RFID vs. Barcode for Asset Tracking: How to Make the Right Choice for Your Business

RFID vs. Barcode for Asset Tracking: How to Make the Right Choice for Your BusinessFrom consumer products and food packaging to pipe fittings and hazardous material containers, just about everything has some sort of label affixed to it that contains important information that buyers, sellers or manufacturers need to be aware of. Most of us are familiar with barcodes and QR codes, but the technology that goes into them may come as a surprise.It’s essential to understand the differences between barcode labels (affixed to a surface) and tags (attached to an asset) and the devices that “read” them because how they will be used—the what, why, when and where—make a big difference. Both barcode and RFID readers are used in integrated intelligent manufacturing solutions. Barcodes often serve to identify the location of production orders, input inventory quantities of raw materials, and help signal the completion of finished goods. RFID can perform similar functions, but eliminates the human element, improving accuracy and automating the scan.Before we get started, it’s important to note that we are talking about asset tracking, not inventory tracking. They are not the same thing. Asset tracking is the ability to locate an asset (where it is or where it most recently was) and use that information to perform a function or provide a notification. Inventory tracking is the monitoring of the volume of many of the same items, like the number of XL white T-shirts in stock.In this blog, we’ll go over:How asset tracking can be usedBasic differences between RFID reader and barcode scanner technologiesWhat to consider when choosing between the twoTypes of labels and tags used with barcode scanners and RFID readers + use casesTypes of barcode scanners and RFID readers + use casesWhat barcode scanner and RFID reader software can do for your businessNeed a specialist to help you decide which system will best meet your needs? We can help you find the right solution. Contact UsHow asset tracking can be usedThere are many uses for asset tracking. We won’t go into detail on all of them, but here are a few that can get you started thinking about how you can use barcode readers and/or RFID (short for radio frequency identification) scanners in your business:Tracking high value assets that tend to get lost, misplaced or stolenTracking assets that get put together but whose components aren’t stored togetherKeeping assets that should NEVER go together well apart from each other (e.g., hazardous materials)Ensuring assets that are sensitive to environmental conditions remain safeShipping notifications when items pass a particular pointTracking down assets when a defect is identified, or a recall is issuedRFID reader vs. barcode scanner technology: basic differencesRFID reader and optical barcode scanner technologies can both help a company improve productivity, performance, compliance, safety and security through asset tracking. Here are some of the basic differences between the two technologies.Barcode scannerScan labels individuallyScanner requires direct line of sight to labelStores a limited amount of informationData is not encryptedRead-only functionalityGenerally less expensive than RFIDBarcodes can be easily copiedTechnology standardized worldwideRFID readerScan multiple tags at onceCan be read at a distance or through obiectsCan store complex informationData can be encrypted for security purposesRead and write (encoding) functionalityGenerally more expensive than barcodeCan be complex to install/integrateLabels vs. tagsLabels are used for one-to-one tracking-you physically scan one label, and you know you've only scanned one label. With RFID tags, you're able to scan many items in seconds (a whole pallet in 30 seconds or so in many cases). In short, barcode is best when you want one-to-one accuracy, and RFID is better for inventory applications.Choosing the right barcode scanner or RFID reader technology for your applicationOptical barcode scanner and RFID reader technologies can both help a company improve productivity, performance, compliance, safety and security through asset tracking, but there are distinct differences that require consideration before choosing one or the other. Among the considerations:The technology you already have in useThe material or asset the label/tag will be affixed or attached toThe physical environment the asset will be exposed toHow the asset will be handled and how long it will be usedHow much/what type of information needs to be embedded in the tag itselfWhether there are industry regulations you must comply withTypes of labels and tags used with barcode scanners and RFID readersThere are hundreds of different types of labels and tags that can be used with barcode readers and RFID scanners, each with its own advantages and limitations. Choosing the right one for the application at hand depends on several factors, including:Material composition – the type of material the label or tag is being affixed toSurface shape – the shape of the asset, e.g., curved, flat, pebbled, smooth, etc.Environmental conditions – some must be able to withstand harsh conditions such as chemicals, high temperatures and abrasionHandling – how the asset will be handled as it is moved from place to placeCompliance standards – some regulatory bodies dictate what type of information is requiredInformation required – some assets just need an identifier and price, while others require more informationPrinting equipment – the type of label maker being used for printing labels or tagsAs an example, here are three very different use cases that would require completely different approaches to each factor identified above: Edible ProduceCircuit BoardCaustic MaterialMaterialFoodEpoxy ResinNon-corrosive barrelShapeUnevenFlatCurvedEnvironmentTemperature-controlledHeat-producing, solventsOutdoorsHandlingPicked up individuallyDuring manufacturing/repairCautiously moved/storedComplianceNoneMIL-STD-202GHazmatInformationType, price, lotModel number, manufacturerSafe handling, compliance infoPrintingHandheld portable printerIndustrial THT label printerIndustrial THT label printer or Industrial InkJet for barrell labelsLabel/tag characteristicsFood-grade adhesive, easy to remove, flexibleAbrasion-Resistant, Chemical-Resistant, Corrosion-Resistant, Humidity Resistant, UV-ResistantHarsh environment, OSHA regulations, permanentDetails for three label type use cases: edible produce, circuit board, and caustic material.Types of barcode scanners and RFID readersThere are also many different kinds of optical barcode scanners and RFID readers, most of which fall into the categories of handheld or fixed (like those that you find in retail self-checkout kiosks). Optical barcode scanners use a beam of light to “read” the barcode printed on a label or tag. RFID readers pull data from RFID chips embedded in them via radio waves. Obviously, which type you choose depends on whether you’re using barcode or RFID technology, but there are other considerations as well, including:Read range – how far away the asset will be from the reader or scannerRead speed – how many assets will be scanned/read and how quickLocation density – how many assets will be within “reading” distance and how close together they will beLabel/tag location – affixed or attached inside or outside of an asset, wrapped around something, etc.Asset orientation – pertaining to how the asset will be moved and/or storedBarcode type – 1 dimension (1D) flat barcode, 2D QR code, 3D barcode Grocery Store CheckoutStorage WarehouseManufacturing LineRead RangeCentimetersFeetVariesRead speedOne at a time, fairly slowSlowFastLocation densitySingleTightly packed, lots and singlesCloseLabel/tag locationAffixed exteriorVariesVariesAsset orientationTurned to face reader/scannerStored to face reader/scannerVariesBarcode Type1D1D and 2D1D, 2D, DPMPossible solutionLow Cost Optics packages integrated into check-out kiosks. Rolling shutter.Mobile handheld scanner. Either dedicated device tethered to mobile computer, or mobile device (e.g. phone / tablet). Rolling Shutter.Industrial ruggedized handheld and fixed readers. Rolling and Global Shutter for high-speed applications.Details for three reader type use cases: grocery store checkout, storage warehouse, and manufacturing line.The softwareThe barcode reader or RFID scanner sends information back to a database, and from there the choice of software dictates what happens. It varies by application. For instance, the software may send a message if an asset is in an area it’s not supposed to be in, automatically update the location within the database, then prompt a user to take an action. At the other end of the spectrum, software can dictate how your data is reported so you can use it to make relevant business decisions.