Why Use RFID Pallet Tags for Supply Chain Automation

If you have ever been to a grocery store or any type of store, then you might see a locker that scans individual items before putting them back on the shelf. He or she is checking the stock keeping unit (SKU) to help keep track of what is on the store’s shelves, what is in stock, and what may disappear due to inventory reduction. Often encountered in the supply chain caused by human error and program control errors. Currently, more and more companies are adopting a higher level of supply chain automation to ensure compliance with process control.

The advantages of this automation are obvious. Not only does it reduce the chance of serious and costly errors, but it also reduces labor costs. ASRS (Automatic Storage & Retrieval System) can run around the clock without rest or overtime. However, ASRS alone still lacks the traceability and transparency of the product inventory you find at retailers. To achieve this transparency, ASRS needs to be used in conjunction with a good warehouse management system and a method of tracking pallet loads.

Tracking Management in Supply Chain Automation

In the pharmaceutical industry, drug tracking across different supply chains is required to prevent theft, fraud and counterfeiting. The pharmaceutical industry is trying to surpass regulations by adopting different tracking and tracing measures, as well as removing products in the supply chain that may transfer its products. Many pharmaceutical companies use a combination of methods, including supply chain automation, scannable barcodes and RFID technology tracking.

There is a synergy between automation and tracking systems. An automated system can be equipped to scan barcodes or extract RFID transmissions so that inventory can be automatically tracked as it enters or leaves the storage warehouse. Each tracking method has its own advantages and disadvantages:


Advantages: They can be encoded according to the information that the shipper deems necessary. The product type, the quantity in each container, and the serial number of each container can all be associated with the barcode.

Disadvantages: The barcode must be physically scanned, which means that it must be fixed in a predictable location for the automatic system to find it. If the barcode is not placed correctly, the person with the scanner must manually scan the pallet and its load, which reduces the processing speed.


Advantages: The biggest advantage of pallet RFID tags are that they can read data at long distances and without precisely aligning the scanner. This makes it possible to record data of the entire truck load as soon as the truck reaches the gate.

Disadvantages: A big disadvantage of RFID technology is that establishing such tracking requires a large investment in RFID receiving equipment at multiple locations in the supply chain. The cost of receiving equipment is high, and a database needs to be created, which can be modified in real time by the automation system and on-site employees. This will also incur additional costs in development and training.

These two tracking methods essentially have the same function: In these two options, RFID is an advanced form of tracking a correctly configured supply chain because it is cleverly linked with an automated system and data can be recorded easily and accurately during shipment.


Durable plastic pallets (rather than ordinary wood) can be well integrated with ASRS and can be RFID enabled. It can be read remotely via RFID equipment. HUAYUAN has more than 20 years of R&D and production experience in the RFID industry. According to different pallets, we can provide different RFID pallet tracking tags.

1), Laminated PVC RFID Pallet Tags:

Laminated PVC RFID tags ideal used for plastic pallet. Screw installation or by glue, durable, anti-collision. Generally, the previously used tags to be replaced by using to insert card, and the tags are replaced every time when the turnover box is recycled. With plastic pallet RFID tag, there is no need to change the tag, just change the loading quantity through the system. The advantage of this product is its low cost. It can print customer logos, code, etc. in color.

2), Plastic Housing RFID Pallet Tags:

Plastic housing RFID tags with durable and long reading distance feature, by screw installation or insert into plastic container package.

In addition, we can also develop products according to customers’ special needs, and also provide readers or antennas. If you need more information about RFID pallet tags, please contact our sales team at info@huayuansh.com

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