Scm Rfid

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Scm Rfid

  1. 1. GROUP 10 RFID – The next revolution in SCM
  2. 2. Overview of RFID <ul><li>RFID System helps in storing and trasnsmitting information </li></ul><ul><ul><li>Tags </li></ul></ul><ul><ul><li>Readers </li></ul></ul><ul><li>As small as grain of rice or as large as brick </li></ul><ul><li>No direct line of sight required for data transmission </li></ul><ul><li>Difficult to counterfeit </li></ul><ul><li>High data integrity </li></ul><ul><li>Practically maintenance free </li></ul><ul><li>Reliable in harsh condition like dust, snow, fog, corrosion, vibration and shocks </li></ul>
  3. 3. MIT Auto-ID Center <ul><li>Established in 1999 </li></ul><ul><li>Goal of developing a low-cost, open-standard RFID infrastructure </li></ul><ul><li>Most visionary and fascinating in RFID applications in SCM </li></ul><ul><li>Labs in leading universities England, Australia, Switzerland, Japan and China </li></ul>
  4. 4. MIT Auto-ID Center <ul><li>Later split into two new organizations </li></ul><ul><ul><li>Auto-ID center: Research and develop new technologies with all the university labs </li></ul></ul><ul><ul><li>EPCglobal: Developing and administrating RFID technology developed by Auto-ID center </li></ul></ul>
  5. 5. MIT Auto-ID Center <ul><li>96-bit version is big enough to identify: </li></ul><ul><ul><li>268 million manufacture </li></ul></ul><ul><ul><li>Each having 16 million different product and </li></ul></ul><ul><ul><li>68 billion different items in each product </li></ul></ul><ul><li>RFID infrastructure known as EPC Network </li></ul><ul><ul><li>Electronic Product Code (EPC) code </li></ul></ul><ul><ul><li>Product Mark-up Language (PML) </li></ul></ul><ul><ul><li>Object naming service (ONS) </li></ul></ul><ul><ul><li>Savant (Distribute software system for data handling) </li></ul></ul>
  6. 6. RFID Features <ul><li>Active: Powered by internal battery </li></ul><ul><ul><li>Heavier and expensive </li></ul></ul><ul><ul><li>Life of about 10 years </li></ul></ul><ul><ul><li>Longer reading range </li></ul></ul><ul><ul><li>Applicable when reader is far from tag </li></ul></ul><ul><li>Passive </li></ul><ul><ul><li>Draws power from reader </li></ul></ul><ul><ul><li>Lighter, smaller, cheaper </li></ul></ul><ul><ul><li>Long life </li></ul></ul><ul><ul><li>Range from a fraction of inch to a few feet </li></ul></ul>
  7. 7. RFID Features <ul><li>Low frequency - Range < 10 inches </li></ul><ul><li>High frequency - Range a few feet </li></ul><ul><li>Ultra high frequency , when high speed reading from a distance of several feet is required </li></ul><ul><li>With increasing frequency price of both tag and reader goes up </li></ul>
  8. 8. Possible benefits <ul><li>Increase supply chain visibility </li></ul><ul><li>Express self checkout </li></ul><ul><li>Inventory reduction </li></ul><ul><li>Improved collaboration among partners </li></ul><ul><li>Improved pricing </li></ul><ul><li>Fewer out of stock situation </li></ul><ul><li>Real-time tracking of parts, components and subassemblies through manufacturing process </li></ul>
  9. 9. Possible benefits <ul><li>Tag might include operating instructions for a machine and stores feedback , reducing paper work and increasing efficiency </li></ul><ul><li>IN CPG industry, more efficient consignment verification </li></ul><ul><li>No line of sight is required so reads tags in bulk </li></ul><ul><li>Increased efficiency in receiving, checking, loading and unloading of trucks </li></ul><ul><li>Information about location of pallets in warehouse </li></ul><ul><li>Unscheduled movement of pallet alerts </li></ul>
  10. 10. Possible benefits <ul><li>Increased visibility reduces bullwhip effect </li></ul><ul><ul><li>Visibility helps in identifying source of variability </li></ul></ul><ul><li>Accuracy, speed and reliability of data transmission </li></ul><ul><ul><li>Automatic electronic sharing of data speed up workflow </li></ul></ul><ul><ul><li>Necessary for growing trend towards outsourcing </li></ul></ul>
  11. 11. Possible benefits <ul><li>Reduces inventory shrinkage </li></ul><ul><ul><li>RFID tag linked with security monitoring system </li></ul></ul><ul><ul><li>Observes movement from shelf to exit door </li></ul></ul><ul><ul><li>Unique identification prohibits return or resale </li></ul></ul><ul><ul><li>Dead inventory can be tracked without any effort </li></ul></ul>
  12. 12. Possible benefits <ul><li>Exact inventory level known all the time </li></ul><ul><ul><li>Manual observation not required </li></ul></ul><ul><ul><li>Tracks unexpected event, such as irregular demand or supply </li></ul></ul><ul><li>Correct Pricing </li></ul><ul><ul><li>Improve revenue and profit through pricing: Revenue Management or Yield Management </li></ul></ul><ul><ul><li>Timely and accurate inventory level and, demand and supply information can enable revenue management tool to optimize price, product mix, promotion and other sales offer </li></ul></ul><ul><li>Asset tracking application </li></ul><ul><ul><li>Scottish Courage uses RFID tagging to track 2 million kegs </li></ul></ul><ul><ul><li>Reduced incidences of theft </li></ul></ul>
  13. 13. Selected RFID case studies <ul><li>Auto ID center, Wal-Mart, PnG, Unilever, Kraft, Coca-Cola, Gillette and several others came together to test and validate RFID infrastructure </li></ul><ul><li>Phase I : Pallets were tagged and whole supply chain was integrated with information system. It was successfully completed. </li></ul><ul><li>Phase II: Tracking several products. Results were never discosed </li></ul><ul><li>Phase III: Item level tracking, abandoned </li></ul>
  14. 14. Impediments to RFID adoption <ul><li>Lack of universal standards </li></ul><ul><ul><li>Tag specification </li></ul></ul><ul><ul><li>Frequency allocation </li></ul></ul><ul><ul><li>Communication system needs </li></ul></ul><ul><ul><li>Mostly Vendor’s own proprietary system </li></ul></ul><ul><li>High cost of Tags </li></ul><ul><li>High cost of RFID reader </li></ul><ul><li>Absence of application software </li></ul><ul><li>Reliability of reader </li></ul><ul><li>Metal containers scatter radio frequency </li></ul><ul><li>Liquid detergents tend to absorb radio frequency </li></ul><ul><li>Invasion in private life, product can be linked to consumer </li></ul>
  15. 15. <ul><li>Thank you!!! </li></ul>
  16. 16. <ul><li>Companies get extraordinary ability to track each and every tagged item </li></ul><ul><li>US DoD using in shipments of military supplies to Persian Gulf </li></ul><ul><li>ExxonMobil’s SPeedPass for gas station </li></ul><ul><li>EAPass for toll collecion </li></ul><ul><li>Livestock tagging </li></ul><ul><li>In Singapore use based road charge </li></ul><ul><li>Car keys embedded with RFID. If wrong key entered, car is immobilised </li></ul><ul><li>European central bank planning to tag bank notes by 2005 </li></ul><ul><li>Auto and Computer manufacturer use for specifying build configuration and store pertinent feedback </li></ul>
  17. 17. <ul><li>Wal-Mart, Target and US DoD want their top suppliers RFID enabled </li></ul><ul><li>Wal-Mart, PnG, Uniliver, Gillette, Target and Home Depot are involved in development and testing </li></ul>
  18. 18. Promises… <ul><li>Pallet level tagging in the food and Consumer Packaged goods (CPG) possible in near future </li></ul><ul><li>Many barriers in implementation at item level </li></ul>

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