Currently, 1D barcode and 2D barcode identification technology remains widely used in item classification and labeling management. However, traditional barcode technology relies on visible light scanning reflection, which suffers from low recognition rates, susceptibility to folding and smudging, and sensitivity to water, oil, and other contaminants. Additionally, its limited data storage capacity restricts its effectiveness in large-scale logistics management.
As Barcode And RFID Technology evolve, the critical question arises: What is the future trend of warehouse information carriers? While barcodes dominate due to low cost and legacy systems, RFID technology—with its durability, high-speed batch scanning, and superior data capacity—is transforming supply chain visibility. The shift toward hybrid solutions (e.g., RFID + barcode + AI) promises to redefine efficiency in warehousing and logistics.
1.RFID tags vs barcode
In the warehouse management, barcode ruled for half a century, and RFID tags are “no need to look directly at the batch scanning” black science and technology posture to launch the challenge.
1.1 Logistics supply chain information technology solutions
Logistics warehousing has experienced four key stages: manual warehousing, mechanized warehousing, automated warehousing, and intelligent integrated automated warehousing.
- artificial warehousing: material delivery, storage, management and control is mainly realized by human operation.
- mechanized warehousing: to conveyor trucks, stackers, lifts and other mechanical equipment instead of manual operation.
- automated warehousing: on the basis of mechanized warehousing introduced automatic guided trolley, automatic shelves, automatic access robots, automatic identification and automatic sorting technology system.
- Intelligent integrated automated warehousing: intelligent integrated system as the main feature, to realize the whole system of organic, efficient and synergistic operation.
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Logistics Visibility Evolution: Barcodes, RFID?Let’s review the evolution of logistics supply chain visibility solutions:
1.2 Logistics Visualization 1.0: Barcode Solutions
Barcodes are labels affixed to a product or package with an optical machine-readable representation of data that represents some information about that package or product. Barcodes have evolved from one-dimensional to two-dimensional, and more recently to the popular QR code, which can store large amounts of data to identify specific objects.
1.3 Logistics Visualization 2.0: RFID Solutions
RFID technology uses tags that contain miniature circuits that can be identified by radio waves. The tag can be as thin as a paper tag or as thin as a key chain, depending on the number of data strings it can store and the reading distance.RFID tags are broadly categorized into passive tags and active tags. Reading RFID tags “does not require” a “line of sight” like barcodes, but the “read distance” depends on whether the RFID tag is active or passive. RFID readers can be stationary or mobile readers, but your cell phone cannot be used to read RFID tags in the same way as barcodes.
2.Barcode VS RFID Characteristic Differences
Although RFID tags and barcodes are used to store product information, there are differences between the two technologies as follows:
2.1 Data Storage Capacity
The capacity of a 1D barcode is 50 bytes, the maximum capacity of a 2D barcode can store 2 to 3000 characters, and the maximum capacity of RFID is several M bytes.
With the development of memory carriers, the data capacity also has a tendency to expand. Future items need to carry the amount of information will become larger and larger, the demand for storage media can expand the capacity of the corresponding increase.
2.2 Pollution Resistance and Durability
The carrier of traditional barcode is paper, so it is easy to be polluted, but RFID has strong resistance to substances such as water, oil and chemicals.
In addition, because the bar code is attached to the plastic bag or packaging carton, so especially vulnerable to damage; RFID roll label is the data present in the chip, so it can be free from dirt, prolong the service life.
2.3 External form
RFID in reading and not subject to size and shape restrictions, do not need to address the size of the carrier in order to read the accuracy or printing accuracy. In addition, RFID tags can be miniaturized and diversified to be applied to different products.
2.4 Security
Since RFID carries electronic information, its data content can be protected by encryption technology, so that its content is not easy to be forged and altered, while barcode is exposed physical information and mostly adopts common coding rules, so data security cannot be guaranteed.
2.5 Scanning efficiency
Barcode scanning recognition frequency is limited, only one barcode can be scanned at a time; RFID readers can recognize and read several RFID tags at the same time.
2.6 Penetration and Accessibility
RFID is able to penetrate non-metallic or non-transparent materials such as paper, wood, and plastics when covered, and is able to communicate in a penetrating manner. And bar code scanners must be in close proximity and no object blocking the case, to recognize the bar code.
2.7 Reusable
The current bar code can not be changed after printing up, can not be reused, invariably increasing the cost of enterprises, and RFID tags can be repeated to add, modify, delete the data stored in the RFID tags, to facilitate the update of information.
| Comparison Item | RFID Technology | Barcode Technology |
|---|---|---|
| Technology Used | Radio Communication Technology | Optical Technology |
| Storage Capacity | Several Megabytes (MB) | 1D: 50 bytes; 2D: 2-3000 bytes |
| Pollution Resistance & Durability | Strong resistance to water, oil, and chemicals | Usually printed on paper, prone to damage and contamination |
| External Form | Diverse | Limited |
| Security | Encryptable, high security | Exposed, low security |
| Scanning Efficiency | Multiple items at once | One item at a time |
| Penetration & Non-Line-of-Sight Reading | Works within range, even if covered | Requires close proximity and line of sight |
| Reusability | Yes | No |
3.Who is the future king of warehouse management?
3.1 The cost side
bar code is cheap, but RFID may be more “money”? Many people believe that “RFID label unit price is high (about 0.3-1 yuan), not as cost-effective as the bar code (0.01 yuan)”, how to calculate the cost?
Assuming an average daily warehouse operation of 10,000 pieces of goods, bar code annual labor + error correction costs of about 150,000 yuan; RFID initial investment in tags + equipment of about 200,000 yuan, but the second year can be back to the cost of long-term cost reduction of 60%.
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3.2 Scenario application
- High-frequency in and out of the e-commerce warehouse: “Double 11” orders soared, the scanner gun simply can not sweep over.
- Solution – RFID application: install RFID channel door in the sorting line, automatically record the flow direction when the parcel passes through, increase the sorting efficiency by 300%, and realize the automation of e-commerce warehouse sorting.
- Cold chain drug monitoring: temperature-sensitive drugs need real-time monitoring, barcode can not record environmental data.
Solution – RFID application: adopt RFID temperature control labels, through the integrated temperature sensor labels, exceeding the standard automatic alarm, thus helping enterprises to reduce the rate of cargo loss from 8% to less than 0.5%.
3.3 respective application advantages
barcode technology application advantages:
- ultra-low cost: suitable for low-value consumables (such as paper towels, boxes); 2, technical inertia: the world’s existing 90% of the warehouse system based on the development of barcode; 3, the consumer side of the compatibility: cell phone scanning code is still the most common way of inspection.
Advantages of RFID technology applications:
- when the price of RFID tags fell below 0.1 yuan: with the expansion of mass production scale, RFID tags will enter the “cabbage price” era; 2, reader miniaturization: cell phone NFC function can be directly read tags to reduce the threshold of the equipment; 3, the policy mandatory application: the European Union has required that the clothing, electronic products Embedded RFID tags, the domestic trend is becoming apparent.
4.RFID warehousing solutions
4.1 Goods in and out of the warehouse solution
- Through the handheld device to obtain the appropriate work orders, reducing the time and error of manual recording orders;
- After the completion of the operation, the warehouse management system automatically generates the entry and exit records and records of changes in the goods.
4.2 RFID Warehouse Inventory
- Inventory using RFID handheld devices can be a real-time understanding of the implementation of inventory tasks, make the appropriate decisions;
- Omission of reading the situation, there will be a corresponding alarm prompts;
- Inventory operation is complete, the warehouse management system will generate the appropriate inventory list, to facilitate the data statistics.
5.RFID technology in Starbucks project supply chain management
Starbucks has more than 3,000 stores in China, managed directly by the headquarters, Starbucks has its own distribution logistics system.
Solution: Through RFID technology, from the distribution supply chain management, stores as well as the end of the distribution and other core operational links, to help Starbucks create a full-scene RFID intelligent operation system.
General warehouse RFID process: ① labeling – general warehouse according to the goods to be purchased for the classification of RFID label printing. ② Picking – all purchased items by class RFID labeling. ③ Sorting – box by box through the RFID channel machine for review. ④ storage – review and then according to the receipt of goods on the shelves into the storage arrangement. ⑤ Inventory – the system generates inventory documents and downloads the current inventory data to the RFID device for inventory.
Store RFID scanning workflow: ① inventory goods according to the regional warehouse delivery order, using RFID equipment inventory check uploaded to the RFID cloud platform, to avoid discrepancies between the physical and the goods list, to ensure that there is no error in the delivery of goods. ② use RFID equipment inventory store some of the inherent assets uploaded to the headquarters to ensure the integrity of the goods.
RFID supply chain revenue value: warehouse management efficiency, reduce labor costs: intelligent warehouse management, reducing the receipt and shipment inventory 60% of labor costs and efficiency.
6. Summary
The ultimate answer to the future of warehouse management may be a hybrid model of “RFID + barcode + AI”. But the only certainty is that – technology will not eliminate the enterprise, will only eliminate the enterprise will not use technology.