RFID (Radio Frequency Identification) is an automatic identification method that uses tags or transponders with silicon chips and antennas to receive and respond to radio frequency queries from transceivers. There are two main types - passive tags that have no internal power supply and active tags that have an internal power supply. RFID is currently used in supply chain management, retail, hospitals, and other industries to track inventory and assets. Future uses may include consumer products like refrigerators and washing machines. While RFID provides benefits to industries like reduced costs and increased efficiency, some have privacy concerns about potential tracking of individuals.

1. RFID
l. goetzinger ● m. lines ● c. mclaughlin ● c. sailer ● m. schwab
Presented to the Class of BA 457

2. • RFID Overview
• RFID and the Supply Chain
• Current Uses
• Future Uses and Controversy
• Corporate Examples
RFID… presentation layout

3. RFID… a video

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

10. RFID… gillette case study

11. RFID and Information Sharing…
• Decrease in Discrepancies
• Increased Efficiency
• A Better-Run Company

12. RFID… current applications
• Hospitals
• Retail
• Military
• Fleet Maintenance
Electronic Toll Collection

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

15. RFID… fleet maintenance
• Easily accessible vehicle specs
• Vehicle locator
• Records vehicle maintenance automatically
• Reduces record keeping errors

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… themeindustry benefits
• From cradle to table
• Each product uniquely identified—EPC
• Simplifies and accelerates merchandise
management

22. RFID… controversy
• Video of RFID chip implanted into hand

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

27. Q&A
What are your questions?

28. RFID… sources