GlossaryEN1 min readUpdated: Jun 23, 2026

Chip-Based Package Tracking

Unlike barcode scanning, which requires line-of-sight and active capture, chip-based package tracking relies on RFID transponders that are read contactlessly and automatically.

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Last updated: 23 June 2026Published: 19 June 2025

Source: https://www.gs1.org/standards/rfid

Category

Logistics Concept

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1 min

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Definition & Explanation

Unlike barcode scanning, which requires line-of-sight and active capture, chip-based package tracking relies on RFID transponders that are read contactlessly and automatically. Tags attached to packages, pallets, or load carriers are picked up at defined points in the supply chain—loading docks, transhipment hubs, customs checkpoints—feeding location and status data into the logistics information system in real time, with no manual input and a significantly lower error rate than optical methods. The technology is most prevalent in pharmaceutical logistics, temperature-controlled food chains, and high-value industrial goods, where end-to-end traceability is mandated by regulation or liability frameworks. It should not be confused with GPS-based vehicle tracking, which records route and position data but does not provide unit-level visibility at the pallet or package level.