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Barcodes, a form of labeling patented in 1952, have long been the standard for identifying products and tracking equipment. The patterns of vertical black lines and white spaces streamlined inventory and asset tracking and tracing in addition to checkout processes for all kinds of businesses.
This time-tested method remains popular, but it’s not ideal for every application. Companies relying on manual barcode scanning may face challenges when automating inventory processes or scanning products in bulk. For instance, intelligent manufacturing systems are not compatible with manual barcode scanning. Artificial intelligence (AI) and robotic automation need data for full functionality. The limited information in barcodes may stop these systems from reaching peak efficiency.
While barcodes remain the most effective option in many scenarios, companies adopting modern technologies should consider more advanced tracking and identification solutions.
Barcodes provide a simple, cost-effective solution for many businesses. With barcode labels and scanners, a company can track inventory and allow easy access to maintenance and equipment information.
Barcodes have some limitations, especially in terms of efficiency, data collection and automation, including:
The limitations of barcodes are evident when compared to radio frequency ID (RFID). RFID tags send signals to radio receivers. A logistics company can place these receivers near loading areas and scan all products coming off of or going onto their fleet trucks. Because the receivers can log many signals at once, the packages won’t need to be scanned one by one, as they would with a barcode system.
In this example, the advanced tags reduce the need for employees to scan packages by hand.
Smart labeling solutions provide data collection, security and real-time tracking capabilities. Here’s a look at the different solutions available today and how they address the unique needs of various industries.
RFID technology relies on radio frequencies to transmit data between a tag and a reader via an antenna. Battery-powered tags (active RFID tags) can transmit data directly to a receiver while passive tags reflect a signal to the receiver without a power source. In addition to basic data, smart RFID labels can produce temperature or environmental data.
The reader or receiver transmits the information from the label to a computer platform where it gets stored or evaluated. Operations managers can use this information to track inventory and equipment or to manage shipping operations.
RFID tags streamline asset tracking by automatically reading information whenever the equipment or material passes near an antenna or RFID reader. These labels are also useful for logistics and supply chain companies, which can track shipments in bulk without manual barcode scanning.
Data matrix codes are essentially two-dimensional (2D) barcodes. Rather than “one-dimensional” vertical lines, they have a grid-like pattern of dots or shapes.
The primary advantage of these labels is the ability to store more data than traditional UPCs. They can contain alphanumeric codes and additional error correction information. These features enhance accuracy and allow reading even if the label is partially damaged.
QR codes are the most common example of data matrix labels. Standard consumer smartphones and other handheld devices can read QR codes with their cameras. A small business can use a label printer to create the tags that any employees or contractors can scan with their personal devices.
Meanwhile, programmable barcode scanners can put specific information at employees’ fingertips and read both 1D and 2D tags.
Near-field communication (NFC) tags receive and transmit data to NFC-enabled devices like mobile phones. The transmission requires proximity. The device and tag must be within a few inches of each other. Unlike other kinds of RFID tags, NFC devices operate on a very specific frequency (13.56 MHz).
Consumers usually encounter NFC technology when using contactless payments with a chip-enabled debit card or mobile wallet. Payment processing terminals are equipped with NFC readers that can translate these signals into payment information and process PINs and other data.
NFC readers are also common for access control and asset tracking. Most RFID readers can scan at a range of frequencies, so they can also process NFC tags.
3D barcodes contain information on horizontal and vertical planes, but they also have depth. The extra dimension allows the labels to store even more data than 1D and QR code labels.
3D barcodes are relatively new and require specialized printing. Applications are limited to companies with complex data requirements, such as those using AI-enabled machinery. Engraved or raised barcodes can be a permanent part of the structure of equipment or products, increasing security and complicating counterfeiting or label removal. However, these tags are expensive because they require specialized scanners to measure depth as well as surface patterns.
Barcodes still have many applications for businesses, with their simplicity making them an accessible option for small businesses. However, RFID and NFC tags, QR codes and other advancements allow companies to store more data in labels. These advancements improve security and facilitate automation.
Advancements in the Internet of Things (IoT) sector include printed electronic tags. These devices can transmit location and ID information over cellular or low-power wide area networks (LPWANs).
Businesses may choose from an increasing array of labeling solutions to get specific benefits. It’s time to consider the security, efficiency and automation advantages your company can get from switching to intelligent identification solutions.
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