Difference between RFID and barcode asset tags

Different businesses need to manage equipment, inventory and other assets. Retailers, transportation and logistics firms, manufacturers, and healthcare organizations are examples of organizations that can benefit from an asset management system.

Asset tags are an essential aspect of such a system. Companies should learn of the many asset tag options, but the two most common are barcodes and radio frequency identification (RFID) tags. RFID tags use radio signals to communicate with readers at various distances. Barcodes require manual reading with a scanner that translates the series of parallel lines into information.

These tags offer important benefits. They allow asset tracking and help companies detect and deter theft, fraud and lost inventory. Labels can also help create maintenance records and ensure compliance with inspection and safety rules.

Here’s a closer look at asset tagging and how to choose between RFID tags and barcodes based on your budget and needs.

What is an RFID code tag?

RFID tags enable the tracking or identification of assets using radio waves. RFID systems have two components: a tag and a receiver with an antenna. The receiver can send the data it gets to a computer running asset management software.

RFID tags do not require manual scanning, so they are a good option for automated tracking and data collection.

Here’s a look at the other advantages of RFID tags:

• Faster read times: RFID tags do not require line-of-sight scanning, so they scan more quickly.
• Reduced labor: While scanners are necessary, they do not require human operation, freeing employees to handle other tasks.
• Better accuracy: RFID tags take human error out of the equation and reduce problems like damaged or unreadable barcodes.
• Tracking of assets: With scanners at various junctions along the supply chain, companies can track assets when they arrive at specific waypoints.

RFID tags come in two varieties: battery-operated tags and passive tags.

Battery-operated RFID tags

Battery-operated RFID tags are also known as active tags. They have a battery source and can collect and transmit information. The tag may remain in sleep mode to conserve battery power.

Some battery-operated tags serve as beacons, which means they are always on and constantly transmitting real-time information. This feature can be useful for tracking vehicles, packages or other assets.

Passive RFID tags

Passive tags get their cue from the antenna and receiver. The radio signal powers the device, which reflects the radio waves to the receiver. Passive systems have a lower range, but they are cheaper and do not require battery checks or other maintenance.

What is a barcode tag?

A Universal Product Code (UPC) is usually called a barcode because of its appearance. The label is a square or rectangle with vertical black lines that vary in thickness. It also has blank spaces between the lines. Together, these components form a pattern that provides information when scanned.

Software or applications can provide additional information about the product or asset once they get the initial identification from the barcode.

Even though they are simpler than RFID tags, barcodes have some important advantages:

• Low cost: Barcodes are cheap and easy to deploy. You need to ensure the sticker will adhere and not smudge or wear out in the conditions.
• Easy implementation: A barcode system requires scanners and tags. You simply apply the tags with adhesive, and they are immediately scannable.
• Accuracy: Barcode scanning is much more accurate than manually typing or writing identifying information. The scanner can transmit the data to asset management software, reducing the chances of human error during manual data entry.
• Data access: Barcodes provide access to data that can help with resource management, operational decisions or maintenance scheduling.

Each barcode contains three vital features that provide information.

Quiet zone

The quiet zone is a blank space on either side of a barcode. It is a guide for scanners to tell where the code actually begins and ends. A quiet area with markings or damage may confuse the scanner.

Start/stop characters

The start/stop characters mark the beginning and end of the barcode. They are not a part of the identifying code. The scanner sees these markings and knows the code is starting and ending. It verifies that the scanner is reading the complete code and not a partial code that does not contain all the necessary identifiers.

Check digit

The last digit of the barcode is the check digit. The scanning system uses the check digit, which is derived from all the preceding digits, to verify that the number read from a barcode is accurate. In other words, it serves as a redundancy to check that the scanner saw the code correctly.

RFID vs. barcode: key differences

The choice between RFID and barcode tagging systems requires weighing the drawbacks and advantages of each. Here are the details you need to consider:

Advantages

The advantages of barcode systems are related to cost and simplicity:

• Cost: Barcode tags cost less than RFIDs, though you need to invest in scanners and asset management software, as well.
• Learning curve: Barcode systems are easy to understand. Employees can scan with minimal training, and the codes are designed to avoid errors and verify readings to ensure accuracy.
• Compatibility: Barcodes follow the same conventions, so tags are readable and compatible with existing systems.

RFIDs bring their own set of positives that barcodes can't always match:

• Efficiency: RFIDs can automatically scan large numbers of items without human intervention. They can engage in bulk scanning, which allows employees to process assets quickly and move on to other tasks.
• Real-time data: Passive and beacon systems offer exact location and identity information in real time.
• Security: Barcodes are exposed, and anyone with a scanner can read them. RFID tags may provide encryption, so no one can see the data until it reaches the asset management software.

Upon request, RFID tags can provide updates for operations with many assets, such as hospitals or factories.

Disadvantages

Barcodes have several drawbacks that might make them less useful for some companies.

• Manual scanning: Barcodes require manual scanning, which can be time-consuming and make bulk processing difficult.
• Longevity: Barcodes need to be reachable, so they are often exposed to the elements and wear out faster. RFID tags can be protected inside casing or boxes because they don’t require line-of-sight scanning.
• Human error: Missed or incorrect scans can result in incorrect or inaccurate data.

RFID tags have some disadvantages as well:

• Price: RFID systems cost more than barcode setups. You need to decide if the return on investment and efficiency are worth the extra cost.
• Complexity: RFID systems require careful placement and testing signals. You also need to consider range when implementing the system.
• Necessity: Some companies may not need the features offered by RFIDs, making an investment in the system unwise.

You need to consider both the good and the bad when choosing between RFIDs and barcodes.

Functionality

Both systems can provide access to data if connected to a good asset management platform.

RFID scanners have a range of a few inches to more than 300 feet, depending on the type of tag. A receiver can process all tags within its range quickly, transmitting the data to the platform in near real-time. Barcode scanners require line-of-sight access for scanning.

Both tags can be quite accurate, but RFID tags take human error out of the equation. At the same time, the ease-of-use factor for barcode readers can limit errors by employees.

Cost

Cost is another important factor. RFID tags are more expensive and may require additional spending for battery replacement or other features. This cost could be worthwhile if it leads to savings because of efficiency.

On the other hand, companies with few assets may not need to invest in RFID systems. Barcodes could be the more cost-effective option.

What to consider before choosing a tag type

Businesses should consider cost, read range, data storage, line of sight, environment and interaction with existing procedures when deciding which tagging system to use. Ultimately, the decision between RFID and barcode tags and technology will ultimately depend on the particular asset management requirements of your company.

A reliable tag supplier can ensure you have the best quality labels that stand up to the environment and provide the necessary benefits. With the right choice, you can improve your asset management system, increase efficiency, and reduce errors and asset loss.