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Presentation Overview
• Background on RFID and auto-ID
technologies
• Technology adoption lifecycle
• A brief history of RFID
• The focus on item level
• How RFID will become mainstream
Small, low value Large, high value
3 ft. 30 ft. 1,000 ft. 1,000 miles
Bar Code
Passive HF
RFID
Passive UHF
RFID Active RFID
GPS
RFID Is Part of a Suite of Technologies
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Technology Adoption Lifecycle
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What needs to happen?
• A global standard
• A problem no other technology can solve
• The “whole” product (integrated solution)
• Critical mass of end users
• A gorilla the market can embrace
For RFID to cross the chasm and take off, the following conditions must exist:
A Brief History of RFID
• Auto-ID Center created 1999
• Walmart announces tagging requirements
in June 2003 (tagging to start Jan. 2005)
• DOD, Metro, Target, Tesco others follow
All Forms of RFID Gain Traction
• Early adopters begin to explore passive
UHF and HF, active RFID, real-time
location systems
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RFID spreads to all countries Attendees at RFID Journal LIVE! 2011 came from 48 countries:
Argentina Australia Austria Bahrain Belgium Brazil Canada Chile China Colombia Denmark Egypt
Finland
France
Germany
Hong Kong
Hungary
India
Ireland
Israel
Italy
Japan
Kuwait
Lithuania
Mexico
Netherlands
South Africa
South Korea
Spain
Sweden
Switzerland
Taiwan
Thailand
Trinidad
Turkey
United Arab Emirates
United Kingdom
United States
Venezuela
New Zealand
Nigeria
Norway
Pakistan
Panama
Peru
Philippines
Poland
Portugal
Romania
Russia
Saudi Arabia
Singapore
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RFID spreads to all countries RFID Journal readers live in 214 countries and territories.
Afghanistan Albania Algeria Amer. Samoa Andorra Angola Anguilla Antigua Argentina Armenia Aruba Ascension Isl. Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin – Bermuda Bhutan Bolivia Bosnia Herz.
Botswana Brazil – Brunei Bulgaria Burkina Faso Burma Burundi Cambodia Cameroon Canada Cape Verde Cayman Islands Central African Rep. Chile China Christmas Island Colombia Congo Cook Islands Costa Rica Côte d'Ivoire Croatia Cuba Cyprus Czech Republic Denmark Djibouti
Dominican Rep. Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Falkland Islands Faroe Islands Fiji Finland France French Polynesia Gabon Gambia Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guam – Guatemala Guyana Haiti
Honduras Hong Kong Hungary Iceland India Indonesia Iran Iraq Ireland Isle of Man Israel Italy Jamaica Japan Jersey Jordan Kazakhstan Kenya Kiribati Korea, North Korea, South Kosovo Kuwait Kyrgyzstan Laos Latvia Lebanon
Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Macao Macedonia Madagascar Malawi – Malaysia Maldives Mali Malta Marshall Isl. Mauritania Mauritius Mexico Micronesia Moldova Monaco Mongolia Montenegro Montserrat Morocco Mozambique Myanmar
Namibia Nepal Netherlands Netherlands Antilles New Caledonia New Zealand Nicaragua Niger Nigeria Norfolk Island Norway Oman Pakistan Palau Palestine Panama Papua New Guinea Paraguay Peru Philippines Pitcairn Islands Poland Portugal Puerto Rico Qatar Romania Russia
Rwanda Saint Helena Saint Kitts/Nevis Saint Lucia Saint Martin Samoa San Marino Saudi Arabia Senegal Serbia Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa Spain Sri Lanka Sudan Suriname Swaziland Sweden Switzerland Syria Taiwan
Tanzania Thailand Togo Tonga Trinidad/Tobago Tunisia Turkey Turkmenistan Turks/Caicos Tuvalu Uganda Ukraine UAE United Kingdom United States Uruguay Uzbekistan Vanuatu Vatican City Venezuela Vietnam Virgin Islands Yemen Zambia Zimbabwe
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RFID spreads to all industries RFID Journal readers come from these industries:
Aerospace Agriculture Apparel / Footwear Automotive Aviation Building Maintenance Chemicals / Adhesives Construction Consulting / Business Services Consumer Electronics Consumer Packaged Goods Defense / Homeland Security Education Entertainment / Media
Financial Services Food Forestry Government Health Care High Technology IT Services Laundry Library Logistics Manufacturing Mining Oil and gas Packaging
Pharmaceutical Pulp and Paper Research Retail RFID/Data Collection Security Telecommunications Transportation Utility Waste Management
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Major Applications:
Manufacturing
• Tool tracking
• Asset tracking
• Inventory management
— FIFO
• Work-in-process tracking
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• Tool, jig tracking
• Returnable transport
item tracking
• Part marketing and
tracking of
parts’ histories
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Major Applications:
Aerospace / Aviation
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Major Applications:
Food
• Track and trace
• Recall management
• Temperature tracking
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Major Applications:
Health care
• Asset tracking (active)
• Blood tracking
• Patient monitoring
• Automated billing
• Laundry management
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Major Applications:
Financial Services
• Tracking IT equipment
• Tracking data storage
device
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Major Applications:
Retail
• Inventory visibility/accuracy
– Improved replenishment
– Improved on-shelf availability
– Reduced time to serve
customer
• Loss prevention
• Improved customer
experience
Retail CPG Hits a Bump
• Albertson’s, Target, Tesco and others
never deploy
• Suppliers must tag only for Walmart,
increasing costs
• In 2008, Walmart abandons mandates
• Many consider the technology all but dead
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Walmart looks internally
• The retailer begins exploring where RFID
could benefit its own operations
• Tests RFID on white label jeans
• Sees big benefits
• Encourages jeans
makers to tag
Photo: Wall Street Journal
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Walmart Restarts RFID Effort
• In July 2010, retailer
announces it will track
all men’s jeans and
basics with RFID
• 250 million items per
year
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RFID Focus Shifts to Items
• Studies show RFID
boosts inventory
accuracy from 65%
to 98%
• RFID ideal for items
with complex SKUs
(several colors and
sizes)
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Adoption Accelerates
• JC Penney tagging all jeans, bras, shoes
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• American Apparel soon In all stores
• Banana Republic in 100 stores
• Macy’s plans major rollout in Q3 of this year
European Retailers Rollout
Gerry Weber, a Germany maker of women’s
clothing, is using RFID to reduce theft and
improve inventory visibility
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European Retailers Rollout
Charles Vögele, an Austrian retailer, is
tracking goods from Asia to stores in Europe
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Adoption in Europe
Patrizia Pepe, an Italian
fashion house, has more
than doubled the amount of
products that each DC can
handle per hour
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Adoption in Europe
Finnish clothing designer Naisten Pukutehdas
(NP) reduced out-of-stocks for its NP Collection
by 30% and cut receiving time 70%
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Adoption in Europe
Throttleman, a Portuguese retail chain,
receives tagged items from India and uses
RFID to ensure the right items are sent
to the right stores
RFID Is a Better Way to Count
• Faster than bar codes
• Less expensive than bar codes
• More accurate than bar codes
• Automatic (in some applications)
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Apparel Will Drive
Adoption
• 150 retail stores in
U.S.
• $1 trillion sold
annually
• Globally?
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Related Retailers Will Adopt
Jewelry
Electronics
Cosmetics
Auto parts
Sporting goods
RFID Will Spread to Other Retail
Categories
• 50,000 electronics stores in US
• 150,000 food and beverage stores
• 41,000 general merchandise stores
• 82,000 pharmacies / health product stores
• 50,000 auto parts stores / dealers
2002 US Economic Census
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Result:
• Hardware prices will fall
• Performance will improve
• Software solutions will
proliferate
• RFID will get easier to deploy
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• As prices come down and technology is easier to use, more applications will be viable
• RFID will be pushed back into manufacturing
• Logistics providers will adopt
• RFID will finally reach the mainstream phase of adoption
RFID Will Spread Beyond Retail
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