As smart, connected and autonomous systems are integrated into the supply chain, RFID technology is enabling packaging to become the anchor point for visibility, protection and trust. Packaging becomes the physical layer where RFID’s tracking, sensing and authentication capabilities help safeguard the supply chain by creating a digital connection between it and each shipped unit.
Expanding role of RFID-enabled packaging
Packaging today extends far beyond the outer cardboard or shipping box to include the carriers that enable authentication, security, and traceability of goods. These can range from premium product packaging to reusable transport items and logistics packaging.
Industry 4.0 has transformed manufacturing and industrial practices, leading to a smarter, more adaptive, and data-driven packaging operation.
Industry 5.0 builds upon the automation and data exchange of Industry 4.0 by emphasizing human-centricity, sustainability, and resilience. RFID technology plays a pivotal role in this evolution by enabling smarter collaboration between humans and machines, supporting sustainable packaging practices, and enhancing supply chain resilience through real-time visibility and predictive analytics.
There are six primary ways these benefits are delivered throughout the supply chain:
Real-time data capture
Embeddable RFID tags allow for real-time tracking and visibility, transforming how businesses manage packaging and returnable transport items (RTIs) while supporting data integration and digital twin concepts for the real-time virtual representation of an object, process or system.
By automating asset identification, RFID dramatically reduces cycle times and manual labor, and tags can also be programmed for access-control applications. Because hundreds of tags can be read simultaneously with minimal infrastructure. RFID tags also streamline operations, reduce human error, and enhance traceability.
Convergence
Today’s maintenance-free passive RFID tags ideal for bridging the physical and digital worlds in asset tracking and brand protection applications. They reduce processing time and labor costs associated with physical inspections and manual item verification. Consumers can scan reusable mailer bags with embedded tags using their smartphones and gain access via the app to marketing offers and incentives that encourage bag returns.
Condition-sensitive logistics monitoring
Passive RFID tags embedded directly into packaging materials or RTIs enable this type of monitoring in condition-sensitive logistics applications that require durable long-term, operation, across multiple supply chain stages without requiring batteries or external power.
By tracking temperature fluctuations, moisture exposure and other environmental conditions, passive RFID sensors help ensure product integrity in sectors like cold chain logistics, medical transport, and industrial storage. Businesses can respond proactively to risks—without relying on separate temperature loggers or moisture indicators. RFID becomes more than a tracking tool, acting as a smart, environmental-data sensor platform for protecting sensitive goods, ensuring compliance, and reducing spoilage or damage.
The same platform can be used for brand protection, authenticity verification and more. Passive RFID tags combat counterfeits by helping ensure that only authorized, genuine RTIs are circulated. They help lower maintenance costs by avoiding repairs on non-compliant units and mitigate the risk that a wrong item is used in controlled, life-critical processes. The same goes for luxury goods, medical devices, rental items, and critical infrastructure components. RFID tags can help ensure that only genuine products are used, and are much more robust and secure than barcodes, QR codes or manual entry.
End-to-end supply chain visibility
RFID makes it easier to understand each supply chain step. It provides item-level traceability, chain-of-custody certification and recall readiness that enhances transparency.
RFID enables real-time tracking of the movement and utilization of RTIs from pallets and crates to kegs and containers across the supply chain. By tagging RTIs, businesses gain visibility into asset location, dwell time, and circulation patterns, which helps reduce shrinkage, optimize asset usage, and lower replacement costs.
From disposable items to limited-use assets, RFID improves tracking, control, and efficiency. Imagine knowing exactly how much of a product is in inventory without manual checks, or how quickly items are being used to support just-in-time inventory replenishment. RFID technology is used across industries, including aerospace, automotive, construction, healthcare, hospitality, infrastructure, manufacturing and retail.
For example, some aerospace companies use RFID in industrial packaging to streamline operations and parts management, ensure safety and maintain compliance. Manufacturers also apply tags to packaging units that move through production to track work-in-progress.
Packaging for tools, adhesives and sealants often includes RFID tags for streamlined tracking of expiration dates to ensure compliance with safety protocols. RFID tags are also used in packaging to reduce liability risks by helping track inspections, repairs, and replacements.
Seamless Industry 5.0 technology integration
With RFID tags, every package is a source of real-time data. As items move through production, warehousing and distribution, RFID readers automatically capture their identity, location and status, feeding this information into IoT platforms and digital twins. This ensures that inventory systems, production schedules and logistics networks always have an up-to-date view of where products are and in what condition.
This packaging data can also be used to identify trends, reduce waste and optimize supply chain performance, while AI and machine learning can analyze RFID data to predict demand, maintain a steady supply of goods and even identify potential quality issues based on movement patterns. Other Industry 5.0 technologies, such as autonomous robots, cloud platforms and augmented reality, can ingest RFID data to ensure accuracy, make decisions and share relevant insights across the supply chain or with partners.
Sustainability and waste reduction
RFID technology in packaging plays a key role in helping companies meet Extended Producer Responsibility (EPR) requirements. It integrates with Digital Product Passports (DPPs) to give them item-level traceability as they consolidate product information, origin and lifecycle data into a single digital record. This allows businesses to monitor packaging usage, recovery, and recycling outcomes more accurately, which improves compliance with sustainability regulations and waste reduction. The interoperability of RFID systems across supply chains ensures that data can be shared seamlessly between partners, making it easier to track packaging lifecycle and contribute to circular economy goals.
Helping to fuel the industry
RFID tags deployed throughout the supply chain transform containers and goods into data-rich assets. They connect the physical and digital worlds to enable real-time visibility, seamless integration with connected technologies, and enhanced security, all without changing packaging design. They are helping to drive a quiet but powerful revolution in packaging,
Using RFID for passive sensing solves a variety of supply-chain challenges. It improves the integrity of the products being processed while also eliminating the need for costly separate measurement devices and manual inspections. The passive RFID tags’ combination of durability and reusability further improves sustainability initiatives, reducing packaging waste and simplifying regulatory compliance.
Finally, RFID gives companies actionable insights, operational efficiency and competitive advantage. In a world where the supply chain’s performance and its ability to protect item authenticity are critical, RFID technology positions packaging at the center digital transformation.
