Warehouse worker in safety gear scanning metal sheets while organizing inventory in a spacious, well-lit industrial facility

How can I implement RFID or barcode tracking for cut steel parts

In today fast-paced steel industry, efficient tracking of cut steel parts is essential for accuracy and productivity.

Traditional manual methods often lead to errors and lost time. By implementing advanced solutions like RFID or barcode tracking, businesses can ensure seamless traceability and smarter inventory management.

This article explores the best practices for streamlining your steel parts tracking process.

Why Track Cut Steel Parts?

Tracking cut steel parts is essential for
  • Inventory Accuracy: Prevents loss, misplacement, and overstocking.
  • Traceability: Enables compliance with quality standards and customer requirements.
  • Operational Efficiency: Reduces manual labor, speeds up audits, and streamlines workflows.
  • Error Reduction: Minimizes human error in identification and shipping.
  • Data-Driven Decisions: Provides real-time insights for process optimization and cost control.

Warehouse worker using a tablet to check inventory on shelves, aisles of stocked racks and a display showing 99.8% accuracy

RFID and Barcode Technologies

What is RFID?

Radio Frequency Identification (RFID) uses radio waves to identify and track tags attached to objects.

Handheld scanner reads an industrial asset tag on a metal bracket while robotic welding sparks fly in a factory background

For steel parts, specialized on metal RFID tags are required to overcome signal interference from metal surfaces.

RFID systems can read multiple tags simultaneously, do not require line-of-sight, and are highly durable in industrial environments 

Types of RFID Tags

  • Passive: No battery, powered by reader; cost-effective, moderate range.
  • Active: Battery-powered; long range, higher cost.
  • On-Metal: Engineered for reliable performance on steel surfaces. 

What is Barcode Tracking?

Barcode tracking uses printed labels (1D or 2D codes) scanned by optical devices.

Worker scanning a QR code etched on a metal plate with a handheld barcode scanner in an industrial factory with robotic arms

For steel parts, durable labels or direct part marking (DPM) with Data Matrix codes are preferred due to their compactness and resistance to harsh conditions 

Barcode Types

  • 1D (Linear): Simple, low data capacity.
  • 2D (QR, Data Matrix): High data capacity, compact, omnidirectional scanning.
  • Data Matrix: Industry standard for DPM on metal; highly durable and space-efficient.

RFID vs Barcode: Key Differences for Steel Parts

Feature RFID Barcode (Data Matrix)
Read Range 1–10m (passive), 100m+ (active) Close range (label/DPM)
Line-of-Sight Needed No Yes
Bulk Reading Yes (hundreds at once) No (one at a time)
Durability High (on-metal tags) High (etched/engraved DPM)
Cost per Tag/Label Higher (on-metal tags) Low (labels), moderate (DPM)
Environmental Suitability Excellent (with right tags) Excellent (with DPM/metal labels)
Integration Complexity Higher Lower

Note: RFID is ideal for high-volume, automated environments; Data Matrix barcodes excel in harsh conditions and for direct part marking.

Step-by-Step Process: Implementing RFID Tracking

1) Define Objectives and Map Processes

  • Identify tracking goals (inventory, WIP, shipping).
  • Map steel part flow and critical tracking points.

2) Select Hardware

  • Tags: Choose on-metal, rugged RFID tags rated for your environment (heat, chemicals, abrasion).
  • Readers: Deploy fixed readers at gates, workstations; use handhelds for audits.
  • Antennas: Select for coverage and tag orientation.
  • Printers: For encoding and printing RFID labels if needed.

3) Prepare Surfaces and Attach Tags

  • Clean and dry steel surfaces for adhesive tags.
  • Use mechanical fasteners (rivets, screws) or welding for maximum durability.
  • Test tag placement for optimal read rates.

4) Integrate with Software

  • Connect RFID data to ERP, WMS, or inventory management systems.
  • Use middleware for data filtering and analytics.

5) Pilot and Test

  • Run a pilot on a small batch of parts.
  • Validate read rates, data accuracy, and process impact.

6) Train Staff and Roll Out

  • Train operators on tag application and reader use.
  • Expand deployment based on pilot results.

Step-by-Step Process: Implementing Barcode Tracking

1) Choose Barcode Type and Label Material

  • Use Data Matrix codes for DPM or rugged labels for harsh environments.
  • Select industrial-grade printers and label materials (polyester, anodized aluminum).

2) Mark or Label Steel Parts

  • For DPM: Use laser etching or dot peen marking.
  • For labels: Apply to clean, accessible surfaces; use protective overlays if needed.

3) Deploy Scanners

  • Use handheld or fixed 2D barcode scanners rated for industrial use.
  • Ensure scanners are compatible with DPM and can handle varied lighting and angles.

4) Integrate with Software

  • Connect scanners to inventory or asset management systems.
  • Automate data capture and reporting.

5) Pilot and Validate

6) Train and Roll Out

  • Train staff on labeling, scanning, and data entry.
  • Monitor and refine the system post-deployment.

Choosing the Right Solution for Your Operation

Scenario Recommended System
High SKU volume, harsh environment, need for automation RFID
Low SKU volume, budget constraints, simple tracking Barcode
Hybrid needs (e.g., some high-value, some low-value parts) Combine both

Best Practices and Common Pitfalls

Best Practices

  • Use on-metal RFID tags or DPM Data Matrix codes for steel parts.
  • Pilot before full rollout to validate technology and processes.
  • Integrate with business systems for real-time visibility.
  • Train staff thoroughly on new procedures.
  • Regularly review and update tags, readers, and software.

Common Pitfalls

  • Using standard RFID tags on steel (signal loss).
  • Poor surface preparation (labels/tags fall off).
  • Inadequate system integration (data silos).
  • Skipping pilot phase (unforeseen issues).
  • Insufficient training (user errors).

Conclusion

Implementing RFID or barcode tracking for cut steel parts is a proven way to boost efficiency, accuracy, and traceability in manufacturing and construction.

Start by defining your objectives, selecting the right technology and hardware, piloting your solution, and integrating with your business systems.

With careful planning and adherence to best practices, you can achieve a rapid ROI and set the foundation for data-driven operations.

Frequently Asked Questions (FAQs)

1. What barcode type is best for steel parts?

Data Matrix codes, especially when directly marked (DPM) via laser or dot peen, offer the best durability and traceability.

2. How do I ensure tag/label durability?

Use industrial-grade materials, proper surface preparation, and secure attachment methods (mechanical or welded for RFID; etched/engraved for barcodes).

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