The utilization of RFID technology in labels and tags is more prevalent than it has ever been. As major brands, such as Walmart, require brands to utilize RFID tracking capabilities, label manufacturers are tasked with designing new products to meet demand. As brands and manufacturers begin to embrace RFID for its wide range of capabilities, such as improved inventory management and supply chain efficiency, the technology boasts a bright future.

Tina Hart, Vice President of Sales and Service, Avery Dennison, joins L&NW to explore the reasons for recent growth, as well as the newest technologies available to assist in RFID implementation.

L&NW: What is RFID, and how does this technology differ from barcodes?
TH: RFID, or Radio-frequency identification, uses electromagnetic fields to automatically identify and track tags on objects. These tags, embedded in or attached to product labels, contain electronically stored information. An RFID reader sends out radio waves, and the tag’s antenna transmits information back, such as a unique serial number. RFID tags can store more data than barcodes, including product details, manufacturing dates, and batch numbers, enhancing inventory tracking.

Unlike barcodes, which use visual patterns and have limited data capacity, RFID communicates wirelessly between a tag and a reader.

L&NW: What are the benefits of using RFID in labeling?
TH: RFID offers several advantages over traditional barcodes:

• Increased Efficiency: RFID enables faster scanning and greater accuracy than barcodes, as multiple items can be read simultaneously without line of sight. This streamlines inventory management, reduces labor costs, and improves supply chain visibility.
• Enhanced Data: RFID tags can hold more data than barcodes, including manufacturing date, batch number, and expiration date. This granular information helps with product tracking, traceability, and quality control.
• Reduced Shrinkage: RFID helps deter theft and counterfeiting, as each tag carries a unique identifier that can be tracked. This leads to reduced shrinkage and improved loss prevention.
• Improved Customer Experience: RFID can enable faster checkouts, personalized recommendations, and interactive experiences for customers.

L&NW: What is the Walmart RFID initiative?
TH: Walmart, a global retail leader, has embraced RFID technology across specific product categories in its supply chain. Apparel was the first category to achieve 100% RFID implementation in stores, and the company is now expanding this technology to additional categories, including toys, electronics, and automotive. Suppliers in these sectors are tagging items with RFID. This initiative is designed to boost inventory accuracy, minimize out-of-stocks, and enhance the overall efficiency of the supply chain.

L&NW: What opportunities does the Walmart RFID initiative create?
TH: The Walmart RFID initiative presents a significant opportunity for label converters, pushing them to innovate and adapt to meet the growing demand for RFID-enabled labels.

Here’s a breakdown of the opportunities: 

• Increased Demand: Walmart’s initiative requires suppliers to use RFID labels, creating a surge in demand for these specialized labels. This translates to increased business for label printers equipped to produce them. 
• Specialization and Value-Added Services: Label printers can differentiate themselves by specializing in RFID label production and offering value-added services.
• Technological Advancement: The Walmart initiative encourages label printers to invest in advanced printing technologies and equipment capable of handling RFID labels. This drives innovation and pushes the industry forward.
• New Markets and Expansion: Beyond Walmart, other retailers are likely to adopt RFID technology, creating further opportunities for label printers to expand their customer base and enter new markets.

L&NW: What are the challenges of implementing RFID?
TH: Converters face the challenge of investing in new equipment and processes to produce RFID-enabled labels, often requiring significant capital and staff training. Precisely placing RFID inlays within labels while preserving their aesthetics and functionality is a technical hurdle that must be overcome. Avery Dennison offers comprehensive support, from the initial question of, “How do I get into RFID?” to designing the perfect inlay for your package. Our goal is to assist converters through this process and drive growth for everyone involved.

L&NW: What solutions does Avery Dennison offer for the RFID market?
TH: Product portfolio size is crucial when selecting an RFID supplier, as you need tags with inlays that work on many items. As the world’s largest RFID manufacturer, we have the industry’s most comprehensive selection of RFID inlays, including NFC and passive HF and UHF options, as well as multiple inlay sizes, shapes and features.

L&NW: What is the future of RFID in labeling?
TH: RFID technology is continuously evolving, with trends like increased miniaturization, lower costs, and improved functionality. The future of RFID in labeling is promising, with applications expanding beyond retail to industries like healthcare and logistics.

As adoption grows and technology advances, RFID is poised to revolutionize supply chain management and create new possibilities for converters and businesses.