people (access management, mass transit ticketing, passports etc.)
Allows objects to communicate information about themselves automatically with no human intervention
reduce data entry errors
free up staff to do other value added functions
Advantages of RFID versus Barcode
No requirement for line-of-sight
Dynamic information carrier (read/write)
High memory capacity if needed
Anti-collision (many tags can be read at the same time)
Robust and reliable
Performs in rugged, harsh environment
Cheaper in long term
No human intervention
Reader virtually maintenance free
How RFID Works Reader Antenna Tag Computer IC (Integrated Circuit) Antenna Passive RFID Read/Write
RFID tag gets into reading device's electromagnetic field
tag receives the signal which energises the passive tag
tag transmits the data stored in the IC in return
reader passes the information to the host system
host system can be connected into the Internet or company's ERP system
reader can also pass information to the tag which can be re-written or deactivated
How RFID Works
“ Passive” RFID Tags
No internal power source
IC (integrated circuit) - provides the memory and stores data
Antenna – harvests power & communicates with the reader
Inlay/inlet – IC and antenna assembled together for insertion
RFID tag – an inlet converted in a way that it can be applied to an object
“ Active” RFID Tags
no battery source
read range = metres
has a battery source
read range = hundreds of metres
RFID Tagging / Auto-ID Technologies Barcode GPS ISO 18000-7 Active RFID Container Movement Vehicle Unit Load Transport Unit Packaging Item Passive RFID Gen 2 ISO 18000-6
RFID Standards 1999-2003 2000-
A joint venture between EAN International in Europe and the Uniform Code Council (UCC) in USA
Carries forth the work completed by the Auto-ID Center
EPCglobal is leading the development of industry-driven standards for the Electronic Product Code™ (EPC) to support the use of Radio Frequency Identification (RFID)
database access and formatting
A neutral, consensus-based, non-profit standards organization
Prevalent RFID Protocols UHF Tags – 860 to 960 MHz HF Tags – 13.56 MHz
EPC Class 0/0+
EPC Class 1
EPC Class 1 Gen 2
ISO 14443 A
ISO 14443 B
ISO 18000 P3
RFID / EPC Codes
EPC = Electronic Product Code
next generation barcode
coding scheme to electronically identify consumer goods
vision: enable the automated, unique identification of tagged objects
developed by EPCglobal (EAN, UCC)
EPC consists of UPC + serial number
UPC = Universal Product Code
a unique code for every group of objects
enables e.g. supermarkets to identify every product
two bags of Nestlé Smarties have the same UPC
Classes of RFID / EPC Tags
Opportunities for RFID
RFID Application Areas
Supply chain management
Mass transit (e.g. US Department of Defence)
Postal and courier services
Healthcare, pharmaceutical industry
Airline baggage handling
RFID Application Areas Manufacturing Logistics
Supply chain visibility
Raw Material Tracking
Production line visibility
Out of stock reductions
Item level visibility
Asset Visibility Saves Money !
Health Care: hospitals misplace or lose 10-20% of their valuable medical equipment annually, wasting staff and patient time and incurring costly replacement charges.
Yard Management: shipping and cross-docking yards spend several hours each day manually locating trailers and containers for delivery, resulting in slow delivery times and high staff and fuel costs.
Manufacturing: aerospace, semiconductor and other facilities misplace mobile toolkits, machinery, parts and WIP inventory, at a cost of as much as USD $1 million per incident.
16% reduction in out of stock. 62% reduction in replenishment times.
25% reduction in operational costs by tagging cases at point of production.
Error prevention at item level on over 30m RFID enabled syringes of Diprivan.
Supply chain inventory cut from $117m to $70m. Deliveries cut from 28 to 16 days.
Business Benefits of RFID
Large percentages of medical equipment are not accounted for each year, leading to high costs and patient risk.
800 bed leading-edge hospital in the USA
Compliance with JCAHO* is a problem: cannot locate medical equipment to meet service schedules.
IV pumps: only 35% of their time being utilized, cleaned or processed. 65% of time, missing.
Low utilization led to overspending on equipment and labor, and incurring unnecessary rental costs.
Patient Care: Cannot administer drugs in timely manner because they are looking for IV pumps.
Lack of knowledge of where assets and people are in the facility. Cannot find patients or clinicians.
Countless hours spent searching for patient-care assets: Pumps, Computer Carts, and Wheelchairs.
Case Studies in Action (Aeroscout) * JCAHO = Joint Commission on the Accreditation of Healthcare Organizations
Case Studies in Action (Savi) Improving Asset Utilisation in the Extended Retail Supply Chain Problem: Lack of visibility to retail supply chain assets as they moved through the supply chain caused surplus asset inventory, created unnecessary capital investment, increased operating costs and impacted customer service. Solution: Smartchain Asset Management System (AMS) and Smartchain® Enterprise Platform provides visibility to assets including roll cages, plastic crates, metal dollies and beverage trays used to move perishables between suppliers, distribution centers and retail stores. Project brief: Savi provided a “hosted environment” and integrated AMS with Coles Myer’s own inventory system, to be followed by full rollout covering 1,400 locations. Follow-on phase will include Savi asset optimization application. Benefits: Full asset lifecycle management, improved asset utilization, reduced manual labor intensive tracking systems. Future improvements include charging suppliers for use of assets
Case Studies in Action (Savi)
Business Problem: Shrinkage a rising problem at Woolworths UK as in the entire retail industry. More than half of all theft occurs within the retailer’s own supply chain, in and between supply chain checkpoint, Distribution Centers and retail outlet stockrooms.
Solution: Combination of bar codes on products, active RFID tags on dollies and roll cages, GPS tracking delivery trucks, readers at key checkpoints, all tied into the Savi SmartChain software platform.
Project Brief: Compare number and types of products leaving a major Distribution Center with the numbers and types delivered to retail outlets and onto store shelves. Isolate where the shrinkage occurs to zero in on problem areas.
Results: Narrowed down where shrinkage occurred as well as problems in labor processes and accounting procedures. Visibility and accountability are keys to successfully reducing losses.
Case Studies in Action (Savi) Improving Utilisation of Rail Cars In Africa’s Largest Rail Network: 70,000 Railcars 3000 Locomotives 19,000 Miles of track Business Problem: Lack of visibility into location of rail cars caused poor customer service levels, surplus rail car inventory resulting in unnecessary capital investment Solution: Smartchain Asset Management System (AMS) and Smartchain Enterprise Platform provided web enabled visibility to rail cars. Trackside chokepoint implementations included Smartchain site manager, echopoint RFID signposts and readers integrated with weigh bridges and wheel counters. Savi asset tag 654 was used to tag rail cars and locomotives. Project brief: pilot phase for specific track sections moving to roll-out phase including integration with spoornet’s customer management systems. Benefits: the system improved asset utilisation, customer service and on-time deliveries.
Case Studies in Action (Savi)
Savi has deployed the world’s largest military RFID/AIDC Network