RFID technology uses tags and readers to transmit data without direct line of sight and can help increase supply chain visibility. The Auto-ID Center was established in 1999 to develop low-cost RFID standards and included several university labs. It later split into the Auto-ID Center for research and EPCglobal to develop and administer the EPC Network RFID infrastructure. While RFID adoption faces challenges like cost and lack of standards, it provides benefits like inventory tracking, asset management, and reducing theft.

1. GROUP 10 RFID – The next revolution in SCM

2. Overview of RFID RFID System helps in storing and trasnsmitting information Tags Readers As small as grain of rice or as large as brick No direct line of sight required for data transmission Difficult to counterfeit High data integrity Practically maintenance free Reliable in harsh condition like dust, snow, fog, corrosion, vibration and shocks

3. MIT Auto-ID Center Established in 1999 Goal of developing a low-cost, open-standard RFID infrastructure Most visionary and fascinating in RFID applications in SCM Labs in leading universities England, Australia, Switzerland, Japan and China

4. MIT Auto-ID Center Later split into two new organizations Auto-ID center: Research and develop new technologies with all the university labs EPCglobal: Developing and administrating RFID technology developed by Auto-ID center

5. MIT Auto-ID Center 96-bit version is big enough to identify: 268 million manufacture Each having 16 million different product and 68 billion different items in each product RFID infrastructure known as EPC Network Electronic Product Code (EPC) code Product Mark-up Language (PML) Object naming service (ONS) Savant (Distribute software system for data handling)

6. RFID Features Active: Powered by internal battery Heavier and expensive Life of about 10 years Longer reading range Applicable when reader is far from tag Passive Draws power from reader Lighter, smaller, cheaper Long life Range from a fraction of inch to a few feet

7. RFID Features Low frequency - Range < 10 inches High frequency - Range a few feet Ultra high frequency , when high speed reading from a distance of several feet is required With increasing frequency price of both tag and reader goes up

8. Possible benefits Increase supply chain visibility Express self checkout Inventory reduction Improved collaboration among partners Improved pricing Fewer out of stock situation Real-time tracking of parts, components and subassemblies through manufacturing process

9. Possible benefits Tag might include operating instructions for a machine and stores feedback , reducing paper work and increasing efficiency IN CPG industry, more efficient consignment verification No line of sight is required so reads tags in bulk Increased efficiency in receiving, checking, loading and unloading of trucks Information about location of pallets in warehouse Unscheduled movement of pallet alerts

10. Possible benefits Increased visibility reduces bullwhip effect Visibility helps in identifying source of variability Accuracy, speed and reliability of data transmission Automatic electronic sharing of data speed up workflow Necessary for growing trend towards outsourcing

11. Possible benefits Reduces inventory shrinkage RFID tag linked with security monitoring system Observes movement from shelf to exit door Unique identification prohibits return or resale Dead inventory can be tracked without any effort

12. Possible benefits Exact inventory level known all the time Manual observation not required Tracks unexpected event, such as irregular demand or supply Correct Pricing Improve revenue and profit through pricing: Revenue Management or Yield Management Timely and accurate inventory level and, demand and supply information can enable revenue management tool to optimize price, product mix, promotion and other sales offer Asset tracking application Scottish Courage uses RFID tagging to track 2 million kegs Reduced incidences of theft

13. Selected RFID case studies Auto ID center, Wal-Mart, PnG, Unilever, Kraft, Coca-Cola, Gillette and several others came together to test and validate RFID infrastructure Phase I : Pallets were tagged and whole supply chain was integrated with information system. It was successfully completed. Phase II: Tracking several products. Results were never discosed Phase III: Item level tracking, abandoned

14. Impediments to RFID adoption Lack of universal standards Tag specification Frequency allocation Communication system needs Mostly Vendor’s own proprietary system High cost of Tags High cost of RFID reader Absence of application software Reliability of reader Metal containers scatter radio frequency Liquid detergents tend to absorb radio frequency Invasion in private life, product can be linked to consumer

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16. Companies get extraordinary ability to track each and every tagged item US DoD using in shipments of military supplies to Persian Gulf ExxonMobil’s SPeedPass for gas station EAPass for toll collecion Livestock tagging In Singapore use based road charge Car keys embedded with RFID. If wrong key entered, car is immobilised European central bank planning to tag bank notes by 2005 Auto and Computer manufacturer use for specifying build configuration and store pertinent feedback

17. Wal-Mart, Target and US DoD want their top suppliers RFID enabled Wal-Mart, PnG, Uniliver, Gillette, Target and Home Depot are involved in development and testing

18. Promises… Pallet level tagging in the food and Consumer Packaged goods (CPG) possible in near future Many barriers in implementation at item level