Every business wants to get complete clarity over its assets. But it&#;s not always easy to know which asset tracking solution to use: barcodes or RFID tags.
Barcodes are an excellent choice and offer a great entry point to any business getting started with asset tracking. RFID tags also have plenty of benefits, but the myth that they are prohibitively expensive can stop some businesses from adopting them &#; even if they would provide a better asset tracking solution in the long run.
That myth ends today. As we&#;ll discuss in this article, while the cost of RFID tags may be slightly more upfront, they can be incredibly cost-effective in the long run. If you want to get the lowdown on how much an RFID tagging system costs, keep reading.
What is an RFID tracking system?
RFID tags are small electronic devices that store information and use radio waves to communicate with other devices &#; hence the name (RFID is short for radio frequency identification).
RFID tags can be placed on almost any fixed asset, from machinery to computers, with readers in fixed locations. The data transmitted from tag to reader is typically stored in a computer system or software so users can access asset information quickly and easily.
RFID tags can be used in various applications, including inventory, asset management, and payment systems. One of the benefits of using RFID tags compared to an alternative like barcode stickers is that they can be scanned without being visible, and you can scan multiple tags at once.
While RFID tags don&#;t need to be visible to work, using a consistent placement system makes sense. This will make it easy to ensure each asset is tagged appropriately and that tags can be removed or replaced with ease.
Like barcodes and other asset-tracking solutions, RFID systems use scanners and software to read and store data. But unlike other asset tracking solutions, RFID tags contain microchips &#; which can make them more expensive. That doesn&#;t make them unpopular, however. The RFID market is set to be worth $15.72 billion by .
There are three types of RFID tracking systems:
Active RFID tags come with their own power source (usually a battery), transmitting a continuous signal. These tags monitor processes in real-time (think tracking a vehicle) and can transmit a range of about 150 meters or 500 feet.
Passive RFID tags don&#;t have an internal power supply. Instead, they are powered by an antenna or RFID reader. This means the range is shorter, but they also tend to be cheaper. You can add or remove passive RFID tags as often as you wish, which makes them more common in inventory tracking.
Semi-passive RFID tags use a combination of both technologies. They have an internal battery, an antenna, and an RFID chip. You get a smaller signal range than active tags, but they allow for real-time monitoring. These tags tend to be used when monitoring the environment, like in a temperature-controlled area.
What are the costs of an RFID tracking system?
To purchase, install, and deploy an RFID tracking system in your warehouse or office takes some investment &#; but it may not be as much as you think. Below, we break down the common costs of an RFID tracking system.
Tag cost&#;
As we have already explained, RFID tags are more expensive to purchase than other asset tracking methods like barcodes because they include a microchip and integrated antenna. But exactly how much an RFID tag will cost will depend on the type of tag you buy.
Active tags are more expensive than passive or semi-passive tags. These tags can be ten times as expensive as their passive counterparts, but many businesses will accept this cost because of the other cost-saving benefits of active tags that we&#;ll discuss below.
Passive RFID tags can cost less than a dollar each. While this is far more than a barcode sticker, it&#;s a manageable expense for most businesses. This only changes if you need to tag metal equipment. Because metal interferes with the radio waves, special tags are required in these situations, which cost more.
Scanner cost&#;
Scanners are vital to any asset-tracking solution, and RFID solutions are no different. You&#;ll need a near-field communication (NFC) scanner to read an RFID tag, which activates the tag&#;s microchip using radio waves. The great thing about scanning RFID tags is that you don&#;t need the internet to access the information, and tags can be scanned from any direction &#; even from a distance and behind objects like walls.
A high-end scanner will cost between several hundred and several thousand dollars. Bear in mind that active RFID scanners are more expensive than passive scanners.
Of course, you&#;ll need more than one reader, too. If you want to automate your RFID tracking system as much as possible, you&#;ll need a dense network of readers and will have to budget accordingly. For example, you could need as many as an RFID reader at every entrance point across your warehouse or workspace.
Software cost&#;
Forget about spreadsheets and other manual methods of keeping track of your fixed assets. No RFID tagging system is complete without asset management software. It&#;s the best way to manage data at scale, streamline processes, improve asset visibility, and ensure compliance.
These tend to be cloud-based SaaS platforms that come with a monthly fee. They aren&#;t expensive &#; and the benefits far outweigh the cost &#; but you&#;ll still need to consider monthly fees. If in doubt, you can use RedBeam&#;s ROI calculator to estimate how much you can save using our asset management platform.
Installation cost
Some types of RFID systems will need to be installed by an expert. Here, passive systems are more expensive as antennas in each tag will need to be directed and tuned according to scanners. This can take time and requires several connectivity tests to ensure the system works properly.
Active RFID tagging systems tend to be much cheaper in this respect. Anyone can install them (but it&#;s usually an IT team member) in less than a day. With active RFID tags, you don&#;t need to worry so much about the placement or tuning of the tags.
Ongoing license cost
Some RFID systems, especially passive ones, require ongoing licensing costs to contribute to support and system upgrades. These can become prohibitively expensive and must be considered carefully when choosing between an active and passive system. For example, you may be put off by the cost of active RFID tags initially, but ongoing licensing costs can quickly make passive systems more expensive than their active counterparts.
Maintenance cost
There are small ongoing maintenance costs that come with both active and passive RFID tags. For instance, equipment can get dislodged or go offline, which is more common with passive systems than active ones. That&#;s because these systems tend to be larger, have complex networks, and be at greater risk of being bumped.
Some RFID tags (mostly active ones) include batteries, which means proactive monitoring and replacement is necessary. You&#;ll need to factor in the cost of batteries if they can&#;t be recharged, too.
How do RFID tags compare to barcodes?
Barcodes and QR codes are incredibly common forms of asset tracking. The codes themselves are easy to create and print. Companies can often do this themselves without paying a third-party company.
The scanners used to read barcodes also tend to be cheaper. They are affordable to purchase, but this isn&#;t even necessary in many cases. Most smartphones can read barcodes and QR codes, meaning employees can use personal or corporate phones instead. These are just some reasons we recommend clients use barcode stickers when building an asset tracking system. Yes, they can get marked and aren&#;t as easy to scan as RFID tags, but they work almost perfectly for most use cases.
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In some cases, however, it may make sense (both from a fiscal and productivity standpoint) to use RFID tags instead of barcodes, even if they are more expensive to implement at first.
The benefits of RFID tags
RFID tags have some unique advantages compared to other tracking systems, which can lead to cost savings in the long run.
For example, RFID tags are automatically scannable and can be read faster than others. Using them can eliminate many manual tasks, especially with an automated asset tracking system that notifies you in advance when assets need maintenance. That can save your team significant time and effort that can quickly add up. Do you want your team to spend an entire day doing asset inventory, or would you rather have it completed automatically with an RFID system?
RFID tags may be more expensive but are also much more durable. They don&#;t peel off; they can&#;t be defaced or destroyed. That means you should only need to purchase them once, and you won&#;t have to waste time printing and replacing new stickers, either. RFID tags can also be rewritten, meaning you can reuse an asset tag for a new piece of equipment when replacing an old one.
RFID tags can store significantly more data, making them necessary for some businesses. And they can also provide real-time data that can be used to improve decision-making. Using RFID asset tags lets you get precise data about the location and condition of assets, which can help you reduce maintenance costs and minimize future downtime. This benefit may be hard for some businesses to quantify, but it will almost certainly make investing in RFID tags a profitable decision.
Whether you use RFID tags or barcodes, choose RedBeam
RFID tracking is one of the best ways to effectively and efficiently manage your assets at scale. These tags may look expensive, but they can offer significant benefits and cost savings in the long run.
Whether you want to invest in RFID tags or use a more cost-effective solution like barcodes or QR codes, RedBeam is here to help. Our asset tracking software can help you streamline and automate your asset management process regardless of which tagging method you use &#; saving you time and improving your bottom line. Try it now for free.
Both passive and active RFID are used frequently in real-time location systems (RTLS). While they are used to perform a similar function, they use very different technologies.
Passive RFID systems use a high-power, low-frequency actuator to radiate energy toward a tag. The tag absorbs the energy and radiates back a coded message to the actuator at a higher frequency and lower power.
The primary advantage of passive RFID systems is that tags are very inexpensive, ranging from $0.10 to $1.50 per tag. These tags also don&#;t require batteries, so they last for many years. The disadvantage of passive RFID is that the infrastructure is expensive and can only detect the &#;presence&#; of a tag, not its exact location.
Active RFID systems, on the other hand, use battery-powered tags that beacon or connect to various access point readers throughout an area (like a building) and transfer data to the server or cloud. Active RFID tags (like Bluetooth or ultra-wideband), are more expensive ($10+) but have the advantage of using a much less costly infrastructure of readers.
Thus, the real tradeoffs between these two types of technology are 1) the shifting of costs from tags to infrastructure, and 2) trading complexity and accuracy for lower total system costs.
Depending on the type of RFID system you're planning to implement, the costs you incur will vary. Here&#;s a breakdown of seven RFID costs so you can be prepared before you select and integrate a specific type of technology:
If you choose a passive RFID system, you'll need to consider the RFID reader cost, in addition to the costs of cabling and antennas. For example, an Impinj Speedway reader could run around $1,500, and when additional reader and cabling costs are considered, your passive RFID system could total $3,000 per reader in a manufacturing setting.
To get the location granularity you require, you&#;ll likely need a dense network of these readers, so be sure to budget accordingly. Keep in mind that you also typically have to run power over Ethernet (POE) to passive RFID devices, which can add to your equipment costs.
In a typical manufacturing setting, RFID readers are needed at all entries and exits, as well as in common material storage areas. If a tagged item is placed in an area where readers are not present, the item cannot be located. The location could possibly be inferred by the last seen entry/exit event or by manually &#;hunting&#; for the tag using a handheld reader. The use of handheld inventory &#;guns&#; is especially common in Aerospace RFID.
The equipment needed for active RFID is significantly less expensive (roughly 10 times less) than the equipment for passive RFID, as the reader equipment isn't as powerful or technologically sophisticated. While ultra-wideband (UWB) systems can be even more costly than passive RFID, they have the advantage of incredibly accurate positioning, generally down to a few centimeters.
A standard Bluetooth-based active RFID system can have varying levels of accuracy. The AirFinder system uses a hybrid approach, where location beacons are placed in areas to aid in the accuracy that can be achieved over standard active RFID alone.
Passive RFID installation must be done by an expert who is well versed in tuning the equipment, directing the antennas, running the necessary connectivity tests, and configuring settings and networking details. The readers are generally connected via a LAN network to a central server, which is typically on site and processes all of the RFID data.
Specialized antennas are used for passive RFID and must be installed and calibrated to ensure appropriate performance. For these reasons, the installation costs of passive RFID are significant.
On the other hand, many active RFID systems like AirFinder can be installed by a member of your IT team in as little as one day, making the process simpler and much less cost-prohibitive. Generally, the exact placement of an active reader is not important; you can position it wherever it&#;s most convenient, negating the cost of having to rework your facility. However, ultra-wideband active RFID systems have installation costs that can exceed even those of passive RFID.
The ongoing maintenance costs associated with both systems are about the same. These costs mainly address issues with equipment that gets unplugged or goes offline for some other reason. Because passive RFID systems have larger standalone antennas, they are more prone to damage in busy industrial settings, so your facility may require some modification to accommodate the hardware.
One of the primary benefits of passive RFID is the low cost of tags, which usually run for much less than a dollar. One exception is if you need to tag a metal object, in which case the tags will be slightly more expensive because regular passive RFID tags won't perform appropriately. There are other highly specialized RFID tags for laundry or autoclaves that can run even higher.
Tags are one of the few items that cost more for active RFID. While RF beaconing-style active RFID tags are still less expensive than the tags used for alternative technologies like Wi-Fi and ultra-wideband, you can expect to pay up to (or more than) 100 times as much for an active RFID tag as for a passive RFID tag, between $5 and $15 each.
In addition, active RFID tags can be coupled with wide-area technology like cellular and GPS to provide seamless indoor/outdoor locating and tracking, so they may very well be worth the additional cost for your application.
Another cost factor for active tags is the cost of maintaining the batteries. Some systems have disposable tags, while others make it possible to replace batteries. Either way, the battery life cycle costs and associated labor must be considered when calculating the overall system costs for an active RTLS system.
Passive and active RFID readings are useless without asset management software&#;and this kind of software can run you a pretty penny. You can learn more about the capabilities to look for in real-time location system (RTLS) software.
Generally, the complexity and specialization of the software drive the cost. A basic tag reading software could be an open-source project, whereas an integrated RFID to ERP enterprise application could cost hundreds of thousands of dollars to maintain.
Many active RTLS systems like AirFinder use a cloud SaaS model, where the software is bundled together with the costs of other parts of the system.
While active RFID licensing costs are typically bundled with the software, passive RFID technologies often require ongoing licensing costs that go toward support and software upgrades. These can be quite expensive, so be sure to account for this cost before you select a passive RFID technology.
These license charges are especially common for Wi-Fi-based RTLS systems where the location technology is an add-on to existing Wi-Fi access points. Cisco Meraki is an example of a Wi-Fi-based active RTLS system that has an ongoing license fee.
As mentioned above, passive readers are more complex than active readers due to their extensive cabling, antennas, etc. And because the passive readers are fairly large, they&#;re at a greater risk of being snagged or bumped, which could lead to costly maintenance issues over time.
Active RFID systems are less complex, but their tags do include batteries. This means the tags will need to be maintained anywhere from a few months to every few years, depending on their life expectancy.
Training is another aspect of the ongoing system maintenance that some customers don&#;t consider. For an RTLS system deployment to be successful, all staff need to be trained initially and on an ongoing basis to fully realize the return on investment for such a system.
If you choose to purchase an active or passive RFID solution from an integrator, you&#;ll likely pay a premium over what you would pay if you were to go directly to the technology solution provider. That said, integrators often have teams of experts available to help you select the best technology to fit your problem, which could make the additional expense worth it.
Some RTLS technology companies provide their own installation, design, and support services for their equipment. AirFinder often bundles these services into its ongoing system costs.
It would be wrong to say that active or passive RFID RTLS systems are more appropriate for a customer based solely on cost considerations. Often, both systems can cost nearly the same when you consider all of the aspects discussed above. You need to strike a balance between system capabilities, location accuracy, number of tags, and ongoing maintenance and support to make the most of your investment.
Large enterprises&#;or companies with complex use cases&#;may choose standalone asset tracking software to run a number of tracking and sensing solutions. But many organizations looking for tracking technology are more interested in purchasing a full-stack RTLS solution. If you choose an end-to-end solution, you won&#;t have to deal with the hassle of integrating the hardware and software.
If you would like some additional information about AirFinder, and how other organizations have saved on the cost of RFID RTLS systems, feel free to contact us. We&#;ll be happy to help you during your research and planning.
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