RFID TECHNOLOGY

By: Sunil PatelAnat Krikunets Ge QuPriya Pathmanathan

Agenda

•Intro to RFID Technology

•Producer Network (SCM)

•User Network

•Complementary Networks

•Marketing Implications

Tags Readers Middleware

• “Tag” or “transponder” is the generic term for a radio frequency identification device.

• RFID tags are made up of a microchip attached to an antenna

• These tags can be extremely small, about three times the width of a human hair.

• Readers emit radio waves to query tags within range

• Receive the radio waves returned by the tags, and convert them into a form that can be processed by a computer system

• The middleware component is the complex part of RFID implementations

• The raw data is captured and interpreted into “events” that are relevant to the higher-level applications, such as ERP or CRM systems

RFID technology automates item identification through the use of three major components: RFID technology automates item identification through the use of three major components: transponders (tags), readers and middlewaretransponders (tags), readers and middleware

What Makes Up an RFID system?

Architecture of RFID Tags

Source: Forrester Research, Inc.

The basic integration architecture of an RFID system involves:

a) Tags

b) Readers

c) A “local server”, which aggregates and interprets data. This component implements logic to make sense out of the large number of events generated by readers.

d) An “integration server”, which makes RFID events available to the appropriate application.

Components of RFID Tags

Types of RFID Tags

RFID systems can use:RFID systems can use: • ACTIVEACTIVEbattery-poweredbattery-powered

OrOr

PASSIVE PASSIVE reader-powered tagsreader-powered tags

Active transponders include an internal power source and transmitter from read / write capabilities.

Active tags can also perform additional functions, such as monitor temperature, humidity, shock/vibration, and report that information to the reader, along with identity data.

Examples: EZPass car toll system

Active RFID Tags

Passive transponders reflect energy radiated by a reader, meaning they get their power from the RF waves striking them. They have no internal power source of their own.

They cost less because they don’t require batteries.

Example: ExxonMobil Speedpass

Passive RFID Tags

RFID Producer Network (SCM)

• Supply Chain Management

• Castell’s theory of Information Mode of development: benefit is that the SCN has moved from traditional production to info management

• Information Management is exponentially expanding

RFID Producer Network (SCM)

• RFID & the IT revolution has made knowledge work more productive through automation

• Creation of a “New Language”• Rich, Relevant, and Timely Information

RFID Producer Network (SCM)

Benefits of RFID• Enable Supply Chain Visibility

• Reduce Inventory Levels

• Eliminate Human Errors

• Demand-Pull rather than Supply-Push

User Networks -Retailers

New business practice: Using RFID Technology to become cost efficient.

Currently being used “passive” or “fixed-location” readers: ability to scan tags up to 15 feet away.

Issues: Poor accuracy of the reader.

•Causes Data synchronization, and packaging.Many consumer groups feel that RFID tags will infringe on consumer privacy.

Conclusion: Retailers should focus on marketing the RFID tags as non-threatening products that could eventually pass on saving to consumers.

Case Study – Wal-Mart

• Wal-Mart is taking a very strong initiative to adapt the RFID technology.

• Information Flow –improved efficiencies.

• Suppliers are volunteering to adapt to the technology

User Networks

• Product Diversion• Supplier WM /

Replenishment• Production

Planning• DC / Goods Receipt• Put-Away• Inventory Controls /

Storage• Real-Time ATP

Inventory

• Case Theft• Reduced Out Of

Stock• Demand Planning• Supply Planning• Pick, Pack and

Ship• Physical Counts

and Reconciliation• Cycle Counts• Consign / Hold

and X-Doc Inventory

• Store Level Promotions and Pricing

• Unit / Item Theft• Pay-On-Scan• Consumer

Understanding• Product R&D• WIP Inventory• Routing• Assembly• Aging / Quality

Control• MRP• Capacity Planning• Product

Assortments• Targeted Product

Recall Process• Manufacturing,

Warranty and Repair Tracking

• Anti-Counterfeiting

Pallet Tagging

Case Tagging

Item Tagging

BE

NE

FIT

S

6 months TIME 5+ years

Low

High

Complementary Networks

Three key challenges lay ahead for both CGM and Retailera) Date Standardizationb) Data Facilitation. c) Extracting Meaningful Information.

1. EPCglobal – leading an organization to ensure standardization of the EPC.• increased efficiency and accuracy through

automation• increased tracking and security through improved

visibility• better collaboration by providing a globally standard

framework for product information exchange

Complementary Networks

2. System integrators: • specialize in automatic data collection projects. • These firms now exist, due to the inabilities of companies to

handle the data

3. Industry Intelligence• Interpretations of Data

Business Models: A. software solutionB. analysis-based with data-warehouse capabilities. C. consulting based integration with data warehousing,

and data capturing solutions.

RFID Marketing Implications

•Better understanding of its business environment

• Facilitates reactions to changes in the market

• Forecasting demand and supply figures

• Scope of marketing limited by speed of info flow

• RFID enables info to flow at network speeds

Summary

• Background RFID Technology

• Producer Network – Supply Chain Network

• User Network

• Complementary Networks

• Impacts to the Marketing Sector

QUESTIONS?