RFID Asset Management – How Does RFID Tracking Work?

Do you find it difficult to manage your inventory? Don’t worry, you are not alone. Almost half of all companies find it hard to optimize their assets and prevent theft, defects, or cyberattacks. Hence, the demand for RFID asset tracking is huge. You might be thinking – How does RFID tracking work? Fret not, we have you covered.

RFID technology collects important data about your assets that can be used to enhance your inventory management. The right use of tracking technology will help you increase the efficiency of your business. 

Without further ado, let’s get to the details of the technology and understand its types, benefits, and more. 

How Does RFID tracking work?

What is RFID Tracking?- A Closer Look

RFID asset tracking is a technological system to monitor and manage the physical assets of an organization. The core part of the technique includes using RFID tags. The tags are small electronic devices that store and transmit data via radio waves. 

Asset tracking is an automated process where the attached tag sends all the relevant information to a server thereby saving time and increasing efficiency. The data includes information like the name of the machinery, condition, physical location, and amount. 

Before you understand how does RFID tracking work, let’s try to get clear about the different types of RFID tags.

Different Types of RFID Tags- The Complete List

RFID technology is not a new concept and has been around for decades. When it comes to asset management RFID tracking, there are three types of tags that have different working mechanisms. Here is the complete list.

1. Active RFID Tags

Active tags have an internal power source like a battery that allows them to operate independently. They are consistent and have an extended frequency range. Active tags transmit their data to RFID readers. The reading range lies anywhere between a few meters to several hundred meters.  Here are a few features of the tags.

  • RFID tags operate without relying on external power source
  • They can continuously transmit data and help in real-time monitoring and tracking.
  • The tags store more data related to the condition and temperature of an asset through the systematic use of sensors. Active tags are suitable for applications requiring massive data collection.
  • They are able to transmit dynamic updates regarding the status of your inventory at regular intervals. For example, an alert is sent off immediately if any asset leaves its specified area.
  • RFID tags are expensive due to the added cost of batteries and electronics. However, they provide the benefit of a long reading range and better functionality.

2. Passive RFID Tags

Passive tags do not have their own power source. They rely on RFID readers to send data using their radio waves. Here are some basic features of a passive RFID tag.

  • Passive tags do not have batteries and they are durable, light, and small. They do not rely on limited power sources.
  • The tag uses radio-frequency waves from a reader or a scanner to transmit its unique ID and data back to the system.
  • These tags are simple to recharge and have a small reading range.
  • Passive RFID tags do not complicated designs, so it’s easier to deploy them in large-scale applications and they are cost-effective.
  • These tags are available in different sizes making them adaptable and flexible. For instance, a passive tag can be the size of a small grain or as big as a credit card. 

3. Semi-Passive RFID Tags

Semi-passive RFID tags have characteristics of both active and passive tags. These tags have their own internal power source but still rely partially on a reader’s energy to operate. Sei-passive tags are developed to provide benefits that neither passive nor active tags can deliver. Lister below are the semi-passive RFID features.

  • Semi-passive tags use batteries to power sensors, data storage, and other components. 
  • The batteries give the tags added functionalities like environment sensors, motion sensors, and real-time calendar or clock functions.
  • Semi-tags have a better reading range than passive tags. The battery boosts the tag’s response signal allowing it to read a greater distance from the reader. 
  • The tags are cheaper than active tags as they do not need large batteries to transmit data back to the scanner or reader.

Now, that you know the different types of tags and their basic functionalities, it’s time to circle back to the question – How does RFID tracking work?

Let’s look at the inner mechanism of RFID technology in asset tracking.

How Does RFID Tracking Work?

Irrespective of the industry, the basic working principle of an RFID tag is the same. The answer to the question – how does RFID tracking work depends on the following 4 components.

  1. RFID tags
  2. An RFID reader or the microchip
  3. The Main Antenna
  4. A secure computer server and database integrated with asset-tracking software.

Once you gather all the components, the tags start tracking the assets. The process can be broken down into 4 stages.

I) The tag stores the data related to the unique electronic code that has been attached to the asset. 

II) The antenna detects the tag and captures the signal of the nearest asset.

III) Next, the antenna is connected wirelessly to the reader or scanner which receives the information stored in the tag.

IV) Finally, the reader sends the data to the tracking database where it is measured, evaluated, and taken care of. 

How does RFID tracking work? You know the mechanism and the importance of RFID technology. So, let’s move to the benefits of RFID asset tracking. 

Benefits of RFID Tracking System

Physical assets are the core part of your business. That’s why maintaining a proper tracking system will allow you to meet the increasing expectations of customers and stakeholders. Systematic asset management helps you reduce overhead expenses, build trust, maximize product efficiency, and improve customer experience. That said, take a look at the key benefits of an RFID tracking system. 

1. Automation

Businesses need to adapt fast and reduce labor time. Automated tracking systems like RFID tags monitor the movement of goods in real-time. This allows asset managers to get accurate updates from the asset tracking database. The entire data collection process is automated, so there is no human intervention.

Asset managers can track the stock levels, supply chain, shipment of goods, and costly delays in operations. This eliminates the need for manual spreadsheets that save employee labor and improve productivity. 

2. Prevent Theft and Loss of Assets

Replacing physical assets is not easy and it takes away all the revenue of businesses. Many assets get lost, misplaced, or stolen which can cause serious damage to the daily operations of your business. Deploying RFID readers and antennas throughout multiple checkpoints of your inventory helps to track the exact location of your assets. 

Accurate location data prevents replacement costs and improves the efficiency of your business. 

3. Return on Investment( ROI)

RFID tags are cheaper so all types of businesses can deploy the tools. It is cost-effective, long-lasting, and has revolutionized the manufacturing, logistics, and retail industries. The tags and the software are easy to install and will help you save money in the long term.

To summarize, RFID tags are a boon for businesses to become agile and efficient. Now, let’s move to frequently asked questions about how does RFID tracking work. 

FAQs – How Does RFID Tracking Work?

Can mobile phones detect RFID?

Yes, smartphones with NFC can detect RFID devices. RFUD devices in the same frequency range as your mobile phones will connect easily.

What is the lifespan of RFID?

RFID tags can last long under normal conditions. The shelf life depends on various factors but a tag can work for 20 years or more.

What can interrupt RFID?

RFID tags use radio waves to send signals. There are multiple interfering agents that can damage the performance and accuracy of the tags like heavy metals, water, harsh chemicals, and overheating.

Is RFID better than GPS?

Both RFID and GPS are interactive technologies deployed by businesses to improve their supply chain operations. However, RFID is better because it is easy to install and cheaper than GPS. It depends on your business needs and preferences. 

Conclusion

To conclude, RFID is an important cog in your business wheel. Ask yourself – How does RFID tracking work? This can help you get a clear picture of your business operations. The technology is highly effective in asset management, streamlining daily workflows, and improving employee performance. 

Do you want to integrate RFID solutions into your business? Get in touch with Qodenext to take your asset management to the next level. 

Also read: What is Shipping Label and how it works?