Depending on your industry and how you plan to use RFID or barcodes, each technology comes with its own set of advantages and limitations. A clear understanding of your requirements around security, durability, cost, capabilities, and implementation of the system can help you make a more informed decision about which solution is right for your business.
Even though RFID is highly efficient, it hasn’t fully replaced barcodes. The two technologies often work together, each fulfilling different but complementary roles within the supply chain.
At Peak Technologies, we offer comprehensive solutions for both RFID and barcode printing and labeling. Our experts are here to help you evaluate your options and determine the best fit for your operational needs.
What is RFID?
RFID stands for radio-frequency identification, a form of wireless communication that uses radio waves to transmit information from RFID tags to an RFID reader. Each tag contains a sensor attached to an antenna. The antenna enables the tag to transmit stored information, such as unique identifiers or product data, to the RFID reader.
A reader can simultaneously scan more than 100 tags and does not require line of sight visibility. This makes it easy to automate certain processes that would otherwise require extra time and resources, and be subject to human error.
Learn more about what RFID is and how it works.
What is barcoding?
Barcoding is a method of identifying and tracking items using a printed label that contains a series of black and white lines, known as a barcode. Each barcode represents a specific set of data that can be read by a barcode scanner.
The scanner includes a sensor that creates a signal from the reflected light, and a decoder then translates the signal into text and sends it to a computer or database. Barcode scanners require line of sight and must “see” each barcode one at a time in order to capture the data.
There are many different types of barcode formats available, each designed to suit specific use cases.
What’s the Difference Between RFID and Barcode?
RFID and barcode technologies are both used to track and manage inventory, but they differ significantly in how they operate and the value they provide. While barcode scanners require a line of sight to scan each code individually, RFID scanners can read multiple codes at once without needing direct line of sight. This makes RFID systems much more efficient for high-volume scanning, although it generally comes with higher upfront costs and more complex setup.
Barcode systems, on the other hand, are often simpler to implement and can sometimes provide greater precision in environments where item-level control is critical. However, they tend to be less durable and secure than RFID tags, especially in challenging environments.
Key Differences Explained
Line of Sight: As mentioned, RFID readers do not require line of sight to detect a tag. They can read data through packaging or materials and scan multiple tags simultaneously. Barcodes require a direct line of sight for scanning, meaning each barcode must be individually aligned with a scanner.
Read Range: RFID tags can be read from a greater distance, sometimes up to several meters, depending on the type of RFID used. In contrast, barcodes typically need to be scanned from a much closer range.
Data Storage and Capacity: While RFID tags are capable of storing more data than barcodes, they’re most commonly used for serialization, such as with an EPC or unique LPN. Rather than storing large amounts of data directly on the tag, it’s often more efficient to use the RFID tag to point to external data sources. This approach helps keep tag costs lower while still enabling access to detailed item information like history, condition, or location.
Speed of Scanning: RFID enables bulk scanning at high speed, which significantly speeds up processes like inventory tracking and management. Barcode scanning is a sequential process that takes more time.
Security and Data Access: RFID can offer enhanced data security, as tags can be encrypted and require authorized readers to access the information. In contrast, barcodes are openly readable by any compatible scanner, which can make them more vulnerable to unauthorized access or tampering.
Cost: Generally, RFID technology is more expensive to implement than barcode systems, which is one of the main reasons barcodes are, and will continue to be, widely used. However, the cost of RFID has decreased significantly in recent years, and the ROI can be significant, making it more accessible for businesses looking to scale or automate their operations.
How to Build the Right Identification and Tracking Solution
When it comes to choosing which system is right for your business needs, you’ll want to consider the following:
- What you’re tracking
- How secure you need the information you’re tracking to be
- How and where your inventory tracking will take place
- What your budget for this process looks like
In some cases, the best solution might not be one or the other—but both. Many organizations adopt a hybrid approach, using RFID and barcode technologies together to take advantage of each system’s strengths. This combined setup offers flexibility for different operational needs. It also serves as a safeguard in case one system encounters an issue, the other can act as a reliable backup to keep operations moving smoothly.
To help in making an informed decision, we go through some of the specific advantages and disadvantages of RFID below.
Top Advantages of RFID
- Efficiency: The ability to scan multiple items simultaneously without line-of-sight increases the speed at which work can be completed. This is especially useful in high-volume environments like warehouses, retail, and logistics.
- More Data and Visibility: Real-time access to larger amounts of detailed data can help improve inventory management, forecasting, decision-making, and more. This visibility helps reduce stockouts, improve order accuracy, and support just-in-time operations.
- Item-Level Identification: RFID makes it possible to pinpoint a specific serialized item, even among identical units on the same shelf. This level of precision is valuable for inventory accuracy, recalls, returns, and quality control.
- Durability in Harsh Environments: Readers and tags are built to withstand exposure to sun, rain, impact, and other environmental elements. This makes them ideal for outdoor, industrial, and high-use environments where traditional barcodes may degrade or become unreadable.
- Security: RFID allows for greater security on the information held within the tags than barcodes. The stored encrypted data is difficult to replicate or tamper with.
- Scalability: RFID systems can grow with your business. Whether you’re tracking a few pallets or managing a global supply chain, RFID infrastructure can be expanded and adapted without overhauling the entire system.
- Evolving Technology: RFID technology continues to advance, offering features like temperature tracking. This is especially valuable in industries like food and healthcare, where knowing whether an item has been exposed to unsafe temperatures can prevent spoilage, contamination, or compliance issues. These smart tags provide actionable insights that barcodes simply can’t deliver.
Learn more about the benefits of RFID.
Disadvantages of RFID
While RFID offers powerful advantages, there are still some challenges to consider. However, ongoing technological advancements are steadily reducing these limitations:
- Material Limitations: Materials like metal and liquid can impact signals. For example, metal can deactivate the RFID antenna, preventing the tag from transmitting. Using this technology on metal requires specialized tags with shielding to block interference. Liquid products can also affect signal reliability. If you’ve ever wondered why RFID is not used in grocery stores, this is one of the reasons. However, modern RFID systems have made significant strides in overcoming these challenges. Passive RFID tags now offer improved read ranges and enhanced durability, making them more reliable in complex environments where interference was once a major barrier.
- Accuracy: While RFID is highly effective at scanning multiple items quickly, achieving precise reads in complex environments like warehouses or loading docks requires proper system design. With the right filtering, middleware, and reader placement, it’s possible to minimize stray reads and ensure accurate, location-specific data capture. This can be easily accomplished by partnering with the right RFID solution provider.
- Cost: While RFID technology has historically been more expensive, recent advancements have significantly reduced costs, making it more accessible across industries. RFID tags now start as low as $0.10 in volume, with large-scale users paying even less. However, RFID readers remain more expensive than barcode scanners, and costs can increase depending on tag durability, form factor, and functionality. Barcode labels still tend to be cheaper, often just a few cents each, but the cost gap between the two is narrowing, especially when long-term efficiency and automation benefits are considered.
- Implementation: Implementation can be more complex and time consuming than setting up a traditional barcoding system. However, partnering with an experienced vendor like Peak Technologies can make the process significantly smoother. The right partner will guide you through planning, setup, and optimization to ensure the system is tailored to your business needs and delivers long-term value.
RFID Types & Use Cases
To further understand the pros and cons of RFID, it helps to look at the different types of RFID systems and how they’re used in real-world scenarios. RFID operates in three main frequency ranges: low frequency (LF), high frequency (HF), and ultra-high frequency (UHF), each with specific strengths based on application.
Low Frequency (LF)
Under 134.2 KHz. The low frequency range requires the tag to be in close contact with an RFID reader in order to transmit data.
Common Use Cases:
- Access Control: LF RFID is frequently used in employee badge and building entry systems. These cards are held close to a reader and function as secure “keys” for controlled access. Unlike barcodes, they are harder to duplicate and offer greater security.
- Medical Supply Quality Control: RFID is ideal for applications that require secure tracking of medical assets and supplies. Its ability to function reliably in environments with liquids and metals makes it suitable for hospital and laboratory settings, where accuracy and traceability are critical.
- Animal Tracking: LF RFID tags are commonly used to track livestock such as cattle. Attached to the ear, these durable tags withstand years of exposure to weather and wear, making them ideal for long-term monitoring and traceability—especially in the event of meat recalls.
High Frequency (HF)
Around 13.56 MHz. HF RFID tags have a read range of approximately one to three feet at the most.
Common Use Cases:
- Libraries: HF RFID improves efficiency at checkout and return stations by enabling multiple books to be read at once. Instead of scanning each book individually, users can place several items on a reader pad, which instantly detects the embedded tags. The same process helps automate returns by sorting books based on location or category, getting them back on shelves faster and with fewer errors.
- Medical Supplies: In surgical settings, HF RFID supports safety protocols by tracking tools and materials like sponges in real time. Readers count tagged items before and after procedures, ensuring nothing is left behind and reducing manual tracking errors.
- Quality Control: HF RFID tags with built-in sensors can monitor environmental conditions such as temperature and humidity. In the wine industry, for example, these tags help ensure products are stored and transported within safe parameters. If the tag logs a temperature excursion, the item can be flagged for further inspection or pulled from inventory.
Ultra-High Frequency (UHF)
UHF RFID operates within the 860 to 960 MHz range, with slight variations depending on country-specific regulations. It is standardized globally under the EPC Gen2 / ISO 18000-6C protocol.
UHF RFID is typically used in large warehouses and distribution centers that need to track and identify multiple items at once.
Common Use Cases:
- Shipping and Receiving: UHF RFID is commonly used to track pallets and large shipments as they move through dock doors or loading bays. Fixed readers placed at entry points automatically scan incoming or outgoing items without manual intervention, increasing speed and reducing errors.
- Manufacturing and Asset Management: On production floors, UHF RFID helps monitor tools, parts, and finished goods in real time. It supports end-to-end visibility and streamlines workflows, especially in environments with high product volumes.
- Supply Chain Optimization: With read ranges up to 30 feet and high data transfer speeds, UHF systems enable rapid bulk scanning. This makes them especially effective for inventory counts, item tracking, and ensuring goods are accurately routed throughout the supply chain.
UHF RFID has matured significantly in recent years. While environmental factors like metal or liquid can still interfere with performance, advances in tag design and reader configuration continue to improve reliability.
Will RFID Replace Barcoding?
At first glance, RFID may seem like the better technology. It offers fast, multi-item scanning and increased data capacity. However, each system has distinct advantages depending on the application.
Barcodes remain the more cost-effective and widely used option, especially in industries that don’t require the advanced capabilities of RFID. They are inexpensive to print, easy to implement, and already deeply embedded in retail and supply chain workflows. Replacing barcode systems completely with RFID would require infrastructure upgrades and training, which many businesses are not yet prepared to undertake.
That said, RFID adoption is increasing in industries where its advanced capabilities, like real-time tracking, environmental monitoring, and automation, offer a strong return on investment. In these cases, RFID is becoming the preferred solution.
In short, RFID is unlikely to completely replace barcoding in the near future. Instead, the two technologies will continue to coexist and often complement each other, each serving different needs based on cost, complexity, and business goals. Learn more about RFID trends and future applications.
Implementing RFID Tracking Solutions
Deploying an RFID system requires careful planning, along with a clear understanding of the technology capabilities and limitations. Most service providers, including Peak Technologies, require you to invest in a consultation and site survey to confirm whether an RFID solution will work for you. If you find a service provider willing to sell you this type of asset tracking system without doing these things, it’s a red flag.
Unlike basic barcoding where you can plug your USB scanner into your computer and get started, RFID is best implemented in stages. In a warehouse environment, start by deploying it at one dock door and then add more after you’ve tested it and confirmed that it works correctly for your application.
While RFID is a powerful technology, the implementation and use require careful planning. We have regular conversations with customers that think they need this type of system, but the complexity and expense is not feasible for their business. Whether you choose barcoding or RFID depends largely on the security and durability requirements of your application and the time and money that your business is prepared to spend.
To learn more, explore our Peak Technologies RFID services, and reach out to one of our specialists today.
