RFID in 2025: Cutting Losses and Improving Supply Chain Tracking

It’s Friday afternoon. A shipment of high-value components went dark two days ago, and production is idling. Your system shows nothing unusual, but your contract packager and 3PL have conflicting information.

For many supply chain managers, this scenario is all too common. Once products move beyond your facility, visibility fades. That’s where RFID in the supply chain is making a difference. By capturing real-time data automatically — without line-of-sight scanning or manual entry — RFID turns guesswork into facts, helping teams reduce loss, improve accuracy, and respond faster.

What Is RFID in the Supply Chain?

RFID (Radio Frequency Identification) uses radio waves to identify and track items. An RFID system has two parts:

• Tags — small chips or labels attached to products, cases, or pallets
• Readers — devices that capture data from tags automatically

For supply chains, this means inventory can be tracked continuously as it moves through warehouses, ports, and partner facilities — without workers scanning each item.

Most companies use UHF RFID built on GS1 EPC standards, which ensure performance and interoperability across global partners.

Why RFID Supply Chains Matter in 2025

The benefits of RFID are practical and measurable:

• Real-time visibility — See what’s in stock, where it is, and how it’s moving.
• No line-of-sight scanning — Readers capture multiple tags at once, saving hours of labor.
• Fewer errors — Automated capture reduces mistakes from manual data entry.
• Continuous monitoring — Alerts flag missing or misrouted items, exposing recurring bottlenecks.

Together, these capabilities improve inventory accuracy, operational speed, and supply chain resilience.

Barriers to RFID Adoption

If RFID is so valuable, why isn’t it everywhere yet? Adoption can be slowed by:

• Tag and infrastructure costs — While prices continue to fall, tagging at scale requires investment.
• Integration with legacy ERPs — Many systems weren’t built to process RFID data.
• Partner data silos — Even with RFID in place, visibility breaks down if partners don’t share information in real time.

Despite these hurdles, adoption is rising as managers prove ROI through targeted pilots.

Real-World RFID in Supply Chains

The apparel industry is the most established example. Global retailers sew RFID tags into garments at production, then use them to:

• Track items from factory to store
• Improve in-store inventory accuracy
• Reduce theft and shrinkage
• Speed checkout with RFID-enabled systems (Avery Dennison RFID case study)

Other industries are adopting similar practices:

• Industrial manufacturing: RFID tracks returnable containers, spare parts, and tools — cutting losses and improving asset utilization.
• Food and beverage: RFID paired with sensors monitors cold-chain shipments, sending real-time alerts when temperature thresholds are exceeded, protecting product quality.

These use cases show how RFID inventory tracking can move from pilot to proven value across different sectors.

How RFID Strengthens Supply Chain Visibility

RFID should be seen as a data-capture tool alongside barcodes and IoT sensors. Its true impact comes when RFID events are integrated into visibility platforms.

Solutions like ACSIS Supply Chain Visibility and Traceability can consume RFID data and share it across contract manufacturers, 3PLs, and distributors. That shared view reduces blind spots and enables faster, fact-based decisions.

Getting Started with RFID Supply Chain Pilots

If you’re considering RFID in 2025, here’s a practical approach:

1. Map visibility gaps — Identify where delays or errors hit hardest.
2. Pilot RFID in one area — Focus on high-value products or sensitive shipments.
3. Use hybrid tracking — Combine barcodes and RFID until full rollout makes sense.
4. Connect to your ERP — Feed RFID data into existing systems instead of replacing them.
5. Expand with proof — Scale once ROI is clear in accuracy and efficiency.

Key Takeaway for Supply Chain Managers

RFID isn’t a silver bullet, but it is a proven enabler of supply chain visibility. By automating data capture, reducing errors, and providing real-time alerts, RFID helps managers prevent small problems from turning into costly disruptions.

Apparel has shown RFID’s value at scale. Now, industrial and food supply chains are adapting the model to strengthen resilience and efficiency.

Curious how RFID could close gaps in your supply chain? Explore the ACSIS Resource Library for insights and customer case studies.