RFID vs Real-Time Location Systems for Asset Tracking

August 26, 2021

Asset tracking is an essential part of efficient supply chain management for various industries. The use of advanced tracking technologies like RFID and Real-Time Location Systems (RTLS) has revolutionized the way organizations track assets, leading to improvements in supply chain productivity and efficiency.

While RFID and RTLS technologies are both used for asset tracking, they differ in the way they operate. This blog post will provide an unbiased comparison of RFID and RTLS technologies and their effectiveness in asset tracking. So, let's get started!

RFID Technology

RFID technology works by using radio waves to transmit data between a reader and a tag attached to an asset. The tag contains a microchip that stores information like the asset's identification number and other data related to the asset. When the reader emits radio waves, the tag receives them and responds with its stored information.

RFID tags can be either passive, active, or semi-passive. Passive tags do not have a battery and rely on the reader's radiofrequency energy to operate. Active tags have their power source and can transmit data over longer distances. Semi-passive tags have a battery for powering the microchip but receive the radiofrequency energy from the reader to communicate.

RFID tags are widely used in the retail industry, hospitals, and libraries for inventory management and asset tracking. They are an affordable tracking solution that offers real-time tracking of assets, making them ideal for asset management applications.

Real-Time Location Systems

Real-Time Location Systems (RTLS) use different technologies like Bluetooth Low Energy (BLE), Ultra-WideBand (UWB), or Wi-Fi to track assets. The system consists of tags attached to assets, readers or gateways installed at various points, and software that tracks and displays the asset's location.

RTLS technology is more precise than RFID, with location accuracy of up to a few centimeters, making it ideal for indoor tracking applications. They can track assets in real-time, offering visibility into the asset's location at every moment.

RTLS systems have higher costs than RFID, being more suitable for deployment in large-scale operations. They are widely used in industries like manufacturing, aerospace, and healthcare facilities for tracking high-value assets, equipment, and personnel.

RFID vs RTLS for Asset Tracking

RFID and RTLS technologies both have their advantages and limitations in asset tracking applications. RFID is an affordable tracking solution with real-time monitoring capabilities, making it ideal for low-value assets or assets that do not require high location accuracy. In comparison, RTLS systems offer higher location accuracy and can track assets in real-time, making them suitable for high-value assets, equipment, or personnel.

Technology Location Accuracy Cost Real-Time Tracking
RFID 5-10 meters Low Yes
RTLS 1-10 cm High Yes

To sum it up, the choice between RFID and RTLS depends on the asset's value, asset location accuracy requirements, and the size of the operation. Organizations with low budgets and low-value assets can benefit from RFID, while those requiring high-value asset tracking would benefit more from RTLS technology.

That said, both RFID and RTLS technologies have been successful in asset tracking applications, leading to improvements in asset management and efficient supply chain operations.

References

  1. https://www.rfidjournal.com

  2. https://www.sciencedirect.com/science/article/pii/S2405952620310826

  3. https://www.iotforall.com/what-is-real-time-location-tracking-rtls

  4. https://www.panasonic.com/global/corporate/technology-design/technology/rfid.html

  5. https://www.gao.gov/products/gao-20-57


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