Radio frequency Identification use in industry for tracking materials

1. RFID Technology
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3. Diverse Applications
• Marathon races
• 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 Programming Interface, 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 from RFID
• 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 from RFID
• 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 from RFID
• 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 from RFID
• 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 from RFID
• 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 of Lading
Material Tracking

22. Conveyor / Assembly Line
Read / Write Operations
Higher Accuracy than Bar Code

25. Hand Held Application Categories
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?

27. Shipping Validation

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 Real Time 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
• Unique coding – 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 – Privacy issue
• Embedded tag
• If tag is not removed
• If Your information is in wrong hand
• If somebody rewrite and manipulate or erase the
data

34. Tomorrow
Automation
Stay Safe