- By Vanshika Choudhary
- January 24, 2025
RFID Asset Tracking System & Advantages of Using RFID
Today’s business atmosphere is very fast-paced so employees are hardly going to make any changes and in the process, driving costs down will not happen until or unless the asset management technique is such to enable operation with the highest level of efficiency and to make the right decisions regarding costs. One element to achieve this is radio frequency identification (RFID), which has brought about an asset follow-up for the interaction with them that was never experienced before. One well-thought-out concept of RFID here is inventory management technology.
What is an RFID Tracking System?
RFID, or Radio Frequency Identification, is a system that uses radio waves to track and identify tags. An RFID asset tracking system typically includes three subsystems such as RFID tags, readers, and a database. In RFID asset tracking technology, tags are devices used to help users monitor movements; as the reader reads the tag, the information is automatically sent to the database for real-time location and management of assets.
How Does RFID Work?
RFID systems are not hard to understand, and they are efficient. Thus, the principle idea is as follows:
Components: An RFID system is usually built with RFID tags (which are active, passive, or semi-passive), RFID readers, antennas, and a database.
The Data Transmission: When an RFID tag is placed near the RFID reader, the sender emits radio waves that feed the tag (in the case of passive tags) and prompt the tag to send back its stored data.
Data Transmission: When an RFID tag is placed near the RFID reader, the sender emits radio waves that feed the tag (in the case of passive tags) and prompt the tag to send back its stored data.
Data Logging: The reader records this data and sends it to a centralized database where it is possible to access the information and analyze it to make inventory management and asset-tracking decisions.
Types of RFID Systems
The understanding of the differences between RFID systems can be a guide for businesses in selecting the best solution for their specific needs.
Active RFID: systems have their own power source (battery) and can transmit signals to great distances. They are suitable for tracking high-value assets.
Passive RFID: Unlike the active ones, the power for these tags comes from the reader’s signal, which is a radiofrequency. They are inexpensive and suitable for tracking items like inventory in retail stores.
Semi-Passive RFID: Such electronics include a battery that powers the chip and is reader-dependent for communication. These elements have features of active and passive systems.
Advantages of Using RFID for Asset Tracking. Using an RFID asset tracking system for warehouse, accompanied by the consideration of other parameters, is a good decision not only for the short term but for the long term as well.
Real-Time Visibility: Furthermore, it makes it quite easier to make the right decision by accessing the location and status of the asset instantly.
Increased Inventory Accuracy: The statistics that are studied state that accuracy in the inventory level jumps up from sixty-three to over ninety-five percent with RFID.
Simultaneous Tracking: One of the apparent differences is that unlike barcode systems, which necessitate point-of-sight scanning, RFID permits twenty items to be scanned all at once, hence setting the process of an inventory at a fast pace.
Automation: The introduction of automation technologies in managing assets is a step towards decreasing human error and cutting down on tracking asset time.
Cost Savings: It has been proven statistically that the continual use of assets lasts for a longer period, thereby reducing the possibility that businesses can operate at a loss and the effectiveness of business operations resultantly increases markedly.
Advantages of Using RFID for Asset Tracking
Using an RFID asset tracking system for store, accompanied by the consideration of other parameters, is a good decision not only for the short term but for the long term as well.
Real-Time Visibility: Furthermore, it makes it quite easier to make the right decision by accessing the location and status of the asset instantly.
Increased Inventory Accuracy: The statistics that are studied state that accuracy in the inventory level jumps up from sixty-three to over ninety-five percent with RFID.
Simultaneous Tracking: One of the apparent differences is that unlike barcode systems, which necessitate point-of-sight scanning, RFID permits twenty items to be scanned all at once, hence setting the process of an inventory at a fast pace.
Automation: The introduction of automation technologies in managing assets is a step towards decreasing human error and cutting down on tracking asset time.
Cost Savings: It has been proven statistically that the continual use of assets lasts for a longer period, thereby reducing the possibility that businesses can operate at a loss and the effectiveness of business operations resultantly increases markedly.
Comparison: RFID vs. Other Technologies
RFID vs. GPS
The thing is that they do the same thing, but one works a lot better in the following events:
RFID seems to be the most relevant technology to be used indoors, amongst the facilities, not only when location information is requested to be precise but also when the equipment is supposed to be moved from one place to another.
GPS, on the other hand, is good for more outdoor applications like tracking over larger distances.
RFID vs. QR Codes
In the instance of comparing RFID and QR codes:
Efficiency: People tend to prefer this technology as it can read multiple tags without them being in sight of the sensor, whereas the QR codes have to be right in front of the scanner for direct scanning.
Data Capacity: Furthermore, it is to be noted that RFID tags can store more data than QR codes and are thus more adaptable to complex asset management needs.
Cost Considerations
There are several factors that can affect the prices of RFID systems, including:
Type of Tags: Active tags are more expensive than passive ones due to their inclusion of an internal power unit.
Scale of Deployment: The larger projects will experience the benefits of economies of scale; however, they will have to face higher starting costs.
Even with these, however, most companies report that the gains they make from automation and better management of various operations are positive in the long run, more than covering the initial costs.
Current Uses of RFID Technology
RFID technology can be used in different industries:
IT Equipment Management: Companies keep an eye on laptops and servers to prevent theft and hold people responsible for the missing devices.
Medical Equipment Monitoring: Hospitals can identify transferred surgical instruments and their availability easily with the help of RFID technology.
Retail Inventory Management: Retailers apply RFID technology in retail stores to monitor inventory and provide a seamless customer experience.
Examples of RFID Applications
Walmart’s use of RFID tags is an excellent example of efficient supply chain tracking. To be specific, the producer tags products already from the manufacturer level and as a result, the retailer tracks in real-time what stock is at which location, allowing for better stock management and fewer out-of-stock occasions.
Common Questions About RFID
Can RFID be used for asset tracking?
Of course! Asset tracking is RFID’s main task that is done in all sectors, bringing live updates on the location and the state of an asset to a user.
Does RFID need a battery?
It simply depends on the tag type used. While passive items do not come with built-in batteries, the reader’s signals are enough for them; active tags need the power of batteries.
Is there RFID in phones?
Yes, nowadays, mobile phones also have RFID, which is a tiny electronic chip located inside the phone. Moreover, this electronic device component is also a subset of the RFID system.
Conclusion
RFID systems of high efficiency and by far with more precision and lower costs have always been superior to traditional tracking methods. Young organizations that operate not only in Dubai but all over the world continue to be fixated on the different types of assets they hold. They are so enthusiastic about one of the innovative ways of asset management that involves the use of RFID tag systems, which they have considered boosting operational efficiency as well as building competition.
