Pros and Cons of Using RFID for Inventory Management

Pros and cons of using RFID

Having efficient inventory management can help a lot in running your business. You would easily handle your stock levels and never run out of stock. That is why some businesses are always running without the risks of not having the products that clients want.

We want to take you on a journey that helps you understand the benefits and downsides of using RFID for inventory management. At least you would have an idea of what makes them good for your business. Let us get started.


RFID systems are generally good for your business. Below, we see how they can improve efficiency in running a store or warehouse with better inventory management.

1. Improved accuracy

RFID technology is the best way to get real-time information about your inventory in the warehouse or store. Each time an item is scanned at the exit, the information is updated in real-time in your stock balance. As such, there is always accurate reporting of your inventory at any time.

2. Efficient and fast

We started by mentioning how efficient inventory management will make it easy to run your business. Using RFID tags for your business will increase how fast you can read and process bulk orders. As such, you end up with rapid data collection and inventory counts.

Compared to bar codes, RFID tags are generally faster and do not need direct visual contact to work, thus speeding up the whole process.

3. Saving costs

The initial investment might be necessary to set up the RFID system. It might be on the higher side as you start, but in the long term, it is affordable. The RFID system is easier to run as compared to manual labor. The last thing someone needs right now is hiring people to run the whole warehouse when technology such as RFID can do a huge chunk of it.

We also find that with improved accuracy of RFID tags, you can minimize shrinkage and chances of overstocking.

4. Improved security

RFID technology has largely improved in terms of being secure. Right now, there are many ways of encrypting RFID tags and ensuring better security.

Other than the tags being secure, they would also deter people from stealing your inventory. Let us say you need high-value items stored differently; we recommend using RFID cards to restrict access.

5. Better customer service

RFID tags make it easier to locate certain types of products in a large warehouse so that the customer does not have to wait in lines for long. As such, you can be sure that customers’ experience improves as they are served faster.

6. Scalable and customizable

The good thing about RFID systems is that they are easily scalable. We recommend that you consult with a specialist to understand the scale of the RFID system you need. The best part about such systems is that they are scalable. You can always add more RFID readers and tags when in demand.

Also, they are customizable. Customization means you can have them built the way you want in terms of color, branding, logo, and more.




As much as the RFID systems are good for inventory management, you should note that they can sometimes have a few downsides. Here are some options.

1. High initial investment

The initial investment in RFID systems is often quite high for some businesses. This is because they have to get the RFID readers, tags, software, and more. Some businesses look at such costs and opt for a cheaper route.

2. Integration challenges

Let us say a company already has an existing inventory management system. It becomes hard to integrate the two if they are not compatible with RFID systems. Also, even if possible, it will be time-consuming most of the time.

Proper integration is what will make the whole process a success. In case the integration cannot happen, then more systems have to be put in place to make it a success.

3. Limited read range

Most RFID tags need to be near the reader for their signal to be picked. Such limitations can make them unreliable for running huge stores or outdoor environments. You may also notice that some RFID tags experience potential signal interference, especially when attached to metal objects.


There is so much that RFID can do for inventory management. Some of the things you will learn along the way as you start using the technology. What is important is choosing a good supplier, such as JLTcard, who can help you fully understand what you are buying and how best to use it.

Update cookies preferences
Scroll to Top