What Is RFID Tracking for Asset Tracking? A Quick Guide
Ever wondered what it’d be like to have complete clarity over your business assets?
Imagine you could see, in a moment, every piece of hardware, technology, vehicle, and machine, including an entire report on each item.
With RFID tracking, you won’t need to track hundreds or thousands of your assets individually to understand what’s going on.
The RFID tags market is expected to reach $15.72 billion by 2027, so it’s clear that it’s a valuable technology, especially for businesses with many fixed assets.
The technology allows you to gain a clear view of the entirety of physical assets by setting up a simple asset-tracking system.
In this article, you’ll learn everything about RFID tracking, how it works, and how you can use it to accurately track your company’s assets.
Main Takeaways From This Article:
- RFID asset tracking systems provide unparalleled asset visibility by using electromagnetic fields to identify and manage assets automatically, offering a scalable and efficient alternative to manual tracking methods like barcodes or QR codes.
- The technology relies on three core components—RFID tags, readers, and antennas, which work together to transmit and capture asset data in real-time for seamless tracking and management.
- RFID tags are available in active, passive, and semi-passive types, each tailored to specific use cases, from long-range fleet monitoring to temperature-controlled storage environments.
- An RFID tracking system revolutionizes asset management by improving inventory accuracy, enhancing operational efficiency, and boosting security through real-time updates and data automation.
- Although RFID tracking has challenges like higher costs and potential interference, it remains a transformative solution for industries requiring precise, large-scale asset management with the ability to integrate seamlessly into existing systems.
What Is RFID Tracking?
RFID tracking, or Radio Frequency Identification tracking, is an innovative technology that uses electromagnetic fields to automatically identify and track tags attached to objects. These tags contain digitally stored information that can be read from a distance, unlike traditional barcodes that require a direct line of sight.
How Does RFID Asset Tracking Work?
Instead of manually scanning a barcode, RFID uses electromagnetic fields for automatic identification and tracking. This technology primarily involves three components - an RFID tag, an RFID reader, and an RFID antenna. Let's briefly look at these RFID components and understand how they enable asset-tracking systems.
- RFID Tags: Radio frequency identification tags, or RFID tags, are attached to every asset meant to be tracked. These tags hold relevant data about the item, be it the product name, serial number, or specific remarks. Essentially, these stickers are the identity badges for your assets.
- RFID Readers: The readers are like action initiators, triggering responses from the tags. They emit radio waves, and when a tag comes within their range, the tag responds by transmitting its stored data back to the reader. Instead of visually checking off items on a list, the reader interacts with tags in a wireless, hassle-free manner.
- RFID Antennas: The RFID antennas facilitate the communication between readers and tags. They receive the radio waves emitted by readers and transfer them to the tags. Upon receiving a response from the tags, they relay this data back to the reader.
So, this is how they work together in the RFID tracking process:
1. Tag Activation: An RFID tag is attached to the asset to be tracked, containing essential data about the item.
2. Signal Emission: An RFID reader emits a radio frequency signal through its antenna, creating a field within its range.
3. Tag Response: When the tag enters the reader's range, it picks up the signal and activates, transmitting its stored data.
4. Data Capture: The antenna on the reader receives the data sent by the tag and relays it back to the reader.
5. Data Processing: The reader processes the received information and forwards it to the connected system for tracking and analysis.
In short, your assets are constantly on your radar, telling you where they are and ensuring you have full visibility over your resources.
Types of RFID Tags
There are three types of RFID tags: active, passive, and semi-passive tags.
Active RFID Tags
Active RFID tags have their own power source. Often powered by a battery, they continuously transmit a signal. Active tags are often used to monitor processes in real time, such as vehicle charging and tracking. They typically transmit a signal range of about 150 meters or just under 500 feet. This type of tracking system is usually more expensive than passive RFID asset tracking.
Passive RFID Tags
Passive tracking lets you add and remove RFID readers as needed. It also lets you track different items efficiently by adding different RFID readers. Passive RFID tags don’t have an internal power supply. Instead, they’re powered by an antenna or RFID reader. They are commonly used for supply chain management and inventory tracking. The range is shorter than active RFID tracking and is typically cheaper.
Semi-Passive RFID Tags
Semi-passive RFID tracking combines the two RFID tags above. It has an internal battery, an antenna, and an RFID chip. The signal range is low compared to active RFID tags. However, the combination of the battery and antenna allows it to have real-time monitoring and sensors. Semi-passive RFID tags are typically used when monitoring the environment or temperature-controlled areas.
Benefits of RFID Tracking for Asset Management
RFID tracking revolutionizes the landscape of asset management with a slate of benefits. These go beyond the obvious convenience of tracking your assets in real-time to:
Facilitate Inventory Management
RFID tracking provides immediate and precise location updates for all assets, enabling businesses to streamline inventory management. This capability minimizes the time spent locating items, reduces errors in stock levels, and ensures that resources are always in the right place when needed. With better visibility, organizations can avoid overstocking or running out of critical items.
Capture Comprehensive Data
RFID tags can hold extensive information, serving as digital records for each asset. From maintenance schedules to depreciation values, the stored data is readily accessible and simplifies asset reporting and compliance. This level of detail empowers businesses to keep track of an asset’s lifecycle without relying on complex manual systems.
Improve Efficiency With Automation
RFID technology dramatically improves efficiency by allowing multiple RFID tags to be scanned simultaneously, unlike traditional barcode systems that require individual scans. This automation accelerates inventory processes, reduces manual effort, and frees up employee time for higher-value tasks, enhancing overall productivity.
Enhance Accuracy
By reducing the reliance on manual data entry, RFID tracking significantly lowers the risk of human error. The technology provides accurate asset tracking, ensuring data integrity and reducing the potential for costly mistakes such as lost assets or incorrect inventory counts.
Boost Security
Real-time asset visibility provided by RFID tags deters theft and unauthorized use. Alerts for unexpected asset movements or locations help businesses act quickly to secure their resources. This enhanced level of security reduces the risk of asset loss and ensures critical items remain operational and accounted for.
Offer Durability
RFID tags are built to withstand challenging environments, including extreme temperatures, humidity, and physical impact. Their durability ensures long-term functionality, minimizing the need for frequent replacements and reducing costs over time. This makes them an ideal choice for industries like manufacturing, healthcare, and logistics.
Enable Informed Decision-Making
The wealth of data generated by RFID systems supports strategic planning and decision-making. Businesses can analyze asset usage patterns, schedule preventive maintenance, and optimize resource allocation. This proactive approach helps organizations improve efficiency, extend asset lifespans, and maximize return on investment.
Challenges of RFID Tracking for Asset Management
While RFID tracking is a game-changer in asset management, it's not without its share of challenges. Understanding these challenges can help you prepare and devise strategies to mitigate them effectively.
- Interference: RFID signals can be affected by metal and liquid materials, which can distort radio waves and cause read errors.
- High Cost: Initial setup costs for RFID tracking systems can be higher in comparison to traditional tracking methods such as barcoding, which are ideally suited for businesses with larger inventories or valuable assets.
- Data Security: Like any wireless system, RFID has potential vulnerabilities that can be exploited by hackers. As such, robust security measures need to be in place to protect your data.
- Standardization Issues: Different types of RFID systems operate on various frequencies, and not all of them may interact seamlessly with each other.
- Privacy Concerns: Since RFID tags can be read from different distances without any direct line of sight, privacy concerns could arise, especially in scenarios where personal data is involved.
At RedBeam, we offer advanced RFID solutions that address these issues, ensuring your asset tracking system is as seamless and efficient as possible.
Asset Tracking With RFID vs. Other Asset Tags
While RFID tags are one of the most common ways to track your assets, there are a few other types of asset tags, including QR codes and barcodes.
RFID Tags vs. Barcode Tags
Everybody knows what a barcode is. It’s what the grocery store clerk scans on the side of your milk jug to add it to your bill. Barcode tags are a set of black and white bars that contain data like a stock-keeping number, universal product code (UPC), or both.
Barcode scanners retrieve these numbers and cross-reference them with your asset or inventory database. Barcodes are easy and cheap to create and require a direct line of sight for scanning.
On the other hand, RFID tags use radio waves to store more data directly on the tag and can be read without a direct line of sight, supporting the simultaneous scanning of multiple items. This enhances efficiency and provides real-time tracking capabilities. However, RFID technology comes with higher initial costs and may require more investment in infrastructure and training.
While each technology is suited to different needs, barcodes are used for economical and straightforward tracking, and RFID is used for more complex and efficient asset management.
RFID Tags vs. QR Code tags
QR codes, or quick response codes, are similar to barcodes in that they are a kind of 2D barcode. They’re square codes printed on paper or plastic made up of black and white squares. Unlike barcodes, QR codes can store complex data. The codes can be used to direct someone scanning it to a website or app. They can also include over 4,000 characters of text. QR codes are printed like barcodes, making them cheap and easy to create.
On the other hand, RFID tags utilize radio waves for data transmission, enabling them to convey more information and be read without a direct visual connection. This facilitates the swift, automatic tracking of multiple items, improving inventory management and operational efficiency significantly.
While QR codes are widely used globally for marketing and information sharing, their adoption for inventory tracking in the U.S. is limited due to less common QR-compatible systems. Conversely, RFID technology, despite higher initial costs, is favored in sectors like logistics and retail for real-time tracking and efficient large-scale asset management.
In a nutshell, QR codes are great for quick, cost-effective information sharing, and RFID is great for advanced, efficient asset tracking.
How to Implement an RFID Asset Tracking System
To successfully track your assets, you need to make sure you have everything set up properly. Here are a few simple steps you can take to implement an RFID system:
1. Identify Your Needs
Defining your objectives is the cornerstone of successful RFID asset tracking implementation. Start by outlining what you aim to achieve—whether it's streamlining inventory management, improving asset utilization, or reducing asset loss. Clarify the specific pain points the system should address.
Next, take inventory of the assets you plan to track. Consider their size, value, and operational environment. For instance, assets in outdoor settings may require tags with higher durability. Also, estimate the number of assets and the range they need to be tracked, which will help you decide between passive or active RFID tags.
Documenting these details will ensure you select the right RFID technology and system configuration to meet your business needs effectively.
2. Choose the Right RFID Equipment
Selecting the appropriate RFID tags and readers is critical for a reliable system. Consider factors such as the environment where the assets operate—tags used in outdoor or high-temperature areas must be durable. RedBeam can guide you in choosing tags suited to your needs, ensuring optimal performance.
RedBeam supports advanced options like the Zebra TC52 paired with the RFD40 sled, providing seamless data capture. Ensure that the system integrates well with your current asset management or ERP tools. RedBeam’s integration solutions can streamline data flow, reduce manual errors, and optimize operational efficiency.
3. Train Your Team
Your team’s ability to effectively use the RFID system determines its success. Provide comprehensive training sessions to teach employees how to scan and tag assets, navigate the software, and generate reports. Address common troubleshooting issues to build confidence in using the new technology.
Offer hands-on practice with RFID readers and tags to familiarize users with the system. Create easy-to-access resources, such as user manuals or tutorial videos, to reinforce training. Encouraging open communication and addressing questions promptly will improve user adoption and ensure consistent implementation.
A well-trained team minimizes operational errors and maximizes the benefits of RFID asset tracking.
4. Add Assets to RedBeam
Once the system is ready, start adding your assets to the RedBeam platform. Use the ‘update’ function to create, view, edit, or delete asset records. This allows you to visualize your assets in real time and ensure they are properly logged in the system.
For untagged assets, manually input or scan their barcodes. If you’re using a Zebra TC52, utilize its trigger buttons to make scanning efficient. Assign new RFID tags by reading them with the RFD40 sled. Ensure only one tag is in range to avoid multiple readings, and save the new asset details to complete the process.
This step establishes a robust database, ensuring all assets are accounted for and ready for tracking.
5. Place RFID Tags on Your Assets
Attach RFID tags securely to your assets in inconspicuous yet accessible locations, such as the underside or back. This placement prevents the tags from being too visually intrusive while allowing them to be read easily by scanners.
RFID tags are versatile and don’t require direct line-of-sight like barcodes, making placement more flexible. Ensure the tags are resistant to weather, dust, or impact for outdoor or rugged environments. Properly placed tags enhance readability and reduce scanning errors, improving the overall effectiveness of your system.
Regularly inspect tags for wear and tear to maintain tracking accuracy and efficiency.
6. Establish Maintenance Protocols
Set up regular maintenance schedules for your RFID equipment, including tags, readers, and software. Damaged tags or faulty readers can disrupt tracking and lead to inaccurate data. Perform periodic audits to verify that tags are functioning and asset records are up to date.
Ensure that software updates are installed promptly to access the latest features and security patches. Maintenance protocols should include cleaning RFID equipment, checking tag adhesion, and replacing worn-out components.
Proactive maintenance keeps your RFID system running efficiently and ensures long-term reliability.
7. Monitor and Optimize System Performance
Once fully implemented, continuously monitor the system’s performance to identify areas for improvement. Use built-in reporting tools to track metrics such as scan accuracy, asset location consistency, and user adoption rates.
Gather feedback from users to pinpoint pain points or inefficiencies. For example, if certain tags are frequently unreadable, investigate their placement or quality. Adjust workflows or update training materials as needed to optimize operations.
Regular performance reviews ensure the system evolves with your organization’s needs, maintaining its effectiveness over time.
8. Centralize Your Data
Integrate the RFID system with a centralized platform, such as RedBeam’s asset management software, to unify data across departments and locations. This ensures all stakeholders have access to real-time information, reducing data silos and inconsistencies.
A centralized system simplifies audits and enables better collaboration. For example, if an asset moves to a different site, its updated location can be instantly reflected in the database. This level of visibility improves decision-making and resource allocation, ensuring efficient asset management across your organization.
Discover the Benefits of RFID Tracking with RedBeam
Effective asset management is essential for organizations striving to optimize their operations and reduce inefficiencies. RFID technology offers a transformative approach, enabling precise, real-time tracking, minimizing errors, and unlocking valuable insights through advanced data analytics.
RedBeam’s RFID asset tracking software is built to integrate seamlessly into your workflows, providing a user-friendly platform to manage resources with accuracy and ease. By simplifying complex asset management processes, our tools help businesses save time, cut costs, and maintain operational control.
If you're looking to modernize how you track and manage assets, explore what RedBeam can offer. Schedule a free demo today to see how our RFID system can help your organization achieve its goals with greater efficiency and precision.
FAQs
How Much Does RFID Asset Tracking Cost?
The cost of RFID asset tracking varies depending on the system's complexity, the type of tags and readers used, and the scale of implementation. Basic systems with passive RFID tags may cost a few cents per tag, while active tags with greater functionality can cost $5–$50 each. RFID readers range from $500 to $2,000, and software costs depend on features and scalability. Large-scale implementations may require additional investments in integration and training.
How Accurate Is RFID Tracking?
RFID tracking is highly accurate, often achieving up to 99% accuracy when properly configured. Passive tags are ideal for close-range tracking, while active tags offer real-time location data with higher precision. Factors like tag placement, environmental conditions, and interference can affect accuracy, but proper system setup and maintenance ensure reliable performance.
How Far Can You Track RFID?
The range of RFID tracking depends on the type of tags used. Passive RFID tags typically have a range of a few inches to 30 feet, while active RFID tags can transmit data up to 300 feet. Specialized systems using high-frequency or ultra-high-frequency RFID can achieve even greater ranges, depending on the application.
How Likely Is RFID Theft?
RFID theft is relatively uncommon, as RFID tags transmit data over short ranges, and encryption or authentication measures can protect sensitive information. However, without adequate security protocols, there is a risk of unauthorized tag reading or cloning. Implementing robust security measures minimizes these risks.
Can Cell Phones Detect RFID Tags?
Most cell phones cannot detect RFID tags directly, as they lack RFID readers. However, NFC (Near Field Communication) technology, available on many smartphones, can read some high-frequency RFID tags designed for NFC compatibility. For broader RFID tag detection, specialized RFID readers are required.