Understanding Inventory 2024/2025

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Two commonly used asset tracking technologies are barcode tags and RFID (Radio Frequency Identification) tags. While both serve the same purpose, they have significant differences. In this article, we will explore these differences and explain why barcode labels are often a more reliable and safer choice compared to RFID tags, especially when it comes to preventing theft, tampering or unauthorized exchanges.

Barcode labels: A proven solution

Barcode labels have been a staple in identifying any company's assets for decades. Each label should contain a unique identifier (Inventory No.) the name and description of the asset or its location. Having such a label, we can easily read it with a barcode collector, determining the physical presence of the asset at the scanning location. The barcode reader should, of course, also register such a reading in the inventory program.

Here's why barcode labels remain a popular choice for asset management:

Cost-effective: Paper barcode labels are relatively inexpensive to produce and deploy. The technology behind barcode scanners is mature and affordable, making them an attractive option for companies and institutions with budget constraints.

Durability: use modern low-cost plastic labels with barcodes where fixed assets have to stand up to tough demands, from extreme weather conditions to ultra-hard conditions on production facility. Plastic labels guarantee resistance to wear and tear, ensuring that the data on them will be readable as long as the asset itself.

2D barcodes: if we choose to use 2D barcodes, such as QR Code and or DataMatrix codes, we will provide our company with the ability to store a considerable amount of data in the barcode, and we will also ensure that it will continue to be readable despite damage to most of the barcode.

Simplicity and reliability: barcode technology is easy to implement and use. Barcode scanning is a generally familiar process. During inventory, the operator is required to have a generally familiar barcode reader and go through a few minutes of training on how to use it.

Security: Since barcode labels are generally known and recognized by almost everyone, they are easy to find during inventory. The very act of looking for the label further provides us with legal security, we ascertain the physical presence of the asset before scanning each label.

RFID tags: a high-tech but risky option

RFID tags, on the other hand, use radio waves to transmit data from a tag attached to a fixed asset to an RFID reader. These tags can store more information than regular linear barcodes, and can be read remotely without direct visibility of the asset. However, despite these advantages, RFID tags pose several serious concerns with regard to the inventory process itself as well as the company's legal security:

Vulnerability to theft or tampering: One of the main drawbacks of RFID tags is that they can be hidden, overstickered onto something less valuable. This makes it easier for thieves to steal assets. In some cases, an RFID tag can even be duplicated or swapped with another tag, potentially leading to unauthorized movement or theft of assets without detection.

Higher costs: Although RFID technology offers advanced tracking features, it is significantly more expensive to implement than barcode systems. The cost of RFID tags (~€1 apiece), readers and software can add up, making it less suitable for companies looking for a budget asset management solution.

Interference problems: RFID signals can be affected by environmental factors such as metal surfaces of computers, servers, laptops, etc. the presence of water, people or electromagnetic interference. In some cases, these factors can prevent RFID scanners from accurately detecting tags, leading to sizable gaps and inaccuracies in our records.

Requires specialized equipment: Unlike barcodes, which can be scanned with standard handheld devices, RFID requires specialized readers. These readers must be within a certain range from the tag to pick up the signal, and they can be very expensive to purchase and maintain. This means that companies need to invest in both tags and supporting infrastructure to implement an RFID-based inventory system.

Why barcode tags are a better choice

Although RFID tags offer remote and mass scanning capabilities, their weaknesses make them a risky choice for asset management. The possibility of labels being stolen, hidden or replaced can lead to serious security concerns. Barcode labels, on the other hand, offer a more secure and less expensive solution.

The speed of scanning RFID tags gives a false sense of superiority to RFID technology over barcodes. For companies focused on security and simplicity in their inventory systems, barcode tags are still a proven and reliable option that will stand the test of time. The combination of low cost, ease of use makes barcodes a clear winner over RFID.

Choose the right system to record your assets, improve the accuracy of your records, reduce the risk of loss, theft, increase efficiency with HDF Inventory software.