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?