When it comes to managing assets or monitoring your inventory, Radio Frequency Identification (RFID) systems are often considered. One of the most popular choices for inventory management and fixed asset tracking is Ultra-High Frequency (UHF) RFID. With high levels of accuracy and efficiency, it’s the preferred method for many organizations. If you want to know the differences between inventory management and fixed asset tracking with UHF RFID, you’ve come to the right place. We’ll be examining the advantages and capabilities of UHF RFID when compared to a barcode system within this article.
Understanding UHF RFID in Asset and Inventory Tracking
UHF RFID operates in the 300 MHz to 3 GHz frequency range. Due to this frequency range, there’s a good balance between speed, read range and data transfer rates. Both inventory tracking and fixed asset tracking make use of UHF RFID.
Fixed Asset Tracking with UHF RFID
A fixed asset is a physical asset that the business or organization doesn’t intend to sell or use in order to function. Fixed assets are one of the things that can be tracked with UHF RFID. They range from furniture to equipment and machinery. Without these assets, it would be difficult for an organization to run its daily operations and make money. Tracking the status, location and maintenance schedule of an asset with UHF RFID is a possibility through the use of asset tracking software like Grey Trunk RFID. With the use of UHF RFID and asset tracking software together, there’s less of a chance for loss, stolen assets or errors with depreciation.
Inventory Tracking with UHF RFID
Inventory tracking revolves around goods that will be sold or used to make something else. When you use UHF RFID for inventory tracking, the scanner doesn’t have to see what you’re scanning. Unlike with a barcode, you can scan several assets at a time. After implementing UHF RFID, a warehouse can become more efficient thanks to a faster process for taking stock and having a method to check the accuracy of shipments that are going out. With RFID inventory tracking, you’ll know what shipments are coming in and out of your business. You’ll save money due to not overstocking as much and being able to fulfill more orders. Using UHF RFID results in a more profitable business and happier customers.
Key Differences Between Fixed Asset Tracking and Inventory Tracking
Both inventory tracking and fixed asset tracking are big parts of managing a business. However, each one has different qualities and purposes that they serve. These are the main differences between the two:
- Purpose and Nature:
- Fixed Asset Tracking: This involves managing assets that are consistently used to help a business run. This can include office equipment, various types of machinery and computers.
- Inventory Tracking: These can include finished goods, raw materials or things that are a work-in-progress. Essentially, they’re items your organization intends to sell or use for creating another product.
- Tracking Objectives:
- Fixed Asset Tracking: The goal of this is to stop loss/theft while making sure that assets are well-utilized and adequately maintained. It also helps to ensure that financial records are accurate.
- Inventory Tracking: This is meant to keep the supply chain running smoothly. If orders are being fulfilled and carrying costs are low, things are going well.
- Frequency of Movement:
- Fixed Asset Tracking: These assets usually stay in one place, so a change in location isn’t a common occurrence.
- Inventory Tracking: Items are always on the move. Storage, shipping or receiving could be handling a wide variety of items at any given moment.
- Lifespan:
- Fixed Asset Tracking: These are used for a longer amount of time, usually for many years. They also depreciate over time.
- Inventory Tracking: With this type of tracking the inventory items don’t last as long, usually somewhere between a couple of days to a couple of months.
- Value and Investment:
- Fixed Asset Tracking: Items in this category are often expensive and they’re something that a company has to really invest into.
- Inventory Tracking: This type of tracking has items that are needed for a business to run but they’re usually of lesser value and they’re meant to be quickly sold.
- Management Processes:
- Fixed Asset Tracking: Assets have to comply with regulations and sometimes they are audited. Figuring out depreciation is also something that must be kept in mind.
- Inventory Tracking: Determining demand, managing inventory and figuring out what to reorder are all parts of inventory tracking.
- Data Requirements:
- Fixed Asset Tracking: With fixed asset tracking, necessary data includes when maintenance is scheduled, purchase detailed, the rate of depreciation and disposal records.
- Inventory Tracking: Information on turnover rates, the amount of available stock and when orders will be fulfilled are what is required.
Now that you understand these differences, it’ll be easier for your business to figure out how UHF RFID can be used in fixed asset tracking and inventory tracking. Although some of the specifics are different, each of these types of tracking appreciates the accuracy, time savings and increased knowledge of asset location that RFID provides. By understanding these technologies, a business can create an effective strategy for either asset management or inventory tracking with RFID.
RFID vs. Barcode: Weighing the Pros and Cons
Barcodes and RFID each have pros and cons. Because of this, they each have different potential uses for both inventory management and asset tracking.
Benefits of RFID over Barcodes
- Faster Scan Speed and Increased Read Range: The process of counting inventory goes by more quickly when several items can be scanned together from a few meters away. Using barcodes requires your inventory to be scanned one-by-one.
- Line-of-Sight Isn’t Needed: When you’re using an RFID scanner, you won’t need to directly see the RFID tag. Because of this, you’re able to place your RFID tags in a multitude of places and employees won’t have to take out inventory by hand to scan it.
- Tough and Reusable: In comparison to barcodes, an RFID tag has a bit more durability. They can even be used more than once or reprogrammed. Because of this, they’re more environmentally-friendly when compared to some barcodes that are only used once.
- Security and Increased Data Storage: With the encryption that a UHF RFID tag can offer, it’s less likely that someone will be able to access sensitive information from your tags. This makes them a great option for any valuable assets your organization might own. In addition, a UHF RFID tag stores an increased amount of data when compared to a barcode.
Cons of RFID Compared to Barcodes
- The Initial Investment: When you compare RFID readers and tags to their barcode equivalents, the cost is quite a bit higher. Because of this, many small-medium-sized businesses may be hesitant to get into RFID.
- Complexity: In order to use RFID it can require some technical knowledge. Grey Trunk RFID is a standalone system, but your IT department might have to make sure that everything works with the systems in place. Grey Trunk RFID does offer integration but it comes at an additional expense.
- Interference: An RFID tag can be susceptible to liquids or metals messing with their signal. Because of this, applications where this could be an issue might require specialized tags from Metalcraft.
Conclusion
When it comes to managing your fixed assets, UHF RFID is an excellent choice for both fixed asset management and RFID inventory tracking. It offers an accurate and speedy tracking process that lets businesses be efficient while helping to prevent theft or loss. Some businesses may be skeptical about the use of RFID due to the larger upfront costs and complexities that come from it. However, having a better understanding of your assets/inventory and improving the speed of inventorying are often well worth the price. If your business is looking for an excellent way to improve asset and inventory management, the power of RFID could be a great choice.
Related Articles
- The Impact of RFID Warehouse Management
- Fixed Asset Tracking Software: Why Your Organization Needs It
- Benefits of Passive UHF RFID vs. Barcode
About the Author: Colby Weber Colby is Grey Trunk RFID’s Marketing Assistant. He enjoys being able to combine his marketing and public relations skills with his writing and graphic design abilities to assist in Grey Trunk’s marketing efforts. He has one brother, a niece, and two nephews. In his free time, Colby enjoys playing video games and trading card games. He’s also a fan of anime and creating digital artwork on his drawing tablet. |