RFID vs barcode scanning: advantages and disadvantages

With AI and automation making waves across the world, now more than ever efficiency is at the forefront of every business’ mind. In order to take advantage of these advancements you need to make sure that you’ve got the right foundations to build the rest of your empire on.?

Inventory and asset management still present one of the biggest opportunities for simplifying processes, enhancing accuracy and increasing profitability. There’s not a single industry from retail to healthcare and logistics to manufacturing that wouldn’t benefit from more reliable and efficient tracking systems.?

Two of the most widely adopted technologies for inventory tracking are Radio Frequency Identification (RFID) and barcode scanning. In this article, we’ll explain how each technology works, explore their differences, discuss the pros and cons and explain the best applications for both. Plus, we’ll answer a common question our experts often hear: will RFID replace barcodes?

What is RFID and how does it work?

RFID uses radio waves to identify and track products, objects and items via tags. These systems consist of tags that contain microchips and antennas as well as a reader and antenna.

One of the main draws of RFID is its ability to read multiple items at once, even without direct visibility. This makes it invaluable for high-volume industries like retail, logistics and healthcare.?

Read more: What is RFID and How Does It Work?

What is barcode scanning and how does it work??

Barcode scanning works by using a familiar pattern of vertical lines and spaces to encode data like a product’s unique identifier, price or batch number. A scanner is then used to read and decode this data, transferring it to a tracking system.?

While barcode scanning is a straightforward and cost-effective solution, it is slower and less efficient than RFID in high-volume environments.

Read more: How to Implement a Barcode Inventory System.

What are the similarities between RFID and barcodes?

Even though RFID and barcodes function in slightly different ways, both are used for tracking and managing inventory. They both rely on data capture and communication with a data platform like a Warehouse Management System (WMS) or Point-of-Sale (POS) to provide real-time visibility of the movement of assets, as well as analysis of business operations to make data-informed decisions, faster.?

What are the key differences between RFID and barcodes??

Though both RFID and barcode scanning can have the same ultimate goal— such as tracking inventory—they do have some significant differences.?

• Line of sight: Barcodes need a direct line of sight to be scanned but RFID tags just need to be in the vicinity of the reader to be read.?
• Read range: Barcodes only have a read range of a couple of inches up to a couple of feet while RFID readers can cover up to 100 meters.?
• Speed and efficiency: Barcode scanners can scan one item at a time, manually, while RFID can scan entire pallets in one go making it much faster for large inventories.?

Advantages and disadvantages of RFID

RFID has revolutionised the way that businesses track and manage their inventory. However like any solution, it has its pros and cons. Let’s take a closer look.?

Benefits of RFID

• RFID offers real-time visibility. As RFID doesn’t require manual scanning it can monitor the movement of assets and inventory without human intervention. The result is more accurate information at your fingertips.
• RFID delivers increased efficiency. Being able to scan multiple items at once dramatically reduces the time needed for tasks like inventory checks and order picking. This is particularly important for fast-moving, high-volume environments like warehouses and retail spaces.?
• Greater accuracy with RFID tracking. Real-time data minimises the risk of human errors often associated with laborious and repetitive manual scanning and data entry tasks. Less errors means better profitability.?
• RFID is more secure than barcode scanning. RFID tags can be encrypted, providing an extra layer of security against theft or counterfeiting.?

Disadvantages of RFID technology

• RFID has a higher barrier to entry. Implementing RFID can be more expensive than a barcode system as it needs more specialised hardware including the tags themselves and the readers.?
• RFID is more complex to set up and maintain. It requires more technical expertise for installation and ongoing troubleshooting than barcode scanning.?
• RFID can be subject to interference. Metal and liquids can interfere with the transmission of data so you’ll need to carefully plan the reader placement for the best system performance.?

So, what about the benefits and challenges of barcode scanning and scanners??

Advantages and disadvantages of barcodes

Barcode scanning is still to this day one of the most widely used technologies for inventory management. It’s cost-effective, easy to implement and use and can be applied to a huge range of industries. It’s a reliable solution for businesses that have less complex tracking needs or smaller inventories.?

Advantages of barcode scanning?

• Barcode scanning is cost-effective. Barcodes are inexpensive to produce and the scanners are generally more affordable than RFID hardware. This makes barcodes a cost-effective solution for businesses with simpler tracking needs.?
• Barcodes are easy to implement. You can even print your own barcodes and there’s minimal training needed for staff. It’s a straightforward system that anyone can use.?
• Barcodes are universally recognised. They’re a reliable choice for businesses in all industries that need a proven and familiar solution.?

Disadvantages of barcode scanning?

• Barcodes need a direct line of sight. This can slow down operations, especially in environments with high volumes of items.
• Barcode scanning is more manual than RFID. Barcodes are typically scanned one item at a time, which can be time-consuming in large warehouses or retail operations with rapid stock turnover.
• Barcodes can store a limited amount of data compared to RFID tags.?

Quick summary

RFID stands out when it comes to inventory management by providing real-time visibility, the ability to track vast quantities of inventory at once and enhanced security. However, it does require a larger initial investment, a more complex technical set-up and can be affected by signal interference. On the other hand, barcode scanning is a simple and cost-effective solution perfect for less complex needs. While it’s easy to implement, it needs a direct line of sight to work which can hinder speed, and the limited data storage compared to RFID may not be ideal for more complex assets or inventory.

Choosing the right technology for your business

“The right choice” depends on the specific needs of your business, the volume of assets or items you need to track and the speed and level of detail you need to maintain operational efficiency.?

Applications best suited for RFID: Warehousing, retail, healthcare, logistics, manufacturing and events

RFID technology really thrives in environments where real-time visibility, high-volume operations and efficiency are of the utmost importance. Its ability to scan multiple items at once without needing a direct line-of-sight makes it an ideal solution for industries that require robust tracking and automation.

Warehouse and inventory management

RFID transforms inventory management by enabling businesses to scan entire pallets or shelves in just seconds. For high volume, large scale, warehouses and distribution centres that previously had to rely on manual barcode systems to maintain accurate stock levels, RFID is a game changer.?

Retail and supply chains

Once again RFIDs superior ability to measure inventory in bulk benefits those in the retail and supply chain. Enhanced inventory accuracy reduces the risk of stockouts or overstocking and the real-time updates on shipments and product locations, improve overall efficiency.

Healthcare

The NHS 2023 mandate named digital data transformation as a top priority. All trusts across the UK should have implemented barcode scanning of their most high-risk medical devices by March 2024. RFID is often the technology of choice to track medical equipment, pharmaceuticals, and patient records. This not only reduces the risk of errors but also enhances patient safety and ensures compliance with the highest regulatory standards.

Logistics and asset tracking

Logistics companies benefit from using RFID to track bulk shipments and manage fleet assets resulting in more on time deliveries and reducing the chance of lost or misplaced items.?

Manufacturing

In manufacturing, RFID helps track raw materials, monitor production processes and maintain quality control. It supports lean manufacturing principles by providing decision-makers with real-time data to help them make fast, data-led, choices to optimise workflows and maintain quality.?

Event management and access control?

RFID plays a key role in the event management and access control industry. From large-scale conferences and concerts to secure facilities the contactless scanning allows continuous tracking of assets as they move throughout your venue for a seamless and secure experience for attendees and staff alike.?

Industries best suited for barcode scanning: Retail POS, small business inventory management, healthcare admin, hospitality, shipping and education

Barcode scanning remains a reliable and cost-effective solution for businesses with simpler tracking needs or smaller-scale operations. Its widespread use and ease of implementation make it a versatile choice across various industries.

Retail Point-of-Sale (POS)

You’re probably most familiar with barcodes in retail situations. Barcode scanning is essential at the point of checkout allowing customers to purchase items but also to ensure accurate inventory and stock management.?

Inventory management for small businesses

For smaller businesses barcode scanning offers an affordable way to track stock, monitor sales and reduce errors. The lower barrier to entry for barcode scanning makes it ideal for start-up and scale up businesses alike.?

Healthcare administration

In healthcare environments barcodes are used to label and track medications, patient records and medical devices. This helps reduce dispensing errors and improves patient safety by ensuring the right treatments are provided to the right individuals.

Hospitality, food and beverage

Barcode labels on packaged goods allow everyone from the manufacturers to the retailers to monitor expiry dates, track deliveries and ensure that they’re complying with food safety regulations.

Shipping and logistics

Barcodes are commonly used to track parcels and shipments and keep customers up to date with the status of their order via tracking numbers. Not only does this help reduce losses but also dramatically improves customer satisfaction when they know where their purchase is.?

Libraries and other educational institutions

Barcodes are perfect for cataloguing and tracking books, equipment and any other assets in libraries and schools. As with other industries the barcode offers a simple and efficient way to manage the inventory with a lower technical barrier to entry.?

By taking the time to understand the individual strengths and weaknesses of RFID and barcode technology, businesses can choose the solution that best fits their needs. While RFID is unmatched when it comes to high-volume real-time tracking, barcode scanning continues to be a trusted and cost-effective choice for simple item tracking and identification.?

FAQ: Will RFID replace barcodes?

RFID is unlikely to replace barcodes entirely. While RFID provides better visibility and real-time tracking, barcodes remain cost-effective, widely adopted, and suitable for individual item identification. RFID and barcodes often complement each other, with RFID used for bulk tracking and inventory, and barcodes ideal for point-of-sale scanning

How The Barcode Warehouse can help

So whether you’re considering upgrading your tracking system or implementing a new one, the experts here at The Barcode Warehouse are here to help you make the right choice for your business. From optimising your supply chain to improving security there’s a system for you.?

We are the UK’s leading specialists in RFID and barcode scanning solutions and have partnered with the best brands to supply you with an unrivalled range of RFID tags, readers, printers, wristbands, labels and more.?

Browse our range of RFID and barcode solutions or get in touch with our expert team to discuss your specific needs today.?