A paper label with a barcode works well in a dry, well-lit warehouse. It stops working in a cold store, in a damp building, under a film of grease, or when the operative is wearing gloves and has to line the scanner up with a crumpled label. NFC traceability solves that problem with a tag that is read by holding a phone close to it, with no line of sight, and that can also carry a unique identifier that is impossible to photocopy. In this guide we explain what NFC is, how it differs from RFID and from barcodes, how it is used to track batches and assets and, above all, how it is integrated with the ERP or management system, which is where traceability turns into useful information.
What is NFC and how does a tag work?
NFC (Near Field Communication) is a short-range wireless communication technology that operates at 13.56 MHz and is standardised in ISO/IEC 14443 and ISO/IEC 18092. It relies on the same principles as contactless public transport cards and mobile phone payments: a reader generates a magnetic field that powers the tag, and the tag responds with its contents. The working distance is a few centimetres, which in traceability is an advantage: you read what you mean to read and not whatever is next to it.
A passive NFC tag has no battery. It consists of a chip and a printed antenna, encapsulated in a sticker, a card, a key fob or an industrial housing that withstands temperature and humidity. The most common chips (NXP’s NTAG family is the market benchmark) offer between just over 100 bytes and a little under 1 KB of memory: enough for a unique factory identifier and a URL or a record in NDEF format, the NFC Forum standard that any phone understands. That is the second advantage over other technologies: any current Android smartphone or iPhone reads an NFC tag with no additional app, simply by being held close to it.
NFC versus RFID and versus barcodes
All three technologies identify objects, but they do not serve the same purpose. The table summarises the differences that matter in a traceability project:
| Criterion | Barcode / QR | UHF RFID | NFC |
|---|---|---|---|
| Reading | Optical, needs line of sight and a clean label | Radio, no line of sight, several metres | Radio, no line of sight, a few centimetres |
| Bulk reading | No, one at a time | Yes, dozens of tags per second | No, one at a time, deliberately |
| Reader | Handheld scanner or phone camera | Dedicated reader and antennas | Any current smartphone or a fixed reader |
| Harsh environments (cold, damp, grease) | Degrades with dirt and creasing | Good, with suitable tags | Good, with industrial housings |
| Cost per tag | The lowest | Low at volume | Higher than a barcode, lower than active RFID |
| Writing | No (it is reprinted) | Yes | Yes, with optional locking |
| Security | Can be copied with a photocopier | Depends on the chip | Unique factory identifier; chips with cryptographic authentication |
The rule of thumb is simple. If hundreds of packages have to be read as they pass through a loading bay, the answer is UHF RFID. If a specific batch, asset or container has to be identified at a checkpoint, with the operative’s phone and in an environment where paper does not last, the answer is NFC. And if unit cost is what counts and conditions are good, barcodes are still perfectly valid. In most plants all three coexist, and the traceability system must integrate them as what they are: different ways of capturing the same event.
How NFC is used to trace batches and assets
A traceability system records events: which object, at which point, at what time, by whom and with what result. NFC provides a fast, reliable way of capturing the “which object”. The usual flow is this:
- Encoding. When a batch, a container or an asset is registered, the system writes an identifier of its own to the tag or simply associates the chip’s unique factory identifier with the record in the ERP. Many implementations also write a URL containing that identifier, so that the tag can be read by any phone even if it does not have the app.
- Event capture. At each checkpoint (entry into production, temperature check, dispatch from the warehouse, receipt at destination, maintenance work) the operative holds a phone to the tag or passes the item over a fixed reader. The application records the event with date and time, user and, where applicable, geolocation, a photograph or a sensor reading.
- Consolidation in the management system. The event reaches the ERP or the traceability system, which links it to the batch, the order, the supplier or the asset. From there, the system builds the backward and forward traceability tree required by standards such as IFS Food and BRC, or the maintenance history of a piece of equipment.
In the agri-food industry this approach fits in with the requirement to reconstruct the traceability of a batch in under four hours and with labelling that complies with the EU regulations, as we explain in the guide to ERP software for the meat industry and abattoirs. Outside the food sector, the same principles apply to asset inventories, facilities maintenance, control of protective equipment, heritage assets and sample management.
Security: why the NFC identifier is not just another sticker
The unique factory identifier of an NFC chip makes duplication difficult, but does not prevent it altogether: there are chips that can emulate any identifier. Where traceability has to serve as proof of authenticity (designations of origin, high-value products, documents, seals), the answer is chips with cryptographic authentication, such as the NTAG 424 DNA family, which generate a message authentication code on every read that only the server can validate. The tag stops being a label and becomes proof that this physical object was in front of that reader at that moment.
How NFC is integrated with the ERP or management system
The tag is the visible part; the value lies in the integration. These are the components that have to be worked out:
Capture layer. A mobile application, native or PWA, that reads the tag, validates the event and sends it. It must work without coverage in cold stores, basements and metal-clad buildings, storing the events and synchronising them later. Fixed readers (on a production line or at a transit point) are integrated with the same layer over the network.
Services layer. An API that receives the events, authenticates them and validates them against the business rules: that the batch exists, that the step is consistent with the previous one, that the temperature is within range. This is where it is decided whether an anomalous event triggers an alert, a nonconformity or a hold on the batch.
The ERP data model. The NFC event has to land in the entities of the management system (batch, item, location, production order, asset, work order), not in a separate table. That is what allows traceability trees, audit reports and dashboards to come from the same place as production and the warehouse.
Printing and encoding. The tag must be encoded at the moment of registration, with an in-line printer-encoder or with the phone itself, and the system must keep track of which identifiers are assigned, free or retired.
Analytics. Once the events are consolidated, anomaly detection models can be applied that learn the normal patterns of transit time, temperature or handling and raise an alert when a batch deviates, before it reaches its destination. This is the approach we describe in CEDESA’s artificial intelligence projects.
What CEDESA has done with NFC
CEDESA has developed a smart NFC labelling system for the traceability of agri-food products as part of the “Burgos Emociona” project, with the Diputación de Burgos (provincial council): it replaces barcodes in environments where temperature and humidity are a problem, allows instant reading from a mobile device and maintains full traceability of the batch. In another project, for an agri-food client with IFS requirements, NFC tags embedded in the packaging record every movement of the product and the reader is integrated with the traceability ERP; the audit report that used to take four hours of manual work is now generated in under three minutes, as we describe in the article on artificial intelligence applied to the public sector. Our traceability systems for the agri-food industry integrate NFC, RFID, industrial scales and barcode readers on the same data model.
Steps for implementing NFC traceability in your company
- Define the events that matter. Not everything needs tagging. Start with the points where information is lost today or is entered by hand.
- Choose the physical format. Sticker, card, industrial housing or a tag embedded in the packaging, depending on temperature, humidity, surface (metal requires special tags) and service life.
- Decide on the level of security. The factory identifier for internal traceability; cryptographic authentication where the tag has to prove authenticity to third parties.
- Design the integration with the ERP. Which entity receives each event, which rules validate it and which reports are generated. This is the phase that determines whether the project succeeds.
- Pilot on one line or in one warehouse. Measure read times, errors and behaviour without coverage before rolling out further.
- Roll-out and training. The learning curve is short precisely because holding a phone up to something is a gesture everyone already knows.
Frequently asked questions about NFC traceability
What is the difference between NFC and RFID?
NFC is a subset of RFID technology that operates at 13.56 MHz with a range of a few centimetres and can be read by any smartphone. When people talk about RFID in logistics they usually mean UHF, which reaches several metres and can read many tags at once, but requires dedicated readers. NFC is for deliberately identifying one specific object; UHF RFID is for reading many as they pass.
Do you need an app to read an NFC tag?
To read a URL or text in NDEF format, no: current Android phones and iPhones read it simply by being held close. To record a traceability event with user, date, geolocation and rule validation, an app is advisable, because it is what ensures that the data reaches the ERP with the necessary quality.
Can an NFC tag be forged?
The factory identifier is difficult to duplicate, but not impossible. If the tag has to serve as proof of authenticity, chips with cryptographic authentication are used, which generate a different code on every read that only the server can validate. For internal traceability, the factory identifier associated with the ERP record is usually enough.
Does NFC work in cold stores or in damp conditions?
Yes, provided the right housing is chosen. Industrial tags withstand wide ranges of temperature and humidity, and reading does not depend on the surface being clean or on the lighting, which is where barcodes fail in those environments.
How much does it cost to implement NFC traceability?
It depends on the number of tags, the type of chip and housing, the number of read points and, above all, the degree of integration with the management system. The tag is a small part of the cost; the integration with the ERP is what delivers the value and what has to be scoped properly in the project.
Conclusion
NFC traceability combines a robust tag, readable with any smartphone and hard to copy, with the ability to capture events exactly where they happen. Its value lies not in the sticker but in the integration with the ERP or traceability system, which turns each read into a link in the traceability tree, an alert or an audit report. If your company wants to replace paper or barcodes in environments where they do not work, at CEDESA we design and integrate the complete solution; tell us about your project via our contact page.