Tracking items along the supply chain, in warehouses, and in your stores can be challenging even in the best of times. That's why it's important to have some kind of tracking system in place to prevent theft, keep items orderly, and ultimately make your operation run much smoother. When it comes to tracking assets and managing inventory, sometimes going with something simple is the best course of action. Enter the RFID tag. These simple devices are ideal for tracking and asset management using robust and powerful technology. But what are they? How do they work? And how can they work for you? In this article, we'll answer all those questions and more. Keep reading to learn more.

RFID Tags Defined

RFID tags are tiny electronic devices that can transmit information wirelessly. RFID tags are used in many different applications—everything from contactless payment systems to tracking assets/access control. RFID tags contain a small chip that stores information about the item it is attached to. The chip is powered by an antenna, which allows it to communicate with a reader device. When the tag comes close to the reader, it transmits its information to a computer (or device) that lets users read the data. RFID tags can be active (equipped with a power source) or passive (which don’t have a power source). You must first attach it to the product or asset you wish to track to use an RFID tag.

You can then use an RFID reader to scan the tag and receive the data stored on it. There are many benefits of using RFID tags over other data collection and tracking methods. Healthcare organizations, for instance, have embraced RFID to track medical equipment, medicine storage, and for tracking patient records. Ultimately, they offer better compliance management and transparency in that field. The same can be said for using them in other fields for asset management and other forms of tracking.

How They Work

When you're out shopping, have you ever found yourself wondering how the barcodes on your product packaging work? What about when it comes to tracking items? There's a strong likelihood they're using  RFID tags. Radio-frequency identification uses electromagnetic fields to automatically identify and track the RFID tags that are typically attached to products in transit or items on a shelf. The tag contains electronically stored information relevant to whatever it's tracking. RFID tags require a reader specifically designed that can usually be used from a distance from the tag itself. RFID essentially acts as digital storage and retrieval for any item to which it's affixed.

Inventory Management

Inventory management can be daunting on the best of days. Whether you're dealing with issues related to overstock, theft, damage, or materials shortages, managing inventory can be a major challenge. There are many ways to manage your inventory more efficiently, including software-based inventory management systems, guided buying, and instituting certain company compliance standards. Adding RFID tracking tags to the mix can also help considerably.

RFID tags are useful for tracking products in warehouses, retail stores, distribution centers, manufacturing facilities, and even along supply routes. This means that you can use RFID tags for inventory management purposes. They can effectively prevent theft (by tracking the location of items at all times) and increase efficiency by automating processes or eliminating manual tasks that would normally take a long time to perform. RFID tags help to track deliveries, track the location of assets (in warehouse or inventory), and ultimately help maintain inventory tracking.

Asset Tracking

Tracking your assets along supply lines, in the warehouse, and throughout your company is vital for running your operation efficiently. Whether it’s cutting costs, saving money, or merely optimizing your efficiency, tracking your assets is essential. Asset management is the tracking of assets to ensure they're where they're supposed to be. Asset tracking can help you in a wide variety of unique ways. If you have a warehouse, they can assist with tracking inventory (including whether products are being inventoried properly and how quickly it's happening).

In addition to inventory management, they’re fantastic for tracking deliveries and shipments. Customers might want to have tracking for their products, which you can provide by using RFID-powered asset tags. There are many other uses for asset tags, including placing them on vehicles, tools, and other inventory items. RFID is a robust technology that provides real-time insight and tracking into the most important assets of your business.

Supply Chain Protection

Perhaps the most significant and widespread use is in supply chain management. RFID tags help with inventory management and asset tracking within the supply chain and offer certain protections in the outbound supply chain itself. The main reason for tracking shipments is to ensure that the goods are delivered on time and in good condition. A staggering amount of goods shipped arrive damaged to their destination after shipping. This ultimately causes a lot of frustration among customers and loses retailers a great deal of money.

RFID tags can help prevent this by automatically scanning each piece as it leaves the factory or warehouse, eventually alerting staff if something seems wrong. RFID tags can save a company plenty of money and reduce costs associated with damaged or lost shipments. Some asset tracking tags turn red to indicate damage beyond a certain force or tilt threshold, making them a boon to logistics managers everywhere.