RFID vs. Barcode: Revolutionizing Fixed Asset Tracking with RFID Asset Tags


Asset tracking and Fixed Asset programs play a critical role in managing and maintaining valuable assets within organizations across various industries. Two popular technologies used for asset tracking and fixed asset programs are Radio Frequency Identification (RFID) and barcodes. While both have their tracking characteristics, RFID has emerged as a superior option for asset tracking due to its numerous advantages over traditional barcode systems. 

This article explores the benefits of RFID in asset tracking and highlights why it is the preferred choice for modern organizations.


What Is RFID Asset Tag?

RFID asset tags are small devices that use radio waves to wirelessly transmit data for tracking and managing physical assets. They consist of a microchip and an antenna that store unique identification information. When the tag comes within the range of an RFID reader, it sends out a signal containing its data, allowing organizations to identify and locate assets.


The advantages of RFID asset tags include automatic and real-time asset tracking, improved operational efficiency, and reduced manual errors. RFID technology enables quick and efficient inventory management, as multiple tags can be read simultaneously. This saves time and effort compared to traditional methods like manual counting or barcode scanning. 

RFID asset tags can be read from a distance without a direct line of sight, enhancing operational efficiency, especially in environments with bulk storage or limited accessibility. They are also durable, withstanding harsh conditions like extreme temperatures and moisture. This makes them suitable for various industries, including manufacturing, logistics, healthcare, and retail.

Why should I implement RFID tags?

Implementing RFID asset tags offers organizations benefits such as improved asset visibility, optimized inventory management, and informed decision-making. By streamlining asset tracking processes, organizations can save time, reduce costs, and minimize errors in their asset management procedures. Overall, RFID asset tags are an essential tool for organizations looking to enhance their asset management and tracking capabilities.

What Is Barcode Asset Tag?

A barcode asset tag is a label containing a unique barcode used for tracking and managing physical assets. When scanned with a barcode reader, the encoded information is transmitted to a computer or database system, providing instant access to asset details. 

Why are they so popular?

Barcode asset tags are popular due to their simplicity and cost-effectiveness. They eliminate manual data entry, reducing errors and saving time in asset tracking. Barcode scanners are widely available and easy to use, making the process efficient for organizations. 

By utilizing barcode asset tags, organizations can streamline inventory management. Assets can be quickly checked in or out, and accurate inventory counts can be performed. This helps prevent loss and misplaced items, improving overall asset tracking accuracy. 

Barcode asset tags offer customization options to include additional asset information, such as descriptions, purchase dates, or serial numbers. This flexibility enhances asset tracking and facilitates comprehensive record-keeping. 


Barcode asset tags provide a simple and cost-effective solution for tracking and managing physical assets. By using barcode scanners, organizations can efficiently retrieve asset information, streamline inventory management, and improve overall operational efficiency. The customization options available with barcode asset tags further enhance asset tracking and record-keeping capabilities.

What Is QR Code Asset Tag?

A QR code asset tag is a label that contains a unique QR (Quick Response) code used for tracking and managing physical assets. QR codes are two-dimensional barcodes capable of storing more information compared to traditional barcodes. When scanned using a smartphone or QR code reader, the encoded data is retrieved and processed.

How would the QR Code Asset Tags help me and my Company?

QR code asset tags offer advantages such as higher data storage capacity and convenience. They can store detailed asset information within a single code and can be easily scanned using smartphones, eliminating the need for dedicated barcode scanners. Generating and printing QR code asset tags is cost-effective and efficient, and they can be attached to assets using adhesive backing or other methods.

Integration with asset management systems or cloud databases is another benefit of QR code asset tags. This allows for real-time updates and seamless synchronization of asset information, ensuring accurate and up-to-date tracking.

In summary, QR code asset tags are labels containing unique QR codes used for tracking and managing physical assets. They provide higher data storage capacity, convenience, and cost-effectiveness. QR code asset tags can be easily scanned using smartphones and can integrate with asset management systems for real-time updates. Their versatility and capabilities make them a valuable tool in asset tracking and management processes.

How does RFID technology work for Fixed Asset Tracking?

RFID (Radio Frequency Identification) technology is a game-changer for fixed asset tracking, offering an efficient and automated solution. Here’s a summary of how RFID technology works for fixed asset tracking:

  • RFID tags are attached to each asset: RFID asset tags consist of a microchip and an antenna that wirelessly store and transmit data. These tags carry a unique identification number or code specific to each asset.
  • RFID readers are strategically placed: RFID readers or scanners are strategically deployed throughout the asset tracking area. These readers emit radio waves that power the RFID tags within their range.
  • RFID tags respond to reader signals: When a tagged asset enters the range of an RFID reader, the reader emits radio waves that power the tag. The tag then responds by sending its unique identification data back to the reader.
  • Data is captured and transmitted to a database: The RFID reader captures the transmitted data from the tag and relays it to a connected database or asset management system. This real-time data update allows organizations to have accurate and up-to-date visibility of their fixed assets.
  • Benefits of RFID technology: RFID technology offers several benefits for fixed asset tracking. It eliminates the need for manual counting or barcode scanning, saving time and reducing errors. It enables quick and efficient asset audits and simplifies asset location. RFID technology also provides valuable insights into asset utilization, maintenance schedules, and lifecycle management. 


In summary, RFID technology for fixed asset tracking involves attaching RFID tags to assets and using strategically placed RFID readers to capture and transmit data wirelessly. This technology offers real-time and accurate asset tracking, streamlining asset management processes and enhancing asset visibility. By utilizing RFID technology, organizations can optimize their fixed asset tracking, improve efficiency, and make informed decisions based on reliable asset data.

RFID Vs. Barcode

RFID (Radio Frequency Identification) and barcode technologies are both used for tracking and managing assets, but they have distinct differences in terms of functionality and capabilities. Here’s a comparison between RFID and barcode:

Which one has the better Data Capacity? 

RFID has a higher data storage capacity compared to barcodes. RFID tags can store and transmit more information, allowing for more detailed asset data such as descriptions, maintenance history, or even sensor data. Barcodes, on the other hand, have limited data storage and typically encode only a unique identifier that requires database lookup for additional information.

Which option would offer a better scanning method?

While Barcodes require a line of sight to be scanned accurately. The barcode scanner must be able to see and read the barcode directly. In contrast, RFID tags can be read without a direct line of sight. RFID readers use radio waves to communicate with the tags, enabling bulk reading and non-line-of-sight scanning. This makes RFID more suitable for scenarios where assets are stored in bulk or in hard-to-reach locations.

Which option would help me track my assets faster?

RFID scanning is significantly faster than barcode scanning. RFID readers can simultaneously read multiple tags within their range, making asset audits and inventory checks much quicker. Barcode scanning, on the other hand, requires individual scanning of each barcode, which can be time-consuming for large asset inventories.

Which of them is more Durable?

RFID tags are typically more durable than barcodes. RFID tags can withstand harsh environments, including exposure to moisture, temperature variations, and physical stress. Barcode labels, however, can be easily damaged or faded, requiring replacement over time.

Installation Costs:

Barcode systems tend to be more cost-effective compared to RFID systems. Barcode labels and scanners are widely available at lower costs, making them a more affordable option for smaller businesses or organizations with simpler asset tracking needs. RFID systems involve higher upfront costs for RFID tags, readers, and infrastructure setup. 


RFID and barcode technologies offer different features and capabilities for asset tracking. RFID provides higher data capacity, non-line-of-sight scanning, faster reading speed, and durability, but comes at a higher cost. Barcodes are more cost-effective, require line-of-sight scanning, have lower data capacity, and are suitable for simpler asset tracking requirements. The choice between RFID and barcode depends on factors such as the volume of assets, need for real-time data, environmental conditions, and budget constraints.

Can RFID tags be used with existing barcode systems?

Yes, RFID tags can be used with existing barcode systems. This approach is known as a hybrid system, where both RFID and barcode technologies are utilized together. By integrating RFID tags into an existing barcode system, organizations can leverage the benefits of both technologies and enhance their asset tracking capabilities.

How does a hybrid system works?

In a hybrid system, assets are labeled with both barcode labels and RFID tags. The barcode remains the primary identifier, while the RFID tag adds additional functionality and capabilities. The RFID tags can store more detailed information about the asset, such as maintenance history, warranty information, or location updates.

The existing barcode scanners can continue to be used to scan and read the barcode labels, allowing for compatibility with the current system and processes. Additionally, RFID readers can be strategically placed to capture the RFID data from the tags. This way, organizations can transition to RFID gradually, without the need to replace all existing barcode scanners.

What would be the advantages of integrating RFID into a barcode system?

Integrating RFID into an existing barcode system offers several advantages. It allows for a seamless transition and reduces the need for major system overhauls. It also enables organizations to take advantage of the added functionalities of RFID tags, such as non-line-of-sight scanning, faster reading speeds, and greater data capacity, while still maintaining compatibility with existing barcode processes.

However, it’s important to note that integrating RFID into a barcode system may require additional infrastructure and system adjustments to accommodate the RFID technology. This includes deploying RFID readers, updating software systems, and ensuring proper integration between the barcode and RFID data in the asset management system.


In conclusion, RFID tags can be used in conjunction with existing barcode systems, creating a hybrid system that combines the benefits of both technologies. This approach allows organizations to enhance their asset tracking capabilities, leverage RFID functionalities, and gradually transition to RFID while maintaining compatibility with existing barcode processes.


Where to start if you think RFID can help

When seeking to replace Barcodes and automate business processes, it is most appropriate to reassess areas that can benefit from automation. For instance, optimizing Fixed Asset Tracking tasks can be achieved by implementing RFID Systems across different cost centers and locations. Integrating RFIDs with ERP or WMS Systems enables organizations to eliminate manual data entry, individual scanning, data verification, and manual pallet searching. This integration not only improves operational efficiency but also enhances visibility across the Fixed Asset Management.
CPCON has vast experience in guiding firms to business processes solutions and advanced RFID technology. So let us help you get started today.