your RFID asset tags. While RFID tags can store a limited amount of data, asset tracking software allows you to maintain a comprehensive chronological history of each asset, including its monetary value, its location, and how it has been used.
Asset management systems like RedBeam work in conjunction with your RFID tags and readers to allow you to document, edit, and analyze asset data. Because each business has different needs, RedBeam allows you to create custom fields in your asset records. This means you can track whatever details matter to your business.
Like any technology, ease of use is an important factor in choosing asset management software. Along with a simple and intuitive user interface, RedBeam allows you to give role-based access to different employees. You can give supervisors and asset managers access to all the data and functionality they need while limiting other employees to certain tasks.
For asset management software to be most effective and efficient, it needs to integrate with your other tools and technologies. RedBeam’s REST API enables you to connect your asset records to just about any other tool.
Unlock Advanced Asset Tracking with RedBeam
RFID tags are a great choice for businesses that need more functionality from their asset labels. RFID tags allow you to scan large quantities at once and can even store meaningful data on the tag itself.
Now that you understand how RFID technology works, you can make informed decisions about how you track and manage your physical assets. RedBeam brings organization and insight into your assets, whether you choose RFID tags, barcodes, or QR codes.
Partnering with renowned manufacturers and technology resellers in the asset tracking industry, such as Zebra Technologies, is a significant accomplishment for RedBeam.
Zebra's state-of-the-art technologies are integrated into our asset tracking technology package, fully compatible with RedBeam software. The Zebra warranty assures customers that their hardware investment is protected, and its advanced features significantly increase the speed and efficiency of asset tracking.
Our in-depth knowledge of Zebra products enables us to make tailored hardware recommendations based on your business needs and budget.
If you’re ready to see how RedBeam’s flexible asset management platform works with RFID asset tags, schedule a demo today.
FAQs
What Is the Range of RFID Asset Tracking?
The range of RFID asset tags can vary widely, depending on the type of RFID tag. Some passive RFID tags may only be readable from within one foot. Active RFID tags that use high radio frequencies, however, can have a signal range of more than 150 meters.
What Is the Difference Between Passive and Active RFID Tags?
The difference between passive and active RFID tags is that active RFID tags have their own power source in the form of a battery. Passive RFID tags, on the other hand, have no power source of their own. They only transmit data when an RFID reader sends out an electromagnetic pulse, drawing power from the reader’s radio waves. Semi-passive RFID tags have a battery, but they aren't as powerful as active RFID tags.
Can RFID Track Stolen Items?
While RFID technology is useful for detecting theft, it can't generally be used to locate an item once it has been stolen. For example, some retailers attach RFID tags to merchandise, which are only removed after the item is purchased. RFID readers at the exit will set off an alarm if someone tries to leave with an unpurchased item. RFID tags aren't geographically trackable like GPS-enabled items.
How Much Does an RFID Tag Cost?
The costs of RFID tags depend on their type. Passive RFID tags are the least expensive and can be purchased for as little as $0.10. The most powerful active RFID tags can cost as much as $25+. Semi-passive RFID tags are more expensive than passive tags but less expensive than active tags.
Can RFID Tags Be Hacked?
While it's technically possible to hack RFID tags, it's quite challenging to do so due to their lack of traditional network connectivity. However, it's crucial to implement measures like data encryption and authentication protocols to enhance protection. Additionally, using sophisticated RFID systems, like the one provided by RedBeam, can further safeguard your data and assets from potential threats.
