As companies in oil and mining, trucking, logistics, warehousing, transportation, and more undergo digital transformation, radio frequency identification (RFID) and near field communication (NFC) are gaining popularity for asset tracking and inventory tracking.

RFID and NFC have many similarities—so you may be confused about which technology is best for your particular application. In this article, we'll outline their different strengths to help you make an informed decision on which one is best for your application.

What is Near Field Communication (NFC)?

Near Field Communication (NFC) is a wireless technology that is becoming more common in the fleet industry. NFC enables short-range communication between two compatible devices—usually an NFC tag and a smartphone or tablet.

NFC tags are small chips that store data and are usually embedded in stickers, magnets or tags. Most smartphones and tablets are capable of reading data from NFC tags at close range (about four inches).

NFC requires user action - NFC has a very short operating range, typically within 0.1 meters. It is a user interaction technology that requires special participation from the user to guarantee the completion of functions such as payment or access.

What is RFID?

By definition, RFID is a method of uniquely identifying items using radio waves.

It is a wireless, contactless data transmission technology that uses tags or cards to store data and does not require power.

RFID systems include tags, readers and antennas.

RFID works by placing a physical tag on an object such as a truck. The tag uses radio waves to send data to a remote reader. Data may include location details, delivery times, etc.

RFID tags are active or passive. Active RFID tags contain their own power source, allowing them to broadcast with a read range of up to 100 meters.

Their long read range makes active RFID tags ideal for many industries where asset location and other logistics improvements are important.

What's the difference between NFC and RFID?

In short: RFID stands for Radio Frequency Identification, a method of contactless one-way communication over different distances. NFC, Near Field Communication, allows two-way communication and requires user action.

Range and application - NFC has a very short range, typically within 0.1 meters. It is a user interaction technology that requires special participation from the user to guarantee the completion of functions such as payment or access. NFC technology plays a huge role in access control, public transportation, mobile payment and other fields.

RFID scanners, on the other hand, can read a large number of tags simultaneously, which is common in warehouse inventory. RFID works at distances of hundreds of feet.

Communication - RFID typically only allows one-way communication (from tag to reader), while NFC is capable of two-way communication.

Data storage - NFC can store more complex data than simple identification information. NFC tags can store up to 4KB of data. This data can be in a variety of formats, including text, URL, and media. While RFID tags typically require expensive readers to extract the data, most modern smartphones are equipped with NFC reading capabilities. This greatly reduces the cost of implementing NFC tags, as users can simply use their smartphones to read the data. Smartphones can read and write data on tags or cards, obtain detailed metadata, launch applications or URLs when tags are scanned, and share data between phones using NFC (peer-to-peer (P2P) communication).

RFID for Asset Tracking

Fleet managers who manage various assets, equipment and tools can increase the productivity of their entire operation through the use of RFID technology. Tracking equipment can be overwhelming if you can't easily see your equipment inventory.

RFID technology helps fleets maximize efficiency. Let's review a few key benefits of RFID technology:

No Action Required and Can Read More Tags - 

RFID is used in production, logistics, retail, tracking and asset management because RFID scanners can read a large number of tags simultaneously and have a range of hundreds of feet. It also requires no action from the user Any action to make it better for asset and inventory tracking.

No additional hardware required -

RFID technology is easy to implement because it does not require the purchase of additional hardware. Fleet managers can buy fairly cheap RFID tags to tag their assets and start receiving visibility into their whereabouts. With the SunRiseRFID asset tracking system, fleets can also gain visibility from anywhere with a mobile app.

Receive real-time notifications – 

Fleet managers and drivers are instantly notified of where and when an asset is removed from a vehicle at a job site, and when an asset is forgotten, or tool movement is forgotten once the vehicle is started . This critical insight can improve the way you manage your operations and ensure you have real-time visibility into every aspect of your fleet.

Visibility – 

Fleet managers can ensure their cargo gets where they need to be if tags are attached to the shipment. It also ensures that the goods arrive on time without any damage. No matter what asset tags are placed, they provide a complete visual with location and time, providing insight into inventory and creating accountability.

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