RFID myths and misconceptions

As more and more businesses are considering an investment in radio frequency identification (RFID) technology in order to automate their inventory, asset tracking, and data capture processes, there are also lots of misunderstandings around the capabilities of RFID, despite the proven value it adds to businesses.

Let us have a look at the top Myths surrounding the RF technology and its implementation 

Myth 1: RFID Is Only for Big Organizations

Enterprises of all sizes can benefit from the improved asset visibility and management facilitated by RFID. While big companies were among the early adopters of RFID technology, the reality today is very different. RFID is the right solution for all enterprises, be it big companies with huge budgets or small businesses with limited budgets.

Myth 2:  You Need a Barcode System before Getting into RFID

Some think that they need to have a barcoding system in place before they start using RFID which isn’t true. You don’t need to have a barcoding system to use RFID. If RFID meets all your application needs, you can start implementing it directly. 

Myth 3: RFID Will Replace Barcoding 

There is a misconception that RFID technology will effectively replace the barcoding system, which is incorrect. While RFID has revolutionized inventory and asset tracking, there are many cases where barcoding is the realistically viable option to meet the business needs. And that’s why, RFID and barcoding each have their place and one isn’t going to replace the other. 

Myth 4: RFID is meant for supply chain automation.

RFID is more than supply chain technology. It has been effectively deployed in a variety of fields such as:

  • Automobile industry
  • Payment for fuel and merchandise
  • Access control & security
  • Toll gates etc 

Myth 5: RFID is “talking” barcode

There is a misconception that RFID tags are just barcodes that are capable of “talking” to readers instead of being read by a laser/imager. While this is not entirely false, RFID tags are much more powerful than a barcode label. Unlike barcode labels, the RFID tags can be reused by re-encoding the stored data with new data.

Myth 6: RFID Is Only for Inventory

This is a very prominent misconception as RFID is used so widely in inventory management. However, it has also proven to be useful in other applications including 

  • equipment and asset tracking
  • work-in-process tracking
  • checking items in and out
  • monitoring chain of custody
  • maintaining maintenance and safety records
  • Quarantining defects for quality control, and much more. 

Myth 7: Using RFID means an end to privacy.

There is an apprehension that the use of RFID would invade their privacy. This shouldn’t be a concern at all. The only way someone can “read” RFID tags is if they have a suitable RFID device as well as the access to an associated database of RFID tag data and neither the hardware or database access are readily available. Also with the latest encryption techniques available, the security of RF ID tags are extremely high.

Myth 8: Transitioning to an RFID System Is a Big Challenge

Many businesses are apprehensive that moving to an RFID system is a big step filled with challenges. It is true that some implementations can be a little challenging, when it comes to wanting a highly complex, sophisticated, and comprehensive solution. But if the objective of the solution is clearly set and the right products and partner is selected, the majority of the cases are relatively easy and manageable to implement.

Myth 9: RF ID Implementations are difficult to have an effective ROI

While it is true that the cost of deploying an RFID solution is much more than a barcode solution, the standardization of RF ID tags have bought the costs lower. One of the significant cost in an RF ID solution is the RF ID tag cost. This has reduced significantly in the recent past. With major vendors having a range of RF ID hardware available, an RFID solution nowadays have a much smaller ROI time frame.

Myth 10: Let me wait for my business to grow fully, to get it deployed

It’s better if you start early, move slowly and learn the technology step-by-step than wait. This way you can learn and correct any mistakes and gradually grow the system, instead of having a complex system straight away.

Today’s market is extremely competitive and cut-throat, and many companies already use RFID. The benefits are real and available today, so if you don’t proceed you will run the risk of falling behind in a race where you cannot catch up. Get RFID deployed in your business now, don’t try to convince yourself that it can wait because it can’t!


For any queries or assistance regarding RFID, feel free to
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