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How RFID Pallet Tags Can Improve Warehouse Efficiency

  • Akansha Sharma
  • May 18, 2023
  • RFID
RFID Pallet Tags Usage in Warehouse management

Warehouses are an import stop along the supply chain in any industry. They are responsible for storing and deploying large quantities of items to maintain the smooth flow of the supply chain. Due to the risk of being damaged during storage or movement, we use support structures/stands in warehouses to load items on. These are called pallets.

Due to the sheer volume of products in the warehousing industry, it is very difficult to keep track of items. That is why, we use specially tailored RFID pallet tags.

What are RFID Pallet Tags?

Firstly, let’s see what the word pallet means. Pallets are supportive boards used to stack items/packages in warehouses for transportation and storage, without causing any damage. Business often resorts to using RFID technology for tracking these pallets throughout their facilities.

The tags tag can be mounted and used for pallets and are called RFID pallet tags. These tags are specially tailored to adhere to the surfaces of pallets without causing needless damage. The chips on these tags have a larger storage capacity than standard RFID tags. Users generally program these tags with a unique ID number, to locate items with ease. With the integration of IoT services, these systems allow users to have access to the real-time tracking capabilities of each pallet and its items.

Applications of RFID Pallet Tags for Warehousing Operations

Radio Frequency Identification systems can assist significantly in warehouse management. There are several operations where you can effectively integrate RFID technology. So, let’s check out some basic applications of RFID Pallet Tags in warehousing operations.

Asset Tracking

With the help of this technology, you can keep real-time track of the location of the pallets and the assets loaded on them. Every time a tag leaves or enters an interrogation zone, the reader will pick up its signal. With the integration of IoT services to connect all readers to a single centralized network, you can have accurate tracking capabilities even in large facilities like warehouses.

Inventory Management

An essential operation within any business dealing with physical products is maintaining an inventory. With a large flow of incoming and outgoing goods, it becomes very difficult to keep an accurate track of items. This is where pallet tags assist you, with the implementation of tags on pallets you can track the inventory changes. By assigning each tag a unique ID and product information, you can know exactly which item is in the inventory.

Automate Supply Receiving

Preparing a supply manifest can be a time-consuming task, especially in warehouses where you receive high volumes of items regularly. With RFID, the supplier can create a custom manifest record that can be shared electronically. Then all you will need to do at the receiving point is to scan the shipment and get a record of the items you’ve physically received and compare the results for any loss of item.

Data Collection

Collecting valuable data like the demand for items can have a significant effect on a business’s day-to-day operations. By using RFID pallet tags and keeping track of how many units of different items are in demand, you can customize your future orders with supplies. This prevents instances of stock-outs and reduces the change of unsold inventory.

Benefits of Using RFID Pallet Tags for Warehouse Management

We’ve discussed the various applications of RFID pallet tags in the warehouse industry. From tracking items to the collection of performance & operations data, you can rely on this technology for all of it. And it’s not like businesses didn’t use to do these tasks before the advent of radio frequency identification. So, why do we need RFID for such operations now? The answer is simple, they have significant added benefits. Let’s check them out.


Firstly, the biggest advantage of using this technology is that it provides automation to a significant degree. With the help of RFID, businesses can completely automate processes like asset tracking, inventory management, etc. This frees up a lot of human resources that would otherwise be engaged in that task and allows them to be placed in a more productive role.


When it comes to AIDC solutions, RFID is a bit expensive, however, when compared to the overall operations cost of a business, it is remarkably cheap. This makes it very easy for it to increase in scale with a growing business without affecting the net profit.

Reduces Stock Shrinkage

According to studies, on average item loss due to stock shrinkage and theft account for 2 to 4 percent of a total loss of a business. This may not seem a lot, but when you’re running a business, you’re investing a lot of time and money in it, creating jobs, etc. You have certain responsibilities, and to fulfill them, you need to cut out any unnecessary costs & ensure optimal productivity. By using RFID for tracking assets and keeping accurate records of their movements, you improve your facility’s security. According to statistics, this technology can reduce theft by 55% and stock shrinkage by 75%.

Distance Reading

Unlike other tracking methods like manual recording or barcodes, with RFID you get the added benefit of range. To clarify, for barcodes, you need personnel to stand near the item with a scanner and manually scan it. In the case of RFID, you don’t need to have a line of sight to the item or stand near it, as it operates on radio signals. This allows the processes to become faster and less labor-intensive.

Real-Time Capabilities

These systems provide all the above-mentioned services and benefits, and all of them, in real-time. For example, manually updating inventory every day is impossible for businesses due to the sheer size of the operation. However, with RFID, you can very easily perform inventory keeping in a matter of seconds. In addition, any time an item is moved, it is updated in the system with a time stamp. This allows you to check the status of your inventory in real time.

Low Chance of Error

Working with human resources has a singular risk that no business can avoid. No amount of training, work ethic, skills, or oversight can prevent the risk of a screw-up. The ever-present risk of human error can sometimes lead to a loss or disruption of operations. However, with RFID pallet tags, you can significantly reduce such problems. Unless there is a technical defect/damage or signal disruptions, an RFID system will not have any errors.


Radio Frequency Identification systems like the RFID Pallet Tags used in warehousing operations have been shown to bring a remarkable optimization in productivity and efficiency. These systems overhaul the existing operations and that too at a negligible price. In addition, they can also save costs by automating un-productive tasks and allowing for the reallocation of those resources.

Frequently Asked Questions

Q1. How does RFID increase efficiency?

Ans - RFID technology has a big part to play when it comes to the efficiency of a business’s operations. They do so by improving the accuracy of tasks like asset tracking & data collection, preventing delay times by automating the inventory, and improving item security.

Q2. What is RFID for pallet tracking in warehouse?

Ans - These are specially designed RFID tags that can be mounted on load-bearing pallets that are generally used in warehouses. The purpose of these tags is to allow for better asset identification & tracking services.

Q3. How RFID can increase inventory visibility?

Ans - Radio Frequency Identification technology allows users to get a piece of accurate and real-time information regarding the items in their inventory. It also gives them access to updates on any movement of items in and out of the inventory. All of this helps the user in getting better visibility into the functioning of their business.

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 May 17, 2023
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