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RFID Tags: How They Work, Types, and Applications for Business.

  • Writer: Marketing Tudi
    Marketing Tudi
  • 5 days ago
  • 5 min read
White background with TUDI-branded red and black items. Includes a red device and various components. Text reads "TUDI" and "ASSET TAG".

RFID tags are a key component in RFID systems, storing and transmitting data wirelessly via radio waves. Their role is vital as a unique identifier for each asset. With a variety of shapes and materials, from thin labels for mass labeling to hard, impact-resistant tags for industrial environments, RFID tags can be tailored to needs such as retail inventory management, warehouse tracking, asset management, and more. Understanding the types, advantages, and disadvantages helps companies choose the most suitable RFID solution to support efficient, accurate, and integrated operations.


Understanding RFID Tags

An RFID tag, or Radio Frequency Identification Tag, is a small device consisting of a chip, antenna, and carrier media (substrate) that functions to store and transfer data using radio waves. This tag interacts with an RFID reader via an antenna to transmit data quickly and accurately. The presence of this tag is a key element in determining the reading range, speed, and accuracy of the identification process.


How RFID Tags Work

Tag RFID works by utilizing radio waves emitted by an RFID reader via RFID antenna. When within range, the tag's antenna picks up the signal and activates the chip inside (for passive tags). The chip then transmits unique data stored in the tag's memory back to the reader for processing by the system. This mechanism enables fast, mass, and contactless asset identification, even when the tag is inside packaging or behind an object.


Types of RFID Tags Based on Resources

RFID tag types can be distinguished by their power source. This difference affects reading range, durability, and cost.


1. Passive RFID Tag

It has an internal battery that allows it to transmit its own signal, allowing it to be read from a distance, even hundreds of meters. It's suitable for real-time tracking in large areas such as large warehouses or ports. The downside is its relatively high price and the need for battery maintenance.


2. Active RFID Tag

It has an internal battery that allows it to transmit its own signal, allowing it to be read from very long distances, even hundreds of meters. It's suitable for real-time tracking in large areas such as large warehouses or ports. The downside is its relatively high price and the need for regular battery replacement.


3. Semi-Passive RFID Tag 

Uses a battery to activate the chip when it receives a signal from an RFID reader. Provides a wider reading range than passive tags, but at a higher price and integration requirements.


Types of RFID Tags Based on Frequency

The operating frequency of RFID affects its range, speed, and environmental resistance. Each frequency has different applications. RFID types tags based on their frequency:


1. Low Frequency (LF, ±125 kHz)

It has a short read range of only a few centimeters, yet is resistant to interference from metal and water. It is suitable for access control, animal tracking, and certain industrial applications.


2. High Frequency (HF, 13,56 MHz)

The reading range is up to about one meter and is often used for access cards, electronic tickets, and NFC technology.


3. Ultra High Frequency (UHF, 860–960 MHz)

The longest reading range can exceed 10 meters with high read speed. Suitable for logistics, supply chains, and mass asset tracking, although it is susceptible to signal interference from the surrounding environment.


Types of RFID Tags Based on Physical Form

The physical form of an RFID tag determines its durability, ease of installation, and compatibility with the usage environment.


1. RFID Label or Inlay

A thin, cost-effective, and easy-to-install sticker, ideal for mass labeling in retail and logistics. The downside is limited durability in harsh environments.


2. Hard Tag

They have bodies made of materials such as PVC, epoxy, or ceramic that are resistant to impact, heat, and humidity. They are suitable for industrial asset tracking and outdoor use, although they are larger and more expensive.


3. On-Metal Tag

Specially designed for optimal performance even when attached to metal surfaces. Widely used in manufacturing, industrial equipment tracking, and automotive applications.


4. Laundry or Textile Tag

Heat, water, chemical, and pressure resistant, making it ideal for tracking hotel linens, uniforms, and commercial laundry supplies.


5. Wristband dan Specialized Tag

Used for personal identification purposes such as events, hospitals, and amusement parks.


6. NFC Tags and Cards

HF-based, used for digital payments, access control, and near-field data exchange. It's convenient, like a card or sticker, and can be read by a smartphone.


RFID Tag Applications in Various Sectors

RFID tags have widespread applications across various industries. Every sector leverages this technology to improve operational efficiency, accuracy, and security.


1. Retail

In the retail industry, RFID tags are used to optimize real-time inventory management. Each tagged product can be tracked from the warehouse to the retail shelf. Furthermore, RFID also facilitates rapid product labeling and supports anti-theft systems with automatic alarms if items are removed without proper payment.


2. Logistik & Supply Chain 

In the logistics and supply chain sector, RFID tags enable accurate tracking of containers, pallets, or packages throughout the distribution chain. Integration with logistics management systems facilitates monitoring of the location and status of goods, minimizing loss and speeding up the distribution process.


3. Manufacturing 

In manufacturing environments, RFID tags are used to monitor production equipment and components. By attaching tags to each machine or material, companies can conduct more effective quality control, organize maintenance schedules, and ensure production flows smoothly and according to plan.


4. Health & Events

RFID also plays a vital role in the healthcare and event sectors. In hospitals, tags are used for patient identification, medical equipment tracking, and medication inventory management. Meanwhile, at events, RFID wristbands facilitate access control systems, cashless payments, and personalized visitor experiences.


5. Hospitality & Laundry

In the hospitality and laundry sectors, RFID tags are used to track hotel linens, employee uniforms, and laundry supplies. This technology simplifies recording the quantity, location, and wash cycle of each item, reducing loss and ensuring quality service.


Conclusion

RFID tags come in a wide variety of styles, from thin labels for retail use to hard, impact-resistant tags for heavy industry. Selecting the right tag should consider reading distance, environmental conditions, physical form, cost, and compatibility with existing systems. With the right choice, companies can increase efficiency, reduce recording errors, and obtain accurate data in real time.


TUDI, a complete RFID solutions provider, is ready to help you select and provide the best RFID tags to suit your business needs, from hardware and software to system integration. Supported by a team of experienced experts, we ensure every implementation is optimal, reliable, and scalable. Consult your RFID needs together with TUDI to obtain integrated solutions that can improve operational efficiency and support sustainable business growth.



 
 
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