STORIES OF     RFID SUCCESS    IN the consumerelectronics industry
CONTENTS	 6	    Sourcing components and modules	 7	    Production, internal logistics	 8	    External logistics	 9	    Pro...
Making the most of RFIDDuring the last decade, RFID or Radio Frequency        Benefits for retailersIdentification has rev...
5
sourcINg comPoNeNtsaNd modulesIt’s crucial for electronics manufacturers to continually   HP benefits from total          ...
ProductIoN,INterNal logIstIcsRFID tagging enables product-tracking during           Toshiba improves                      ...
eXterNal logIstIcsLogistics	is	the	key	to	success	for	global	           SONY optimizes                                    ...
Product authenticationProduct authentication is one of the key elements of      RFID tags assist                          ...
InventoryFor an electronics store it’s essential to optimize       Retail sales up with an automated                      ...
Cross-salesRFID tags inside a store are able to provide             RFID tag systems improve                              ...
aNtI-theftShoplifting is a major problem worldwide.             RFID tags offer                                         So...
Rental useVideo rental shops deal with an enormous number       Touch Automation streamlines                           Sol...
Web shoPsInternet retailers rely on efficient logistics, so they   RFID systems improve                                   ...
Electronics pairingElectronics manufacturers boost their sales              Electronics Pairing verifies                  ...
Maintenance& serviceRFID technology is invaluable in maintenance           RFID tags enable a more effective              ...
Warranties, returnsand recallsManaging warranties and returns becomes                RFID tags provide                    ...
asset trackINgLarge	corporations	often	put	a	lot	of	effort	into	       RFID systems assist asset tracking                 ...
RecyclingThe recycling process for used electronics is fast and   RFID tags enable                                        ...
promotinga sustainable futureNow more than ever, sustainability is crucial to            and ISO 14001 certified. ISO 1400...
21
CONTACT USIf you’re eager to take advantage of the hugebenefits RFID brings to your business, we can help.Our ecosystem of...
11/2008 ENG X403/2www.upmraflatac.com
UPM Raflatac - consumer electronics guidebook, 2008
UPM Raflatac - consumer electronics guidebook, 2008
Upcoming SlideShare
Loading in …5
×

UPM Raflatac - consumer electronics guidebook, 2008

673 views

Published on

RFID guidebook for electronics applications, year 2008

Published in: Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
673
On SlideShare
0
From Embeds
0
Number of Embeds
17
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

UPM Raflatac - consumer electronics guidebook, 2008

  1. 1. STORIES OF RFID SUCCESS IN the consumerelectronics industry
  2. 2. CONTENTS 6 Sourcing components and modules 7 Production, internal logistics 8 External logistics 9 Product authentication 10 Inventory 11 Cross-sales 12 Anti-theft 13 Rental use 14 Web shops 15 Electronics pairing 16 Maintenance & service 17 Warranties, returns and recalls 18 Asset tracking 19 Recycling 20 Promoting a sustainable future 22 Contact us
  3. 3. Making the most of RFIDDuring the last decade, RFID or Radio Frequency Benefits for retailersIdentification has revolutionized the way a whole For retailers the benefits are no less important.host of industries do business. Consumer electronics RFID can help overcome some of the industry’s mostmanufacturers and retailers are now getting in on trying problems, including shrinkage, inventorythe act. It’s easy to see why. control and management. The technology also improves opportunities for cross-sales, reduces theftBenefits for manufacturers and helps with maintenance.There are huge potential advantages formanufacturers using RFID. These include optimized This brochure includes details of all these benefitsmaterial flows in production and enhanced internal and more. These real life success stories highlightand external logistics, as well as improved product the versatility of RFID technology and its importanceauthentication. RFID can also help manufacturers to the consumer electronics industry.boost accessory sales by making electronics pairingsimpler for retailers and consumers.4
  4. 4. 5
  5. 5. sourcINg comPoNeNtsaNd modulesIt’s crucial for electronics manufacturers to continually HP benefits from total Solution HP developed and implemented a solutionoptimize their material flows in production, even supply chain application using RFID tags from UPM Raflatac, RFID printers andthough timeframes are already tight. RFID tags on a network of readers. In the first year, HP taggedcomponents and modules assist this process by Background Hewlett-Packard, or HP, is a provider of more than two million items at its production facilityreducing confusion and handling errors. Suppliers technology solutions to consumers, businesses and in Brazil.tag and ship materials which can be tracked to various institutions globally. The company’s offeringthe production facility and beyond. An automated spans IT infrastructure, global services, home and ResultsRFID system receives a delivery receipt for the computing as well as imaging and printing. • All the benefits of RFID technology in materials and updates the inventory at the facility a complete end-to-end supply chain applicationaround the clock. Challenge HP’s challenge was to enable • Compliance with RFID retail mandates an RFID end-to-end solution to increase visibility • A reduction in inventory through increased and efficiency throughout the entire supply chain, visibility regarding the whereabouts of including manufacturing, distribution, repair, reverse the company’s products logistics and recycling. An added benefit would be • Improved insight into the company’s to utilize the same RFID solution as that required own operations by retail mandates.6
  6. 6. ProductIoN,INterNal logIstIcsRFID tagging enables product-tracking during Toshiba improves Solution Toshiba fitted pallets with UPM Raflatac’sthe manufacturing process. Tags are attached to worker productivity by 57% Gen2 ShortDipole tags. Currently, the entire palletproducts at the beginning of the process and an can be processed instantly by passing it through anautomated RFID reader system reveals their locations Background Toshiba, a world leader in high RFID reader gate at the entrance. Toshiba’s plantat each manufacturing phase. Products can also be technology, is a diversified manufacturer and now handles 15,000 PCs a day compared to therecorded to the inventory automatically. RFID tags marketer of advanced electronic and electrical previous 9,500, with a peak capacity of up toallow products to be processed faster, improving products, such as information and communications 30,000 units a day. With one tag on each laptop,efficiency and productivity. equipment and systems, electronic components and that means over 4 million tags annually. materials, power systems and household appliances. Results Challenge Toshiba Europe handles the customer- • Improved supply chain management specific configuration of every Toshiba laptop • Unblocked warehouse bottlenecks destined for the EMEA region. At the Regensburg • Worker productivity up 57% plant, handling staff were receiving pallets • RFID interphase available to retailers containing 36 laptop PCs by scanning the bar codes • ROI within one year on each box individually. There was an obvious need to improve productivity and efficiency. 7
  7. 7. eXterNal logIstIcsLogistics is the key to success for global SONY optimizes Solution An integrated video/RFID systemelectronics manufacturers distributing products goods flow and delivery was implemented in Sony’s supply chain. A tagto numerous destinations worldwide. An RFID acquisition processor serves as the RFID networksystem improves efficiency throughout the Background Sony is a leading manufacturer of infrastructure and middleware. With this solution,supply chain: RFID tags provide information that audio, video, communications and information Sony is able to scan products many times at itemsimplifies the distribution process, for example in technology products for the consumer and level, and record all cases with the IP video system.inbound and outbound logistics. professional markets. Sony Supply Chain Solutions Currently, the solution traces 1.2 million customer Europe is the company’s primary European orders annually in Germany. distribution centre. Results Challenge Sony’s challenge was to increase • An optimized goods flow efficiency and throughput and to reduce shrinkage and efficient proof of delivery and claims disputes in the company’s European • Productivity improvements, supply chain. A large volume of electronic goods reduced throughput times passes through Sony’s European Distribution Centre, • Improved customer satisfaction so the manufacturer needed an accurate method • The ability to follow product categories of reading RFID tags on individual products – at the serial number and unit levels particularly to avoid false or cross reads. • Less shrinkage8
  8. 8. Product authenticationProduct authentication is one of the key elements of RFID tags assist Solution RFID tagged items provide an instant andbrand protection. Manufacturers need to ensure that in brand protection reliable way to authenticate products. Retailersretailers sell original articles and that the service are able to verify that they sell original productschain handles genuine products. An RFID tag system Background Manufacturers are committed to and service shops can make sure that they handleprovides a fast and reliable way to verify a product’s protecting their valuable brands. They use various authentic, trusted goods. As a result, RFID tags alsoauthenticity. The tag instantly exposes pirated copies, means to verify that retailers sell genuine products facilitate compliance with product safety regulations.facilitates compliance with product safety regulations and that service shops offer maintenance for theseand helps stop products from straying into grey products alone. Manufacturers also seek to limit Resultsmarkets. the distribution of their products to the official retailer • Improved brand protection network. • Fast and reliable product authentication • Avoidance of grey markets Challenge Pirated copies can severely damage • Product safety the reputation of an established brand and they also lead to substantial financial losses. For example, an exploded mobile phone battery, even though it is a pirated copy, may undermine the reputation of the original manufacturer. Moreover, products sold through grey markets reduce brand owners’ revenues. 9
  9. 9. InventoryFor an electronics store it’s essential to optimize Retail sales up with an automated Solution Smart shelves fitted with RFID readersthe number of items in stock to increase sales. An RFID inventory system control stock levels automatically. When the amountRFID system complete with ‘smart shelves’ enables of RFID-tagged items on a shelf drops below areal-time inventory and control of stock levels in- Background Clerks in retail stores count items in certain level, the system places an order to thestore. The system automatically places orders to the the inventory on a regular basis. The items are supplier. Early notification helps suppliers boostsupplier well before the last item is sold out, so that often counted manually before orders are placed to production, and more items are delivered to thereplacements arrive on time. Optimized inventory manufacturers, and also for accounting purposes. store before the last ones are sold. Moreover,levels result in increased sales and customer the RFID system gives an accurate account of thesatisfaction, which is especially important during Challenge In an electronics store there’s a huge number of items currently in stock.peak seasons. volume of items such as video games and accessories. It takes time and effort to keep the Results inventory up to date, and even then, some items in • Increased sales the store sell out. The situation is even more intense • Optimized stocks, especially during peak seasons during peak seasons when customers rush in. • Automated order system and inventory Evidence from the textile industry suggests that stores • Enhanced customer satisfaction could increase their sales by 10 percent if they were able to optimize the amount of items in stock.10
  10. 10. Cross-salesRFID tags inside a store are able to provide RFID tag systems improve Solution An RFID tag system provides a convenientcustomers with additional information. This can be customer service way to share information with customers. Whenarranged with information checkpoints like current a store has information check points equipped withprice-checking stations which present detailed Background Items in stores don’t always have a price RFID readers and the items for sale carry RFID tags,information about products on-screen. For example, tag attached, which means customers have to look the customer purchasing the iPod is able to checkit’s easy to check the compatibility between one for a clerk to check the price and request product product-related information from a screen without theproduct and another. Checkpoints can also be used information. Often, the customer wants to purchase clerk’s help. In addition to the price, the informationfor other types of sales promotion, like making accessories at the same time or hunt for bargains. can include compatible products, accessoriesreal-time special offers or offering information about and special offers.convenient accessories. The RFID system increases Challenge Customers need plenty of informationthe efficiency of sales resources and enables better about products but sometimes they aren’t able Resultscustomer service. to get it. For example, someone wants to buy an • Improved customer service iPod but might also want to check the price, look • Increased sales at detailed product information or accessorize it • More effective sales staff with loudspeakers. However, the clerk may be busy serving other customers. 11
  11. 11. aNtI-theftShoplifting is a major problem worldwide. RFID tags offer Solution RFID tags not only substitute EAS tags butAn effective RFID system can reduce theft improved theft-prevention also offer the advantages of UHF Gen2 technology.considerably. A single label, which includes UPM Raflatac’s RFID tags can activate the alarm,RFID and EAS (Electronic Article Surveillance) Background To prevent theft, retail stores use reveal the total number of items being stolen andfunctionalities, can prevent external and internal Electronic Article Surveillance (EAS) systems which update the inventory if necessary. Correspondingly,losses and improve profitability. Compared to activate an alarm if someone tries to leave the store RFID tags prevent internal losses: they record howthe traditional EAS system, RFID tags contain without paying. many items have been taken, when and where.a considerable amount of information and deliverit instantly. Therefore, RFID systems have numerous Challenge EAS systems only indicate if something is Resultsadvantages, such as updating inventory in the event being carried out of the store. The downside is that • Prevention of theft and internal losses of shrinkage. they don’t reveal how many items the shoplifter is – less shrinkage carrying or how many people are involved. Internal • Items linked to the inventory system losses are another issue: company staff often take • One label in place of two (RFID+EAS) home the employer’s property and forget to return it.12
  12. 12. Rental useVideo rental shops deal with an enormous number Touch Automation streamlines Solution UPM Raflatac’s BullsEye tag streamlinesof DVDs and games each day. An RFID system inventory management processes critical inventory management processes. This roundsimplifies the entire rental process – not only by HF CD/DVD RFID tag, with read-write capacity,monitoring and validating rentals and returns, but Background Touch Automation is an industry leader is encoded with CD and DVD stock-keeping unitby updating the inventory as well. RFID tags are in the development of automated dispensing solutions (SKU) information. They are prepared generically,convenient for this task as they persist through for movies, music and video games. The company so that RFID-tagged merchandise can be shipped tocountless read cycles while also preventing theft provides merchandizing systems to more than any system located within retailers’ enterprises. Thisand shrinkage. In general, an RFID system improves 1,000 grocery stores and other retail locations enables retailers and Touch Automation to monitorrevenues and profitability. Compared to bar codes, across the USA. rentals, returns and purchases as well as fine-tuneeach disc can carry a unique identification number. stocking processes for higher revenue per system. Challenge Touch Automation wanted to develop Touch Automation uses UPM Raflatac tags for all of a convenient way to rent or purchase CDs and DVDs its CD and DVD products. while reducing the threat of theft and shrinkage. The company built a state-of-the-art automated Results dispensing solution line, and sought a partner to • Multi-orientation readability deliver tags that would perform across hundreds of • Outstanding performance in metal environments thousands of read cycles. • Authentication of goods and reduction of thefts and losses • Cross-sales opportunity at POS (point of sale) 13
  13. 13. Web shoPsInternet retailers rely on efficient logistics, so they RFID systems improve Solution An RFID tag system introduces cleartry to make the logistics chain as short and fast as internet shop logistics improvements to supply chain management.possible. An essential phase in the chain is the return RFID-tagged items can be shipped directly fromprocess. RFID tags are of enormous importance in this Background Logistics is the core business of internet manufacturer to customer, while RFID readers trackmatter, as they simplify the handling of returned items retailers marketing consumer electronics. When items throughout the shipping process. Similarly,and improve the efficiency of the process. Moreover, an item is sold, it often arrives first at the retailer’s the RFID system makes the return process faster andtags track the movement of shipments throughout warehouse, and it is shipped from there to the more effective, as tags can be scanned automaticallythe chain. As a result, the items sold can be shipped customer. Also, internet retailers handle returned from unopened packages and the respective invoicesdirectly from manufacturer to customer, avoiding items manually: packages are opened and the bar updated.unnecessary storage and reducing delivery times. codes scanned. Challenge The logistics chain between the Results manufacturer and customer is longer than needed, • Improved logistics management meaning deliveries are slower and costs increase. If • Shorter delivery times tracking systems don’t provide accurate and real-time • Enhanced customer satisfaction information for individual items, they are less effective • Reduced costs for retailers and customers than required. A reduction in manually performed tasks is necessary to improve the return process.14
  14. 14. Electronics pairingElectronics manufacturers boost their sales Electronics Pairing verifies Solution Electronics Pairing is one of the greatby offering customers suitable accessories. the use of genuine spare parts benefits of using RFID tags. It means a repair shopAn RFID system assists in this matter by ‘Electronics and enables Plug&Play functionality can easily, accurately and rapidly recognizePairing’, i.e. automatically recognizing a suitable correct spare parts using the information carried bypair for a device, such as a correct remote control Background Electronics manufacturers seek to the RFID tag. Moreover, the information in the tagfor a TV set. The system also enables Plug&Play provide an easy way for customers to find suitable makes it a lot easier to match accessories to afunctionality. Another great advantage of the RFID accessories. They also like to have genuine spare product. For example, the RFID system recognizessystem is its ability to distinguish an original spare parts used in repairs to their products rather the correct remote control or digibox for a televisionpart from a copy to prevent faulty usage. than copies. instantly, or the correct cartridge for an inkjet printer or air filter. Challenge Incorrect parts are sometimes used in repairs to electronic products. This can result in a Results product malfunction or even present a health hazard. • Easier use and adaptation of accessories Similarly, it can be difficult to find correct accessories • Confirmation of the correct use of equipment for consumer electronics like TVs. Customers can • Confirmation of the right people using equipment waste a lot of time looking for a suitable remote • Prevents the use of copies control or performing unnecessary software set-ups, • Benefits of Plug&Play functionality for example. 15
  15. 15. Maintenance& serviceRFID technology is invaluable in maintenance RFID tags enable a more effective Solution RFID tags create an opportunity to automatebusiness as it makes the process faster and more maintenance process much of the maintenance process. Stores orconvenient for everyone. An RFID tag contains maintenance shops are able to establish serviceinformation about a device, such as the production Background When an electronic device is brought centres which automatically scan RFID tags andbatch and service record. With this information, to a store for maintenance, service assistants scan save the information in a database. An RFID systemmaintenance personnel are able to determine the bar or IMEI code for basic information about identifies devices individually and provides detailedthe need for a service without delay and get started the device, such as the model and type, from the information such as maintenance records, productionon the required tasks. RFID tags are superior to bar manufacturer’s database. The assistants also have batches and software versions. The RFID system canand IMEI codes due to their ability to store a large to enter more information about the device into the also serve as a reminder about service intervals, helpamount of information which can be updated as database before delivering it to the maintenance shop. identify the customer and support invoice itemization.necessary and read automatically. Challenge Receiving a device like a phone for Results maintenance is a complicated process. Service • A more effective maintenance process assistants often have to search for specific information • Faster, more accurate information flow about the device and type details into a database. • A complete electronic maintenance record They also have to look up maintenance records and ensure that the right customer receives the device as well as remind them of the next service date.16
  16. 16. Warranties, returnsand recallsManaging warranties and returns becomes RFID tags provide Solution Electronic devices and many other types ofmuch more efficient once products have RFID tags proof of warranty products can carry an RFID tag inside them. Withapplied. The tags confirm that a product is genuine, the tag, it’s fast and easy to identify the returnednot a pirated copy. Moreover, they provide Background Manufacturers rely on a printed device and check information such as the warrantyinformation about the warranty expiration, service certificate such as a store receipt as proof of expiration date, service record and productionrecord, product safety and the production batch. a product warranty. Moreover, store clerks often batch. Store clerks can verify the information inThe latter is useful when a product needs to be only use visual inspection to verify that customers seconds and send the returned products to theidentified correctly in campaigns like significant return genuine products like mobile phone chargers correct destination automatically. RFID tags canproduct recalls. or batteries. also carry information about product safety. Challenge It’s quite easy to alter or falsify Results printed warranty certificates, which means that • Faster and easier return process manufacturers have to pay for repairs to products • Assurance of a genuine product whose warranties have expired. The same concern • Improved product safety affects product recalls: how can a store clerk verify • A platform created for returned or that a customer has returned a genuine product, replaced products such as a laptop battery? 17
  17. 17. asset trackINgLarge corporations often put a lot of effort into RFID systems assist asset tracking Solution An RFID tag system is able to track everytracking shared devices like laptops. An RFID device, revealing the current locations of devicessystem greatly facilitates this matter: it reveals the Background Corporations often have a number of devices, inside a company’s premises. An RFID readercurrent locations of the devices and indicates if such as laptops or mobile phones, available for use by installed in building doorways or entrances to thethe devices have been taken out of the company’s every employee. They track these devices by keeping grounds notifies when a device has been taken offpremises. In addition, access to the corporate Excel spreadsheets or handwritten lists, or by trying the premises. It is also easier to access to the corporatenetwork is convenient since the RFID tag system is to memorize which employee borrowed what device. network with RFID labelled devices, as the tags canable to identify each laptop, which also means fewer Furthermore, employees using company laptops need to be used to identify each device. This means that fewerpasswords are needed. have current passwords to access the corporate network. passwords are needed but information is still protected. RFID tags also help track computers and other property Challenge When a number of devices are involved, within the building, while keeping records of service it takes time and effort to locate them. Some shared dates, warranties and software updates. laptops might be on the company’s premises, while others are out of the building. Numerous calls are Results required to find a device. Moreover, personnel using • Prevention of asset losses shared laptops may easily forget the passwords, • Real-time property accounting meaning they have to call the system administrator • ID recognition of network access for new ones. Device shrinkage is also a reality that and prevention of information theft many corporations aim to eliminate. • RFID systems assist asset tracking 18
  18. 18. RecyclingThe recycling process for used electronics is fast and RFID tags enable Solution RFID tags make it possible to identify andsafe when devices carry RFID tags. The tags can automated recycling sort components automatically. They provide solutionscarry valuable information that makes it possible that can improve processes like the refill and return ofto recycle one component at a time and enables Background Recycling is increasing worldwide. ink cartridges to the right customer or the automaticautomatic sorting and materials identification. As Manufacturers are developing a state of readiness sorting of recyclable components from a television. Ina result, RFID tags make the whole process faster for a safe, fast sorting of components and materials. addition, UPM Raflatac meets the requirements of theand also help prevent health hazards. Moreover, ISO 14001 Environmental Management Standardtags promote the safe reuse of goods, as they Challenge Disassembling a high-tech product can be and promotes sustainable growth.contain information for control and security purposes. a challenge as it may contain harmful materials, andThis information can also be used to avoid dumping currently the task is often performed by hand. It may Resultsand avert black market sales activity. also take time and effort to sort out each component • An automated and efficient recycling process in an environmentally sustainable way. • Environmental sustainability • Prevention of health hazards 19
  19. 19. promotinga sustainable futureNow more than ever, sustainability is crucial to and ISO 14001 certified. ISO 14001 will helpa company’s success. UPM Raflatac has a proud UPM Raflatac keep any harmful effects its activitieshistory in this and, as part of UPM, this, this tradition have on the environment to a minimum andis being continued and developed. We aim to be improve the company’s overall performance. Forat the cutting edge when it comes to promoting UPM Raflatac’s RFID business, this means reducinga sustainable future. By reducing waste, reusing the environmental impact of RFID tags and inlays,certain materials, recycling and investing in energy both at the development and manufacturing stages.efficiency, we’re moving in the right direction.UPM Raflatac’s RFID operations are both ISO 9001 We’re moving in the right direction.20
  20. 20. 21
  21. 21. CONTACT USIf you’re eager to take advantage of the hugebenefits RFID brings to your business, we can help.Our ecosystem of partners means that we can look atyour specific needs and create the ideal team. If youwant to improve your business, get in touch with theglobal leaders in RFID tagging. UPM Raflatac.www.upmraflatac.comPro RFID.22
  22. 22. 11/2008 ENG X403/2www.upmraflatac.com

×