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RFID Technology
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- 3. Diverse Applications • Marathonraces • Airline baggage tracking • Electronic security keys • Livestock tagging • Electronic toll pricing • Library • Video stores • Defense • Retailing – Stock levels, prices, expiry dates, remote access of products • SCM
- 5. RFID and SCM •Dramatic change in the management of supply chains • Extraordinary ‘Asset Tracking’ ability • Wal-Mart, Target. etc. have their suppliers RFID enabled • World-wide demand of RFID tags $1 million • FMCGs and Food Processing companies at various levels of RFID implementation – Pallet, Case, Item level
- 6. Overview of RFID •Readers and Tags capable of transmitting and storing information – Tags – Tag readers – Edge servers – Middleware – Application software
- 7. Systems ASSET TAG Antenna READER HOST SERVER Application Software API Customer’s MIS Power TCI/IP Application ProgrammingInterface, which is a software intermediary that allows two applications to talk to each other.
- 9. Tags (Transponder ) •Active – longer distance (electronic tolls) – tags cannot be close to the reader – larger memories – powered by internal battery source – expensive, larger, heavier, about 10 years life – active tags are more effective in “challenged environment” • Passive – Powered from the readers – Lighter, smaller, and cheaper to produce – Used in close range • Memory – Read-only – Read/Write – Combination
- 10. Tag Construction Memory unit– RAM, ROM, Non-volatile programmable. Logical Unit- Processor Analog Unit- Antenna Analogue Circuitry Data Transfer Power supply Digital Circuitry Control Logic, Security Logic Microprocessor Memory Unit Non-Volatile Memory RAM ROM
- 12. Readers • Antenna (orientation, polarization, Protocol) • Multi-protocol and Multi-frequency (New) Middleware • Reader integration, Data filtering Application Software • Filter and process data- feed to customers systems e.g. ERP, CRM, WMS etc.
- 13. SCM benefits fromRFID • Tracking helps in – Inventory reduction – Increased visibility – Improved decision making – Improved collaboration amongst the partners – Improved pricing – Fewer stock-outs • Magnitude of benefits – Area of application – Level of application (pallet, case, item)
- 14. SCM Benefits fromRFID • Manufacturing Process – Track the production of the part – Instructions to produce – Feedback to the ERP system about the status – Efficient bottleneck management • Distribution Process – Efficient consignment handling – Pallets with mixed cases (non-uniform) benefit more – Warehouse management – Shorter order-to-cash cycle
- 15. SCM Benefits fromRFID • Collaboration – Increased matching of supply and demand – Reduction in bull-whip effect – Improvement in forecasting and demand management • Improvement in Inventory Shrinkage – Two percent of total sales is lost in inventory shrinkage • Employee theft (48%) • Shoplifting (32%) • Administrative and paper error (15%) • Vendor fraud (5%) • Increase in number of empty packets
- 16. SCM Benefits fromRFID • Collaboration – Increased matching of supply and demand – Reduction in bull-whip effect – Improvement in forecasting and demand management • Improvement in Inventory Shrinkage – Two percent of total sales is lost in inventory shrinkage • Employee theft (48%) • Shoplifting (32%) • Administrative and paper error (15%) • Vendor fraud (5%) • Increase in number of empty packets
- 17. SCM Benefits fromRFID • Stockouts – Constitute a major issue in retail industry – Appx. 11% of the top 2000 SKUs are out of stock at any time – 13% for fast moving/promoted goods – RFIDs smart shelves can help to reduce the problem • Pricing – Helps in ‘Differential’ and ‘Dynamic’ Pricing
- 18. More data ,faster rate, long distance - Bar code 12-14 bit info. Vs. RFID 64-512bit - Read several items in same time - Don’t need to open cases or pallets to read individual items - Manufacturing batch, production history, product handling instructions, storage or delivery instructions, expiration dates, warrantee and other details - RFID- Unique coding, products individually tracked (Visibility as well as Utilization) Bar Code Vs. RFID
- 19. Bar Code Vs.RFID Bar Code Deficiency RFID Solution Line of sight technology Able to scan and read from different angles and through certain material. Unable to withstand harsh conditions (dust, corrosive), must be cleaned and not difformed. Able to function much better in such conditions No data adition option Write enable No unique identification Unique codeing is possible and item can be tracked at individual level Slow and labour intensive Fast and less labour intensive Easy to tamper and copy Difficult to copy and tamper Little potential for further development Technology advancement is posible, new chip, better packaging.
- 21. Portal Applications Bill ofLading Material Tracking
- 22. Conveyor / AssemblyLine Read / Write Operations Higher Accuracy than Bar Code
- 25. Hand Held ApplicationCategories Wireless Batch Fixed Station
- 26. Application Examples Wireless /Batch Inventory Management Material Handling By Destination Material Handling Inspecting / Maintaining Material Handling Aggregate / De-aggregate Where is it? What is it? What is inside the box? Where is it going? Where has it been? Should it be here? What have I assembled or disassembled? How many do I have? Do I have enough? Has this been repaired? Is this under warrantee? Has this been inspected? Is this complete? What is the asset’s status or state?
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- 28. Reduction In Out-of-stock •Smart shelves – Automatic indication out-of-stock, level measurement, wrong item in wrong place, expired product • Differentiating items ( slow/fast moving) - Responsive …optimizing demand –price - Know customer preference quickly • 1% uplift in shelf availability equates to 0.5% sales increase – Reduced out of stocks by approximately 16 percent in 12 stores (wal-mart) • Price is displayed on shelves – – Quick, instantaneous price change
- 29. Ease Of RealTime Data Sharing • RFID will solve the perennial problem of forecasting in apparel industry • The easy realtime time data sharing between the store and manufacturrer will bring the flexibility • Supplier managed inventory – Wal-Mart + P&G
- 30. Reverse logistics • Uniquecoding – tracking items individual level after sales even after use • Call back any particular batch items- even after retailing buy back offer, replacement offer • Environmental issue- disposal – At a recycling plant, parts and materials removed from used appliances must be classified according to items that can be reused, thermally recycled or discarded • Product performance review after use
- 31. Regulation / standardization •Why sleeping for 50 years? • No standardization till 1999 • Regulation – Country specific radio frequency • Global SC !!! • Auto-ID, Mech Engg. MIT • 2003 , technology transferred to EPC global • Partially standardized…..work in progress
- 32. Piping – Privacyissue • Embedded tag • If tag is not removed • If Your information is in wrong hand • If somebody rewrite and manipulate or erase the data
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