Matt MacConnell investigates how the use of RFID tags can help your light commercial vehicle operations.

Technology is advancing at a rapid rate and we must either embrace it, or remain behind. Embracing it, as daunting as it may be, makes perfect sense as certain technology can make processes easier and faster, meaning you can sweat more on the bigger stuff and automate other processes.

One technology that has become readily available in recent years is RFID, or Radio Frequency Identification. Before investigating how this technology can assist light commercial vehicle operations, let’s look at how it works.

RFID is a form of wireless communication that uses three main components: a scanning antenna, a transceiver and a transponder. The transponder is the RFID tag – a special sticker placed on the item – while the antenna and transceiver are combined and are what scan the RFID tag.

So, you’re probably wondering what differentiates RFID tags from barcodes. They work very similarly; however, RFID tags can be scanned from inches to feet away, while barcodes require closer proximity for scanning.

RFID scanners can also read many tags at once without seeing them, saving you time if there are lots of items to check – and RFID tags can also be read through materials such as cardboard and plastic, meaning you don’t need to flip items to find a barcode. They can also be used to scan vehicles, meaning fewer manual check-ins or cash payments at toll booths.

However, there are some disadvantages to RFID. While the technology is slowly replacing traditional barcode systems, RFID costs more to set up, making it harder for smaller businesses to invest. Likewise, metal and liquids can block RFID signals – and although tags can be read from afar, some people worry this could be used to track individuals. Particularly those carrying personal information such as passports or credit cards.

And finally, there are increased security risks. Like any wireless technology, RFID is vulnerable to hacking if security measures are not implemented. Weak security protocols can lead to data breaches. Of course, implementing such technology correctly can have an advantage.

Issues to overcome

Fleet and equipment company Abax says theft is a problem, but equally, lost and misplaced items are too – and it’s directly controllable by individual businesses. “At Abax, we’re pretty technology agnostic; whether you’re using RFID, Bluetooth or GPS,” says Craig Allan, Abax director of specialised sales. “The key thing is knowing where your assets are, where they’ve been, who’s got them, and making sure nothing gets left behind.

“When we talk about assets, we don’t just mean expensive things; it’s anything that delivers value to the business. If you can’t find it, you probably can’t do your job, and that carries a cost,” he adds. “The impact of losing tools, equipment and other assets goes way beyond the replacement cost. It’s the downtime, missed jobs and damage to your reputation that really hurts, and that’s before we have factored in wasted time and fuel (therefore CO₂) in unnecessary journeys to compensate for these ‘missing’ assets. Location data of assets is also a benefit when ensuring inspection or calibration requirements are met. Most businesses will have an asset register system that monitors what requires either calibration or an inspection: but not ‘Who has it?’, ‘What van is it on?’ or ‘Is it still at the last job?’. With a location-based solution, these questions are a thing of the past.”

Allan cites one national study that reported the average value of equipment per van was around £2,500. “That shows visibility is no longer a ‘nice-to-have’, it’s now an essential to keeping your business moving,” he believes.

Tag types

There are two types of RFID tags: active and passive. Active RFID tags require a power source, while passive tags are powered by the RFID reader’s electromagnetic field. Active tags are permanently installed in a vehicle or attached to key chains; they usually have an internal battery, but there are various solar-powered options available.

When selecting an RFID tag for your fleet, it’s important to choose the correct one. If your LCVs often operate in rain, dust, or extreme temperatures, you are better off opting for a tag with an IP67 rating or higher. IP67-rated devices are dust-tight and protected from immersion in water up to one metre for about 30 minutes. They will also withstand temperatures of minus 40°C to plus 85°C.

Abax’s new RFID 2.0 allows fleet managers to monitor fleet operators and check who was driving and when. Fleet managers will also be able to see any unauthorised journeys. Each driver is provided with a unique ID card, which communicates with driver ID hardware or a driver ID mobile app. The driver then hovers the card over the RFID reader, which registers the driver. Abax driver ID is configured to allow the driver to stay logged in after each trip; a time-saver if the employee drives that vehicle most of the time.

Break the bad habits

Tying an RFID system with a driver behaviour monitoring system can make sense. Fleet management software company Jaama says technology is also changing how fleets monitor and improve driver behaviour. Telematics and in-cab tools can now provide real-time feedback, helping drivers correct unsafe habits, such as phone use or harsh braking, before they escalate into incidents.

“Instant feedback creates accountability and learning in the moment. It gives drivers the tools to self-correct, while managers can step in only when patterns start to emerge,” says Mark Francis, chief product officer at Jaama. “That saves time and supports a more positive safety culture.”

Fleet managers often think of compliance in limited terms – inspections, MOTs, or training records. But, as Francis explains, some of the greatest risks come from outside the depot. “Third-party agents and workshops can introduce hidden blind spots. Unlike operators, they’re not subject to the same level of audit or scrutiny. If a vehicle is signed off but hasn’t actually been touched, it’s still the operator who carries the liability.”

This lack of oversight highlights a fundamental truth: outsourcing tasks doesn’t mean outsourcing accountability. Without reliable audit trails and proactive checks, fleets inherit risks they can’t control, yet will still be held responsible for when something goes wrong.

“With an integrated fleet management platform, such as Jaama’s Key2 software, compliance becomes part of how you work every day,” adds Francis. “Drivers can’t skip essential checks because managers are automatically notified when issues arise – and every action creates a digital audit trail. It’s compliance by design, not by document.”

Regarding cost, RFID tags are priced between 10p (passive) and £10 (active), while readers range from £500 to £3,000. Similarly, software can cost from £40 to £1,000 a month. For example, if you’re deploying a system with readers and active tags to track 1,000 items, the total cost could exceed £20,000 a year. This means the complete cost of RFID tracking can range from £5,000 to £50,000.

This said, it would mean fewer headaches when it comes to vehicle and asset tracking versus a traditional barcode-based system. For those on a budget, some providers offer a free system. This doesn’t include the purchase of RFID tags, though – and there may be a limit on user access and taggable items.