Rfid08 Ppt Kirkwood Rfid101 Final Presentation

RFID 101 Bonni Kirkwood Northeast Secure Value Chain Leader Deloitte Consulting bkirkwood@deloitte.com

Overview • RFID Background • RFID System Components • Choosing RFID • RFID Benefits and Applications

What is RFID? • Radio Frequency Identification: Radio Frequency is an automatic identification method in which devices called RFID readers use radio frequency waves to retrieve information from RFID Tags • RFID is a non line-of-sight technology which supports automated data capture for many industries • RFID can communicate information on a product, its condition, and its history

The (not so) brief history of RFID 1940’s 1950’s 1960’s 1970’s 1980’s 1990’s 2000’s 2010+ • Major WW II •Early • RFID • Very early • Commercial • Emergence of • First CPG • RFID costs development explorations of companies adopters applications for initial RF open retailer auto drop efforts RFID Sensormatic implement RFID enter the standards ID pilot technology & Check- mainstream launched • Technology • RFID invented point are • RCA and • RFID widely hurdles in 1948 •Long –range founded Fairchild • Applications deployed in • Gillette buys eliminated transponder publish emerge in toll collection, 500M tags systems for “Electronic ID transport, animal tagging from Alien • Non clone “ID” of friend System” industrial, and personal able tags and Foe (IFF) personnel identification • Walmart & introduced for aircraft • NY and NJ Port access and DOD Authority test animal tagging • MIT announce • Sensitivity and electronic toll establishes supplier bandwidth applications • Toll roads the Auto ID mandate improved in worldwide are Center UHF equipped with • Pharma Track RFID and Trace requirement emerge

• RFID Background • RFID System Components • Choosing RFID • RFID Benefits and Applications

RFID technology enables auto-identification through the use of three major components – tags, readers and software Tags Readers IT Architecture • ID Device comprised of a • Data retrieved via an antenna • Software gathers and manages microchip and an antenna from the RFID tags data that store/transmit data • Data passed to systems • Data communicated into • Memory contains existing enterprise applications Electronic Product Code (WMS, ERP, etc.) (EPC) that uniquely • Common digital language identifies each product describes products • Tags may be active or passive

How the three major components of an RFID system work together • An RFID tag may store and transmit data • When an RFID tag detects • The reader decodes data it like serial number or NDC, model, price, electromagnetic energy, its receives from the RFID tag date of manufacturer of a tagged product antenna enables the chip to and passes it to a computer receive and reply to radio system for processing • May store information about an animal or frequency signals from an a person’s identity, details of the account RFID Reader to which a tagged smartcard links, or codes required for security clearance • May also include built-in sensors that detect and transmit information about the condition of a product – e.g., temperature or tampering

TAGS: Depending on the application and physical requirements, RFID systems can use active (battery powered) or passive (reader powered) tags Passive Active •Powered by RF waves - no internal power •Includes power source and transmitter for read/write capabilities •Reflects energy radiated by reader •Larger than passive tags •Sized to product •Additional functionality, such as monitoring •Used for track and trace, inventory, shipping temperature, humidity, shock/vibration •No batteries - Cost <$1 •Cost range $20-$50 •Effective range of up to 30 feet •Effective range of 1000+ feet •Examples: ExxonMobil Speedpass •Examples: EZ Pass car toll systems, container environment monitoring

READERS: RFID readers are designed to perform the following functions: Antenna Interface to Host Computer • Interrogate (RS485, RS232/422, ethernet, • Communicate 802.11 etc.) • Translate • Resolve Antenna Tag Reader

There are several peripheral devices and enabled locations that support an RFID system Manufacturing/Packaging Distribution Retail/Hospital • Applicators • Forklift enabled readers • Dock Portals • Stretch wrap • Perimeter doors • Staging/holding • Commissioning station • Receiving Dock Portals • Case Crusher/compactor • Receiving dock portal • POS locations • Shipping dock portals • Shelving • Perimeter doors • Carts and trolleys Printers./ Turntable programmers readers Mobile In line readers applicators Smartcart Dock Portal

Passive RFID tags consist of three parts: 1. A silicon microchip: holds information about the physical object to which the tag is attached 2. An antenna: transmits information 3. Conversion: encases the chip and to a reader (e.g., a handled, antenna so that the tag can be warehouse portal, pharmacy or attached to physical object store shelf) using radio waves Sample tags

RFID systems can only use frequency ranges that have been reserved specifically for industrial, scientific or medical applications or for short range devices LF: •Uses Magnetic field (Near field) • RFID frequencies: •Better able to penetrate non-metallic substances •Ideal for scanning objects with high-water content •Read range is limited to < 1ft –Low-frequency (around 125 KHz) HF: •Uses Magnetic field (Near field) –High-frequency (13.56 MHz); and •Can work around goods with high water content •Practical read range is in inches –Ultra-high-frequency or UHF (860- UHF: 960 MHz) • Uses Magnetic (Near field) and/or the Electric (Far field) • Tags are more simplistic and hence less expensive • Can be used for waters, coupled to metals for greater range • Used for items, cases and pallets • Read ranges from an inch to 100+ feet away Magnetic Field = Inductive Field = Near Field Electric Field = Far Field

The EPC data format used with RFID is more specific and unique than bar coding •UPC – Universal Product Code : Associated with Bar Code Technology. A means of identifying a manufacturer and generic object category. •EPC – Electronic Product Code: A unique identification code associated with RFID Technology. A means of associating a manufacturer, object and a specific item via a unique serial number, allowing reference to a specific item, origination, date of production, etc.

EPC is the basis for RFID •The EPC stores product information in the form of a value in each tag •This value is composed of the following elements: Header (8 bits): EPC Manager (28 bits): Object Class (24 bits): Serial Number (36 bits): Used to indicate EPC Used to indicate the Identifies the product Provides the unique version and may company and the group and is identical product serial number identify variant naming manufacturer – similar to the GTIN* number schemes. Also can be to company identifier used for future labeling in GTIN* formats extensions *Global Trade Identification Number (GTIN) is the interoperable data format that USS and EAN numbering systems conform to

Factors to consider when choosing passive tags Considerations Where will the tags be used? • The location will define the frequency, cycle, antenna pattern, data Are there other RF activities? rate and power limitations (to avoid interference etc.) What will my trading • Read only partners need? • Read/write • Complexity and cost involved if deploying multiple technologies; e.g. 2D for small items, LF or HF for water based products, UHF for cases and pallets. What kind of product will be • Characteristics (round, square, liquid, glass, plastic), cartons, totes tagged? • Determines size of tag, the kind of adhesive and placement location How will I build my • Placement of tags hierarchy? • Alignment • Aggregation What kind of environment •Cold Chain will the tags need to •Humid withstand? •High temperature

While there are factors that can impact tag performance, knowing how to optimize tags and system configurations is important for success Considerations Tag shape • Antenna shapes can effect performance- more sensitive silicon has improved this Tag size • Large antenna mean larger tags and longer read range Read rate of tags • Rapid rate is suggested Tag packaging • May effect durability • Foam, stickers, plastic cases (conversion) Tag sensitivity • Greater chip sensitivity, longer read range Tag stacking • Tags stacked closely together may interfere with one another Number of tag antennas • Readability can be reduced if a tag has one antenna that is sensitive to orientation • Double dipole tags alleviate orientation issues, but are more expensive and are larger What product is attached to •Cardboard, plastic, clothing •Metal, water

Different types of auto id tags/technologies can be used at various points in the product hierarchy Bar Code/ Linear or 2D Passive RFID Semi-Active or Active GPS L1 -Item L2 -Packaging L3 -Case/Pallet/Unit Load L4 -Container L5 -Vehicle Passive Tags: Semi-Active Tags: Active Tags: GPS: • Low cost • Higher cost •High cost (10-100x) • Highest cost • Long Life • Battery, more memory •Battery and electronics (10Y life) • Extended range – • Range 1- 30 ft • Range of ~150 ft •Long range ~ 1000+ ft satellite based data • Typically used for L1–L3 • Typically used for L3-L4 •Larger in size capture – cargo/vehicles •Wider range of applications • Typically used for L4-L5 •Typically used for L3 – L5

RFID is the ‘next generation bar code’ and is already delivering additional benefits Bar Code Labeling and Scanning RFID Price • Low cost • Material is expensive compared to linear and 2D bar codes –but can return higher ROI Capacity • Limited space – typically only simple • Can hold substantial amounts of data (96-256 bits) identifiers (e.g. lot#, SKU) are stored • Can track events and make decisions at lower • Low granularity of data level, real time = new opportunities for process • Read only optimization and traceability • Can read and write information from partners Flexibility • Line of site reading required • No line of site required - proximity only resulting • One simultaneous scan per read in simpler handling of goods • Multiple simultaneous tag scans per read Accuracy • Human intervention opens possibilities for • Fully automated and nearly error-free errors • O.H.I.O. principle – Zero Human Interventions Operations – reducing labor requirements Durability • Labels can be easily damaged, destroyed •Tags are more durable and duplicated •Tags can operate in harsh environments

RFID drives benefits that directly impact organizations Value Regulatory / Revenue Growth Operating Margin Asset Efficiency Expectations Price SG&A Inventory Patient Realization Safety • Chargeback accuracy • Returns management • Working capital • Counterfeit prevention • Reduce wholesale shortages effectiveness • Channel inventory • Recall management • Diversion prevention & tracking • Order accuracy management • Patient compliance • Customer complaint data accuracy • Recall management • Excess Inventory reduction management • Trade partner terms effectiveness • Clinical Product Tracking • Clinical Trial Management • Government pricing/ ASP • Adverse event tracking • Increase disaster response • Negotiating leverage as industry • Demo kit controls inventory identification leader • Transportation leakage • Shrinkage reduction management • Direct-ship to the MD* Strengths • Sales force compensation Volume • CMO efficiency • Brand Equity • Sales uplift • Free product controls PP&E • Promotions effectiveness • Shipping & Handling* External • Market data effectiveness • Inventory cycles • Improve equipment availability, Factors • Demand planning efficiency, throughput (OEE) • Launch planning COGS • Utilize more robust and scalable • Regulatory relationships • Provider contracting (non- IT systems government pricing) • Upstream supply chain benefits • Anti-counterfeiting (product authentication) Legend : • Black – Tangible; quantified Source: Deloitte • Grey – Qualitative or future benefit • Red - RFID Direct Benefit *Scale of Potential benefits will vary with the implementation of Track & Trace

Point, closed and open RFID solutions can be deployed within the supply chain–with varying benefits Point Linear, Closed Network Open 1. Manufacturer 2. Wholesaler 7. Pharmacy 6. Importer Manufacturer Community Plant Hub DC Pharmacy Contract 4. Repacker Specialty Manufacturer Pharmacy Plant Local DC Contract Independent Packaging Pharmacy Plant 3. Retail Chain Packaging Prescriber/ Plant 8. Patient Warehouse Provider pharmacy Distribution 5. Secondary Center Hospital Wholesaler 3rd Party Chain Pharmacy Logistics Mail Order Provider Internet Description • Stand alone solution • Linear solution that does not • A solution that is deployed within four walls of have to be end-to end (e.g., a throughout a supply chain facility supply chain route) integrated network Who • A particular function • All parties in the chain that • The benefits are gained by all benefits? or point in the ‘touch’ the RFID parties in the supply chain supply chain Examples • Tagging warehouse • Tagging of returnable totes •Item level tagging of medical assets for yard from wholesalers to retail devices through the supply management pharmacies chain

Initially RFID opportunities have been at discrete entities. With time, opportunities will grow to encompass the entire supply chain Hospital/ Supplier Manufacturer Wholesaler 3PL Pharmacy Consumer Reusable containers Reusable containers Reusable containers Reusable containers Short term Production scheduling Production scheduling Inbound receiving Inbound receiving Supply planning Supply planning Pallet and tote location and tracking Pallet and tote location and tracking Pallet Inbound receiving Inbound receiving Delivery planning Delivery planning Case Inventory Management Inventory Management Pick, pack and ship Pick, pack and ship Inventory visibility Inventory visibility Back room/inventory loss prevention Back room/inventory loss prevention Demand planning – DC and retail pharmacy Demand planning – DC and retail pharmacy Item Inventory counts Pick, pack and ship Pharmacy LP Self authentication Inventory counts Pick, pack and ship Pharmacy LP Self authentication Long term Demand planning – pharmacy shelf level, pricing, availability, vmi Demand planning – pharmacy shelf level, pricing, availability, vmi Safety and Security – Track and Trace Safety and Security – Track and Trace Reverse Supply Chain (recalls, returns, charge backs) Reverse Supply Chain (recalls, returns, charge backs)

RFID applications impact every major industry Healthcare & Life Sciences Transportation Manufacturing Potential Value Potential Value Potential Value Applications Applications Applications • Counterfeit protection • Electronic Payment & • Process control Ticketing • Drug validation and • Inventory Management & compliance • Baggage Management Visibility • Product recall • Part supply/auto • Yard Management replenishment • On shelf availability • Asset Tracking • Transportation Tracking • Inventory management & • Product recall visibility • Asset Tracking • Asset tracking • Total Management • Terminal Management • Patient and medical • Quality control records tracking • Customs Clearance • Medical waste • Transportation Tracking • Vehicle Access • Clinical trials • Authentication & • Auto rental Immobilization High Low

Early Adopters of RFID CPG Retailers TMT Transport Healthcare and FSI Auto CPG Mnfg. Pharmaceuticals • Inventory • Asset • Electronic • Inventory Mgmt, • POS payment • Process control • Loss Mgmt tracking, POS payment & Loss prevention • Consumer prevention payment ticketing experience • Consumer • Process • Asset • Safety and • POS payment • Inventory • Inventory experience control tracking Security management management • Tool / productivity Management • Loss prevention • Vatican • Baggage • Inventory • POS payment • Product Recall • Asset Library Mgmt Management Management (IV utilization fluids) (bulk containers)

Building a Business Case for RFID Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Identify Assess Process Build Plan Pilot Characterize Finalize RFID Opportunity and Org. Business and Opportunities Opportunities Areas Impact Case Program Shareholder Opportunity Impact Prioritized • Quantify opportunities Map matrix assessment opportunities • Identify people, process and technology changes & data needs It’s important that you know what you want to use RFID for before It’s important that you know what you want to use RFID for before you consider implementing an RFID system • Build cost model and you consider implementing an RFID system pilot/program plan If you know what aspects of your business processes you want to If you know what aspects of your business processes you want to improve through RFID, you can purchase the correct number of improve through RFID, you can purchase the correct number of tags, put the correct systems in place, and train employees tags, put the correct systems in place, and train employees correctly for the implementation correctly for the implementation

What factors are influencing RFID adoption? Considerations Standards • Standards that govern how readers, tags and network infrastructures exist Cost of tags • Reduction in the cost of tags is dependent upon demand • RFID will likely remain more expensive than bar codes unless benefits beyond current systems are identified • Closed supply chain tracking can reuse tags - open supply chain seldom does Consumer Privacy • Consumers may have concerns that RFID device embedded in product may transmit personal data Mixed Solutions • Complicates infrastructure – some trading partners using different identification (2D bar coding or linear) Varying data formats • Writeable tags may contain varying data format, making them unreadable except by customized readers

What will drive the future of RFID? Regulatory bodies Improving economics • Government bodies (DoD, • Reduction in cost of tags, DHS, FDA) mandate RFID readers usage • Downward pricing on • US and EU outlined Food RFID hardware will Safety and Security continue requirements RFID Acceptance and • Disruptive strategies Adoption Standards Industry pressure • Global RFID standards • Retailers, Hospitals, (EPCglobal, ISO) exist and Wholesalers are are being augmented beginning to require suppliers become RFID capable • Others are following

Thank You! Questions? Please contact : Bonni Kirkwood Northeast Secure Value Chain Leader Deloitte Consulting bkirkwood@deloitte.com

Rfid08 Ppt Kirkwood Rfid101 Final Presentation

by blkirkwood on Oct 16, 2009

Accessibility

Upload Details

Usage Rights

2 Embeds 4

Statistics

Rfid08 Ppt Kirkwood Rfid101 Final Presentation Presentation Transcript

http://www.linkedin.com	3
http://www.slideshare.net	1