The best asset tags – a guide to RFID, QR code, barcode, and NFC tags

20.12.2021

Which asset tags to choose?

There are various types of asset tags available, with the most common being RFID tags, QR code tags, barcode tags, and NFC tags. Choosing the right technology for your needs can be challenging. To assist you in selecting the best tag type for your organization, we've created this guide to asset tags. We hope it helps you find the ideal tag or combination of tags.

If you'd like to learn more and discuss the most suitable options for your company, please schedule a 25-minute demo: Book a demo

Why should you label your equipment with asset tags?

Still wondering whether you should tag your equipment with labels? If you've considered it even once, the answer is "yes."

You should start labelling and tracking assets if:

  • Equipment has been lost or misplaced

  • Equipment moves around

  • Multiple people are using the same equipment

  • There is a chance that your assets will get mixed up with someone else's equipment

  • You want to identify individual items and access their life cycle information easily

  • You want to track the asset usage better than before

  • You want to allow people to log actions, such as report defects, with a mobile device

Naturally, tags alone won't be very effective. You'll also need an equipment management system to track asset information and log actions in the asset history.

So, which type of asset tags should you use for your equipment? Let's take a closer look at the four most common technologies: RFID, NFC, QR codes, and barcodes.

What is RFID?

RFID (Radio Frequency Identification) is a remote identification technology that uses radio frequencies. Since the 1980s, its application in tagging assets, animals, and even people has grown significantly.

You've likely used RFID technology yourself, such as in car remote keys or scannable public transport cards.

RFID tags can only be scanned with a specialized RFID scanner. However, since the scanner doesn't require a direct line of sight, tags can be placed inside or beneath equipment. For instance, costumes can be tracked by sewing the tags inside. RFID scanners can also read multiple tags at once, enabling quick inventories.

Additionally, RFID tags have a small memory capacity to store limited data. With active read-write RFID tags, this information can be modified later. However, the current memory capacity allows for only short text storage.

RFID tags can also direct users to a website or cloud-based equipment management system, allowing for virtually unlimited data storage connected to the tag.

Passive versus active RFID asset tags

In addition to active RFID asset tags, passive RFID asset tags are an option as well. The differences between these are:

  • Energy source

  • Price

  • Memory capacity

Passive RFID tags draw the energy needed for data transfer from the scanner, while active RFID tags have their own power source. Because passive RFID tags rely on external power, they store only a small amount of data, typically just a short string like a serial number.

Thanks to their simpler design, passive RFID tags are more affordable than active ones, making them ideal for tracking large quantities of equipment such as IT and AV technology, furniture, lab equipment, and presentation devices.

The scanning range depends on the tag's frequency. Ultra-high frequency (UHF) RFID tags can be scanned from several meters away, while high-frequency (HF) tags typically have a range of less than one meter.

The benefits of RFID tags:

  • Possibility to read asset tags from a distance up to tens of meters

  • Ability to scan multiple tags simultaneously

  • Possibility to scan asset tags through different kinds of material, such as fabrics, wood plastic, glass, or dirt

The shortcomings of RFID tags:

  • Remote scanning requires a special RFID scanner

  • Active RFID tags can be costly

Suitable use cases for RFID tags:

  • Remote scanning allows fast inventories

  • Ability to scan equipment that is located in challenging places, such as high in an auditorium ceiling

  • Ability to place the asset tag inside an item or fabric so that the tag is not visible

Asset labels

What is NFC?

NFC stands for Near Field Communication. It is an application of RFID technology and allows scanning from very short distances.

A common application for NFC is, for example, the credit cards or mobile apps that allow payments by simply taking the card or phone next to the payment terminal.

A key technical difference between common RFID asset tags and NFC tags is that an NFC device can function as both a tag and a scanner simultaneously. Active NFC enables two devices to exchange information, such as when you use your smartphone to pay for theatre tickets and instantly receive the tickets from the theatre’s NFC system.

Communication can also be one-way, where an active NFC device scans data from a passive tag. In this case, the NFC device generates a radio frequency to initiate the transfer, and the passive tag activates only when it detects the frequency, sending its information to the active device. Passive NFC tags are typically simple, like stickers or cards.

How to use NFC asset tags in equipment management?

NFC asset tags allow you to identify individual items and access the item’s details, especially when you are using an equipment management system together with the tags.

The question remains about what are the benefits of using NFC technology compared to other options for asset tags.

One clear advantage is that a smartphone can serve as an active NFC device. By tagging your equipment with NFC tags, you can identify assets without needing separate scanners. Simply bring your phone close to the NFC tag, and it can access the item information stored in your equipment management software. This provides constant access to detailed asset information on a per-item basis.

Another benefit is that an active NFC device does not need a direct line of sight to the NFC tag. It can read through various materials, similar to RFID tags. This means NFC tags can be used on equipment that may get dirty; even if there's a layer of mud on the tag, it can still be scanned.

The benefits of NFC tags:

  • Can be scanned with a mobile phone without a separate scanner

  • Can be scanned through different materials

The shortcomings of NFC tags:

  • Short scan range (only a few centimeters)

Suitable use cases for NFC tags:

  • Identifying equipment that gets easily dirty

  • Identifying equipment that is easy to access due to short scan range

QR codes and barcode tags

Even if you haven't encountered RFID or NFC technology today, you're likely familiar with QR codes or barcodes. If not, just take a look at any groceries in your kitchen; you'll find at least a barcode, and possibly a QR code as well.

Linear barcodes (e.g., EAN codes) are known as 1D barcodes, while newer QR codes and data matrices are classified as 2D barcodes. For simplicity, I refer to both types collectively as "barcodes."

Over the past few decades, barcodes have become ubiquitous across nearly all industries. They are very inexpensive and easy to produce, which is why they are widely used, even for temporary applications such as in postal services or fast-moving consumer goods.

Asset labels

The cost-effectiveness and ease of production of barcodes have limited the adoption of RFID and NFC technologies. In many cases, other asset tag types have not offered enough benefits to justify their higher price compared to barcodes.

1D and 2D barcodes

Linear 1D barcodes are the familiar barcodes with parallel vertical lines. Like other tags, they typically contain a short string of characters, often referring to an asset’s identifier. However, many barcode standards, such as EAN, can store surprisingly large amounts of data. For instance, barcodes on many invoices today can include information such as the total sum, due date, account number, and reference number.

Matrix codes, or two-dimensional (2D) codes like QR codes, Data Matrix, NexCode, Shotcode, and PDF417, can store even more information than linear barcodes. As the name suggests, 2D barcodes present information in two dimensions, enabling greater data capacity. QR codes, for example, are often used to direct users to websites or applications for additional information.

From an equipment management perspective, a barcode containing a short character string is sufficient. Modern equipment management software uses this string to identify individual items and provide users with access to detailed information within the system.

Watch a video about how to tag and track assets

Barcode and QR code scanners

Barcode asset tags can be read using either a dedicated scanner or a mobile phone. Basic scanners are available for under 20 euros, while more advanced models can cost several hundred euros.

When using barcodes for asset tracking, it's important to invest in a reliable and durable scanner. For instance, there was a reported case where a low-quality scanner nearly caused a warehouse fire due to overheating during use.

Reader devices

You can also read barcode asset tags with a smartphone. Most phones come with built-in barcode and QR code scanners, and many apps utilize the phone’s camera for scanning.

However, dedicated scanners have a clear advantage in speed. They can rapidly process multiple barcode tags, while mobile phones often require reopening the scanner app after each scan. This makes dedicated scanners especially useful in situations where large quantities of equipment need to be scanned, such as in theatre productions or on construction sites.

For quick access to item information, a smartphone works well. Scanning the barcode asset tag with your phone allows you to instantly retrieve item details within your equipment management app. Advanced systems also let you perform actions like reporting defects, logging maintenance, conducting inventories, or reserving items.

The benefits of barcode and QR code tags:

  • Most cost-effective solution

  • Easy to produce

  • Can be scanned with a smartphone without dedicated scanners

The shortcomings of barcode and QR code tags:

  • The scanner needs to have a visual connection with the code, asset tags cannot be hidden inside the equipment

  • The labels must be scanned one by one

Suitable use cases for barcode and QR code tags:

  • Due to their affordability, you can tag a large number of assets. This applies nicely to for example furniture, props, tools, IT equipment, AV equipment, presentation technology etc.

  • Tagging equipment that is used actively. Barcodes do not have a long scan range but they are easy to scan when collecting equipment on a project, for example.

Summary

Different use cases require different solutions, so it's important to first assess your needs and then select the most suitable tags. You may also opt for a combination of tags, such as barcodes for frequently handled equipment and RFID tags for hard-to-reach items, like those on ceilings.

However, tags alone are not enough. Effective equipment management requires a digital system to store asset information and manage operations such as maintenance, inventories, and reservations. Without such a system, tags serve as little more than visual identifiers with limited value.

Labelling your equipment with asset tags involves a significant initial effort. If you have a large volume of equipment, ensure you allocate enough time and resources for the tagging process. The good news is that this is a one-time task. Once your equipment is tagged, maintaining asset data becomes much easier, providing improved tracking capabilities.

Join our fast growing Trail-community and let's build the future of equipment management together.

© 2025 Trail Systems