RFID refers to technologies that use radio waves to automatically identify items without requiring line-of-sight like barcodes. RFID tags contain antennas and chips that can be programmed to store and transmit data to readers, which then transmit the data to computers. There are active tags with batteries and longer ranges and passive tags powered by readers with shorter ranges. The Auto-ID organization is developing global standards to bring costs down and enable an Internet of physical objects through an EPC network. RFID offers benefits like reduced costs, increased revenue and prevention of counterfeits, theft and shrinkage.

1. A Beginners Guide to RFID Radio Frequency ID 101

2. RFID – What is it? RFID refers to technologies that utilize radio waves to automatically identify individual items. RFID allows information to be collected quickly and automatically and does not require contact or line-of-sight. The reader generates an electromagnetic field through its antenna. Once the tag enters the detection area, it becomes active when receiving a signal through its own antenna. This signal is used to turn on the tag's transmitter and allows the tag to communicate and exchange information with the reader. The reader then transmits the data to a computer or server for processing, management, and tracking.

3. RFID vs. Bar Codes RFID is not necessarily "better" than bar codes. The two are different technologies and have different applications, which sometimes overlap. The big difference between the two is bar codes are line-of-sight technology. That is, a scanner has to "see" the bar code to read it, which means people usually have to orient the bar code towards a scanner for it to be read. Radio frequency identification, by contrast, doesn’t require line of sight. RFID tags can be read as long as they are within range of a reader. Bar codes have other shortcomings as well. If a label is ripped, soiled or falls off, there is no way to scan the item. And standard bar codes identify only the manufacturer and product, not the unique item. The bar code on one milk carton is the same as every other, making it impossible to identify which one might pass its expiration date first.

4. About RFID Chips Microchips in RFID tags can be read-write or read-only. With read-write chips, you can add information to the tag or write over existing information when the tag is within range of a reader, or interrogator. Read-write tags usually have a serial number that can't be written over. Additional blocks of data can be used to store additional information about the items the tag is attached to. Some read-only microchips have information stored on them during the manufacturing process. The information on such chips can never been changed. Other tags can have a serial number written to it once and then that information can't be overwritten later.

5. RFID Tag Attributes Active RFID Passive RFID Tag Power Source Internal to tag Energy transferred using RF from reader Tag Battery Yes No Availability of power Continuous Only in field of reader Required signal strength to Tag Very Low Very High Range Up to 100m Up to 3-5m, usually less Multi-tag reading 1000’s of tags recognized – up to 100mph Few hundred within 3m of reader Data Storage Up to 128Kb or read/write with sophisticated search and access 128 bytes of read/write

6. Passive RFID Tags “ Traditional” tags used in retail security applications Tag contains an antenna, and a small chip that stores a small amount of data Tag can be programmed at manufacture or on installation Tag is powered by the high power electromagnetic field generated by the antennas – usually in doorways The field allows the chip/antenna to reflect back an extremely weak signal containing the data Collision Detection – recognition of multiple tags in the read range – is employed to separately read the individual tags These passive tags form the basis of the Auto-ID designs, and, if manufactured in billions, will come down in price from $0.80 to $0.05 in the next 2 years.

7. Active Tags Battery Powered tags Have much greater range – 100m Hold much more information – Mbytes Can integrate sensing technology Temperature, GPS Can signal at defined time Multiple tags can be recorded at once Used for higher value items Shipping containers Babies Electronic assets Cost between $20 and $40 per item Life between 2 – 4 years

8. The Auto-ID Organization Non-profit organization supported by major software, consulting, tag and reader manufacturers and by MIT, Cambridge University and Adelaide University All research and solutions are public domain Developed vision of global approach to automatic ID of every product Developed standards for tags and readers Developed high level designs that will bring tag cost toward 5c and readers to $100 Developed – with SUN – Savant software to act as mediation between readers and a global network of “name servers” and databases – available as open source

9. EPC Network – Building Blocks Tags Data carrier – the ID number – Unique EPC Code – is programmed into the Tag Tag Antenna Connected to chip in Tag – could be wire or printed using conductive ink Reader Antenna Coil included in plastic or similar case – usually 12 – 18 inches square Reader Data capture device – interrogates the tag and retrieves the data from all tags in the receiving area. Can be fixed or portable Savant Servers/Software to support readers, extract unique information from the read data, and communicate with External databases ONS Object Name Service – similar to DNS in the Internet – knows the appropriate database holding full information about the product the tag is attached to

10. EPC Code eg 613.23000.123456.123456789 (96 bits) Header – defines data type (8 bits) EPC Manager – describes originator of EPC (Product manufacturer) (34 bits) Object Class - Could describe the product type (20 Bits) Serial Number – Unique ID for that product item (34 Bits)

11. Supply Chain – Global Vision

12. Auto-ID Implications Harnessing research and major software/hardware companies to align with common standards and open source “middleware” End result: Commonality of standards of tags and readers Lowest potential cost for hardware components Application software will become the “missing link” and differentiator

13. The Benefits of RFID Cost Reduction - The cost reduction value case is a target area of many consumer packaged goods (CPG) companies, retailers and the United States Department of Defense (DoD). These enterprises expect to reduce inventory and inventory management expenses by billions of dollars over the next several years. Examples of cost-reduction objectives for an RFID program include: Lower inventory stock levels Reduce waste Reduce manual checks Reduce inventory handling costs Reduce logistics costs Reduce claims and deductions Improve asset utilization

14. The Benefits of RFID Increase Revenue - Both large and small retailers and manufacturers are developing RFID deployments to drive sales. The utilization of RFID empowers these companies to design innovative solutions with tangible benefits, including: Reduced out-of-stocks Improved order fill rates Reduced shrinkage Improved inventory turns Enhanced in-store customer support

15. The Benefits of RFID Counterfeit product shielding - Quality manufacturers across the globe are losing sales, profits and their quality image from the expanding flow of counterfeit products. Equally important, counterfeits of many products (such as pharmaceuticals, currency, passports and aircraft parts) represent a safety and security hazard for customers across the globe. There are several pilots in place to identify counterfeits using RFID. These RFID tagged products, coupled with real-time databases, represent a viable information platform to prevent the distribution and sale of counterfeit products.

16. The Benefits of RFID Shrinkage, theft and diversion prevention - High-value consumer and industrial products face the large risk of theft and diversion. RFID has shown considerable progress in: Identifying theft and diversion at the shelf level Identifying theft and diversion points in the supply chain As the price points of RFID products decline, this technology will provide a widely used tool to prevent theft along the supply chain-from the factory floor to the storefront.

17. The Benefits of RFID Competitive advantage - Any business case or profit improvement program is intertwined with a company's business goals and competitive advantage. Understanding competitive advantage can be reduced to a simple question: are we better than our peers in key performance areas? Several leading companies believe that RFID is the key to increasing competitive advantage. Sources of advantages include: To increase distribution center productivity To increase yield per end user, customer or site To create a flexible, adaptive supply chain To create a cost advantage in logistics To reduce the impact on prices of recycling legislation for electronics To reduce the impact of homeland security measures (e.g., country of origin) To target an additional point of margin by 2010

18. The Future of RFID RFID technology is a labor-saving technology so it's likely that some workers will laid off. That's because fewer workers will be needed to scan bar codes. But the transition from bar codes to RFID could take a decade or more, so it is unlikely that RFID will lead to wide-scale displacement of workers. The technology will likely create new jobs, just as Internet technologies creating new jobs, from Web developers to warehouse workers managing inventory for online stores such as Amazon.com. The jobs that will be affected by RFID are those that involve scanning bar codes. Most of those jobs also have other components, such as moving products or restocking shelves. Those jobs will not go away because of RFID.