IT in the News: Group 7RFID Technology

Sean Maloney, Joel Peterson,

Andy Pierce, Ashley Ross,

and Mike Wheeler

RFID Overview

RFID = Radio frequency identificationWireless, radio transmission of serial numbers and other dataData is read by radio antennas which then transmit the data to a computerReduces need for human input of data and also cuts down on human errorTypical RFID tags can store 2KB of data

Passive vs. Active Tags

Passive tags: Powered only by the

reader They are less

expensive so work for low-ticket items

Tags can be read up to 20 feet away

Can be disposed or rewritten

Active tags: Use internal batteries

for power Information is sent to a

reader Good for more costly

items or items that need to be read from greater distances (ie: SunPass or other toll reader)

Cost Issues

Can be cost prohibitive because they initially cost about $1 per active RFID tag. The cost has now dropped to 20 – 40 cents per unit but still is cost prohibitive for some. The ultimate goal is a tag that costs around five cents. Tags on boxes are typically thrown away after one use but tags on pallets can be recycled and reused.

Real-time Data

Having data available in real-time has revolutionized the supply chain and communicates information much more quickly, efficiently and with fewer errors.

Real-time Data

Now, when a supplier ships a pallet of goods out to a buyer, the tags on the cases and pallet are scanned and the information is immediately sent to the buyer to notify them that they have left the supplier’s warehouse and will be arriving in a certain time period. The system will take those goods out of the supplier’s inventory.

Real-time Data

Once the buyer receives the goods they scan them which automatically adds those good to their inventory and notifies the supplier that the goods have been received.

Supply Chain Push vs. Pull

It used to be that companies would manufacture goods based on sales forecasts and push the goods out into the supply chain. If demand exceeded supply then they would lose sales. Likewise, if supply exceeded demand then they would have excess. Now, goods can by pulled through the supply chain based on the real-time demand for those goods. Inventory is replenished and reordered based on the actual demand.

RFID History

The first passive RFID system was discovered by the Germans during World War II when they learned how to alter radar signals to identify themselves to their countrymen The first active RFID tag was patented in 1973 by Mario CardulloThe US Government began using RFID tags in the 1970s to track nuclear materials

RFID History

In the 1980s the RFID system became commercialized with automated toll readers Other advances lead to UHF radio waves and low frequency 125 kHz systems to track cows and other livestockLater higher frequency systems were developed which meant that the RFID tags could be read from further away and have faster data transfer

RFID History

Even as use and interest was improving, there were still major price hurdles to overcome.Realizing that they would not get any cheaper unless more systems were purchased, several businesses came together in 1999 to establish the Auto-ID Center at MIT. This center was created to find the technology to produce low-cost RFID systems and help roll them out to a larger market.

RFID History

Auto-ID Center professors David Brock and Sanjay Sarma changed RFID into a networking technology when they discovered a way to link tagged objects to the Internet – this meant that manufacturers could use the technology to communicate the status of production and shipment. The Auto-ID Center developed Class 1 and Class 0 air interface protocols and the EPC (Electronic Product Code) numbering scheme. Their technology was licensed to the Uniform Code Council in 2003 who partnered with EAN International to launch the EPCglobal Network as a way to commercialize the EPC technology.In 2003 the Auto-ID Center closed and RFID research duties were passed on to Auto-ID Labs.

RFID History

In 2004, EPCglobal created a second-generation standard which allowed for more usage by major manufacturers and retails across the US and the world. In 2003 Wal-Mart announced that by 2005 all suppliers would be required to use RFID tags on cases and pallets of purchased goods

Reasons Manufacturers Use RFID

RFID allows companies to accurately track material and product in the supply chainRFID can help identify leak pointsReal time data collectionAbility to easily share information with customers

Manufacturers & Producers Utilizing RFID

iGPS

Plastic pallet pooling company based in Orlando, FLCurrently uses Gen 2 UHF (915mhz) tags in all of its plastic palletsPresence of RFID tags in pallets makes inventory tracking simpleiGPS customers can utilize the RFID tags embedded in iGPS pallets for their own trackingWhile some customers use the RFID feature, not all have the capital to invest in RFID software

Swire Bottling

Swire Bottling, a Coca Cola bottling group, uses RFID to track syrup tanks and carbon dioxide cylinders in Hong KongPrior to 2010 Swire would lose hundreds of assets per year at restaurant and retail locationsIntroduction of RFID tags to assets dropped the number of lost assets to near zeroAdding the $.25 tag to each asset reduced cylinder and tank replacement costs by $31,000 US / year for the division

Trasluz Casual Wear

Trasluz, a European clothing manufacturer and retailer, adopted RFID in 2010Trasluz uses RFID through the entire supply chain, from production to retail sale

Every store item is RFID tagged, allowing for real time inventory trackingSmart racks count the number of items on each shelf; Smart mats at exits prevent theft

Goodpack

IBC container rental company corporately located in SingaporeIBC’s (Intermediate Bulk Containers) are metal containers used for holding liquids such as rubber, food or chemicals

Goodpack uses RFID to identify the last recorded location of each container atGoodpack depots and customer warehouses. Customers are provided RFID scanners to ensure each every container is scanned upon arrival & departure

Retailers that Request & Require RFID Tags

RFID Forecast$9.7 billion by 2013

15 percent compound annual growth rate

Passive tag ranges only 1-2m

10% of retailers undergoing RFID initiatives

20% of retailers to begin rollout by 2010

American ApparelImmediate sales floor items replenishment required

Embarked on RFID pilot in 2007

Rolled out RFID at item level in April 2008

Enabled American Apparel to track items when

* tagged at manufacturer

* received in its retail stores

* stored in the stock rooms at the stores

* placed onto the sales floor and sold at the POS

Wilson Sporting GoodsRFID Compliance requirement

- Enlisted services of Zebra Corporation- EPC Gen 2-standard labeling system

Zebra R110Xi printer/encoders - Smart labels are hand-applied to cases and pallets- Routed past a fixed-position RFID reader that

captures shipment information

METRO GROUPAmong the retail industry's pioneering users of

RFID

Employed RFID technology in logistics and warehouse management since 2004

Tracks incoming goods processes for 400 locations

More than 750,000 pallets are recorded each year using this technology at their central goods depot

TescoThird-largest global retailer measured by revenues

Second largest measured by profits

Stores in 14 countries

Passive RFID tag on roll cages

Cages are identified when delivered to retail outlets

RFID tag by OATSystems is able to identify what cage is destined for which store

Wal*Mart Aggressive RFID efforts

Confirmed commitment to RFID in supply chain

Issued warnings to suppliers of $2-3 fines per pallet that did not contain an RFID tag.

Wal*Mart's 600 top suppliers use RFID technology to some degree

Implementing RFID chips on individual items to increase inventory control

Current Happenings & New Technologies

Consumers

Payment by mobile phone

Pet tracking

Implants/bracelets

Detect counterfeits / protecting valuables

Current Happenings & New Technologies

Miniaturization

Current Record Holder:Hitachi 0.05mm x 0.05mm

Major Challenges

Current Happenings & New Technologies

Standardization

International Organization for Standardization (ISO)

Frequency Spectrum Issues

EPC Global

Current Happenings & New Technologies

Security Concerns

Eavesdropping/Skimming

Tag Cloning

Shielding

EPC Global Network Denial of Service attack

The Internet of Things

During 2008, the number of devices connected to the internet exceeded the number of humans on earth By 2020, there will be 50 billion“things” connected to the internetThose “things”

will not be just computers and smart phones. With applications of RFID, every “thing”

will be connected, monitored and managed.

Cost Challenges

Costs of tags must be reduced to the point of being negligible

Technologies are being developed that will enable RFID tags to be printed using current ink jet or lithograph printing technology

Future RFID tags will be no more expensive than current tags on clothes

Range Limitations

Current operational ranges for passive RFID tags is limited to a few metersLimiting factor is wavelength – moving from HF (today) to UHF to Microwave could take range to 500m/tagCurrently inventory mustbe manually scanned or actively pass a sensor,extended ranges will allowone sensor to keep track ofan entire warehouse – in realtime

Size Reduction

Smart Dust technology promises tags 64 times smaller than the current Hitachi micro-tagEven smaller nano and molecular RFID will allowtracking and monitoringof food through the supply chain – feeding data on environmentaland product conditions

Sensors

Despite improved ranges, sensors will have to be deployed. Mesh networks are linked sensors that read RFID signals and broadcast the data via the internet.Sensors in themesh can also actas repeaters tooffer essentially limitless range

Sensors

While mesh networks

will be critical to RFID

success, the real

breakthrough is in the

palm of our hands.

The ubiquitous smart

phone will get smarter

Applications & Implications

Supply chain usage will drive new technology Tagging of individual items Ability to manage inventory in real time Automation – i.e. check out, theft prevention Limited only by imagination

Social implications much deeper Social media revolution – passively “check in”, but

pass on info besides location; not just where you are, but who and what you’re there with

Credit cards that know when you’re in a store and what’s there you might want

Police broadcasting Smart Dust onto a crowd of protesters