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6 examples of RFID supply chain use cases
Explore real-world RFID supply chain examples and how visibility into assets, inventory and goods supports better planning and risk management.
RFID isn't new, but the role it plays inside the enterprise is changing. As supply chains become more distributed, automated and exposed to external risk, leaders are placing more value on technologies that provide reliable, real-time visibility into physical assets and inventory. RFID has quietly become one of those enabling layers -- not because the technology itself has changed dramatically, but because the decisions built on top of it have.
While RFID is a comparatively older technology, industry analysts predict RFID use in the supply chain will keep growing. To understand why RFID is a powerful tech, it helps to understand where companies employ it. Organizations use it for inventory management, goods and asset tracking, returnable asset tracking, authentication of goods and cross-docking.
An RFID system is composed of a transponder, which is the RFID tag; a scanning antenna and a receiver, which are usually put together to create a reader; and the network that stores data and sends it to wherever it's needed. RFID tags have various supply chain applications.
Over the past decade, the cost of RFID tags has dropped as their accuracy has increased, which has led to positive ROI for companies that invest in the technology, said Abdil Tunca, senior principal analyst in the logistics and customer fulfillment team at Gartner.
While many organizations still deploy RFID to solve specific operational challenges, its value increasingly extends beyond day-to-day execution. As enterprises invest in AI-driven forecasting, automation and resilience planning, RFID data is becoming a critical input into broader decision-making -- shaping how leaders assess risk, allocate capital and respond to disruption across complex, multi-partner supply chains.
Where RFID creates decision-level impact
1. Inventory management
RFID tags enable real-time visibility into specific items across facilities, giving organizations a clearer, more current view of inventory positions as conditions change.
RFID tags also enable workers to access that data without having to walk to another section of a warehouse to find the item.
Inventory management is one of the most common supply chain-related use cases for RFID, Tunca said.
Possessing insight into item locations can help supply chain leaders carry out better operations planning as well.
Amber Schwiesow, vice president of procurement and supply chain at a telecommunications company and board member of the Association for Supply Chain Management, said her company uses RFID tags to verify which high-value assets are in which facilities at a given time. The data helps ensure employees have access to the right items when needed to fulfill their work orders.
2. Goods tracking
RFID tags are also helpful for tracking goods over longer distances.
Organizations can use RFID tags to track individual containers filled with goods as the containers are transported across oceans or long stretches of land, Tunca said. Supply chain leaders could also decide to track each item if the items are high value enough to warrant the cost of so many RFID tags.
RFID tags can provide leaders with greater confidence in inventory location and handoff points, particularly when goods move through third-party partners.
Supply chain managers can use RFID tags to gain more insight into products' locations when the items are being handled by third parties, such as customs brokers and third-party logistics carriers, said Jonathan Colehower, managing director of the global operations and supply chain practice at UST, a digital transformation software provider located in Aliso Viejo, Calif.
3. Asset tracking
RFID tags can provide insight not only into the location of warehouse equipment but also into its past use history and upcoming maintenance needs.
When RFID is combined with analytics and other IoT technologies, it can store and transmit data about where and how equipment is used, Tunca said. The data can reveal information, such as the need for upcoming maintenance for a forklift.
The data can also provide insight into how warehouse employees are using the equipment so their supervisors can issue corrections if needed, he said. For example, the data might reveal that workers are using a forklift for a certain task when a more energy-efficient pallet jack does the job better.
This insight can support both cost control and corporate sustainability efforts by reducing unnecessary equipment use and improving asset utilization.
4. Returnable asset tracking
RFID tags can provide insight into the location of items that are supposed to be returned to their company.
Some supply chain managers are using RFID-enabled systems to track reusable assets, such as bins, containers and pallets, that are often shipped with inventory to other destinations with the expectation -- and agreement -- that the recipients return them, Tunca said.
"In a warehouse environment, most of the time, these items aren't returned when they should be," he said.
RFID can help organizations reduce losses tied to misplaced or unreturned assets -- costs that often remain hidden without consistent tracking.
5. Authentication of goods
RFID tags can help verify product authenticity.
Similar approaches are also gaining traction in other regulated and high-risk industries where provenance, compliance and brand protection intersect.
When a person scans an RFID tag for a product, the tag can confirm that an item came from a certain manufacturer and show its origin point.
This use of RFID technology is most commonly found in the pharmaceutical industry, Tunca said.
6. Cross-docking operations
RFID tags can potentially be helpful during the process known as cross-docking, in which goods that are received at one dock are immediately shipped out to waiting vehicles on another loading dock, bypassing the warehouse.
Cross-docking has gained popularity as supply chains have grown more complex.
The process can be challenging, particularly at scale, but RFID tags' insight into product location can help reduce misroutes and delays that quickly cascade into larger operational disruptions.
What leaders should ask about RFID in the supply chain
As RFID moves from a tactical tracking tool to a strategic visibility layer, senior leaders should focus less on the technology itself and more on how its data is used across the organization. Useful questions include:
- Where does RFID data flow today, and who actually uses it?
Does it inform only operational teams, or does it feed planning, forecasting and risk discussions at higher levels? - How well is RFID data integrated with analytics, AI and enterprise systems?
Visibility has limited value if it remains siloed from ERP, supply chain planning or automation platforms. - What risks remain invisible without physical-world data?
Where do delays, losses or compliance gaps surface too late because location and status data aren't available in real time? - Which decisions improve measurably with better visibility?
Inventory allocation, capital planning, third-party accountability and sustainability reporting often benefit directly from more accurate asset and goods tracking. - Who owns RFID strategy as the organization scales?
As use expands across partners and regions, governance, standards and accountability become as important as deployment.
Framing RFID around these questions helps leaders evaluate it not just as a technology investment, but as part of a broader digital supply chain and risk management strategy.
RFID's value in the modern supply chain is no longer defined by the tags themselves, but by the visibility and accountability they enable. As supply chains become more automated, data-driven and exposed to external disruption, technologies that connect physical assets to enterprise decision-making grow in strategic importance. For executive teams, the challenge is not whether RFID belongs in the supply chain, but how its data is governed, integrated and used to support faster, more confident decisions across the business
Editor's note: This article was updated in January 2026 to improve the reader experience.
Mary K. Pratt is an award-winning freelance journalist with a focus on covering enterprise IT and cybersecurity management.
