When selecting a tracking technology to track assets there are several factors to consider. First, what is your objective? If the objective is to collect and manage data you should select the technology that is best suited to help you achieve that objective - not let the technology dictate how you go about collecting your information. Second, what type of asset are you going to be tracking - fixed or mobile? Examples of fixed assets may include furniture, machinery, computers, etc. Mobile assets, on the other hand, may include pallets, returnable containers, racks, etc. Will one technology work better for fixed versus mobile assets?

OK, once you have your objective identified and your assets defined it is time to take a closer look at factors that may have an impact on the type of technology you plan to use. For example, consider the material composition of the item being tracked, i.e. metal, plastic, wood, etc. If we are looking specifically at bar code and radio frequency identification technologies we need to consider that RFID, more specifically passive ultra-high frequency (UHF) RFID, has limitations when attached to metal assets and assets containing liquids. RFID labels and metal surfaces reflect RF, detuning the antenna, thus affecting readability. Likewise, liquids absorb RF also affecting readability. On the other hand, surface composition for standard label products is not a factor.

The radius or contour of a surface also affects readability when using RFID technology; whereas standard tags and labels can be designed for radius or curved surfaces so as not to affect readability. Other environmental factors that can have an impact on the type of tracking technology you use may include heat, UV exposure, abrasion, chemicals, and solvents. Many of these factors may cause RFID not to work while barcode tags and labels can be designed to resist exposure to harsh environments.

Wal-Mart is one of the pioneers that recommended their top 100 suppliers to provide RFID tag tracking by early 2005 on pallets shipped ship to its stores. Meanwhile, the biggest news in RFID may surround the initiatives aimed at reducing counterfeiting and improving efficiency and safety in the distribution of pharmaceuticals. Since then, many more RFID initiatives have been launched and apply RFID to the industries.

After reading the above information you might think RFID may not be the answer. However, there are numerous benefits to using RFID as your tracking technology. First, RFID allows users the ability to read multiple items in a short period (i.e. case lot unit containers, pallets, etc.) unlike bar code where you can only scan one at a time. Second, line-of-site isn't needed when reading an RFID tag, unlike bar code where you have to physically scan each bar code image. Third, depending on the type of inlay and readers used, RFID has a much longer read range.