4. RFID… history
• 1945
• Leon Theremin
- Espionage tool for the Soviet government
• The British invented a similar technology, the IFF
transponder. Used by allies in World War II to
identify airplanes as friend or foe.
• 1973
• Mario Cardullo
- Claims that his patent was the first true
ancestor of modern RFID.
5. RFID (Radio Frequency Identification)…
• Automatic Identification Method
• Stores and Retrieves Data using Tags or Transponders
• Can be attached or incorporated
• Contains Silicon Chips and Antennas
• Receive and Respond to Radio Frequency Queries from
Transceiver.
6. RFID… types
• Passive
- No Internal Power Supply
- Quite Small in Size.
• The smallest device can be measured at
0.15mm * 0.15mm.
- Most Common
7. RFID… types (continued)
• Active
- Internal Power
Supply
- Typically Beacon Tags
-transmit their tag
data and ID at a
predetermined fixed interval
- Response Tags: Only respond when an active
RFID reader requests the tags to transmit
8. RFID… supply chains and inventory
• Locating Inventory in Stock
• Information Storage Capabilities
• Less Error
9. RFID… supply chains and transparency
• Tracking Knowledge
• Safety and Security
13. RFID… hospitals
• Track equipment
• Patient locator/information storage
• Doctor locator
• Restrict access to drugs and other
materials
RFID for people
14. RFID… military
• Tracking wounded during war
• Following personnel movement during
training exercises
• Improving movement and tracking of
supplies
• Identifying vehicles and shipments as being
either military or non-military
16. RFID… retail
• Tags in labels help track product
source/specs
• Safeguard against counterfeit products
• Reduce theft
• Allows movement of inventory to be tracked
17. Imagination Time
What future products (or services) will use RFID
technology?
…what cool ideas do you have for RFID….
18. • Tire Monitoring
• Refrigerator
• Washing Machines
• Dressing Rooms/Closets
• Golf Balls
• 10-15 years for most
consumer products
RFID… future uses
19. RFID… what does this mean for customers?
Today:
• Full shelves
Tomorrow:
• Product make-up
• Ease stock keeping, shopping and
cooking
• Increased product safety
• Exchange convince
20. RFID… what does this mean for retailers?
Today:
• Inventory control
• Decreased manual handling
• Increased sales & long-term market share
Tomorrow:
• Increased theft protection
• Reduced spoil
• Significantly reduced inventory measures
• Counterfeit protection
21. RFID… themeindustry benefits
• From cradle to table
• Each product uniquely identified—EPC
• Simplifies and accelerates merchandise
management
23. RFID… wal-mart
• Wal-Mart’s decision to incorporate RFID into
their retail and supply chain has propelled the
technology forward
• Benefits:
• efficiency
• simplification
• Pilot trial
• 16% decrease in stock-outs and
• 2/3 reduction in replenishment times
24. RFID…. wal-mart (continued)
• Top 100 Wal-Mart suppliers currently
use RFID tags
• increasing to 300 by the end of 2006
• 600 by the end of 2007
• Strategic Implications
• Volume and Cost
• Upstream Supply Chain extensions
• Downstream Supply Chain extensions
• Innovation
25. RFID… other corporate examples
• Target Corp.
• Albertsons
• U.S. Department of Defense
26. What does this mean for suppliers?
• Cost of system and setup: $9 Million+
• Smaller Suppliers: Can they do it?
• Order winner vs. order qualifier
