Smart Label, also called Smart Tag, is an extremely flat configured transponder under a conventional print-coded label, which includes chip, antenna and bonding wires as a so-called inlay.   The labels, made of paper, fabric or plastics, are prepared as a paper roll with the inlays laminated between the rolled carrier and the label media for use in specially-designed printer units.
In many processes in logistics and transportation, the barcode, or the 2D-barcode, is well established as the key means for identification in short distance. Whereas the automation of such optical coding is limited in appropriate distance for reading success and usually requires manual operation for finding the code or scanner gates that scan all the surface of a coded object, the RFID-inlay allows for better tolerance in fully automated reading from a certain specified distance. However, the mechanical vulnerability of the RFID-inlay is higher than the ordinary label, which has its weaknesses in its resistance to scratch.
Thus, the smartness of the smart label is earned in compensation of typical weaknesses with the combination of the technologies of plain text, optical character recognition and radio code.