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The State of RFID/EPC Today: Where We Are and Where We are Going Factors That Are Affecting Adoption  Across Major Markets
INTRODUCTION <ul><li>Mark Roberti </li></ul><ul><li>Founder and Editor </li></ul><ul><li>RFID Journal </li></ul><ul><li>[e...
ABOUT RFID JOURNAL <ul><li>RFID Journal was founded in 2002 </li></ul><ul><li>First RFID publication </li></ul><ul><li>Lar...
PRESENTATION SUMMARY <ul><li>The major developments in RFID/EPC </li></ul><ul><li>Tag price/performance </li></ul><ul><li>...
PRICE/PERFORMANCE <ul><li>Tag price/performance improves with EPC UHF Gen 2 Standard </li></ul>
TAG PRICE/PERFORMANCE <ul><li>Immediate benefits of Gen 2: </li></ul><ul><li>Lower power consumption = longer read range <...
TAG PRICE/PERFORMANCE <ul><li>Tag Prices Start to Fall in Sept. 2005  </li></ul><ul><li>Avery Dennison says it will sell i...
TAG PRICE/PERFORMANCE <ul><li>Prices are unlikely to fall much further </li></ul><ul><ul><li>Inlays are about 8 cents </li...
STANDARDS DEVELOPMENTS <ul><li>Standards continue to evolve  </li></ul>
STANDARDS DEVELOPMENTS <ul><li>The first truly international UHF standard </li></ul><ul><li>In July, EPC Gen 2 was approve...
STANDARDS DEVELOPMENTS <ul><li>EPCglobal’s approves a format for exchanging data </li></ul><ul><li>XML used to define what...
STANDARDS DEVELOPMENTS <ul><li>EPCglobal’s publishes EPC Informa-tion Service standard in April 2007 </li></ul><ul><li>The...
STANDARDS DEVELOPMENTS <ul><li>Group is examining need for: </li></ul><ul><ul><li>HF standard </li></ul></ul><ul><ul><li>G...
STANDARDS DEVELOPMENTS <ul><li>Reduce counterfeiting </li></ul><ul><li>Create e-pedigrees for drugs </li></ul><ul><li>Redu...
PROVING THE BUSINESS CASE <ul><li>Early adopters prove there are benefits in using RFID both internally and across the sup...
PROVING THE BUSINESS CASE <ul><li>Up to 62% on fast-moving items </li></ul><ul><li>Out-of-stock items with EPCs were reple...
PROVING THE BUSINESS CASE <ul><li>Promotional compliance only 50 to 90%  </li></ul><ul><li>Sales rise  20% or more when pr...
PROVING THE BUSINESS CASE <ul><li>Airbus </li></ul><ul><li>Handleman </li></ul><ul><li>John Deere </li></ul><ul><li>Northr...
ADOPTION RATES <ul><li>Challenges more significant than many   realized: </li></ul><ul><ul><li>Overcoming physics issues <...
ADOPTION RATES <ul><li>Stories suggesting Wal-Mart is backing off   are not correct </li></ul><ul><li>Wal-Mart is integrat...
ADOPTION RATES <ul><li>Pharmaceutical companies </li></ul><ul><li>Health care providers </li></ul><ul><li>High-end apparel...
WHAT LIES AHEAD <ul><li>Apparel/Footwear companies need to: </li></ul><ul><li>Agree on an industry standard </li></ul><ul>...
WHERE TO GET GOOD INFORMATION <ul><li>RFID Journal  (www.rfidjournal.com) </li></ul><ul><ul><li>Information you can rely o...
RFID EVENTS EPC Connection 2007 In Partnership with EPCglobal North America Oct. 2-4, 2007 •  Donald E. Stevens Convention...
CONTACT INFORMATION Mark Roberti Founder & Editor RFID Journal [email_address]
Thank You!
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Vics Aafa Rfid The State Of Rfid.Epc Today

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Transcript of "Vics Aafa Rfid The State Of Rfid.Epc Today"

  1. 2. The State of RFID/EPC Today: Where We Are and Where We are Going Factors That Are Affecting Adoption Across Major Markets
  2. 3. INTRODUCTION <ul><li>Mark Roberti </li></ul><ul><li>Founder and Editor </li></ul><ul><li>RFID Journal </li></ul><ul><li>[email_address] </li></ul>
  3. 4. ABOUT RFID JOURNAL <ul><li>RFID Journal was founded in 2002 </li></ul><ul><li>First RFID publication </li></ul><ul><li>Largest Web site: 250,000 unique visitors per month and 2 million page views </li></ul><ul><li>Leading provider of RFID events </li></ul><ul><li>Leading magazine with 10,000 circ. </li></ul>
  4. 5. PRESENTATION SUMMARY <ul><li>The major developments in RFID/EPC </li></ul><ul><li>Tag price/performance </li></ul><ul><li>Standards development </li></ul><ul><li>Proving the business case </li></ul><ul><li>State of the market today </li></ul><ul><li>What’s needed before adoption rises </li></ul>
  5. 6. PRICE/PERFORMANCE <ul><li>Tag price/performance improves with EPC UHF Gen 2 Standard </li></ul>
  6. 7. TAG PRICE/PERFORMANCE <ul><li>Immediate benefits of Gen 2: </li></ul><ul><li>Lower power consumption = longer read range </li></ul><ul><li>Faster read rates </li></ul><ul><li>Better ability to read tags on cases on pallets </li></ul><ul><li>Better overall system performance and reliability </li></ul>
  7. 8. TAG PRICE/PERFORMANCE <ul><li>Tag Prices Start to Fall in Sept. 2005 </li></ul><ul><li>Avery Dennison says it will sell its AD-220 inlay for 7.9 cents each (1 million or more) </li></ul>
  8. 9. TAG PRICE/PERFORMANCE <ul><li>Prices are unlikely to fall much further </li></ul><ul><ul><li>Inlays are about 8 cents </li></ul></ul><ul><ul><li>Tags still cost about 15 cents </li></ul></ul><ul><ul><li>Companies selling at a loss </li></ul></ul><ul><ul><li>If volumes go up, costs will fall further </li></ul></ul>
  9. 10. STANDARDS DEVELOPMENTS <ul><li>Standards continue to evolve </li></ul>
  10. 11. STANDARDS DEVELOPMENTS <ul><li>The first truly international UHF standard </li></ul><ul><li>In July, EPC Gen 2 was approved as an ISO Standard (18000-6C) </li></ul><ul><li>Gives end users confidence in the interoperability of EPC equipment </li></ul><ul><li>Gives countries, such as China, the opening to adopt EPC as their national standard </li></ul>
  11. 12. STANDARDS DEVELOPMENTS <ul><li>EPCglobal’s approves a format for exchanging data </li></ul><ul><li>XML used to define what tag reads mean </li></ul><ul><li>Reads are associated with time, location and status and other factors </li></ul><ul><li>Manufacturer can know that a product was damaged and brought to back room </li></ul>
  12. 13. STANDARDS DEVELOPMENTS <ul><li>EPCglobal’s publishes EPC Informa-tion Service standard in April 2007 </li></ul><ul><li>The standard allows supply chain partners to share data securely </li></ul><ul><li>System can scale so one supplier can send and receive EPC data with one system </li></ul><ul><li>Should be more cost effective than EDI and other data exchange systems </li></ul>
  13. 14. STANDARDS DEVELOPMENTS <ul><li>Group is examining need for: </li></ul><ul><ul><li>HF standard </li></ul></ul><ul><ul><li>Greater tag security </li></ul></ul><ul><ul><li>Business and technical requirements for item-level tagging </li></ul></ul>EPCglobal’s Item Level Work Group works on standards for item-level tags
  14. 15. STANDARDS DEVELOPMENTS <ul><li>Reduce counterfeiting </li></ul><ul><li>Create e-pedigrees for drugs </li></ul><ul><li>Reduce theft </li></ul><ul><li>Reduce store inventory </li></ul><ul><li>Increase sales of high-value goods </li></ul>End users interested in item-level tagging to:
  15. 16. PROVING THE BUSINESS CASE <ul><li>Early adopters prove there are benefits in using RFID both internally and across the supply chain </li></ul>
  16. 17. PROVING THE BUSINESS CASE <ul><li>Up to 62% on fast-moving items </li></ul><ul><li>Out-of-stock items with EPCs were replenished more quickly </li></ul><ul><li>10% reduction in manual orders </li></ul><ul><li>Reduction in time spent looking for inventory </li></ul>Wal-Mart study shows case-level RFID reduced out of stocks by 16%
  17. 18. PROVING THE BUSINESS CASE <ul><li>Promotional compliance only 50 to 90% </li></ul><ul><li>Sales rise 20% or more when promotions executed right </li></ul><ul><li>Increase in total promotional sales of 1% </li></ul>More companies tracking promotions:
  18. 19. PROVING THE BUSINESS CASE <ul><li>Airbus </li></ul><ul><li>Handleman </li></ul><ul><li>John Deere </li></ul><ul><li>Northrup-Grumman </li></ul><ul><li>Shaw Industries </li></ul>Companies are finding internal benefits: <ul><li>Metro AG </li></ul><ul><li>Volvo </li></ul><ul><li>Esquel </li></ul><ul><li>Lemmi Fashion </li></ul><ul><li>Nick Tentis </li></ul>
  19. 20. ADOPTION RATES <ul><li>Challenges more significant than many realized: </li></ul><ul><ul><li>Overcoming physics issues </li></ul></ul><ul><ul><li>Determining where the ROI is </li></ul></ul><ul><ul><li>Changing internal and supply chain processes takes time </li></ul></ul>Why isn’t adoption moving more quickly?
  20. 21. ADOPTION RATES <ul><li>Stories suggesting Wal-Mart is backing off are not correct </li></ul><ul><li>Wal-Mart is integrating RFID to the business side, instead of a special project </li></ul><ul><li>Some pushback </li></ul><ul><li>Technology issues surrounding GDS </li></ul>Whither Wal-Mart?
  21. 22. ADOPTION RATES <ul><li>Pharmaceutical companies </li></ul><ul><li>Health care providers </li></ul><ul><li>High-end apparel and accessory companies </li></ul><ul><li>Create solutions that scale </li></ul><ul><li>Aerospace </li></ul><ul><li>Chemical industry </li></ul><ul><li>Forestry and paper </li></ul>Companies across all industries are experimenting with RFID:
  22. 23. WHAT LIES AHEAD <ul><li>Apparel/Footwear companies need to: </li></ul><ul><li>Agree on an industry standard </li></ul><ul><li>Address privacy concerns </li></ul><ul><li>Think infrastructure but deploy in targeted ways </li></ul><ul><li>Companies must collaborate </li></ul>
  23. 24. WHERE TO GET GOOD INFORMATION <ul><li>RFID Journal (www.rfidjournal.com) </li></ul><ul><ul><li>Information you can rely on </li></ul></ul><ul><li>RFID Alliance Lab (www.rfidalliancelab.org) </li></ul><ul><ul><li>Performance testing </li></ul></ul><ul><li>Auto ID Labs (www.autoidlabs.org) </li></ul><ul><ul><li>SIGs on packaging, network architecture anti-counterfeiting </li></ul></ul><ul><li>EPCglobal (www.epcglobalinc.org) </li></ul><ul><ul><li>Business action groups </li></ul></ul>
  24. 25. RFID EVENTS EPC Connection 2007 In Partnership with EPCglobal North America Oct. 2-4, 2007 • Donald E. Stevens Convention Center • Chicago, IL RFID Journal LIVE! Europe 2007 3 rd Annual Conference & Exhibition November 5-7, 2007 Mövenpick Hotel Amsterdam City Center • Amsterdam RFID Journal LIVE! Canada, in partnership with EPCglobal Canada 2 nd Annual Conference & Exhibition November 26-28, 2007 • Toronto Congress Centre • Toronto, Canada RFID Journal LIVE! 2008 6th Annual Conference & Exhibition Apr. 16-18, 2008 Venetian Hotel • Las Vegas, NV
  25. 26. CONTACT INFORMATION Mark Roberti Founder & Editor RFID Journal [email_address]
  26. 27. Thank You!
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