RFID technology can be used universally. With RFID companies are able to close the gap between information and material flow. The technology offers a variety of new possibilities in various branches and application areas like logistics,  management of goods, industry automation, maintenance, services and identification. In many case RFID is able to replace the barcode or the optical recognition of objects. But RFID should not only be considered as a replacement for the barcode technology but rather seen as a possibility to redesign processes. RFID can be an enabler for many new possibilities and optimisations.

Advantages of RFID technology towards the barcode:

• contactless identification (without visual)
• penetration of different kind of material like cartons, wood etc
• re-reading and rewriting of the memory multiple times
• very fast identification. less than a second
• simultaneous capturing of great number of transponders through pulk reading
• resistance towards most of environmental influences
• form factor and size of the transponders are customizable
• transponders can be integrated/inmoulded into objects
• high level of security through copy protection/encryption
• the RFID chip is a memory container, where product data can be stored. No redundant database is needed, to receuve information.
• the caputuring of tagged objects towards the barcode is more than 20 times faster.
• If the RFID tags are coverd with dirt, reading capability is still available.
• The placement of the RFID tags is compared to the barcode not as complicated. As long as the tag is in the range of the reader, it can be read.

Disadvantages of the RFID technology towards the barcode:

• currently prices for RFID label are quite expensive compared to a barcode label (circa 15-20 Cent up to hundreds of Euro) But what do we mean with expensive? Example: If you want to protect your assets, let say a high value engine. What are 100 Euro for a tag if 10 of your engines are not fallen into your shrinkage account at the end of the year. In most cases the price is not the only variable that should be considered. There won't be a 1 cent tag! Think about new possibilities that RFID is offering, processes that can be now performed, that were impossible with the use of a barcode.  
• high integration costs 
• security concerns of the population

Photo shows a RFID smart label  that is integrated into a usual barcode label.

Advantages of barcode technology towards RFID:

• common technology
• worldwide standardisation
• very small investment to be made

Disadvantages of barcode technology towards RFID:

• strong influence through dirt, humidity and wear and tear
• limited memory capacity
• visual contact necessary 
• barcodes can be manipulated or copied through a third party
• static information