How It Works

RFID stands for Radio Frequency Identifications (RFID) utilizes tiny chips, referred to as RFID tags. RFID tags are RFID tags are made easily and are activated using specially designed RFID printers. They are then affixed to the asset. If an asset has to be tracked, RFID tags generate radio signal (hence their name) that activate the tag.

The RFID tag is now sending information about the object it was attached at the reader. The data is processed , and converted into usable information by RFID software applications. The information gathered significantly improves the tracking of assets in real time. Actually, it’s the technology behind it that has made tracking assets in real-time feasible.

It is believed that RFID technology is around with us for quite a while at least since the end of WWII. It is now used across a range of industries, with great satisfaction. But, it’s that the the asset tracking using RFID and asset trackingand the associated RFID inventory management that RFID has provided the most benefits. While it is true that the benefits of setting up RFID systems do have some drawbacks. Here’s a complete listof disadvantages:


The list of benefits that RFID technology can bring to tracking assets in real-time appears greater than the drawbacks.

Simultaneous Scanning of Multiple Tags

In contrast to the competing technology of Barcode-based asset tracking (barcodes), RFID reader have the ability to “read” the data of multiple tags at once, and not in a single. Although this might appear, it’s the capability alone that increases the speed and efficiency of asset tracking that is possible thanks to RFID technology. This is also a way to allow to fully automatize the process of tracking assets.

Automatization Of The Process

Prior to the introduction of RFID technology, tracking of assets was mostly done by hand. If there was any possibility of automation, it was through barcode readers. However, they had to read the information for each asset tracked individually. The RFID technology permits complete automation of the process of tracking assets.

All that is required is the proper configuration to set up an RFID technology, right location for the RFID readers, and the streamlining of received information. For an example, just picture the RFID tracking system working in your local mall. The sole role for humans in this scenario is to get rid of the RFID tag after the asset is purchased and bought.

The total automation of the process gives employees with an opportunity to perform more enjoyable tasks instead of the mundane tasks being that are relayed to RFID technology.

Reduced Costs for Labor

The RFID technology can automatize a laborious procedure previously carried out by human. Fully automated RFID solutions, manual work can be reduced significantly or eliminated entirely (note the previous example). With fewer employees involved in the process of tracking stocks as well as the costs of labour is drastically reduced. In most cases, the sole labour cost associated with the RFID system are the costs for the RFID expert who is responsible for setting up and maintaining the system.

Greater Accuracy

It’s a known fact that humans are susceptible to mistakes , but digital systems aren’t. Because human interference is drastically reduced, particularly when completely automatized RFID technology, chance of errors are reduced to nil.

But it’s not just that. With complete automation of asset tracking system, it’s possible to monitor every asset throughout its lifecycle at all time. This guarantees absolute time accuracy that other technologies simply cannot do.

Improvements in Asset and Inventory Management

Each of the benefits listed above is great in its own right. When they are combined, they create a more efficient and effective approach to manage your assets in a holistic way. If we have all the information we require to be aware of about our assets we will be able to greatly improve the management of our inventory. This, naturally, is followed by a variety of other advantages, including an increase in efficiency for the entire enterprise, less expensive inventory, quicker production of equipment, greater effectiveness, etc.


Unfortunately, there are some disadvantages of the installation of RFID equipment for asset tracking.

Big Infrastructure Needs

It is important to note that the RFID technology is highly specialized. It requires all its elements to be present to function. The entire system in the RFID system such as the RFID tags and the RFID readers as well as those who read RFID tags, RFID printers, and the RFID solutions must be installed in order to enjoy the benefits described in the previous paragraphs. They are quite a lot of requirements for the initial set-up.

The high initial cost

The huge infrastructure requirements like the ones mentioned above will require a payment for. This implies a significant initial investment. This is certainly the case, and from the lower costs the investment will pay for it’s own costs, however, the infrastructure investment is necessary.

High Costs for Scaling

The growing of RFID process highlights the necessity for more RFID infrastructure, including more RFID tags and more RFID readers along with more printers, and many more. They cannot be replaced by any other technology, for instance, the competing technology of barcodes, they can be read on smartphones using the use of a simple application. That means that the growth of RFID asset tracking technology will require the same amount of infrastructure investment as the initial setting-up to set up the systems.

Security of Rfid Data

As with any process that produce or depend on digital data In the same way, the RFID process can be hacked by hackers. RFID tags could be read by other RFID readers, and their data may be altered. This makes data security vital. Only specially trained RFID firms can help with the security of RFID systems. This is sadly just another expense.


Everything good comes at a cost. If the advantages outweigh negatives is a matter that’s left to each individual. Since RFID technology has been spreading rapidly in recent years, it appears that the majority of businesses are seeing more benefit from this technology than negatives.