RFID vs Global Positioning Technology for Asset Tracking

June 30, 2021

RFID vs Global Positioning Technology for Asset Tracking

As technology advances, businesses are constantly seeking new ways to streamline their processes to improve productivity, efficiency, and profitability. One area that has seen significant improvement is asset tracking. Before the use of technology, businesses had to rely on manual processes to manage their assets, which was not only time-consuming but also prone to errors.

Nowadays, businesses have access to several technologies to aid asset tracking, with RFID and GPS being some of the most popular options. In this article, we will compare RFID and GPS technologies for asset tracking to help you choose the best solution for your business.

What is RFID technology?

RFID stands for Radio Frequency Identification, and it is a technology that uses radio waves to identify and track objects or people through tags attached to them. The tags contain a microchip and an antenna that can communicate with an RFID reader wirelessly. When the RFID reader emits a radio signal, the tag responds by transmitting its unique identifier back to the reader, which then processes the information to identify and track the object.

What is Global Positioning Technology?

GPS, on the other hand, stands for Global Positioning System, and it is a satellite-based technology that uses a network of satellites to determine the position and location of an object or person. GPS devices receive signals from the satellites, and then, using triangulation, it can determine the precise location of the object or person.

RFID vs GPS for Asset Tracking

Accuracy

When it comes to accuracy, both RFID and GPS technologies have their strengths and weaknesses. RFID technology is great for tracking items within a limited range since it is reliant on the RFID reader being in proximity to the tag to read it. However, GPS technology is more accurate when it comes to tracking objects that are moving across larger areas, as it can track the object's exact location in real-time.

Costs

RFID technology is relatively inexpensive to implement and maintain, making it a great option for businesses that want to keep their asset tracking costs down. On the other hand, GPS technology can be more expensive to implement and maintain. While GPS tracking devices have become more affordable in recent years, the addition of satellite connectivity and data fees can add to the overall cost of implementation.

Reliability

When it comes to reliability, both RFID and GPS technologies have their pros and cons. RFID technology is reliant on the tags being within the range of the RFID reader, which means that objects can be easily misplaced or lost if they move outside the reader's range. GPS technology, on the other hand, can lose connectivity in areas with poor cellular or satellite coverage, making it unreliable in such areas.

Conclusion

RFID and GPS technologies are both great options for asset tracking, but their effectiveness depends on the specific needs of your business. If you need to track objects in a controlled environment, RFID technology is a good option. On the other hand, if you want to track objects across larger areas or in different locations, GPS technology is a better choice. Additionally, the cost and reliability factors need to be taken into account when choosing between the two technologies.

Whichever technology you choose, implementing asset tracking will help your business stay organized, efficient, and profitable.

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