RFID

RFIDl. goetzinger ● m. lines ● c. mclaughlin ● c. sailer ● m. schwab

Presented to the Class of BA 457

• RFID Overview

• RFID and the Supply Chain

• Current Uses

• Future Uses and Controversy

• Corporate Examples

RFID… presentation layout

RFID… a video

RFID… history• 1945

• Leon Theremin- Espionage tool for the Soviet government

• The British invented a similar technology, the IFF transponder. Used by allies in World War II to identify airplanes as friend or foe.

• 1973• Mario Cardullo

- Claims that his patent was the first true ancestor of modern RFID.

RFID (Radio Frequency Identification)…

• Automatic Identification Method• Stores and Retrieves Data using Tags or Transponders

• Can be attached or incorporated

• Contains Silicon Chips and Antennas• Receive and Respond to Radio Frequency Queries from

Transceiver.

RFID… types• Passive

- No Internal Power Supply

- Quite Small in Size.

• The smallest device can be measured at 0.15mm * 0.15mm.

- Most Common

RFID… types (continued)• Active

- Internal Power

Supply

- Typically Beacon Tags

-transmit their tag

data and ID at a

predetermined fixed interval

- Response Tags: Only respond when an active RFID reader requests the tags to transmit

RFID… supply chains and inventory

• Locating Inventory in Stock

• Information Storage Capabilities

• Less Error

RFID… supply chains and transparency

• Tracking Knowledge

• Safety and Security

RFID… gillette case study

RFID and Information Sharing…• Decrease in Discrepancies

• Increased Efficiency

• A Better-Run Company

RFID… current applications• Hospitals

• Retail

• Military

• Fleet Maintenance

Electronic Toll Collection

RFID… hospitals

• Track equipment

• Patient locator/information storage

• Doctor locator

• Restrict access to drugs and other materials

RFID for people

RFID… military• Tracking wounded during war

• Following personnel movement during training exercises

• Improving movement and tracking of supplies

• Identifying vehicles and shipments as being either military or non-military

RFID… fleet maintenance• Easily accessible vehicle specs

• Vehicle locator

• Records vehicle maintenance automatically

• Reduces record keeping errors

RFID… retail• Tags in labels help track product

source/specs

• Safeguard against counterfeit products

• Reduce theft

• Allows movement of inventory to be tracked

Imagination Time

What future products (or services) will use RFID technology?

…what cool ideas do you have for RFID….

• Tire Monitoring

• Refrigerator

• Washing Machines

• Dressing Rooms/Closets

• Golf Balls

• 10-15 years for most

consumer products

RFID… future uses

RFID… what does this mean for customers?

Today:

• Full shelves

Tomorrow:

• Product make-up

• Ease stock keeping, shopping and cooking

• Increased product safety

• Exchange convince

RFID… what does this mean for retailers?

Today:• Inventory control• Decreased manual handling• Increased sales & long-term market share

Tomorrow:• Increased theft protection• Reduced spoil• Significantly reduced inventory measures• Counterfeit protection

RFID… themeindustry benefits

• From cradle to table

• Each product uniquely identified—EPC

• Simplifies and accelerates merchandise management

RFID… controversy

• Video of RFID chip implanted into hand

RFID… wal-mart• Wal-Mart’s decision to incorporate RFID into

their retail and supply chain has propelled the technology forward

• Benefits: • efficiency • simplification

• Pilot trial • 16% decrease in stock-outs and • 2/3 reduction in replenishment times

RFID…. wal-mart (continued)• Top 100 Wal-Mart suppliers currently

use RFID tags • increasing to 300 by the end of 2006 • 600 by the end of 2007

• Strategic Implications • Volume and Cost• Upstream Supply Chain extensions• Downstream Supply Chain extensions• Innovation

RFID… other corporate examples• Target Corp.

• Albertsons

• U.S. Department of Defense

What does this mean for suppliers?

• Cost of system and setup: $9 Million+

• Smaller Suppliers: Can they do it?

• Order winner vs. order qualifier

Q&A

What are your questions?

RFID… sources