CoMoSeR: Cost Model for Security-Enhanced RFID-Aided Supply Chains<br />18th Int’l Conference on Software,Telecommunicatio...
Agenda<br />Key Facts about the Hasso Plattner Institute<br />European Pharmaceutical Supply Chain<br />Costs for<br />RFI...
Key Facts about the Hasso Plattner InstituteInternals<br />Founded as a public-private partnershipin 1998 in Potsdam near ...
Key Facts about the Hasso Plattner Institute Research Group Hasso Plattner / Alexander Zeier<br />Research focus: real cus...
Key Facts about the Hasso Plattner InstituteWhat can we do for you?<br />Network between industry and academia,e.g. Europe...
European Pharma Supply ChainPharmaceutical Manufacturing<br />SoftCOM10, Cost Model for Security-Enhanced RFID-Aided Suppl...
European Pharma Supply ChainPharmaceutical Counterfeits<br />SoftCOM10, Cost Model for Security-Enhanced RFID-Aided Supply...
European Pharma Supply ChainAnti-Counterfeiting Components<br />SoftCOM10, Cost Model for Security-Enhanced RFID-Aided Sup...
European Pharma Supply ChainRoles<br />Main Roles<br />Manufacturers: ≈2.2k<br />Wholesalers: ≈50k<br />Retailers: ≈140k<b...
European Pharma Supply ChainData Sizing Assumptions<br />≈15 billion pharmaceuticals on prescription per year<br />≈11 eve...
Costs of RFID-EnablementPer Role<br />SoftCOM10, Cost Model for Security-Enhanced RFID-Aided Supply Chains, Schapranow, Se...
Costs of RFID-EnablementMajor Drivers<br />SoftCOM10, Cost Model for Security-Enhanced RFID-Aided Supply Chains, Schaprano...
Costs for Anti-CounterfeitingRisk Clusters (Excerpt)<br />Equipment, e.g. tag cloning, exposure of sensible data<br />Manu...
Costs for Anti-CounterfeitingSecurity Measures and Individual Costs<br />SoftCOM10, Cost Model for Security-Enhanced RFID-...
Costs for Anti-CounterfeitingService Provider<br />Pharma supply chain assumptions (k=4,p=15 billions)<br />Roles: Manufac...
Costs for Anti-CounterfeitingCost Distribution and Amortization<br />Surcharges per role<br />A: Manufacturer: 0.0050 EUR<...
Thank you for your interest!Keep in contact with us.<br />Responsible: Deputy Prof. of Prof. Hasso PlattnerDr. Alexander Z...
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CoMoSeR: Cost Model for Security-Enhanced RFID-Aided Supply Chains

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  • RiskDamage PotentialProbabilityEquipmentTag cloning High HighSensible Data High HighManipulate Trace Medium LowUnreadable Tags Low MediumWrong Data Transfer Low LowManufacturerProduct Recalls High LowReputation High LowConsumerHealth Damage High MediumLawResponsibility,Compensation,Guaranty,Authenticity High LowTechnicalUnreadable Barcodes Low MediumLogisticsTracking Issues Medium LowTracing Issues Low LowWarehousingInv. Management Low Low
  • CoMoSeR: Cost Model for Security-Enhanced RFID-Aided Supply Chains

    1. 1. CoMoSeR: Cost Model for Security-Enhanced RFID-Aided Supply Chains<br />18th Int’l Conference on Software,Telecommunications and Computer Networks<br />23-25 Sep, 2010 - Split, Croatia<br />Matthieu-P. Schapranow<br />Hasso Plattner Institute<br />
    2. 2. Agenda<br />Key Facts about the Hasso Plattner Institute<br />European Pharmaceutical Supply Chain<br />Costs for<br />RFID-Enablement<br />Anti-Counterfeiting<br />SoftCOM10, Cost Model for Security-Enhanced RFID-Aided Supply Chains, Schapranow, Sep 23, 2010<br />2<br />
    3. 3. Key Facts about the Hasso Plattner InstituteInternals<br />Founded as a public-private partnershipin 1998 in Potsdam near Berlin, Germany<br />Institute belongs to theUniversity of Potsdam<br />Ranked 1st in CHE 2009<br />500 B.Sc. and M.Sc. students<br />10 professors, 92 PhD students<br />Course of study: IT Systems Engineering <br />SoftCOM10, Cost Model for Security-Enhanced RFID-Aided Supply Chains, Schapranow, Sep 23, 2010<br />3<br />
    4. 4. Key Facts about the Hasso Plattner Institute Research Group Hasso Plattner / Alexander Zeier<br />Research focus: real customer data for enterprisesoftware and design of complex applications<br />In-Memory Data Management for Enterprise Applications <br />Human-Centered Software Design and Engineering <br />Maintenance and Evolution of SOA Systems <br />Integration of RFID Technology in Enterprise Platforms <br />Cooperations<br />Academic: Stanford, MIT, etc.<br />Industry: SAP, Siemens, Audi, etc.<br />SoftCOM10, Cost Model for Security-Enhanced RFID-Aided Supply Chains, Schapranow, Sep 23, 2010<br />4<br />
    5. 5. Key Facts about the Hasso Plattner InstituteWhat can we do for you?<br />Network between industry and academia,e.g. European section of the <br />Curriculum<br />RFID seminars for graduate / undergraduate students<br />Trends & concepts lecture (Prof. Hasso Plattner)<br />Enterprise Application Architecture Laboratory<br />Enterprise software, e.g. SAP, Microsoft, etc.<br />Equipped RFID Lab, e.g. deister electronic, noFilis, etc.<br />Concrete sizing and simulation of customer supply chains<br />SoftCOM10, Cost Model for Security-Enhanced RFID-Aided Supply Chains, Schapranow, Sep 23, 2010<br />5<br />
    6. 6. European Pharma Supply ChainPharmaceutical Manufacturing<br />SoftCOM10, Cost Model for Security-Enhanced RFID-Aided Supply Chains, Schapranow, Sep 23, 2010<br />6<br />
    7. 7. European Pharma Supply ChainPharmaceutical Counterfeits<br />SoftCOM10, Cost Model for Security-Enhanced RFID-Aided Supply Chains, Schapranow, Sep 23, 2010<br />7<br />
    8. 8. European Pharma Supply ChainAnti-Counterfeiting Components<br />SoftCOM10, Cost Model for Security-Enhanced RFID-Aided Supply Chains, Schapranow, Sep 23, 2010<br />8<br />Anti-Counterfeiting service provider validates authenticity of a concrete item <br />Discovery Service supports to identify appropriate EPCIS repository<br />EPCIS respository contains all event data for handled products of a certain supply chain partner<br />
    9. 9. European Pharma Supply ChainRoles<br />Main Roles<br />Manufacturers: ≈2.2k<br />Wholesalers: ≈50k<br />Retailers: ≈140k<br />Other Roles<br />Logistics Providers<br />End Consumers<br />SoftCOM10, Cost Model for Security-Enhanced RFID-Aided Supply Chains, Schapranow, Sep 23, 2010<br />9<br />
    10. 10. European Pharma Supply ChainData Sizing Assumptions<br />≈15 billion pharmaceuticals on prescription per year<br />≈11 events per unique item<br />1 x manufacturer (create + ship)<br />2 x wholesaler (receive + 2 x observe + ship) <br />1 x retailer (receive + sell)<br />1 x end consumer (check)<br />Assuming 364 days production results in ≈ 5,300 events/s within the European pharma supply chain<br />SoftCOM10, Cost Model for Security-Enhanced RFID-Aided Supply Chains, Schapranow, Sep 23, 2010<br />10<br />
    11. 11. Costs of RFID-EnablementPer Role<br />SoftCOM10, Cost Model for Security-Enhanced RFID-Aided Supply Chains, Schapranow, Sep 23, 2010<br />11<br />
    12. 12. Costs of RFID-EnablementMajor Drivers<br />SoftCOM10, Cost Model for Security-Enhanced RFID-Aided Supply Chains, Schapranow, Sep 23, 2010<br />12<br />Costs for setup and installation are major drivers ≈80-90%<br />Hardware costs develop proportional to the amount of handled goods ≈10-15%<br />Software and licensing fees are comparable small ≈2%<br />
    13. 13. Costs for Anti-CounterfeitingRisk Clusters (Excerpt)<br />Equipment, e.g. tag cloning, exposure of sensible data<br />Manufacturer, e.g. recalls<br />Consumer, e.g. health damage<br />Law<br />Technical<br />Logistics, e.g. tracking issues<br />Warehousing<br />SoftCOM10, Cost Model for Security-Enhanced RFID-Aided Supply Chains, Schapranow, Sep 23, 2010<br />13<br />
    14. 14. Costs for Anti-CounterfeitingSecurity Measures and Individual Costs<br />SoftCOM10, Cost Model for Security-Enhanced RFID-Aided Supply Chains, Schapranow, Sep 23, 2010<br />14<br />
    15. 15. Costs for Anti-CounterfeitingService Provider<br />Pharma supply chain assumptions (k=4,p=15 billions)<br />Roles: Manufacturer Wholesaler Wholesaler  Retailer<br />Responses: 4 events per EPCIS repository,182 Byte each<br />Network exchange (costs ≈0.11 EUR/GB (Amazon EC2))<br />UDP + IP overhead: 8 + 20 Byte per packet<br />Checking party  service provider: 12 Byte / 96 Bit EPC<br />Service provider  involved parties (no lookup): 12 Byte<br />Involved parties  service provider: 728 Byte<br />Service provider  checking party: 12 Byte + 4 Byte Auth.<br />Expected network costs for operation of service provider: 70,240 GB / 7,726 EUR per year for the European Pharma Supply chain <br />SoftCOM10, Cost Model for Security-Enhanced RFID-Aided Supply Chains, Schapranow, Sep 23, 2010<br />15<br />
    16. 16. Costs for Anti-CounterfeitingCost Distribution and Amortization<br />Surcharges per role<br />A: Manufacturer: 0.0050 EUR<br />B: Wholesaler: 0.1075 EUR<br />E: Retailer: 0.2091 EUR<br />Total surcharge for amortization a=5 yrs<br />A + 2 B + E ≈ 0.43 EUR per product<br />Mean price of pharmaceutical on prescription: 7.31 EUR<br />Surcharge for amortization is small, less than 6% of good’s price<br />SoftCOM10, Cost Model for Security-Enhanced RFID-Aided Supply Chains, Schapranow, Sep 23, 2010<br />16<br />
    17. 17. Thank you for your interest!Keep in contact with us.<br />Responsible: Deputy Prof. of Prof. Hasso PlattnerDr. Alexander Zeierzeier@hpi.uni-potsdam.de<br />Matthieu-P. Schapranow, M.Sc.<br />matthieu.schapranow@hpi.uni-potsdam.de<br />Hasso Plattner InstituteEnterprise Platform & Integration ConceptsMatthieu-P. SchapranowAugust-Bebel-Str. 8814482 Potsdam, Germany<br />SoftCOM10, Cost Model for Security-Enhanced RFID-Aided Supply Chains, Schapranow, Sep 23, 2010<br />17<br />

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