RFID – The Core Technology Driving Digital Transformation in Supply Chains

As businesses accelerate digital transformation, RFID (Radio Frequency Identification) technology has become an indispensable tool for automating warehouse management, supply chains, logistics, and retail operations.

Unlike traditional barcodes, RFID enables wireless identification and tracking of goods from a distance without manual scanning. Information is stored on RFID tags and read by RFID readers, then processed through centralized management software.

According to RFID Journal 2025, the global RFID market is projected to surpass USD 25 billion, growing at nearly 12% annually. However, behind this strong growth lies a series of technical challenges faced by most businesses — the most critical of which is read performance in real-world environments.

 

When Radio Waves Aren’t Perfect – The Reality of RFID Read Performance

In theory, RFID can read hundreds of tags within seconds, at distances of up to 5–10 meters. In practice, however, read performance often drops significantly when deployed in complex environments.

Several factors directly affect RFID tag readability:

• Metal and liquids: These are the traditional “enemies” of radio frequency. Metal reflects or absorbs RF signals, while liquids weaken signal strength.

• Distance and tag orientation: Misaligned tags (facing away from the antenna) may fail to respond properly.

• Signal interference: In factories, logistics centers, or areas with many electronic devices, radio signals can overlap and interfere.

• High tag density: When hundreds of tags are close together, RFID readers may experience tag collisions — multiple tags respond simultaneously, causing read congestion.

As a result, the missed read rate can reach 10–30% if the system is not properly optimized.

Consequences of Inaccurate RFID Reads

In supply chain operations, even a small identification error can trigger a chain of negative effects:

• Inconsistent inventory data: Discrepancies between system data and actual stock make it difficult to manage goods — especially with thousands of SKUs.

• Reduced operational efficiency: Staff may need to re-scan or manually verify items, increasing time and labor costs.

• Poor data analysis and traceability: RFID data feeds into ERP and WMS systems. When input data is unreliable, the entire management process suffers.

• Financial loss and brand reputation risks: In industries like healthcare or electronics manufacturing, misidentification can lead to costly mistakes and loss of customer trust.

Root Causes – A Technical Perspective

Beetech, a leading RFID solution provider in Vietnam, highlights that the problem lies not only in the hardware but also in how systems are designed and deployed.

1. Inappropriate equipment selection

Different RFID tags are designed for different purposes:

• UHF (Ultra High Frequency) tags offer long-range and high-speed reading.

• HF/NFC (High Frequency) tags perform better in short-range applications or metal-heavy environments.
  However, many companies opt for UHF tags to cut costs without considering the physical properties of their products, leading to weak or inaccurate signals.

2. Poorly optimized system design

Factors like distance, reader placement, antenna angle, and transmission power all affect RFID coverage.
A common mistake is positioning readers too close (causing reader collisions) or misaligning antennas with tag orientation — both of which reduce read accuracy.

3. Lack of real-world testing

Many RFID projects fail because they skip the RF site survey phase. Real-world testing is essential to identify interference zones, signal dead spots, and optimize system configuration before full deployment.

Optimizing RFID Performance – Beetech’s Approach

As one of the pioneers in RFID research and implementation in Vietnam, Beetech has successfully delivered solutions across warehouse, retail, logistics, and manufacturing sectors.
From extensive project experience, Beetech has developed three key solution groups to enhance RFID read performance:

1. System design tailored to the environment

Beetech conducts on-site assessments (metal presence, humidity, temperature, interference) to recommend the best tag type, antenna model, and installation layout.
In metal-dense environments, Beetech uses on-metal tags — tags with anti-interference shielding for stable signal transmission.

2. Intelligent algorithm application

Beetech’s RFID systems integrate anti-collision algorithms and dynamic power control, enabling stable reading of thousands of tags simultaneously without signal conflict.
This technology is especially valuable in automated distribution centers and high-throughput warehouses, where item flow is constant and dense.

3. Dedicated RFID management software

Beetech’s RFID Management Platform connects directly with ERP, WMS, or MES systems.
The software automatically filters faulty data, verifies duplicate tag reads, and synchronizes records in real time — ensuring accurate, reliable information across all operations.

The Future of RFID – Toward AI and IoT Integration

Between 2025 and 2030, RFID will evolve beyond basic item identification to become an integral part of the IoT and data analytics ecosystem.
When combined with AI and cloud computing, RFID can:

• Predict inventory flow and optimize logistics routes.

• Detect anomalies (e.g., missing tags or unusual signal patterns) in real time.

• Enable full product traceability — from manufacturing to end consumers.

Beetech is actively developing AI-driven RFID analytics solutions to help Vietnamese businesses embrace this transformation early, boosting their global competitiveness.

Conclusion

RFID holds immense potential for smart management systems, but achieving high performance requires a deep understanding of technical and environmental challenges.
Optimizing tag readability depends not only on hardware but also on system design, software intelligence, and operational expertise.

With years of experience in RFID technology, Beetech is committed to supporting businesses throughout their digital transformation journey — delivering comprehensive, precise, and stable RFID solutions tailored to every scale and industry.

🟢 Beetech – Empowering Smart Management Through RFID Technology
📞 Website: www.beetech.com.vn
✉️ Email: info@beetech.com.vn