Gone are the days when manual intervention at each and every operational level was feasible and made sense; however, it was mired in human errors and inefficient processes.
In 2025, tasking your frontline workers, be it retail, logistics and supply chain, manufacturing, healthcare, or transportation, with manual operations is not practical with rising labor costs. It is financially impossible for any business to stay with manual operations when automation can simplify things for the better, removing bottlenecks and human-induced errors in operations.
RFID technology is one such automation tool preferred by businesses when it comes to automated data capture and identification of items. Smart RFID labels are used on each item in retail, supply chain, healthcare, and manufacturing, and with handheld and fixed RFID readers, 360-degree tracking is possible.
RFID-based conveyor tunnels are also deployed for streamlining various manual operations related to final check before orders leave the warehouse, when order comes in, and for security at premises.
These RFID tunnels are equipped with powerful RFID fixed readers and antennas, and even advanced machine vision cameras and scanners to automate tasks like quality check, GRN, order fulfillment at fulfillment centres, as well as routine audits for compliance.
So, let’s understand how an RFID conveyor tunnel can be integrated into your operations and the benefits it offers to businesses, and what are the cost associated with an RFID conveyor tunnel, RFID tunnel integrations into business operations, etc., in detail.
Automation Using RFID Tunnel
An RFID tunnel is basically a conveyor tunnel equipped with RFID readers and antennas, where items pass through the tunnel and the RFID reader scans all the items tagged with an RFID label. A real-time display panel is often integrated into the system to provide instant verification of the scanned data, helping operators verify accuracy within seconds.
Typically, conveyor tunnels are used in retail and supply chain businesses for sorting, inspection, and quality control purposes. When integrated with an RFID system, these tunnels automate the entire process of sorting, auditing, item counting, etc., boosting operational efficiency.
For example, if you need to verify a recent shipment (with RFID-tagged items) that came to your warehouse, for accuracy in quantity, you can just put all the items on an RFID conveyor tunnel, and the task will be completed in a jiffy.
Some RFID tunnels are also equipped with advanced industrial scanners and machine vision cameras to capture additional details about product quality, barcodes, batch codes, or physical quality parameters, part markings, etc., as required in manufacturing and production environments.
How RFID Tunnel Automation Works?
The working principle of an RFID tunnel is simple yet powerful:
1. Items enter the conveyor tunnel, each tagged with an RFID label.
2. RFID readers and antennas inside the tunnel detect and read all tags in bulk.
3. Data is instantly verified on a display or an integrated WMS (Warehouse Management System).
4. The system flags any discrepancies in quantity, missing items, or unauthorized goods.
Such an automation drastically reduces human error and speeds up processes such as Goods Receipt Note (GRN) verification, inventory audits, and dispatch validation.
These tunnels are commonly used for:
1. Sorting and inspection
2. Inbound and outbound verification
3. Quality control and auditing
4. Order fulfillment
5. Security checks and compliance monitoring
RFID Tunnel Integration and Costs
If you wish to deploy an RFID tunnel solution, integrating it with your retail, healthcare, supply chain, manufacturing business, or simply your corporate office for asset management and security, it can streamline manual operations, remove bottlenecks, and boost efficiency. However, the cost of integrating an RFID tunnel system can be high, depending on multiple factors, including:
1. Size and throughput of the conveyor tunnel
2. Number of RFID readers and antennas required
3. Integration complexity with existing WMS or ERP systems
4. Inclusion of machine vision cameras or barcode scanners
5. Customization for specific business requirements, such as IT offices needing it for asset management, security, and warehouses needing it for sorting, and manufacturing firms requiring quality monitoring and audits.
Estimated Cost Range (as of 2025)
In India, an RFID tunnel system can cost anywhere between INR 5 lakhs to INR 15 lakhs, depending on configuration and integration scope.
1.Basic RFID tunnel (for small warehouses or retail hubs): INR 5–7 lakhs per unit
2. Mid-range system (with ERP/WMS integration): INR 7-12 lakhs per unit
3. Advanced tunnel with vision system and automation controls: INR 10-15 lakhs per unit
While the initial investment may seem significant, the ROI (Return on Investment) is achieved quickly, often within 6 to 12 months, due to substantial savings in manpower, time, and error correction costs.
Benefits of RFID Tunnel Integration
A. Benefits of RFID tunnel integration in Warehouses and Fulfilment Centres
1. Enables quick inbound and outbound verification.
2. Improves inventory accuracy up to 99.9%.
3. Speeds up order picking and dispatch processes.
4. Reduces manpower and operational costs.
B. Benefits of RFID tunnel integration in Retail and Supply Chain
1. Enhances visibility from production to the point of sale.
2. Eliminates stock mismatches and shrinkage losses.
3. Facilitates real-time stock monitoring and faster restocking.
4. Enables efficient returns management.
C. Benefits of RFID tunnel integration in Logistics
1. Ensures shipment accuracy before leaving the warehouse.
2. Detects missing or extra parcels in real time.
3. Improves traceability across distribution points.
D. Benefits of RFID tunnel integration in Healthcare
1. Automates tracking of medicines, surgical tools, and lab samples.
2. Enhances compliance with safety and traceability norms.
3. Minimizes manual intervention in critical operations.
E. Benefits of RFID tunnel integration in IT and Corporate Environments
1. Tracks IT assets such as laptops, servers, and peripherals.
2. Ensures secure asset movement within or outside premises.
3. Supports automated audits and compliance checks.
In short, integrating RFID conveyor tunnels into your business operations is a strategic decision to future-proof your supply chain. Whether you’re managing a large-scale warehouse, a retail distribution centre, or a manufacturing unit, RFID tunnel automation can help you achieve unmatched efficiency, accuracy, and transparency.
At Ruddersoft, we provide AIDC supplies including RFID labels, readers, antennas, and end-to-end RFID tunnel systems customized to your business needs. If you’re planning to implement RFID tunnel automation in India, our RFID experts can help you evaluate your requirements, design the setup, and estimate integration costs.