Overview
Accurately managing and tracking valuable assets is a challenge faced by businesses across the world.
Time spent searching for misplaced, lost, or stolen assets can lead to costly delays, downtime, missed deadlines, and wasted labor. Manual tracking methods such as pen and paper or spreadsheets for physical inventory counts have proven costly, time consuming and error-prone.
One method that has revolutionized day-to-day asset management operations is the use of radio frequency identification tags or RFID technology. An RFID asset tracking solution automates the process of inventory management and location. It is one of the most efficient and cost-effective tracking technologies available today.
How does an RFID tracking system work?
An RFID asset tracking system combines an RFID scanner or reader with active or passive RFID asset tags and asset management software.
The system works by loading, or commissioning, an RFID asset tag with data and attaching it to an asset. Like a barcode label, the data can include information such as the asset's name, condition, quantity, manufacturer, or location. Instead of asset managers tabulating information by hand, the system counts and tracks inventory levels or supply movement, depending on how you structure your RFID software.
The next step in the process varies depending on whether your RFID asset tracking system uses active RFID tags or passive RFID tags. Selecting the right RFID tag will depend on a wide variety of factors: any harsh environments, data requirements, as well as the size and material of the individual items you’re tagging.
Asset Tracking with Active RFID Tags
If you’re using active RFID tags with your system, the RFID tag can either respond to queries or actively send beacons which an RFID reader reads to capture the stored data. The reader collects the data and stores it in asset tracking software where the data can be evaluated and actioned.
Active RFID tags are commonly used for real-time tracking processes, such as where the exact location is critical. Active RFID tags are generally more expensive than passive RFID tags, and their performance depends on an internal battery, so long battery life is a must. One of the key benefits of battery-powered tags is that it requires less human intervention for asset visibility; any reader within signal range will tell the RFID software what was commissioned onto the tag. If a tag moves to a new beacon, the inventory management system updates and lets you know.
Asset Tracking with Passive RFID Tags
If you’re using passive RFID tags with your system, the RFID reader sends a radio frequency signal to the RFID tag which powers it on and reflects the energy back to the reader. The reader then captures and stores the data in asset tracking software where the data can be evaluated and actioned.
Because passive RFID tags do not have an internal power source of their own, they are generally smaller, lighter weight, less expensive, and have a longer life expectancy than active tags. With passive RFID tags, the more data that is stored on the tag, the shorter the signal range will be. Passive RFID tags are often used when real-time visibility isn’t a priority because the business operations have tracked assets moving less often, such as for tracking inventory tracking of medical equipment or office equipment, supply chain management and access control. The flexibility and cost-effectiveness of passive RFID tags makes it possible to attach them to or embed them in a wider range of objects than active tags.
