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RFID: Applications and Capabilities of the Technology

PMG Labels Team • February 6, 2025

RFID (Radio Frequency Identification) is a technology used for object identification. It simplifies digitization, quality assurance, and other processes.

RFID: Capabilities and Areas of Application

RFID technology offers diverse applications—from documenting the movement of goods in intralogistics to enabling long-distance access control. It is considered a forward-looking alternative to barcodes, as it allows for contactless object identification. Active RFID transponders, equipped with their own power source, can transmit signals over longer distances and function effectively in challenging environments.

Below, we explore three key areas of RFID technology applications.

1. What is RFID?

1.1 Definition and Key Facts

RFID (Radio Frequency Identification) is a technology that enables the wireless and contactless transfer of information about objects or individuals using radio waves. This technology is widely employed in various fields to facilitate quick and easy identification. An RFID system consists of a reader and a transponder (also referred to as a tag or label), which communicate with each other via radio frequency waves. RFID technology finds applications across numerous sectors, including logistics, manufacturing, and access control, providing an efficient and reliable method of data transmission.

1.2 Core Components of an RFID System: Reader, Transponder, and Antenna

An RFID system is composed of several essential components: the reader, the transponder, and the antenna.



  • The reader is responsible for emitting radio waves through the antenna, which are then received by the transponder to facilitate data transmission.
  • The transponder is an electronic data carrier that stores information, such as serial numbers or other relevant data.
  • The antenna converts electrical current into electromagnetic waves that are transmitted into the surrounding area.


These components work together seamlessly to enable efficient communication between the reader and the transponder, forming the foundation of an RFID system's functionality.


2. Operation and Characteristics of RFID

2.1 How RFID Chips Work: An Overview

The operation of RFID chips is based on the induction of electromagnetic fields, which enable data transmission. This technology facilitates fast and reliable communication, making it highly advantageous for a wide range of applications, including logistics, manufacturing, and access control.

2.2 Functionality of RFID Readers and Transponders

The reader is the core component of an RFID system. It emits radio waves that are received by the transponder. The transponder acts as either a passive or active data carrier, storing information and transmitting it back to the reader.

  • The reader's functionality involves processing and storing the received data.
  • The transponder's functionality includes transmitting the stored information to the reader.


These two functions work seamlessly together to ensure efficient and reliable data transmission, supporting a wide array of applications across industries.


RFID in Logistics: Streamlining Supply Chains

RFID systems enhance supply chains by enabling seamless tracking of goods. The versatility of RFID technology is evident in its applications across various industries, from document management and security solutions in the automotive sector to animal welfare initiatives. Automatic tracking of goods accelerates processes and reduces errors.


Common Applications in Logistics:

  • Tracking Goods Movement: Monitor items throughout the entire supply chain.
  • Real-Time Inventory Checks: Ensure accurate stock levels in warehouses.
  • Vehicle Monitoring: Use RFID gates to manage trucks and transport vehicles.
  • GPS Integration: Track the exact location of goods.
  • Condition Monitoring: Store expiration dates and other critical data for goods.


Compared to barcodes, RFID offers greater data storage capacity and facilitates automated verification of goods. However, it also has limitations:

  • In order picking, errors may occur due to overlapping signal detection.
  • RFID tags must be robust enough to withstand external factors like moisture.



Application Example:
An RFID tag accompanies a product from production to the customer. During transport, entry and exit points are recorded by readers, making it easy to identify discrepancies in quantity or detect potential damage.


RFID in Industry: Automated Production Processes

The automation of manufacturing processes in industry greatly benefits from RFID systems. RFID transponders attached to components store all production-relevant data. Various designs and types of RFID transponders are available, differing in mechanics, performance, and storage capacity. Machines can directly read this information and trigger automated production steps accordingly.


Applications in Industry:

  • Tracking Components and Tools: Monitor their movement throughout the production process.
  • Automated Production Control: Trigger production steps based on RFID data.
  • Inventory Management: Manage machinery and spare parts efficiently.
  • Counterfeit Protection: Provide unique product identification in the automotive industry.


High-frequency (HF) RFID systems are particularly popular due to their range of up to one meter and their ability to transmit large amounts of data quickly. Low-frequency (LF) RFID systems are used in harsh environments, where factors like moisture or metallic surfaces may affect functionality.


RFID for Access and Entry Control: From Cards to Truck Management

RFID systems are widely used in access control applications. Hotels, fitness centers, and businesses rely on RFID cards that serve as contactless keys. High-performance UHF RFID systems can cover distances of over 100 meters (with active tags), enabling efficient control of vehicles and containers.


Examples of Applications:

  • Access Control with RFID Cards: Commonly used in hotels or fitness centers.
  • Truck Entry Management: RFID gates for monitoring and controlling truck access.
  • Employee Access Rights Management: Regulating building access for staff.
  • Work Time Tracking and Resource Access: Recording employee hours and managing access to company resources.


UHF systems enable the identification of objects over distances of up to 100 meters (with active tags). However, due to their extended range, active transponders require more energy as they need to be powered. In contrast, passive RFID tags are more cost-effective but have a shorter range.


Conclusion: RFID as a Driver of Efficiency and Transparency


Whether in logistics, manufacturing, or access control, RFID technology enables efficient tracking and management of goods, components, and access rights. Its use enhances automation, security, and transparency. Companies adopting RFID benefit from streamlined processes and improved data accuracy.


PMG Labels’ Contribution to RFID Development

PMG Labels provides tailored RFID solutions for businesses across industries. From RFID labels to RFID hard tags, PMG develops products designed to integrate seamlessly into existing systems.

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