"Should we use RFID or barcodes?" is one of the first questions customers ask when implementing traceability systems. The answer? It depends on your operational needs.
Each technology—RFID, barcodes, QR codes, and BLE sensors—has strengths and weaknesses. The key is matching the right tool to your specific use case. Let's break it down.
QR Codes: The Low-Cost Entry Point
How It Works
QR codes are 2D barcodes that can be scanned with any smartphone camera. Print them on labels, stick them on assets, and operators scan with a mobile app.
Strengths
- Extremely low cost: No specialized hardware—operators use their smartphones
- Easy deployment: Print QR labels and go live in days
- High data capacity: Store more information than 1D barcodes
- Error correction: Works even if partially damaged
Limitations
- Requires line-of-sight: Operator must point camera at QR code
- One-at-a-time scanning: Can't bulk-read hundreds of items
- Manual action required: Operator must remember to scan
Best For
- Check-in/check-out workflows (tools, equipment, workstations)
- Small operations just getting started with traceability
- Task logging and maintenance checklists
- Low-frequency tracking (not continuous monitoring)
1D Barcodes: The Industry Standard
How It Works
1D barcodes (like UPC codes) are scanned with handheld or fixed barcode readers. Most products already have barcode labels, making integration straightforward.
Strengths
- Universal compatibility: Works with existing product labels (SKUs, serial numbers)
- Mature ecosystem: Readers are affordable, reliable, and widely available
- WiFi-enabled scanners: Real-time data sync without tethering to tablets
- Fast scanning: Point-and-shoot for quick item identification
Limitations
- Requires line-of-sight: Must see the barcode to scan it
- One-at-a-time: Can't bulk-read (though fast sequential scanning is possible)
- Label damage: Torn or smudged barcodes won't scan
Best For
- SKU-level inventory tracking (retail, e-commerce, warehouses)
- Inbound/outbound scanning at docks and gates
- Picking and packing workflows
- When products already have barcode labels
RFID: Bulk Reading Without Line-of-Sight
How It Works
RFID (Radio Frequency Identification) uses radio waves to read tags. UHF RFID can read hundreds of tags simultaneously from up to 10 meters away—no line-of-sight needed.
Strengths
- Bulk reading: Read 200+ tags per second—entire pallet at once
- No line-of-sight: Read through cardboard boxes, plastic bins, even walls
- Long range: UHF RFID reads up to 10 meters away
- Automatic tracking: Fixed readers at gates capture movements automatically
- Durable tags: Withstand harsh environments (heat, moisture, impact)
Limitations
- Higher cost: Tags cost more than barcodes (though prices are dropping)
- Metal/liquid interference: Requires specialized tags for metal assets or liquids
- Setup complexity: Reader placement and tuning requires expertise
Best For
- High-value inventory and assets (Vedanta's copper/aluminum ingots)
- Cycle counting and inventory audits (reduce time from hours to minutes)
- Autonomous tracking with fixed readers (yard-to-plant material movements)
- Bulk reading scenarios—scan hundreds of items simultaneously
- When items are difficult to access (stacked pallets, high shelves)
BLE (Bluetooth Low Energy): Continuous Monitoring & Asset Tracking
How It Works
BLE tags and sensors wirelessly transmit data to gateways or mobile apps. Used for both environmental monitoring (temperature, humidity, vibration) and asset tracking. Battery-powered devices run for months or years, with ranges varying by use case:
- BLE asset tags: Up to 100 meters for tracking forklifts, tools, mobile equipment
- BLE cold chain sensors: 30 meters in clear line of sight, 10 meters inside metal freezers/chillers
Strengths
- Variable range for different applications: Asset tags (100m) vs. cold chain sensors (30m/10m)
- Low power consumption: Tags/sensors run for months on coin cell batteries
- Continuous monitoring: Real-time data capture without manual intervention
- Anti-theft tracking: Real-time location alerts when assets move unexpectedly
- Wireless deployment: No wiring or vehicle modifications required
- Automatic alerts: Instant notifications when thresholds are breached or assets move
- Works inside metal enclosures: Cold chain sensors function reliably in freezers and chillers
Limitations
- Gateway dependency: Requires fixed gateways or mobile apps to relay data to cloud
- Battery replacement: Eventually requires battery changes (though infrequent)
- Indoor only: Best suited for indoor tracking; GPS better for outdoor
- Range varies by application: Cold chain sensors have reduced range inside metal enclosures
Best For
- High-value asset tracking and anti-theft—BLE asset tags with 100m range for forklifts, tools, mobile equipment
- Cold chain monitoring—BLE sensors (30m/10m range) for multi-zone freezer/chiller/tropical monitoring (Flipkart)
- Environmental monitoring—temperature, humidity, vibration in warehouses, production zones, storage areas
- Equipment health monitoring—vibration, temperature sensors on machinery
- Indoor positioning and proximity detection
- When you need continuous data without manual scanning or wiring
Note: While RFID is powerful, many operations succeed with QR codes (BigBasket's 2.5M crates) or barcodes (GoDesi's complete inventory flow). Choose based on your "Unit of Traceability"—what you're tracking, how often, and at what volume. See our asset management resources for detailed selection criteria.
Decision Framework: Which Technology to Use
Use QR Codes When:
- Budget is extremely tight
- Operators already have smartphones
- Low-frequency tracking (check-in/check-out workflows)
- Small operations (under 100 items)
Use Barcodes When:
- Products already have barcode labels
- SKU-level tracking is sufficient
- Sequential scanning is acceptable (picking lines, docks)
- Integration with existing WMS/ERP systems
Use RFID When:
- Speed matters—need to scan 100s of items quickly
- Items are hard to access (stacked pallets, high shelves)
- Automatic tracking required (gate crossings, zone movements)
- High-value assets justify the tag cost
Use BLE When:
- Tracking high-value assets—BLE asset tags (100m range) for forklifts, tools, mobile equipment
- Anti-theft and real-time location alerts needed
- Cold chain monitoring—BLE sensors (30m/10m range) for freezers, chillers, and environmental zones
- Continuous monitoring required (temperature, humidity, vibration)
- Cold chain compliance and documentation needed
- Can't wire sensors (mobile assets, vehicles, temporary setups, metal enclosures)
Real-World Examples
BigBasket: QR Codes at Scale
Barcode/QR scanners at sourcing centers for farmer identification and produce classification.
QR codes on 2.5 million returnable crates and pallets across 670+ locations for check-in/check-out tracking.
Low-cost, scalable solution perfect for their massive distributed operation.
Read the full BigBasket case study →
Vedanta: RFID for Heavy Manufacturing
UHF RFID tags on consumables, raw material containers and finished products.
Fixed RFID readers for autonomous yard-to-plant tracking—materials automatically detected moving from storage to production.
Handheld RFID/QR readers for manual operations (putaway, issues) and perpetual inventory.
Read the full Vedanta case study →
GoDesi: QR Codes & Barcodes for Food Manufacturing
Barcode/QR codes for complete RM to FG inventory tracking with ERPNext integration.
Every operation—procurement, putaway, picking, production, transfers, FIFO picking—tracked with handheld scanners.
Perfect for food manufacturing where batch traceability and FIFO enforcement are critical.
Read the full GoDesi case study →
Flipkart: BLE for Cold Chain
BLE temperature & humidity sensors across freezers (-16°C to -22°C), chillers (2°C to 8°C), and tropical zones in sourcing hubs and dark stores.
30m range in clear line of sight, 10m inside metal freezers/chillers—strategically positioned gateways cover entire facility.
Door sensors detect freezers/chillers left open.
Offline capabilities and local audible alarms ensure continuous monitoring even during network outages.
Perfect for quick commerce cold chain with distributed locations and rapid wireless deployment.
Read the full Flipkart case study →
Mix and Match: The Multi-Technology Advantage
Here's the secret: you don't have to choose just one. The most effective traceability systems use different technologies for different use cases:
- QR codes for low-cost, distributed operations (BigBasket's 670+ locations)
- RFID for high-value inventory and autonomous tracking (Vedanta's raw materials)
- Barcodes for SKU identification and warehouse operations (GoDesi's RM to FG flow)
- BLE tags for high-value asset tracking and anti-theft (forklifts, tools, mobile equipment)
- BLE sensors for continuous environmental monitoring (Flipkart's cold chain)
IoTReady's platform supports QR, barcodes, RFID (UHF/HF/NFC), BLE, UWB, and GPS—so you can deploy the right technology for each operational need without vendor lock-in. See our technology selection guide in the Asset Management documentation for detailed decision frameworks.
Getting Started
Not sure which technology fits your operations? Start with a pilot:
- Identify one pain point: Cycle counting, asset tracking, quality checks
- Test at one location: Deploy QR/barcode/RFID at a single warehouse or line
- Measure results: Time savings, accuracy improvement, ROI
- Scale the winner: Roll out proven approach to all locations
Most IoTReady pilots are live in days to weeks—giving you real data to make informed decisions.