Tracking inventory and assets is important to your dealership for many reasons — customer service, theft prevention, operational efficiency, and more. The question isn’t whether you need location services, but rather which tracking technology you should use.
The two big contenders are GPS and RFID, and each have distinct advantages and disadvantages for dealerships. Let’s sort it all out.
While both systems use three-part wireless radio communication to locate assets, they do so with different methods and technology.
The global positioning system (GPS) is owned by the U.S. government and was originally developed by the U.S. Department of Defense. It uses a network of orbiting satellites and on-ground receivers to identify the precise locations of assets on the Earth's surface.
What are the pieces?
Radio frequency identification (RFID) is a wireless tracking system that uses radio waves to transfer data. When an RFID tag comes within range of an RFID reader, the reader detects the tag, reads the tracking data, and sends it to be processed to identify the location of the tag.
What are the pieces?
Both tracking systems are highly accurate and offer real-time location capabilities, but there are specific areas where each holds an edge:
Global Coverage: As long as there’s a clear path from receiver (on the ground) to satellite (in the sky), GPS devices can accurately determine their position anywhere in the world without special receivers.
Access: GPS signals don’t rely on internet or telephone service, and the system is accessible to anyone with a GPS-enabled device. However, tracking specific assets or multiple devices may still require a network subscription.
Non-Line-of-Sight Capabilities: Unlike GPS, RFID signals can be transmitted within range without a direct line of sight between the reader and the tag, making it better for areas like multilevel parking garages or other obstructed locations.
Data Storage: RFID tags have their own data storage capacity and can hold additional information about the asset, like maintenance history, accessible by any reader.
Along with advantages come disadvantages, and each system has drawbacks that you should consider before making a decision for your dealership.
Signal Interruption: GPS signals can be disrupted by anything that blocks the path from satellite to receiver, so areas with obstacles like tall buildings or dense trees can experience problems.
Power Use: Most vehicle GPS devices use the vehicle battery as a power source, and continuous use can affect battery life.
Range: RFID tags’ shorter range limits the effective tracking distance, which is mostly a concern for passive RFID tag users.
Interference: While RFID signals don’t need a direct line of sight, they can experience interference from liquids, metals, or cross-signals from other tags or readers.
The short answer is… neither.
And by that, we mean they both have specialized uses, as you read in the pros and cons.
The longer answer is that either RFID or GPS could be better for the same dealership, depending on the use case. RFID is ideal for tracking many small objects in a confined area within a controlled system, while GPS offers continuous tracking over unlimited range without a fixed reader.
Sometimes, a combination of the two systems is the best solution. For instance, you could use RFID tags to track keys within your dealership or on the lot, saving time for employees, reducing wait times for customers, and preventing costly rekeying due to lost keys. However, GPS tracking is a better solution if you want a vehicle theft prevention and recovery service, as GPS devices cover areas RFID readers can’t.
Like any investment, you should evaluate your dealership’s specific needs before choosing location technology. However, you might find that you can use GPS and RFID together to build a complete tracking system for all your inventory and assets.