Barcodes and RFID tags: Understanding the features and use cases

Ruan Kruger, Sales Director, Rugged SA.

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Barcodes, QR codes and RFID (radio frequency identification) tags are widely in use to condense a large amount of information in a small and affordable format. Each solution offers specific pros and cons, and lends itself to specific use cases, says Ruan Kruger, Sales Director at Rugged SA.

Warehouses use barcodes to track incoming and outgoing shipments, locate items within the facility, and ensure accurate picking and packing.

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“Choosing between RFID and barcode technology depends a great deal on your requirements around security, durability, cost and implementation of the system,” he says.

Kruger explains that a barcode is a symbol made up of varying widths and spacings of parallel lines that can be scanned by a machine. “It's like a secret code that computers can read. These codes represent data, typically product information, like a number or price, which allows them to be tracked and managed efficiently. 

Choosing between RFID and barcode technology depends a great deal on requirements.

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"You've probably seen them on items at the grocery store - the scanner at checkout reads the barcode to look up the price. There are also other types of barcodes that can hold more data and can even be scanned by your smartphone camera - such as a QR code,” he says.

Kruger says barcodes are the more cost-effective and accessible option. The advantages of this technology include:

1. Efficiency and speed: Barcodes can be scanned quickly and accurately, saving time on tasks like checkout, inventory management and asset tracking. This reduces long lines and keeps things moving smoothly.
2. Reduced errors: Since barcodes eliminate the need for manual data entry, they significantly reduce errors caused by typos or human mistakes. This ensures accuracy in pricing, tracking and record keeping.
3. Improved inventory control: Barcodes allow for real-time tracking of inventory levels, making it easier to identify low stock and reorder products efficiently. This helps businesses avoid stockouts and maintain optimal inventory levels.
4. Versatility: Barcodes can be used for a wide range of applications beyond just product tracking. They can be used for asset management, access control, document handling and even ticketing systems.
5. Cost-effectiveness: Barcodes are relatively inexpensive to design and print, making them an accessible solution for businesses of all sizes. This allows for efficient data collection without a significant investment.

• Retail: This is perhaps the most familiar example. Grocery stores, clothing stores and other retailers use barcodes on products for scanning at checkout, tracking inventory levels and managing pricing.
• Manufacturing: Barcodes are used throughout the manufacturing process to track parts, materials and finished goods. This helps ensure quality control, optimise production flow and manage inventory efficiently.
• Warehousing and distribution: Warehouses use barcodes to track incoming and outgoing shipments, locate items within the facility, and ensure accurate picking and packing.
• Healthcare: Hospitals and clinics use barcodes to track medications, patient records and medical equipment. This improves patient safety and streamlines healthcare processes.
• Transportation and logistics: Barcodes are used on shipping labels and packages to track deliveries, ensure proper sorting and automate routing.
• Asset management: Companies use them for valuable equipment or tools, enabling efficient management and retrieval.
• Postal and courier services: Barcodes are essential for tracking packages and mail throughout the delivery process.

Kruger explains: “An RFID tag is like a tiny barcode that uses radio waves instead of lines. These tags contain a microchip and antenna and can store information like a product ID or even track location. 

Barcodes are essential for tracking packages and mail throughout the delivery process.

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When an RFID reader nearby sends out a signal, the tag wakes up, transmits its data and can even be rewritten in some cases. This allows for contactless scanning and tracking over a larger range compared to barcodes, making them useful for applications like inventory management, access control, and even paying tolls.”

He notes that RFID tags, while more costly, lend themselves to enhanced data collection and tracking. The advantages of RFID tags include:

1. No line of sight needed: Unlike barcodes that require a direct scan, RFID tags can be read from a distance and even through objects. This makes them ideal for tracking items in boxes, on shelves, or even moving on a conveyor belt.
2. Faster and more efficient reading: Multiple RFID tags can be read simultaneously by a reader, saving time compared to scanning individual barcodes. This is especially beneficial for taking inventory or tracking large quantities of items.
3. Durability: RFID tags are typically more durable than barcodes. They can withstand harsher conditions like extreme temperatures, chemicals and even rough handling, making them suitable for industrial applications.
4. Improved data accuracy: Since RFID tags use radio waves to transmit data, they are less prone to errors caused by scratches or damage that can occur with barcodes. This ensures reliable data collection.
5. Enhanced functionality: Some RFID tags can be rewritten with new data, allowing for functions beyond simple identification. This opens doors for applications like tracking product lifecycles or adding access control features.

• Retail: Clothing stores use them for inventory management, self-checkout and even preventing theft. Supermarkets can track high-value items or manage perishable goods.
• Supply chain and logistics: Manufacturers and logistics companies use them for real-time tracking of shipments, ensuring efficient delivery and reducing loss.
• Manufacturing: RFID tags track parts and materials throughout the production process, improving quality control and streamlining operations.
• Healthcare: Hospitals use them to track medications, equipment, and even patients for improved safety and efficiency.
• Asset management: Track and trace valuable equipment, tools and devices.
• Payment systems: RFID tags are embedded in contactless payment cards and toll tags for convenient transactions.
• Animal tracking: Livestock and pets can be tagged for identification, monitoring health, and preventing loss.

Kruger says: “When it comes to choosing which system is right for your business needs, you’ll want to consider what you’re tracking, how secure you need the information you’re tracking to be, how and where your inventory tracking will take place, and your budget for these processes.”

RFID systems work best in retail, supply chain, healthcare and asset management.

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Rugged SA offers multiple solutions for both systems, with examples available here: https://ruggedsa.co.za/