TABLE OF CONTENTS
Edited & Reviewed
Does your organization frequently lose laptops due to manual asset tracking methods like spreadsheets? If so, it’s worth noting that lost/stolen laptops cost businesses approximately $6.4 million annually, says Intel.
Without modern asset tracking technology, this number will only increase.
RFID asset tracking emerges as a powerful solution for automated asset tracking, especially for hospitals, schools, IT warehouses, and more.
Let’s learn what RFID asset tracking is, how it automates manual asset tracking, and the best practices for implementing RFID asset tracking.
TL;DR:
- RFID asset tracking is a wireless method of tracking physical assets using RFID tags and readers—no line of sight needed.
- It enables real-time tracking, reduces manual errors, improves inventory accuracy, and deters loss or theft.
- RFID is faster, more scalable, and contactless, making it ideal for bulk scanning and automation. Barcodes, on the other hand, are cheaper and require manual input.
- RFID asset tracking is used in IT, healthcare, logistics, and retail to track equipment, inventory, tools, and shipments.
- To implement, define your goals, choose the right tags, test with a pilot, train staff, and integrate with your asset management system.
- Remote teams or WFH scenarios limit RFID’s effectiveness—Workwize solves this with global, cloud-based IT asset management.
What Is RFID Asset Tracking?
RFID asset tracking is a method of tracking assets across an organization or warehouse using radio frequency identification (RFID) technology.
- You affix RFID tags loaded with data (including ID, quantity, condition, and repair status) to the assets you want to track.
- Then, use an RFID reader to read the data from these RFID tags and upload it to an IT Asset Management (ITAM) tool for a centralized view.
RFID asset tracking is used in multiple industries, including logistics, supply chain management, retail, manufacturing, and healthcare. In fact, healthcare organizations have reported a 25% reduction in inventory costs after adopting RFID for tracking assets.
Here’s what RFID asset tracking typically helps you with:
- Tracking multiple assets simultaneously
- Eliminating human intervention
- Gathering data in real-time
- Enhancing asset visibility
- Locating lost or misplaced assets
- Maximising the accuracy of inventory
How Does RFID Asset Tracking Work?
RFID asset tracking works with the help of these components:
- RFID Tags (Passive, Active, or Semi-Passive)
- An Antenna
- An RFID Reader
- A computer database equipped with Asset Tracking Software
Let’s understand each component:
RFID Tags
RFID tags are small, wireless devices that use radio waves to store and transmit data. This enables automatic identification and tracking of assets they’re affixed to. All the data is stored in an RFID tag, along with a unique Electronic Product Code (EPC).
Antenna
The RFID antenna acts as a bridge between the RFID reader and the asset tags. It identifies the signal of nearby RFID tags and transmits them to the RFID reader.
RFID Reader
The RFID reader is a device wirelessly connected to the RFID antenna, which receives the asset data stored on the RFID tag.
RFID readers are of two types:
- Fixed Readers: Installed at strategic locations (e.g., doorways, loading docks) to capture asset movements and prevent unauthorized transfers.
- Mobile Readers: Handheld devices used for conducting physical audits or tracking assets across large areas.
Computer Database
Once the RFID reader gets the data, it’s transmitted to a computer database (which is usually connected to an ITAM tool) for storage, evaluation, and analysis.Types of Asset Tags
There are three types of asset tags:
- Active
- Passive
- Semi-Passive
Let’s compare these tags:
|
Feature |
Active RFID Tags |
Passive RFID Tags |
Semi-Passive RFID Tags |
|
Power Source |
Battery-powered |
No battery (powered by the reader) |
Battery (for chip/sensors only) |
|
Read Range |
Up to 150 meters (longest) |
Short (up to a few meters) |
Medium (less than active, more than passive) |
|
Typical Use Case |
Real-time asset & vehicle tracking, tolling |
Inventory, supply chain, access control |
Cold chain, environmental/condition monitoring |
|
Cost per Tag |
High |
Very low (from $0.08 per tag) |
Moderate |
|
Size/Weight |
Largest (due to battery) |
Smallest & lightweight |
Medium |
|
Lifespan |
Shorter (battery-limited) |
Long (no battery to expire) |
Medium (battery-limited) |
|
Extra Features |
Can have sensors, continuous tracking |
Basic ID/data only |
Sensors (e.g., temperature), event logging |
|
Best For |
Long-range, high-value asset tracking |
Low-cost mass tracking |
Monitoring perishable/sensitive goods |
RFID Asset Tracking Use Cases: Who Uses It and How?
According to the RFID Asset Tracking System Market report, here’s how different industries use RFID asset tracking:
- Retailers use RFID to enhance inventory accuracy, leading to improved customer experiences and reduced stockouts.
- In the logistics sector, companies implement RFID for efficient tracking of shipments, reducing losses, and improving delivery times.
- The manufacturing industry benefits from RFID by optimizing production processes and minimizing downtime.
- Hospitals and clinics are using RFID to track medical equipment, medications, and even patients, ensuring improved safety and operational efficiency.
- IT companies are using RFID to track assets like laptops, monitors, computers, and more within their office premises and warehouses.
Benefits of RFID Asset Tracking
Here’s why organizations use RFID for asset tracking over spreadsheets:
Automates Manual Tasks and Reduces Costs
With RFID asset tracking, you can automatically monitor your assets whether in transit or in warehouses.
The data from each asset is automatically captured via an RFID antenna and transmitted to the RFID reader, which further sends it to the database. This allows IT managers to get real-time updates and monitor stock levels, lifecycle, and identify potential issues.
In a nutshell, you can reduce manual intervention and related errors (which saves costs) and help your teams focus on more strategic tasks.
Here’s a Reddit user mentioning how RFID tracking saves time and reduces human error:
Source: Reddit
Proactive Asset Maintenance
Studies indicate that the majority of businesses perform maintenance as a reactive measure when equipment breaks down or requires immediate repair. This is not only ineffective but costly. What if the breakdown happens during a crucial operation?
With RFID asset tracking, you can get real-time data of your assets, including manufacturing date, lifecycle status, assignment status, maintenance logs, and more. This information enables you to perform proactive asset maintenance, minimizing costly downtimes.
Reduces Loss and Theft of Assets With a Real-Time Locating System (RTLS)
According to the data available at Hospital and Healthcare Management, 10-20% of a hospital’s mobile assets are lost or stolen during their useful life. And the average cost of each asset is around $3000.
However, by integrating RFID readers and antennas, you can triangulate the exact location of your assets. Meaning you can have real-time and accurate data of your assets, effectively reducing the number of stolen/lost assets.
RFID Vs Barcode: Which is the Superior Technology?
Here’s a tabular comparison to help you identify the superior technology for asset tracking:
|
Feature |
RFID |
Barcode |
Winner |
|
Speed |
Scans multiple tags simultaneously; much faster |
Scans one barcode at a time; slower |
RFID |
|
Accuracy |
High accuracy—no line-of-sight needed; reads many tags instantly |
Accuracy depends on manual scanning; line-of-sight required |
RFID |
|
Data Storage Capacity |
Can store large amounts of tag data |
Very limited (often just 8–25 characters) |
RFID |
|
Data Collection Method |
Wireless radio signal; no line-of-sight needed |
Manual, must point the reader at each barcode |
RFID |
|
Durability |
Durable; tags withstand harsh conditions |
Easily damaged or obscured |
RFID |
|
Line-of-Sight Needed |
No |
Yes |
RFID |
|
Read Multiple Tags? |
Yes, simultaneously |
No, only one at a time |
RFID |
|
Functionality |
Data can be read/written; supports advanced features (e.g., sensors) |
Read-only; simple identification |
RFID |
|
Common Use Cases |
Large inventories, real-time tracking, manufacturing, logistics |
Small inventories, retail, basic tracking |
Depends on usage |
|
Cost Considerations |
Higher initial cost; saves at scale |
Cheap to start; less scalable for automation |
Barcode |
|
Scalability |
Highly scalable for large operations |
Limited for complex or large inventories |
RFID |
With better accuracy, speed, and functionality, RFID asset tracking is clearly far superior to barcode-based tracking.
RFID Asset Tracking: Limitations
Here are some limitations or disadvantages of RFID
- High Cost and Infrastructure Burden: RFID systems require upfront investment in tags, readers, middleware, and integration. This can add to the total cost compared to barcode systems.
- Environmental Interference: RFID performance can degrade or fail entirely when tags are near metals, liquids, or obstructed environments.
- Read-Range Issues: The read-range is a serious limitation of RFID asset tracking, rendering this method quite useless for remote companies. Remote organizations or those with distributed teams need ITAM solutions like Workwize.
As a global IT hardware platform, Workwize can help you automate your asset lifecycle from procurement to disposal, allowing you to track your assets in real-time across 100+ locations.
- Data Overload and Accuracy Inconsistencies: While generally accurate, bulk reads often flood systems with redundant or irrelevant data. And inconsistent tag reads or transmission errors can hinder reliability.
Best Practices for Implementing RFID Asset Tracking
Here are some best practices to ensure the smooth implementation of RFID asset tracking in your organization:
- Define Clear Objectives & Scope: Do you need it for tracking IT assets, auditing schedules, or improving security? Then, assess existing asset workflows to ensure the RFID system aligns with operational needs.
- Select Appropriate Tags & Readers: Choose RFID tags and readers based on asset type and environment. For instance, metal-compatible tags for laptops or wet areas. Also, confirm frequency compatibility across locations.
- Optimize Antenna Placement: Position and angle antennas to eliminate blind spots, maximize coverage zones, and minimize interference from metals or liquids.
- Pilot Before Full Rollout: Conduct a small-scale pilot test. This helps validate system performance, correct reader placement, and identify operational gaps before scaling.
- Ensure Integration & Staff Training: Integrate RFID into existing asset management/IT systems. Train staff on scanning workflows, data review, and error handling to minimize resistance and ensure consistent usage.
- Filter Data with Middleware: Use middleware to filter redundant or irrelevant reads (bulk reading noise). This ensures only meaningful events are processed in your asset database.
- Plan for Scalability & Compliance: Ensure system architecture supports multi-site deployment, international frequency standards, regulatory compliance, and future expansion without major rework.
What’s Next in RFID/Asset Tracking
Based on the RFID market report, here are some key trends in the RFID asset tracing industry:
Use of Artificial Intelligence (AI)
The integration of Gen AI and AI is expected to empower the RFID market by driving advancements in design optimization, manufacturing, and operational efficiency, ultimately leading to cost optimizations.
Cost Reduction and SME Adoption
Newer manufacturing processes (printable RFID circuits, chipless tags) are reducing the overall adoption costs of RFID hardware. And this is making RFID asset tracking more accessible to small and medium-sized businesses.
Increasing Popularity of Ultra High Frequency RFID
HF and UHF RFID technology offer a higher range and better accuracy in tracking assets in real-time. Because of this, HF and UHF RFID tags are expected to become more popular in the coming years.
For instance, hospitals can use HF RFID tags for patient identification, locating medical equipment, and pharmacy authentication across the campus.
Workwize: A Smart Alternative to RFID Asset Tracking
RFID asset tracking is suitable for small offices, hospitals, or schools where assets are typically located within a specified range.
But what if the users take the assets home? Like the hybrid or WFH work model. You know who checked the device out, but you’d never know what’s happening after that.
Moreover, managing asset data across different branches located in various locations is cumbersome. As you’d have to centralize all the data..
That’s when Workwize enters the picture. Workwize is a global IT hardware management platform that automates the asset lifecycle from procurement to asset disposal.
This means Workwize lets you:
- Manage and compare multiple vendors
- Procure (buy or rent) IT equipment (laptops, computers, etc.)
- Deploy them across 100+ locations globally
- Track, monitor, and manage them remotely
- Even handle repairs, retrievals, and disposals.
All of this, using the same digital platform.
You don’t have to worry about which technology to use, as Workwize enables you to track, manage, and control your assets in real-time using our digital interface. That means we do all the heavy lifting.
And our platform has helped companies cut costs and save big. For instance, HighLevel saves $1.4 million annually using Workwize to streamline and automate procurement, deployment, and retrieval.
Want to see how Workwize functions? Book a free demo now.
FAQs
1. What are some popular RFID asset tracking solutions?
Asset tracking solutions that support RFID (in no particular order) include:
- EZofficeinventory
- Timly
- Nanolink
- Assettrac
- Itemit
2. Which one is better, RFID or Barcode asset tracking?
The answer to this question depends on your goals and budget.
- If you need a faster and more automated solution for managing large inventories and bulk scanning requirements, consider RFID asset tracking.
- For those seeking a more cost-effective solution that is easy to implement for basic tracking, we recommend using barcodes.
