RFID labels adoption: best practices from RFID experts

Strategy before labels

It is tempting to think of smart labelling as a technical add-on – a label with a chip, easily applied to existing packaging. But in reality, implementing RFID UHF or NFC smart labels requires much more than just sourcing tags and turning on scanners. It is a strategic undertaking that touches operations, IT, packaging, compliance, and even marketing.

Successful RFID labelling programmes do not begin at the printer – they begin at the whiteboard.

The companies that derive the most value from RFID UHF and NFC are those that approach implementation as a cross-functional change project, not a discrete procurement. They invest time upfront to:

• define clear business goals;
• understand their operational landscape;
• assess technical requirements and constraints;
• align stakeholders across departments; and
• build a sustainable and scalable roadmap.

In this chapter, we outline the practical steps required to plan and deploy you RFID labelling programme – from initial scoping to pilot execution, system integration, and scale-up. Whether your goal is to reduce shrinkage, improve inventory visibility, or enhance consumer engagement, this structured approach will help ensure that the project delivers measurable results.

Think of smart labelling not as a product, but as an enabler of business transformation. And like any transformation, success begins with clear intent, smart design, and the right partners.

Define your business objective

Before choosing tags, readers, or materials, you must be able to answer one essential question: Why are you doing this?

Every smart labelling programme must start with a clearly defined business objective. RFID technology can serve many purposes – from automation and accuracy to brand protection and compliance – but it cannot do everything at once. The clearer your focus, the more successful your deployment.

Typical objectives include:

• Inventory optimisation – reduce out-of-stocks, improve replenishment speed, enable omnichannel fulfilment.
• Loss prevention – reduce theft, diversion or fraud in the supply chain or point of sale.
• Anti-counterfeiting and brand protection – verify product authenticity, prevent parallel imports, protect reputation.
• Regulatory compliance – meet traceability requirements under laws such as the EU DPP, FMD, or DSCSA.
• Consumer engagement – deliver interactive content, loyalty programmes, or sustainability disclosures via NFC.
• Process efficiency – automate tasks such as stock counts, receiving, or line-side replenishment.

Not every objective must be pursued at once. In fact, most successful deployments begin with one clear priority, then expand as capabilities grow.

Engage stakeholders early

Clarifying your goal also helps identify the key stakeholders. For example:

• An inventory-focused pilot will require strong buy-in from operations and supply chain teams.
• A counterfeiting programme may need input from legal, compliance, and marketing.
• A direct-to-consumer NFC project will likely involve packaging, IT, and brand managers.

Cross-functional alignment is critical. Without it, smart RFID labelling risks becoming a fragmented initiative – one that never gains traction or delivers sustained ROI.

Set strategic framing, not tactical targets

Finally, while measurable KPIs will come later (eg read accuracy, scan time, tap rates), your business objective should frame the underlying value you seek to unlock.

For example:

• ‘Enable real-time replenishment to increase full-price sell-through by 5%’
• ‘Reduce counterfeit-related complaints by 90% within 12 months.’
• ‘Comply with FMD while reducing line-level recall risk.’

Clear intent ensures that every design, process, and partner choice supports the outcome that matters most.

Choose your use case and scope

Once you have a clear business objective, the next step is to define a specific use case. This means identifying the exact process, product line, channel, or facility where RFID labelling will first be deployed.

A well-scoped use case helps:

• clarify technical requirements;
• identify stakeholders and infrastructure needs;
• enable realistic planning and piloting; and
• produce focused, measurable outcomes.

Focus where impact meets feasibility

Not all use cases are created equal. The best starting points combine:

• high operational impact – where RFID can solve a costly or complex problem;
• technical feasibility – suitable packaging, clear read zones, existing data systems; and
• organisational readiness – engaged teams, supportive leadership, and defined ownership.

Common first-use cases include:

• item-level inventory tagging for a single store or region;
• NFC authentication on a premium product line;
• RFID-based receiving in a high-volume warehouse;
• returns validation for an e-commerce segment; and
• patient-level tracking in a clinical environment.

By narrowing scope – to one product category, location, shift, or team – you reduce risk and increase the likelihood of a successful pilot.

Define what success looks like

Each use case must have a clear definition of success. Common key performance indicators (KPIs) include:

• inventory accuracy (%)
• reduction in stockouts or markdowns
• tag read rate (%)
• counterfeit complaints (volume)
• scan or tap engagement rate (%)
• time saved per process (seconds/minutes)
• uptime or throughput improvements
• ROI within 6–12 months.

Where possible, measure a before-and-after baseline, so improvements are quantifiable.

Don’t overcomplicate your pilot

Avoid launching a multi-facility, multi-SKU programme from the outset. Instead:

• choose a manageable scope;
• prove value quickly; and
• gather lessons and stakeholder buy-in.

A strong pilot lays the foundation for scaled, sustainable deployment.

Select the right RFID technology stack

With your use case and scope defined, you can now select the most appropriate technology stack. This includes:

• RFID or NFC tag type;
• reader infrastructure;
• encoding and data standards; and
• software and system integration.

These choices must align with your performance needs, packaging format, operational environment, and technical ecosystem.

Tag selection

The most important consideration is choosing the correct tag type:

Here at Comex RFID, we can help shortlist tags based on:

• substrate and curvature;
• print method and adhesive;
• required read distance and angle; and
• compliance or food-safety constraints.

Reader infrastructure

Readers must match your process:

• handheld (eg Zebra, Nordic ID) for mobile stock counts;
• fixed readers (eg Impinj, SICK) for portals, gates, or conveyors;
• smartphones for consumer or field scanning; or
• integrated readers in cabinets, fridges, or pick stations.

Consider:

• read range and speed;
• interference sources (metal, liquid, other tags);
• integration with existing devices (eg POS, WMS terminals); and
• power and network availability.

A good systems integrator will help map your physical space and optimise antenna placement for reliable reads.

Data structure and encoding logic

You must define what information each tag will carry, such as:

• EPC/GTIN + serial number;
• batch or lot number;
• expiry date; or
• URL or encrypted payload.

For B2B supply chains, GS1-compliant encoding is often required. In consumer use cases, secure, unique links (eg via GS1 Digital Link or custom URLs) may be preferred.

Software and integration

RFID labels are only useful if their data can be captured and used. Choose your software layer carefully:

• RFID middleware (eg Nedap, Mojix, SML);
• encoding and commissioning platforms (eg NiceLabel, BarTender);
• integration with WMS, ERP, or PLM systems;
• NFC cloud platforms (eg Tapwow, Blue Bite, EVRYTHNG).

If you already use SAP, Oracle, or Microsoft Dynamics, make sure your RFID setup is compatible or API-ready.

When the technology stack is aligned with your use case, deployment becomes smoother, faster, and far more effective.

Evaluate your packaging and labelling processes

RFID labels are only effective if they can be applied consistently, read reliably, and encoded correctly. That means your existing packaging and labelling processes must be assessed – and possibly adapted – to support RFID UHF or NFC.

Understand your current label architecture

Begin by documenting:

• label size, shape, and material (facestock, adhesive, liner);
• application method (hand-applied, roll-fed, automated, inline);
• print type (digital, flexographic, thermal transfer);
• packaging substrate (cardboard, PET, glass, foil);
• available space and artwork constraints; and
• label volume and speed of application.

These factors will influence:

• whether standard inlays can be used;
• whether print-and-encode equipment is needed; and
• where the RFID inlay can be positioned without affecting aesthetics or readability.

RFID inlay integration

RFID inlays are thin, but they must be placed correctly within the label to:

• ensure optimal signal strength;
• avoid interference from foils or curved surfaces; and
• maintain aesthetic and branding goals.

We use RFID-friendly dies and placement guidelines to embed the inlay without damaging the chip or antenna. Face materials and inks may need to be adjusted to avoid signal dampening too.

You may also choose between:

• wet inlays – adhesive-backed and inserted during label conversion;
• dry inlays – non-adhesive, typically used in complex constructions; or
• integrated tags – for tamper-evident or dual-layer structures.

Assess your labelling machinery

Automated labellers must be:

• able to handle RFID labels without damaging inlays;
• correctly tensioned to avoid liner breaks or misfeeds; and
• optionally equipped with RFID read-write modules to encode and verify tags inline.

If using handheld or manual application, consider how staff will:

• distinguish RFID vs non-RFID labels;
• ensure correct placement and orientation; and
• verify tag functionality before packaging.

For higher volumes, you might need to consider retrofitting or upgrading applicators for RFID-aware labelling.

Tag orientation and environment

Environmental conditions matter. Test for:

• temperature and humidity during application;
• proximity to metal or liquid contents;
• friction, abrasion, or cleaning processes post-application; and
• risk of antenna bending, crushing, or folding.

Correct orientation – especially for UHF tags – ensures reliable reads at intended points (eg on conveyors, in handheld scanning zones, at pallet level).

A thorough packaging and process audit reduces downstream failures and maximises first-time read success.

Build your RFID-concious team

A smart labelling programme is not an IT project, nor just a packaging upgrade. It is a cross-functional transformation, requiring collaboration between departments and external partners.

Without clear ownership and integrated teams, even technically sound pilots may stall. With the right team, however, you can navigate complexity, solve problems early, and scale with confidence.

Internal stakeholders

Successful programmes involve at least the following roles:

You may also need support from:

• marketing or brand teams (for NFC or consumer use cases);
• facilities or automation staff (for readers, infrastructure); or
• procurement or supplier management (for tag sourcing and logistics).

External partners

You will likely require one or more of the following external partners:

• label converter – to produce RFID labels that match your packaging and application needs;
• hardware supplier – for readers, antennas, and encoders;
• system integrator – to link hardware and software, and configure middleware;
• software platform provider – for cloud dashboards, encoding logic, and analytics; and
• GS1 consultant or standards expert – for encoding structure and compliance support.

We, however, offer end-to-end solutions and can guide you through the entire process without any friction.

Prototype and test

Once your team, technology, and packaging plans are in place, the next step is to prototype and test. This phase ensures that your RFID labels will perform reliably under real-world conditions – and that your processes can support consistent application, encoding, and data capture.

Testing reduces costly surprises during rollout and provides the data needed to refine your design before scaling.

Functional testing

First, test whether the label functions as intended:

• Read range. Does the tag scan consistently from the required distance?
• Read angle. Is the signal reliable across all orientations in use?
• Material interference. Are there any issues with curved, metallic, or wet surfaces?
• Encoding success. Can tags be written to and locked with your planned data fields?

Use handheld readers, fixed infrastructure, or smartphones (for NFC) to simulate actual reading scenarios.

RF performance may vary significantly based on:

• product shape and material;
• placement on the package;
• label orientation relative to reader antenna; and
• stacking or nesting of products.

Adjust label design or reader configuration as needed to achieve >95–98% read reliability.

Environmental testing

RFID labels may be exposed to various conditions:

• extreme temperatures (cold chain, hot fill, autoclave);
• moisture and humidity (food, outdoor use);
• mechanical stress (conveyors, handling, abrasion); or
• storage durations (shelf life, warehousing).

Environmental testing should include:

• temperature cycling;
• water and chemical resistance;
• adhesion tests on your actual packaging materials; and
• durability of printed content (eg fade, scuff, smudge tests).

Simulate shipping, stacking, and opening to assess whether the label stays intact and functional.

Process simulation

Test your internal workflows:

• Can tags be encoded quickly at the print station or line?
• Can applicators handle the labels without damaging inlays?
• Are verification and void-detection systems working?
• Do staff understand where and how to scan?

Some issues only emerge at production speed or under real handling pressures – catch them before deployment.

Iterate and refine

Based on findings:

• adjust antenna type or label structure;
• tweak encoding logic or data fields;
• move label placement on the product;
• recalibrate reader power or angle; or
• change adhesives or liner for better application.

Document results and build a test report that defines your ‘go’ conditions – including minimum scan rates, error thresholds, and quality control protocols.

A robust prototyping phase gives your programme the confidence and credibility needed to secure broader roll-out support.

Train staff and align processes

Even the best smart labelling system will fail if users do not understand how to use it – or if it disrupts established workflows without clear benefits.

That is why change management and training are just as important as tags and readers. This phase ensures that your people and processes are prepared to support the new technology from day one.

Train the right teams

Different groups will need tailored training:

Use hands-on training with real samples and hardware, not just documentation. Ensure each group understands why RFID is being introduced – not just how to use it.

Update SOPs and quality protocols

Standard operating procedures (SOPs) should reflect the new workflows:

• when to scan tags;
• how to respond to scan failures;
• where to record tag data;
• what to do with voided or unreadable labels; and
• how to log exceptions or discrepancies.

Likewise, Quality teams should define:

• acceptable read rate thresholds;
• sampling procedures for encoded tags;
• visual inspection standards; and
• traceability logs and retention requirements.

Make compliance part of the routine – not an add-on.

Test integrated workflows

Ensure that:

• encoded data is correctly linked to production or order records;
• scanning triggers correct events in ERP, WMS, or CRM systems;
• exceptions are flagged and escalated as needed; and
• staff have access to reports and dashboards.

Workflow integration is often where projects succeed or fail. It must be tested and adjusted as rigorously as hardware or labels.

Measure, optimise, scale

Once your RFID labelling pilot is live, the next priority is to measure its performance, extract insights, and refine your setup before expanding further. This phase is where short-term experiments become long-term transformation.

The goal is not simply to ‘roll out RFID’, but to build a repeatable, value-generating system across your organisation.

Measure with purpose

Return to the KPIs defined during planning. Collect data on:

• tag read rate – success percentage during encoding, scanning, or tapping;
• process time – comparison of task durations (eg cycle counting, receiving);
• error rate – misreads, duplicates, or no-reads;
• inventory accuracy – improvements over pre-RFID baseline;
• shrinkage or loss reduction – incidents detected or prevented;
• consumer engagement – tap-through rate, dwell time, return visits; and
• ROI metrics – savings on labour, shrinkage, or order fulfilment costs.

Use both quantitative and qualitative feedback:

• What do staff find easier or harder?
• Where does the process slow down or fail?
• Are customers reacting positively to NFC-enabled packaging?

Build dashboards or reports that help tell the story – especially to senior decision-makers.

Optimise for scale

Even successful pilots usually reveal weaknesses:

• adjust label placement or antenna design for better readability;
• reconfigure scanner positioning or power;
• clarify staff roles or SOPs;
• refine integration logic for data flow; or
• reduce the number of tag types to simplify procurement.

This iterative optimisation improves reliability and cost-efficiency as you scale.

Develop a rollout roadmap

When you are ready to expand, treat scale-up as a phase-based programme, not a single event.

Scale by:

• facility (eg from one DC to national coverage);
• product family (eg premium SKUs to all SKUs);
• region (eg. high-value markets first); or
• use case (eg stock tracking to returns, to fulfilment, to consumer tap).

Each phase should have:

• clear targets;
• budget and resource planning; and
• documented learnings from previous phases.

A staged rollout avoids overloading systems or teams – and maximises internal adoption.

6 common RFID deployment pitfalls and how to avoid them

Many smart labelling projects fail – not because the technology is flawed, but because of misalignment, under-planning, or poor execution. By anticipating common pitfalls, you can greatly increase your chances of success.

Pitfall 1: Starting with the tag, not the goal

Many projects begin by choosing a tag, then trying to make it fit. This often leads to technical mismatches, poor read rates, or unclear value.

Avoid it by:
Starting with your business objective, use case, and environment – then selecting the right tag, reader, and encoding strategy.

Pitfall 2: Skipping process integration

RFID tags must trigger meaningful system events. If your ERP, WMS, or CRM is not integrated, the tag becomes a dead-end.

Avoid it by:
Engaging IT early and mapping how tag data will flow into your core systems. Use API-ready middleware or proven platforms.

Pitfall 3: Underestimating change management

Staff may resist new devices, scanning protocols, or process steps – especially if benefits are not obvious or training is insufficient.

Avoid it by:
Involving frontline users early. Explain the ‘why’, provide hands-on training, and embed SOP changes into day-to-day operations.

Pitfall 4: Poor data discipline

Duplicate tags, inconsistent encoding, and lack of version control can cause downstream errors or failed integrations.

Avoid it by:
Defining clear encoding rules, using GS1 standards where applicable, and enforcing quality checks at every step.

Pitfall 5: Failing to test in context

Bench testing is not enough. Tags may behave differently on live packaging, in full production flow, or under temperature and handling stress.

Avoid it by:
Conducting full environmental and process testing before launch. Simulate worst-case scenarios, not just best-case conditions.

Pitfall 6: Trying to do everything at once

Overly ambitious scope often leads to missed deadlines, budget overruns, or internal fatigue.

Avoid it by:
Starting small, with a focused pilot. Prove value, build momentum, and expand with each success.

By recognising these pitfalls, you can avoid the most common reasons why RFID labelling initiatives underperform – and build a resilient, scalable foundation instead.

Treat it like transformation

RFID labelling is far more than a technical upgrade – it is an operational transformation. The act of placing a chip inside a label opens the door to better visibility, faster decisions, stronger compliance, and deeper engagement. But achieving those outcomes requires more than just the right hardware.

It requires:

• strategic intent;
• thoughtful planning;
• cross-functional collaboration;
• rigorous testing; and
• commitment to scale only when ready.

Throughout this chapter, we have shown that success in RFID UHF and NFC deployments depends on:

• choosing a clear business objective;
• scoping a manageable use case;
• selecting technologies that match the environment;
• adapting packaging and label workflows;
• building an informed, cross-functional team;
• prototyping in context;
• training users and embedding processes; and
• measuring success and scaling with discipline.

When these elements are aligned, even a small pilot can deliver enterprise-wide impact. Inventory turns improve. Shrinkage falls. Product trust increases. Customers engage. Processes simplify. Compliance strengthens.

And what begins as a tag becomes a platform – not just for data collection, but for business evolution.