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RFID in Logistics
R F I D
Radio
Frequency
IDentification
History
Léon Theremin In 1945 invented an espionage tool
Predecessor of RFID
Used in World War II to identify friendly aircrafts.
(1939-1945)
Mario Cardullo's device in 1973
The first true ancestor of modern RFID
Commercial applications began in 1980
Applications of RFID
TRACKING
SECURIT
Y
ANIMAL
HUSBANDRY
SPORTS
(RACE
TIMING)
Libraries
Inventory
systems
Product
tracking
Applications of RFID
RFID in Logistics
Basic components of a RFID system
Tags
•This is the unit that goes with the product or its la
•Tag consist of a microchip and an antenna.
•Task of a tag is to send the information to the inte
•There are two types of tags-Passive tags and Active
Passive tag
Most common type of tag.
These tags do not operate with batteries.
The microchip in the tag will activate with the signal
of the Interrogator/reader.
These tags are less expensive but they can only be used
within the interrogators zone.
Active Tags
Highly expensive than the passive tags.
Operate with a battery-because of that it has a higher
data range and efficiency.
Data transmission rate is high.
Because of the battery life this tag has a finite lifetime.
Interrogator/Reader
o Gives power to the microchip in the tag by antenna.
o Receives the signals from tags.
o This is connected to the host computer
Types of Readers
Hand held RFID reader
The fixed RFID reader
Mobile phones with RFID reader
RFID printer
This is a special type of a label printer which prints
usual bar code and other data but also adding a RFID
chip.
This can write the RFID chip by way of radio
transmission.
The label which has bar code and also a RFID
component is termed as a Smart Label.
Middleware
o Middleware is the interface between the interrogator
and the existing company databases and information
management software.
o Middleware manages the information flow.
o Middleware is considered as the heart of the RFID
system.
o This can be connected with other databases to keep up
to date information in the system.
RFID in Logistics
RFID in Logistics
• Absence of line of sight- RFID reader can read a tag through
obstructing material that is RF-lucent for frequency use as a
line of sight is not required to read a RFID tag.
• Contactless- A RFID tag can be read without any physical
contact between the tag and the reader.
• Support for multiple tag reads-it is possible to
use an RFID reader to automatically read
several RFID tags in its read zone within a
short period of time.
• Sustaining through rough operational
environment conditions- such as heat,
humidity, cold, corrosive chemicals, and
mechanical vibrations to a fair extent.
• Writable data- The data of a read/write (RW)
RFID tag can be rewritten up to 100,000 (or
more) times
• Variety of read ranges- An RFID tag can have a
read range from a few inches to more than 100 ft,
depending on the frequency of the tag.
• Wide data capacity range- A passive RFID tag can
store from a few bytes of data to hundreds of bytes.
Active RFID tags can store virtually any amount of
data and are not limited in their capacity range
because the physical dimensions and capabilities of
active tags are not limited.
• Smart tasks-the tag can be designed to preform
other duties like measuring temperature
Limitations of RIFD
Performance- An RFID reader could partially or
completely fail to read the tag data as a result of RF-
opaque material, RF-absorbent material, or frequency
interference.
Environmental factors-Depending on the frequency, the
read accuracy of the tags could be affected if the
operations environment has large amounts of metals and
liquids.
Actual tag reads- Because the reader has to use some
kind of anti-collision algorithm, the number of actual
tags that a reader can uniquely identify (per unit of time)
is limited.
Hardware interference- If the RFID readers are
improperly installed, then it is possible for the readers to
show evidence of reader collision.
Penetrating power of the RF energy- it depends on the
reader’s transmitting power and its duty cycle. For
example, if cases on a pallet are stacked too deep, then it
is possible that a reader may fail to read some of the
cases
An organization set up to achieve worldwide adoption
and standardization of Electronic Product Code
technology.
Objectives
•Create worldwide standards for RFID.
•Use internet to share data via the EPCglobal network.
Services Provided by EPCglobal to
Its Subscribed Companies
Assignment, maintenance and registration of EPC
manager numbers.
Participation in development of EPCglobal standards
via EPCglobal’s actions and working groups.
Access to EPCglobal’s standards, research and
specifications.
Opportunity to influence the future direction of
research.
EPC Tag Standards
Uniform Code Council, a governor of EPCglobal sets
standards how basic product information are encoded
in RFID.
A tag structure consists with a number made up of a
header and three sets of data.
Header- identifies the EPC’s version number
Second part- identifies EPC manager (manufacturer)
Third part- object class, refers to the exact type of
production most often the SKU
Fourth part- the serial number, unique to the item
RFID in Logistics
EPCglobal Architecture Framework
A collection of inter related standards in the aim of
enhancing the supply chain through electronic
product codes.
RFID in Logistics
Overview of Few Standards
EXCHANGE
EPCglobal certificate profile standard
Ensures broad interoperability, rapid deployment while
ensuring secure usage.
Pedigree standard
Maintenance and exchange of electronic pedigree documents
for use by pharmaceutical supply chain participants.
CAPTURE
Application level events standards
An interface for clients to obtain filtered and consolidated
EPC data.
Reader management standards
To monitor the operating status and health of RFID readers.
IDENTIFY
EPC tag data standards
How EPC tag data are encoded on the tag and for the use of
information systems.
EPC tag data translation
Interpretation of machine readable version of EPC tag data
standards.
RFID in Logistics
Issues
Technical
Environmental
Security and
Privacy
Financial
Operational
Operational Issues
To meet global standards, companies are being required to
label cases and pallets, and sometimes individual items.
As more individual items are being tagged, the challenge
becomes positioning tags so they can be read within a case
or pallet.
Automate the tagging process because of the huge volume
of individual items.
Some rate of failure to read can happen.
Ex-metals and liquids. Tagging of liquids and biological
materials will be challenged due to the space issues on the
exterior of bottles.
Effect of radio waves on these products.
Ex-In hospitals and health care services, RFID systems have
the potential for interference with other wireless
communication devices
Technical Issues
The lack of consensus on standards.
Establishing global standards is the real challenge.
Ex-In the United States and Europe, EPCglobal is the
standard. Asian countries use their own classification
system, such as the NPC (National Product Code) in
China. Japan uses a different standard that does not
communicate with EPCglobal standards.
Challenge of RFID implementation comes from the
integration of RFID systems and the data they generate
with other functional databases and applications. This
challenge increases as companies integrate with supply
chain partners
Financial Issues
Cost is a major factor in determining the speed at which
RFID technology is adopted.
An RFID system requires expenditures not only for tags,
readers, hardware, and software, but also for system
maintenance and training.
Ex-While consulting firms have estimated an investment of
$13–25 million to implement RFID systems, it should be
noted that costs are coming down. The costs of tags have
steadily been decreasing from $1 per tag to around 10 cents
(depending on volume purchases). The cost of readers and
equipment has also decreased significantly.
Environmental Issues
As the tag prices come down and individual items
being tagged proliferate, the tags also proliferate.
RFID are not biodegradable.
Contain poisonous metals.
A proposed solution is to set up reverse supply chains
for the recycling or reuse of tags.
RFID in Logistics
Why concern about security and
privacy?
RFID- still in maturity stage
Entire success in appliance and adoption depends on
this
Big players are involved
Security Threats
Unprotected tag issues
Vulnerable databases
Rogue RFID readers
Clone tags
RFID in Logistics
Privacy Threats
Secret tag reading
Firm’s sensitive data hacking
Customer details pirating and
misusing
Customer purchases and habits
monitoring
Physical movements tracking
Disrupting and misleading firm’s activities
Solutions
Kill commands
Metal cage approach
Active jamming
Blocker tags
Rewritable memory
Private networks
Onion routing
BUSINESS OPTIONS APPROACH
Present Future
Offers number of OPTIONS
• Growth - capacity to grow
• Flexibility - multiple uses
• Innovation& learning - gaining knowledge + improve data collection
• Waiting - adopt universally
• Abandonment - walk away from the technology
COST BENEFIT ANALYSIS
RFID in Logistics
PRODUCTION
Suppliers- raw materials components
components
Work- in-progress
Peterbilt trucks
20000 parts
Customer Specified
Finished Goods
WAREHOUSING
Better Inventory Management
Bulk Reading- time and cost for counting stocks
Reduce idle inventory
Reduce Inventory shrinkage
Reduce Theft and loss
Real Time Information
Retailer
Manage Stock Keeping Units
Easy inventory Handling
Reduce Out of Stock – Wal Mart
reduce out of stock by 30%
Just In Time Method
Demand Forecasting , Customer Trends
Automated Cashier System
RFID in Logistics
WHY RFID FOR LIBRARY?
• Fastest, easiest, most efficient way to track, locate
& manage library materials
• Efficient Book issue management
• Automatic Check-in and Check-out
• Library inventory tracking in minutes instead of
hours
• Multiple books can be read simultaneously
• Unique ID of the RFID tag stops counterfeiting
• Automated material handling using conveyor &
sorting systems
LIBRARY PRODUCTS FOR
RFID• Staff station – For entry of new
books or borrowers and
issue/return of books at
circulation desk.
• Gate Detection System – For
detecting unauthorized tagged
items passing through it.
• RFID Tags – For tagging library
materials.
HF Handheld Reader – For
performing activities such as shelf
order checking, shelf-reading,
searching, inventory scanning in
library kind of environment
self check in/ check out Kiosk –
For self issue and return of books
in Library.
Book Return Station - For
returning of library books.
RFID in Logistics
BENEFITS OF USING RFID
For Libraries
Stock Management
Improved patron services
Flexibility and modularity
Security
For Library Staff
Less time needed for circulation operations
Efficient Inventory management
Reducing Repetitive Stress Injuries (RSI)
• For Patrons
• Patrons will spend less time waiting in check-out lines by
using Self Check in - Check out systems
• Patrons find what they are looking for quickly & easily
• Reminders for due dates allows patrons to submit borrowed
materials in time
• Use of book drops & return chutes for returning library
material, allows for flexible timings
• RFID enabled patron cards allows for easy patron
identification
RFID in Logistics
In early time inability to track logistics
assets caused many problem for
companies.
Returnable assets were often misplaced
Early system cost extra expense for
employees for manual counts and quality
checks.
 RFID Assets-tracking solutions
enable companies to better manage
their returnable assets.
 Assets track includes location
tracking, detailed inventory reports,
configurable workflow and alerting
features.
 In 2007 Australian business organization
completed two month pilot-test of EPC gen
2 RFID tags fixed to wooden palets
 During the pilot-test AAM software was
used to manage and share the data
collected
 Pallets were sent through a fixed RFID
reader to read the information of pallets
 RFID can be used it serve as proof of deliver
Case Study
1
RFID in Logistics
RFID in Logistics
 Rewe Group reported approximately
$72 billion in revenue in 2008,
completed a test in which it employed
a RFID real time location system to
track returnable assets
 In Rewe distribution center’s their
drivers use RFID RTL to identify the
correct item is to be moved
Case study
2
Benefits of using RFID to track returnable
assets
 Reduces human error
 Reduces labor and time cost
 Decrease the misplacement, loss, theft
 Quicker, more accurate inventories and
assets searching
 Alert when there are suboptimal shipping
conditions

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RFID in Logistics

  • 2. R F I D Radio Frequency IDentification
  • 3. History Léon Theremin In 1945 invented an espionage tool Predecessor of RFID
  • 4. Used in World War II to identify friendly aircrafts. (1939-1945)
  • 5. Mario Cardullo's device in 1973 The first true ancestor of modern RFID Commercial applications began in 1980
  • 9. Basic components of a RFID system
  • 10. Tags •This is the unit that goes with the product or its la •Tag consist of a microchip and an antenna. •Task of a tag is to send the information to the inte •There are two types of tags-Passive tags and Active
  • 11. Passive tag Most common type of tag. These tags do not operate with batteries. The microchip in the tag will activate with the signal of the Interrogator/reader. These tags are less expensive but they can only be used within the interrogators zone.
  • 12. Active Tags Highly expensive than the passive tags. Operate with a battery-because of that it has a higher data range and efficiency. Data transmission rate is high. Because of the battery life this tag has a finite lifetime.
  • 13. Interrogator/Reader o Gives power to the microchip in the tag by antenna. o Receives the signals from tags. o This is connected to the host computer
  • 14. Types of Readers Hand held RFID reader The fixed RFID reader Mobile phones with RFID reader
  • 15. RFID printer This is a special type of a label printer which prints usual bar code and other data but also adding a RFID chip. This can write the RFID chip by way of radio transmission. The label which has bar code and also a RFID component is termed as a Smart Label.
  • 16. Middleware o Middleware is the interface between the interrogator and the existing company databases and information management software. o Middleware manages the information flow. o Middleware is considered as the heart of the RFID system. o This can be connected with other databases to keep up to date information in the system.
  • 19. • Absence of line of sight- RFID reader can read a tag through obstructing material that is RF-lucent for frequency use as a line of sight is not required to read a RFID tag. • Contactless- A RFID tag can be read without any physical contact between the tag and the reader.
  • 20. • Support for multiple tag reads-it is possible to use an RFID reader to automatically read several RFID tags in its read zone within a short period of time. • Sustaining through rough operational environment conditions- such as heat, humidity, cold, corrosive chemicals, and mechanical vibrations to a fair extent. • Writable data- The data of a read/write (RW) RFID tag can be rewritten up to 100,000 (or more) times
  • 21. • Variety of read ranges- An RFID tag can have a read range from a few inches to more than 100 ft, depending on the frequency of the tag. • Wide data capacity range- A passive RFID tag can store from a few bytes of data to hundreds of bytes. Active RFID tags can store virtually any amount of data and are not limited in their capacity range because the physical dimensions and capabilities of active tags are not limited. • Smart tasks-the tag can be designed to preform other duties like measuring temperature
  • 22. Limitations of RIFD Performance- An RFID reader could partially or completely fail to read the tag data as a result of RF- opaque material, RF-absorbent material, or frequency interference. Environmental factors-Depending on the frequency, the read accuracy of the tags could be affected if the operations environment has large amounts of metals and liquids.
  • 23. Actual tag reads- Because the reader has to use some kind of anti-collision algorithm, the number of actual tags that a reader can uniquely identify (per unit of time) is limited. Hardware interference- If the RFID readers are improperly installed, then it is possible for the readers to show evidence of reader collision. Penetrating power of the RF energy- it depends on the reader’s transmitting power and its duty cycle. For example, if cases on a pallet are stacked too deep, then it is possible that a reader may fail to read some of the cases
  • 24. An organization set up to achieve worldwide adoption and standardization of Electronic Product Code technology. Objectives •Create worldwide standards for RFID. •Use internet to share data via the EPCglobal network.
  • 25. Services Provided by EPCglobal to Its Subscribed Companies Assignment, maintenance and registration of EPC manager numbers. Participation in development of EPCglobal standards via EPCglobal’s actions and working groups. Access to EPCglobal’s standards, research and specifications. Opportunity to influence the future direction of research.
  • 26. EPC Tag Standards Uniform Code Council, a governor of EPCglobal sets standards how basic product information are encoded in RFID.
  • 27. A tag structure consists with a number made up of a header and three sets of data. Header- identifies the EPC’s version number Second part- identifies EPC manager (manufacturer) Third part- object class, refers to the exact type of production most often the SKU Fourth part- the serial number, unique to the item
  • 29. EPCglobal Architecture Framework A collection of inter related standards in the aim of enhancing the supply chain through electronic product codes.
  • 31. Overview of Few Standards EXCHANGE EPCglobal certificate profile standard Ensures broad interoperability, rapid deployment while ensuring secure usage. Pedigree standard Maintenance and exchange of electronic pedigree documents for use by pharmaceutical supply chain participants.
  • 32. CAPTURE Application level events standards An interface for clients to obtain filtered and consolidated EPC data. Reader management standards To monitor the operating status and health of RFID readers. IDENTIFY EPC tag data standards How EPC tag data are encoded on the tag and for the use of information systems. EPC tag data translation Interpretation of machine readable version of EPC tag data standards.
  • 35. Operational Issues To meet global standards, companies are being required to label cases and pallets, and sometimes individual items. As more individual items are being tagged, the challenge becomes positioning tags so they can be read within a case or pallet. Automate the tagging process because of the huge volume of individual items. Some rate of failure to read can happen. Ex-metals and liquids. Tagging of liquids and biological materials will be challenged due to the space issues on the exterior of bottles. Effect of radio waves on these products. Ex-In hospitals and health care services, RFID systems have the potential for interference with other wireless communication devices
  • 36. Technical Issues The lack of consensus on standards. Establishing global standards is the real challenge. Ex-In the United States and Europe, EPCglobal is the standard. Asian countries use their own classification system, such as the NPC (National Product Code) in China. Japan uses a different standard that does not communicate with EPCglobal standards. Challenge of RFID implementation comes from the integration of RFID systems and the data they generate with other functional databases and applications. This challenge increases as companies integrate with supply chain partners
  • 37. Financial Issues Cost is a major factor in determining the speed at which RFID technology is adopted. An RFID system requires expenditures not only for tags, readers, hardware, and software, but also for system maintenance and training. Ex-While consulting firms have estimated an investment of $13–25 million to implement RFID systems, it should be noted that costs are coming down. The costs of tags have steadily been decreasing from $1 per tag to around 10 cents (depending on volume purchases). The cost of readers and equipment has also decreased significantly.
  • 38. Environmental Issues As the tag prices come down and individual items being tagged proliferate, the tags also proliferate. RFID are not biodegradable. Contain poisonous metals. A proposed solution is to set up reverse supply chains for the recycling or reuse of tags.
  • 40. Why concern about security and privacy? RFID- still in maturity stage Entire success in appliance and adoption depends on this Big players are involved
  • 41. Security Threats Unprotected tag issues Vulnerable databases Rogue RFID readers Clone tags
  • 43. Privacy Threats Secret tag reading Firm’s sensitive data hacking Customer details pirating and misusing Customer purchases and habits monitoring Physical movements tracking Disrupting and misleading firm’s activities
  • 44. Solutions Kill commands Metal cage approach Active jamming Blocker tags Rewritable memory Private networks Onion routing
  • 45. BUSINESS OPTIONS APPROACH Present Future Offers number of OPTIONS • Growth - capacity to grow • Flexibility - multiple uses • Innovation& learning - gaining knowledge + improve data collection • Waiting - adopt universally • Abandonment - walk away from the technology
  • 48. PRODUCTION Suppliers- raw materials components components Work- in-progress Peterbilt trucks 20000 parts Customer Specified Finished Goods
  • 49. WAREHOUSING Better Inventory Management Bulk Reading- time and cost for counting stocks Reduce idle inventory Reduce Inventory shrinkage Reduce Theft and loss Real Time Information
  • 50. Retailer Manage Stock Keeping Units Easy inventory Handling Reduce Out of Stock – Wal Mart reduce out of stock by 30% Just In Time Method Demand Forecasting , Customer Trends Automated Cashier System
  • 52. WHY RFID FOR LIBRARY? • Fastest, easiest, most efficient way to track, locate & manage library materials • Efficient Book issue management • Automatic Check-in and Check-out • Library inventory tracking in minutes instead of hours • Multiple books can be read simultaneously • Unique ID of the RFID tag stops counterfeiting • Automated material handling using conveyor & sorting systems
  • 53. LIBRARY PRODUCTS FOR RFID• Staff station – For entry of new books or borrowers and issue/return of books at circulation desk. • Gate Detection System – For detecting unauthorized tagged items passing through it. • RFID Tags – For tagging library materials.
  • 54. HF Handheld Reader – For performing activities such as shelf order checking, shelf-reading, searching, inventory scanning in library kind of environment self check in/ check out Kiosk – For self issue and return of books in Library. Book Return Station - For returning of library books.
  • 56. BENEFITS OF USING RFID For Libraries Stock Management Improved patron services Flexibility and modularity Security For Library Staff Less time needed for circulation operations Efficient Inventory management Reducing Repetitive Stress Injuries (RSI)
  • 57. • For Patrons • Patrons will spend less time waiting in check-out lines by using Self Check in - Check out systems • Patrons find what they are looking for quickly & easily • Reminders for due dates allows patrons to submit borrowed materials in time • Use of book drops & return chutes for returning library material, allows for flexible timings • RFID enabled patron cards allows for easy patron identification
  • 59. In early time inability to track logistics assets caused many problem for companies. Returnable assets were often misplaced Early system cost extra expense for employees for manual counts and quality checks.
  • 60.  RFID Assets-tracking solutions enable companies to better manage their returnable assets.  Assets track includes location tracking, detailed inventory reports, configurable workflow and alerting features.
  • 61.  In 2007 Australian business organization completed two month pilot-test of EPC gen 2 RFID tags fixed to wooden palets  During the pilot-test AAM software was used to manage and share the data collected  Pallets were sent through a fixed RFID reader to read the information of pallets  RFID can be used it serve as proof of deliver Case Study 1
  • 64.  Rewe Group reported approximately $72 billion in revenue in 2008, completed a test in which it employed a RFID real time location system to track returnable assets  In Rewe distribution center’s their drivers use RFID RTL to identify the correct item is to be moved Case study 2
  • 65. Benefits of using RFID to track returnable assets  Reduces human error  Reduces labor and time cost  Decrease the misplacement, loss, theft  Quicker, more accurate inventories and assets searching  Alert when there are suboptimal shipping conditions