What are biggest advantages of RFID technology compared to barcode technology in inventory management?

Ease in receiving and dispatching(Increase in Productivity)

Accuracy of Inventory

Storage Location(zone, slot) accuracy.

But its expensive; so cost benefit analysis must be done before implementation.

Although there are clear advantages to using both barcode and RFID technology, determining which technology is right for your business can be challenging. While most warehouse and distribution facilities are currently using barcoding, RFID can either complement those efforts or fill gaps not covered by bar-coding.

What is the size and scope of your warehouse? Are you able to read or scan each item within line of sight? Larger warehouses often benefit from an RFID system because they can significantly increase the productivity of their processes. To read a barcode, a user must operate and position the scanner within sight of the item. If you have a large warehouse with a large inventory, then this process will require a large number of hours and employees.

To read an RFID label, the reader simply must be in range of the tagged item. Also, RFID tags can read data for items on a pallet so that each item does not have to be read individually.

If your warehouse has additional needs for data and memory, RFID technology might be a good fit. A typical RFID tag can hold 2KB of data, while a typical barcode represents only 10-12 digits. Also, if your data changes often, you might want to consider investing in RFID tags because they can be rewritten (barcode labels must be reprinted each time there is a change in data).

If your warehouse has food and/or beverages on its shelves, then it could benefit from an RFID system. Standard barcodes labels indentify the manufacturers and products, but cannot identify unique items. If each food or beverage item has the same barcode, then employees will not be able to identify unique expiration dates or manufacture dates; therefore, they will not know which items will pass their expiration date first.

RFID systems are ideal for the food and beverage industries because RFID tags can store expiration or manufacture data.

Does your warehouse have harsh conditions? Do you items often come into contact with extreme temperatures, sharp objects, water and moisture, dirt or dust? If so, an RFID system might be necessary.

Barcode labels can easily be ripped, scraped, peeled off, or otherwise damaged. When this happens, they must be reprinted otherwise the label isn't readable - and readability is key - without it, your system isn't worth anything.

RFID tags can be applied with strong adhesives and protected in special coatings or plastic coverings in order to withstand harsh warehouse conditions. In harsh environments, RFID technology is often a more accurate alternative than barcode technology.

How much security does your warehouse need? Unlike barcode labels, RFID technology can be leveraged to trigger door openings, alarms, and other events to provide added security in your facility.

Do your items or information require more security than the average? RFID tags are more secure than barcode labels because they are more difficult to replicate. The data in an RFID tag can be encrypted, password-protected, or even removed permanently if it falls into the wrong hands.

While RFID isn't a catch-all technology, it is incredibly powerful for many organizations. To determine whether or not a RFID system is right for your warehouse and ensure that you are getting maximum value and minimum disruption to your operations, contact an experienced integration or technology expert at Barcoding, Inc.

Barcodes and radio frequency identification (RFID) are two common methods for inventory control and materials tracking throughout logistics, retail and transportation. Each day, organizations undertake a decision-making process that involves discerning the costs and benefits of both technologies, in an effort to choose the most cost-effective and productive system available. Knowing the differences between RFID and barcodes is absolutely critical for arriving at a viable solution that represents a positive ROI for the organization in question.

RFID and barcodes convey information differently, making them suitable for a variety of different environments. This doesn’t mean that one technology is better than the other. On the contrary, both have unique characteristics that make them valuable under varying conditions. These differences are important when it comes to cost effectiveness and productivity, as each technology offers advantages that maximize overall efficiency in relation to materials tracking.

Barcodes serve as a two-dimensional visual representation of data that is scanned and interpreted for information. Each barcode is represented by a sequence of lines or other shapes – infrared barcode scanners read and translate these shapes into data that is used for identification, inventorying and tracking purposes. Barcodes offer a more cost-effective process for materials tracking. The cost of printing a barcode is, in most cases, much lower than creating an RFID tag. Barcodes also offer the same or even greater accuracy than RFID tags. Since barcodes are universally employed throughout retail and logistics, barcodes can be processed from anywhere in the world.

RFID tags utilize radio waves for tracking and identification. These tags utilize a scanning antenna, transceiver and decoder to send and receive information. Not only can RFID tags be read at longer distances than barcodes, it is also possible to read multiple tags at one time. Unlike barcodes, RFID tags offer read/write capability along with high-level data encryption and enhanced durability. A system reliant on RFID tags can be set up to operate with minimal interaction. However, RFID tags have higher manufacturing costs and perform poorly when signals pass through liquids or metal.

The decision to go with barcodes or RFID should depend on the needs of the organization and its operating environment. Any organization looking to adopt either technology should look at the above-mentioned differences between the two and ask themselves the following questions:

· What is the operating environment like? Does it involve extreme temperature changes?

· Will this technology increase overall productivity?

· Is the solution in question cost-effective?

· Will the organization see a positive ROI in a short period of time after adopting this solution?

The differences between barcodes and RFID can be significant enough to make either technology unviable in certain situations. For instance, it may be difficult for organizations to justify the costs of tracking and inventorying low-cost items with a relatively expensive RFID solution. Likewise, it would be unwise to rely on barcodes in instances where maintaining line-of-sight is not possible or if large volumes of material require tracking in a short amount of time. Organizations that are unsure of their choice in selecting either technology for data collection have several remedial avenues to pursue. One involves re-evaluating the need for RFID or barcodes by reassessing both cost and function.

1. Barcodes are designed to be scanned one at a time whereas many RFID tags can be scanned at once.

2. Barcodes require that the scanner maintain a line-of-sight with each code, while RFID is a “long-range field” technology, so the scanner only needs to be within range of the tag to read it.

3. Barcodes are generally printed on paper or adhesive labels, so they are prone to wear and damage, while an RFID tag is generally a tougher product that can withstand more abuse.

5.The type and volume of data on barcodes is more limited than what can be stored on an RFID tag.

• Speed: RFID is tremendously faster than barcode scanning
• Function: RFID allows for accurate inventory in adverse conditions 
• Accuracy: RFID is more accurate than barcodes in most real-world situations