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RFID Paper Tag: An Introduction to Asset Tracking and Inventory Management with RFID Technology

  • Akansha Sharma
  • Apr 13, 2023
  • RFID
RFID Paper Tag

Asset tracking and inventory management are essential parts of any business that deals with the sales of a physical product. The main goal of a business is to grow and produce as much profit as possible. Issues like unproductive time-consuming labor, stock shrinkage, inventory loss, and inefficient functioning, reduce the profitability of a business. That’s why many businesses are now shifting to RFID technology to deal with all these problems. One such type of technology that is widely in use, is RFID paper tags.

So, let’s discuss more it.

What is an RFID Paper Tag?

It is a type of RFID tag, made from paper. These tags consist of a barcode printed on the front of the paper label, with an RFID tag on the backside. These are passive, meaning that they don't have an individual power supply.

Before we dive deeper into the applications & benefits of RFID Paper Tags, let’s briefly go over RFID technology.

What is RFID & How Does it Work?

Radio Frequency Identification is a method of communicating data between two devices using electromagnetic waves. RFID can communicate in different frequency ranges. Therefore, we divide/classify RFID systems based on the frequency range they operate in. Based on this, there are three types of RFIDs.

a) Low-Frequency RFID – 125 to 134.2 KHz

b) High-Frequency RFID – 13.56 MHz

c) Ultra-High Frequency RFID – 850 to 960 MHz

Active RFID tags have the broadest range of operation, they can operate from 100 KHz to 2.45 GHz.

RFID technology consists of an RFID Reader and a Tag. The reader uses a transceiver to send out radio signals. These signals power up the tag once it’s inside the broadcast range. The RFID tag, then used its antenna (a sort of transponder), to broadcast back a signal to the reader. This is how the two components of an RFID system communicate with each other.

What will be the Role of RFID in the Future of Asset Tracking and Inventory Management?

It is already an emerging and vastly popular technology that is being adopted by businesses. Due to its unique qualities like being wireless, portable, durable, etc, RFID is here to stay. Asset tracking and inventory management have always been time-consuming & unproductive tasks that every business has to perform. Well, with the introduction of RFID, businesses can now automate them, saving time, and cost while eliminating the margin for errors.

Application of RFID Technology in Businesses

The market for RFID has been on a constant rise for the past couple of years. Businesses that sell goods are the largest consumer of RFID. So, yes, there are numerous applications of RFID in the business sector, and we are going to discuss them.

Asset Tracking

Due to the wireless nature & ability to read tags out of the line of sight, RFID readers can constantly communicate with the tags. As long as a tag is within the operating range of a reader, it will keep transmitting data back. By strategically placing readers & antennas throughout your facility, you can track the movement of every asset in real time. This allows you to prevent any unauthorized exit of your items.

Inventory Management

A very time-consuming and tedious part of running a business is stock management. Even with the use of barcodes, it takes manual labor and a lot of time to regularly update your inventory. Time, that can be spent using other productive tasks. With the help of RFID, you can automate the task of keeping inventory. This system automatically updates the database anytime an item is sold or removed from the premises. In addition to that, these updates are made in real-time, which means that you can observe every change in your stock, while it is happening. Also, RFID alerts you whenever you need to replenish the stock for any item.

Security & Reduce Stock Shrinkage

Item theft and stock shrinkage account for 5% to 7% of loss on average for businesses. With the help of asset tracking & inventory control, RFID puts a significant dent in both problems. An RFID system alerts you of theft in process & can account for any change in inventory that was not paid for. According to studies, using radio frequency identification can reduce theft by 75% and stock shrinkage by 55%.

Streamlines Billing

Billing is another task that can be made smoother and more efficient with RFID. In the normal course of billing, an employee either manually puts the product details in the system or uses a barcode scanner to do this task. Both of which require time and someone to manually do it. However, with RFID, you can use a near-field antenna to read all the RFID chips in the checkout bin and automatically prepare a bill within seconds. This system has been in use in many high-end retail stores & is becoming more popular by the day.

Benefits of Using RFID Paper Tags for Asset Tracking & Inventory Management

As we discussed above, Radio Frequency Identification has vast applications in the business sector. Many businesses are adopting this technology for asset tracking & inventory management. One of the most basic types of this technology is RFID Paper Tags. These are a type of passive tags, with a lot of benefits for your business.

Easy to Apply

They are simple to apply, with no need for special mounts or screws. Paper tags usually have a self-adhesive backside, these are usually the ones put on permanently or on the packaging. Another way is to simply sew the tag onto your item, this is done mostly in the textile or garment sector. These tags are easy to implement & remove.

Cost Effective

Since paper tags are essentially an RFID inlay on a piece of paper, they cost very less compared to other forms of tags. RFID tags also take a bit more effort to implement when compares to simple barcode stickers. But due to their effectiveness and cost, they easily make up for it by improving your business’s productivity.

Eliminates Human Errors

Every person can make errors, be it while managing inventory or billing. Errors like these often cause stock shrinkage and loss. Not to mention, it also gives the customer a bad experience and harms the goodwill of the business. By implementing RFID, you can eliminate any chances of errors.

Real-Time Monitoring

Since RFID is an active system and scans any tag within the reading range of a scanner, it provides real-time data. Real-time monitoring is a huge advantage for any business, as it can help you put a stop to situations that might cause harm to your business, while they’re happening.

Multiple Tracking Systems

Unlike most other tags, RFID paper tags are a combination of radio frequency and barcodes. That is to say, the front of such tags has a barcode printed on it & the backside contains an RFID inlay. This allows these labels-tags to be read by both RFID & Barcode systems.

RFID Paper Tag Frequently Asked Questions:

Q1. What are the benefits of using RFID technology for inventory management?

Ans - RFID has several advantages over traditional methods of inventory management, like-

a) Requires no manual labor.

b) Realtime updates

c) Does not require a line of sight to work

d) Prevents stock shrinkage

e) Alerts when you need to replenish inventory

Q2. What is the main advantage of RFID?

Ans - The biggest advantage of using RFID is its ability to track assets in real-time, without any manual intervention. Another benefit of implementing this system is that it is very cost-effective, a normal passive tag costs around ₹4 - ₹6 per piece.

Q3. Can RFID be printed in paper?

Ans - Yes, there is an entire classification of RFID that can be printed on paper. To do this, you must have a specialized printer, designed to attach RFID inlays to a paper label.

Disclaimer: The information presented here is for general information purposes only and true to best of our understanding. Users are requested to use any information as per their own understanding and knowledge. Before using any of the information, please refer to our Privacy Policy and Terms and Conditions.


  • Created on Apr 06, 2023

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