From consumer products and food packaging to pipe fittings and hazardous material containers, just about everything has some sort of label affixed to it that contains important information that buyers, sellers or manufacturers need to be aware of. Most of us are familiar with barcodes and QR codes, but the technology that goes into them may come as a surprise.

It’s essential to understand the differences between barcode labels (affixed to a surface) and tags (attached to an asset) and the devices that “read” them because how they will be used—the what, why, when and where—make a big difference. Both barcode and RFID readers are used in integrated intelligent manufacturing solutions. Barcodes often serve to identify the location of production orders, input inventory quantities of raw materials, and help signal the completion of finished goods. RFID can perform similar functions, but eliminates the human element, improving accuracy and automating the scan.

Before we get started, it’s important to note that we are talking about asset tracking, not inventory tracking. They are not the same thing. Asset tracking is the ability to locate an asset (where it is or where it most recently was) and use that information to perform a function or provide a notification. Inventory tracking is the monitoring of the volume of many of the same items, like the number of XL white T-shirts in stock.

In this blog, we’ll go over:

How asset tracking can be used
Basic differences between RFID reader and barcode scanner technologies
What to consider when choosing between the two
Types of labels and tags used with barcode scanners and RFID readers + use cases
Types of barcode scanners and RFID readers + use cases
What barcode scanner and RFID reader software can do for your business

Brady Corporation offers a wide array of asset tracking hardware, software and services, and one of our specialists can help you decide which system will best meet your needs.

How asset tracking can be used

There are many uses for asset tracking. We won’t go into detail on all of them, but here are a few that can get you started thinking about how you can use barcode scanners and/or RFID (short for radio frequency identification) readers in your business:

Tracking high value assets that tend to get lost, misplaced or stolen
Tracking assets that get put together but whose components aren’t stored together
Keeping assets that should NEVER go together well apart from each other (e.g., hazardous materials)
Ensuring assets that are sensitive to environmental conditions remain safe
Shipping notifications when items pass a particular point
Tracking down assets when a defect is identified, or a recall is issued

RFID reader vs. barcode scanner technology: basic differences

RFID reader and optical barcode scanner technologies can both help a company improve productivity, performance, compliance, safety and security through asset tracking. Here are some of the basic differences between the two technologies.

Barcode scanner

Scan labels individually
Printed on paper or adhesive
Scanner requires direct line of sight to label
Stores a limited amount of information
Data is not encrypted
Read-only functionality
Generally less expensive than RFID
Barcodes can be easily copied
Technology standardized worldwide

RFID reader

Scan multiple tags at once
Printed using sturdy, reusable materials
Can be read at a distance or through objects
Can store complex information
Data can be encrypted for security purposes
Read and write (encoding) functionality
Generally more expensive than barcode
Can be complex to install/integrate

Labels vs. tags

Labels are used for one-to-one tracking—you physically scan one label, and you know you’ve only scanned one label. With RFID tags, you’re able to scan many items in seconds (a whole pallet in 30 seconds or so in many cases). In short, barcode is best when you want one-to-one accuracy, and RFID is better for inventory applications.

Choosing the right barcode scanner or RFID reader technology for your application

Optical barcode scanner and RFID reader technologies can both help a company improve productivity, performance, compliance, safety and security through asset tracking, but there are distinct differences that require consideration before choosing one or the other. Among the considerations:

The technology you already have in use
The material or asset the label/tag will be affixed or attached to
The physical environment the asset will be exposed to
How the asset will be handled and how long it will be used
How much/what type of information needs to be embedded in the tag itself
Whether there are industry regulations you must comply with

Types of labels and tags used with barcode scanners and RFID readers

There are hundreds of different types of labels and tags that can be used with barcode scanners and RFID readers, each with its own advantages and limitations. Choosing the right one for the application at hand depends on several factors, including:

Material composition – the type of material the label or tag is being affixed to
Surface shape – the shape of the asset, e.g., curved, flat, pebbled, smooth, etc.
Environmental conditions – some must be able to withstand harsh conditions such as chemicals, high temperatures and abrasion
Handling – how the asset will be handled as it is moved from place to place
Compliance standards – some regulatory bodies dictate what type of information is required
Information required – some assets just need an identifier and price, while others require more information
Printing equipment – the type of label maker being used for printing labels or tags

As an example, here are three very different use cases that would require completely different approaches to each factor identified above:

	Edible Produce	Circuit Board	Caustic Material
Material	Food	Epoxy Resin	Non-corrosive barrel
Shape	Uneven	Flat	Curved
Environment	Temperature-controlled	Heat-producing, solvents	Outdoors
Handling	Picked up individually	During manufacturing/repair	Cautiously moved/stored
Compliance	None	MIL-STD-202G	Hazmat
Information	Type, price, lot	Model number, manufacturer	Safe handling, compliance info
Printing	Handheld portable printer	Industrial THT label printer	Industrial THT label printer or Industrial InkJet for barrell labels
Label/tag characteristics	Food-grade adhesive, easy to remove, flexible	Abrasion-Resistant, Chemical-Resistant, Corrosion-Resistant, Humidity Resistant, UV-Resistant	Harsh environment, OSHA regulations, permanent

Types of barcode scanners and RFID readers

A collage of different types of scanners

There are also many different kinds of optical barcode scanners and RFID readers, most of which fall into the categories of handheld or fixed (like those that you find in retail self-checkout kiosks). Optical barcode scanners use a beam of light to “read” the barcode printed on a label or tag. RFID readers pull data from RFID chips embedded in them via radio waves. Obviously, which type you choose depends on whether you’re using barcode or RFID technology, but there are other considerations as well, including:

Read range – how far away the asset will be from the reader or scanner
Read speed – how many assets will be scanned/read and how quick
Location density – how many assets will be within “reading” distance and how close together they will be
Label/tag location – affixed or attached inside or outside of an asset, wrapped around something, etc.
Asset orientation – pertaining to how the asset will be moved and/or stored
Barcode type – 1 dimension (1D) flat barcode, 2D QR code, 3D barcode

	Grocery Store Checkout	Storage Warehouse	Manufacturing Line
Read Range	Centimeters	Feet	Varies
Read speed	One at a time, fairly slow	Slow	Fast
Location density	Single	Tightly packed, lots and singles	Close
Label/tag location	Affixed exterior	Varies	Varies
Asset orientation	Turned to face reader/scanner	Stored to face reader/scanner	Varies
Barcode Type	1D	1D and 2D	1D, 2D, DPM
Possible solution	Low Cost Optics packages integrated into check-out kiosks. Rolling shutter.	Mobile handheld scanner. Either dedicated device tethered to mobile computer, or mobile device (e.g. phone / tablet). Rolling Shutter.	Industrial ruggedized handheld and fixed readers. Rolling and Global Shutter for high-speed applications.

The software

The barcode scanner or RFID reader sends information back to a database, and from there the choice of software dictates what happens. It varies by application. For instance, the software may send a message if an asset is in an area it’s not supposed to be in, automatically update the location within the database, then prompt a user to take an action. At the other end of the spectrum, software can dictate how your data is reported so you can use it to make relevant business decisions.

RFID vs. barcode for asset tracking: How to make the right choice for your business