Types of RFID Tags and Their Applications in Supply Chain

RFID (Radio Frequency Identification) is a technology that is majorly used to optimise supply chain operations. It offers unparalleled visibility, accuracy and automation for all processes in a supply chain. RFID uses electromagnetic fields to identify and track objects that have RFID tags. Given that supply chain management is getting more complex, it is essential to understand the different types of RFID tags and how they are used in order to achieve complete efficiency in a supply chain.
In this article, we will dive deeper into understanding RFID tags, different types, and different applications of RFID tags in supply chain management.
What are RFID Tags?
RFID stands for Radio Frequency Identification. RFID tag is a device consisting of a microchip and an antenna. It is designed to transmit data to the RFID reader. It can also store information about the supply chain, such as shipment, data, or serial numbers. Unlike the barcode, the RFID tag can be accessed without a direct line of sight, making it much more feasible for international shipments. Various types of RFID tag can be tracked across different frequencies, making them suitable for different types of usage.
Different Types of RFID Tags
There are several types of RFID tags that are different from each other based on the power source and the frequency range. Below are some of the commonly used RFID tags:
Passive RFID Tag
Passive RFID tag do not have an internal power source. They get the energy from the electromagnetic waves that are emitted by the RFID reader. Since there is no internal power, it is lightweight and cost-effective. However, there is a limited reading range that is only up to 25 feet. Also, passive RFID tags are much more durable and suitable for long-term use. It is usually used in inventory tracking and asset management.
Semi-Passive RFID Tags
A semi-passive RFID tag consists of an internal battery but it mainly relies on RFID reader power to send out signals. The lifespan of semi-passive is more prolonged than that of active types and is suitable for monitoring various environmental conditions. It is mainly used in cold chain logistics and pharmaceutical shipments.
Active RFID Tags
Active RFID tag has an internal battery that helps to transmit signals even over longer distances. It can transmit signals up to 300 feet. It is designed to store and transmit large amounts of data. It is higher in cost and requires maintenance from time to time. It is primarily used in container tracking, real-time location systems and fleet management.
Low-Frequency RFID Tags
Low-frequency RFID tags, also known as LF RFID tags, can operate in a frequency range of up to 30 kHz to 300 kHz. The low-frequency RFID tag is better for environments that have water or metal. Also, the frequency is quite low. The transfer rates for data are lower. It is primarily used in livestock tracking and for pet microchips.
High-Frequency RFID Tag
The high-frequency RFID tag is also known as HF space. The RFID tag operates on a frequency range of 3 MHz to 30 MHz. The data transfer via high-frequency RFID tags is much faster, and it is compatible with near-field communication (NFC). It is usually used in contactless payments, airline baggage, and the handling and tracking of library books.
Ultra-High Frequency RFID Tags
Ultra-high frequency RFID tags, also known as UHF RFID tags, operate on a frequency range of 300 MHz to 3 GHz. It has a longer frequency range, which is 12 m. The data transfer rate is exceptionally high on ultra-high frequency RFID tag. Due to the high-frequency range rate on which it operates, it is sensitive to environmental interference. It is mainly used in warehouse automation, vehicle identification, and supply chain logistics.
Microwave RFID Tags
The microwave RFID tag has a frequency range operation above 3 GHz. The transfer speed on microwave RFID is extremely high, and it only caters to specific users due to the short wavelength. It is primarily used in the toll collection system.
RFID Tag Applications in Supply Chain Management
The RFID technology is quite versatile. Different types of RFID tags can be used in various aspects of supply chain operations. Below are some of the most common RFID tag applications in the supply chain:
Asset Tracking
RFID tags are also used to monitor high-value assets since they can provide accurate location data. Ultra-high RFID Frequency ranges are used mainly for such purposes since they are also effective for large warehouses. It helps minimise the losses.
Inventory Management
RFID tag have access to various product details, such as the serial number and product specification. Hence, it becomes easier to track inventory with an RFID system.
Warehouse Automation
RFID technology helps in automating the complete process at a warehouse. It helps to track the inventory and identify and verify shipments as they enter or leave the warehouse.
Retail Supply Chains
Retailers also use RFID technology to keep inventory in check. This helps to reduce theft and also promotes a seamless checkout experience via self-scanning kiosks.
Fleet Management
Active RFID tags are used in fleet management to track vehicles and containers in real-time. It helps to enhance the visibility of the fleet that is in transit and also helps to optimise the planning of various routes.
Cold Chain Monitoring
For businesses that deal in pharmaceuticals or perishable food items, semi-passive RFID tags with sensors can be very helpful. They can help monitor temperature-sensitive goods while ensuring compliance with quality standards.
Related – eCommerce Product Tags and Why is Product Tagging Important for eCommerce Businesses in 2025
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Conclusion
The use of RFID technology has become reasonably necessary in supply chain management. It offers efficiency, accuracy, and seamless integration. As there are various types of RFID tags, they can be used for various functions and processes in a supply chain. Businesses can harness the technology to streamline the operations in the supply chain while reducing costs and improving customer satisfaction. RFID technology is evolving every day, becoming more competent and helping the supply chain succeed.
Suggested – What Are Shipping Labels & How to Create them? A Guide for Fulfillment in 2025
FAQs About RFID Tags
How far can the RFID tags be read?
The reading range depends upon the type of RFID in use. The active RFID tag can be read up to 300 feet, while the passive one can only read up to 25 feet.
What does RFID stand for?
RFID stands for Radio Frequency Identification.
What is the difference between passive RFID tags and active RFID tags?
Passive RFID tags rely mainly on the reader’s power and have a much shorter range, while active RFID tags have internal batteries for a long range.
Is the RFID technology secure?
Yes, the RFID systems use encryption and authentication features and, hence, are entirely secure.
What are some of the RFID applications in supply chains?
In the supply chain, RFID tags can be used for inventory management, fleet monitoring, tracking, cold chain management, and retail supply chains.