rfid technology & stds - barcode solutions technology & stds september 29th, ... no...
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Wireless pervasive e-Business
© Copyright IBM Corporation 2003
RFID technology & stds
September 29th, [email protected] and I/T architect
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Business Consulting Services
© Copyright IBM Corporation 2003
Agenda
• Tag everything• Drivers of RFID adoption• Standards and technology• Challange• As Is• To Be• Questions
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Business Consulting Services
© Copyright IBM Corporation 2003
History
IBM first worked with RFID more than 10 years ago and has some of the earliest patents on RF technology.
The concept of RFID systems originated in the 1940s as a means of distinguishing friendly aircraft from enemy aircraft. Large powe red RFID tags, or transponders, were placed on friendly aircraft. When interrogated by a radar signal, these transponders would give the appropriate response to identify the carrying aircraft as “friendly.” This IFF (Identify: Friend or Foe) system was the first obvious use of RFID and present day aviation traffic control is still based on IFF concepts. The invention of the microchip and subsequent technological advances led to the design and use of passive RFID tags.
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Business Consulting Services
© Copyright IBM Corporation 2003
Tag everything
• Tag everything• Drivers of RFID adoption• Standards and technology• Challange• As Is• To Be• Questions
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Business Consulting Services
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We see opportunities scaling from pallet to item level tagging
Source: IBM Business Consulting Services
PALLET TAGGING
CASE TAGGING
ITEM TAGGING
Low
High
Op
po
rtu
nit
ies
& B
enef
its
6 months Time +5 years
§ Product diversion§ Supplier VMI/replenishment§ Production planning§ DC/Goods receipt§ Put-away§ Inventory Control and storage§ Real-time ATP inventory
§ Inventory reduction§ Labor efficiencies§ Throughput increases§ Case shrink§ Retail OOS§ Demand planning§ Supply planning§ Subcontracting/re-packer
visibility§ Pick, Pack & Ship§ Physical counts Cycle counts§ Consign/Hold inventory
§ Out of stocks§ Store level promotions and
pricing§ Enhanced consumer
experience§ Safety stock reduction§ Unit/item shrink§ Pay-on-Scan§ Consumer understanding§ Product R&D§ Aging/Quality control § Product assortments§ Product recall/warranty
process
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Drivers of RFID adoption
• Tag everything• Drivers of RFID adoption• Standards and technology• Challange• As Is• To Be• Questions
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The retail sector is being shaped by four fundamental driving forces
Increasingly well-informed Comfortable with multi-channel shoppingDemand higher value (personalization) at lower costFickle and explicitly conscious about value exchange
Fundamental Retail Industry Trends and Drivers
Source: IBM Institute for Business Value Analysis
Empowered Consumers
Competitive Darwinism
Technological Tipping Points
Workforce Productivity
Reaching market saturationExpansion across segment and geography boundariesUndifferentiated competitors being killed off
Historically high employee turnoverWide variability in employee and store performanceInformation visibility hampered at key juncturesEnhanced productivity tools difficult to access
Available information increasing exponentiallyDrive toward common infrastructure and seamless integration Emerging transformational technologies
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Standards and technology
• Tag everything• Drivers of RFID adoption• Standards and technology• Challange• As Is• To Be• Questions
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The Auto-ID Center
• The Auto-ID Center was created to develop the infrastructure and standards of an intelligent supply chain using RFID
• The center is an industry-funded research program founded in October 1999 by the Uniform Code Council (creators of the UPC), MIT, Procter & Gamble, Wal-Mart, and Gillette
• It promotes an open, standards-based system that facilitates collaboration among value chain partners
• The base of the Auto-ID system is the EPC – a robust labelingconvention that is embedded into each RFID tag
• Information related to each object (tag) is stored and accessed via the internet
• The Auto-ID center will go back into Auto-ID Labs at the end of October 2003 and the Auto-ID Inc will take over as the registry for the EPC ongoing- this is a global organization sponsored by UCC and EAN
• Clients can become members of Auto-ID Inc by calling Brooke Peterson in the US at 1 617-230-7886
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The sponsors of Auto-ID include leading organizations from a variety of industries – and the list is growing daily
Source: Auto-ID Center
Philips SemiconductorsSAPSiemensSun MicrosystemsSymbol Technologies
AC NielsenCatalina Marketing GroupCheckpoint SystemsIBM Business Consulting
Services
Information Resources, Inc.IntelIntermecMatricsNCR Corporation
Selected Technology Board Members
Sara LeeTargetTesco Stores Ltd.Toppan PrintingUniform Code CouncilUnilever United States Dept. of DefenseUnited States Postal ServiceUnited Parcel Service (UPS)Visy IndustriesWal-Mart Stores, Inc.WegmansYeun Foong Yu Paper Manufacturing
Abbott LaboratoriesAhold USABest BuyCanonCHEP InternationalCoca-Cola CVSDai Nippon PrintingEAN InternationalEastman KodakGillette Home DepotInternational Paper
Johnson & JohnsonKellogg’sKimberly-ClarkKraftLowe’s MeadWestvacoMetroMitsuiNestlePepsi PfizerPhilip Morris USAProcter & Gamble
Current Board of Overseers (as of April 15, 2003)
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EPC is a Standardized Naming Convention that is Embedded on the RFID Tag in the Auto-ID solution
EPC of each shipment
EPC of each pallet
EPC of each case
EPC of each item
01.00142F.001COE8.0010298730
01.000142F.001COF3.0000319280
01.000A571.003459.000E9FC61B
01.0016CA2.000104.0000005910
…and is flexible enough to capture identification information at any level
The EPC can catalog over 1.3x1016 discrete items annually (about the number of grains of rice consumed globally each year)…
21.203D2A9.16E8B8.719BAE03C
Version — 8 bitsMfg. — 28 bits(> 268 Million)
Product Class — 24 bits(> 16 million)
Serial Number — 36 bits(> 68 billion)
Source: Auto-ID Center, IBM Business Consulting Services analysis
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Internet
The EPC is Passed from the Reader Level, Across a Network Where Greater Levels of Data Relative to an Object is Stored
Electronic Product Code (EPC) – As every car has a Vehicle Identification Number, each item could have an EPC - a distinct, 96-bit code with the flexibility to track shipments, pallets, cases, or individual items
RFID Tags and Readers – Readers reach out for tags with radio waves, which activate the tag to send back its EPC
Application Systems
Physical Objects with EPC Enabled
Tags
Reading Systems
(Interrogators)
Open Architecture Middleware
RF Transmission
ONS Server
Product Information
(PML Format)
1
2
3
4
1
2
3
4
Object Naming Service (ONS) – A server that receives the EPC through middleware and links it to an internet address where much more detailed information about the object is located
Physical Mark-up Language (PML) – A standard vocabulary for all product information – location, shipment history, interactions, movement, etc.
The Auto-ID System
The Auto-ID system provides an open environment that facilitates collaboration among many business partners in the product value chainSource: Auto-ID Center, IBM Business Consulting Services analysis
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The GTAG initiative
ReaderTag
GTAG complements and in fact relies to some extent on the RFID center’s EPC work to provide the base item numbering schema
1 2
The GTAG initiative has four elements:
Harmonization of frequency and power level regulationsDevelopment of standards for interoperable tags and for the air interfaceDevelopment of standards for data management on the tag, and Technology pilots
21.203D2A9.16E8B8.719BAE03C3
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GTAG technology
GTAG has chosen to specify high-frequency tags and air interface, leaving much of the reader specification to manufacturers
The driving objective is that a GTAG compatible reader from any vendor can read any GTAG–compliant tag from any vendor
GTAG has chosen Ultra High Frequency (UHF) spectrum in the 860 – 930 MHz range§ This high frequency tag specification has the advantage of higher relative read ranges and some immunity to
metal or moisture barriers§ This spectrum also has the best chance for global harmonization or frequency and power regulations
Readers specifications and application interfaces are largely left open by GTAG§ Readers will need to comply with the specifications for air-interface (to the tags), but may interface with
controlling applications as manufacturers see fit§ There may be an API published in the future to guide reader interface standards
GTAG pursued the vision of separating the data carrier technology from the data content§ GTAG prescribes the data carrier format, relying on others (such as the Auto-ID Center with their EPC) to
establish data formats which will drive adoption§ Data formats are thus free to evolve independently of the data carrier format
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Tag technology
There are a number of RF ranges for tags, including: 100-140 kHz, 13.56 MHz, 862-928 MHz, 2.45 GHz–each have specific market applicability
Frequency Capabilities Applications
125 kHz
Read Range - up to 18"Good Penetration in Moist EnvironmentsSlow Data RangeCostly TagsNo Anticollision
Pallet/containerRPCWindshield decalLabel insertsCredit card
13.56 Mhz
Read Range up to 3'Good Penetration in Moist EnvironmentsPoor Performance in Metal EnvironmentsMany Standards in Financial MarketAnticollision (10-40 tags / sec)
Pallet/containerRPCWindshield decalLabel insertsCredit card
869, 902-928 MHz
Read Ranges up to 15'Fast Data RatesGood Performance in Metal EnvironmentAnticollision (50 tags / sec)Many Standards in Logistics / Supply Chain
Metal mountLabel insert
2.45 GHz
Read Range up to 3'Good Performance in Metal EnvironmentsPoor Performance in Moist EnvironmentsFast Data RatesAnticollision (50 tags / sec)
Metal mountLabel insertHardened tag formatReusable form factor
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Reader technology
There are three basic choices for reader technology – based on the job or type of work to be performed
nEntrances - portalsnConveyors across
assembly linesnPoints of salenOverhead
StationarynHand-heldnWireless or batchnOne-piece or two
piece tagging
MobilenMobile service agent
PCMCIA
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Challange
• Tag everything• Drivers of RFID adoption• Standards and technology• Challenge• As Is• To Be• Questions
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Privacy and security
RFID is a powerful technology. As its deployment grows, industry leaders like IBM have a role to play, alongside customers and
government, to ensure that technology is developed and deployed responsibly. The RFID industry and application standards groups are currently working to address consumer privacy and security
concerns. The clear benefits of RFID technology, both for retailers and consumers have to be carefully balanced and considered
alongside the needs and concerns of the consumer to find beneficial solutions for all parties concerned.
Not everyone should be able to read your Tag. A burglar with a “Reader”.
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Co-operate and using standardization technology
Retailer CPGMany to many relationship
AUTOIDRFID
Open std
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As Is
• Tag everything• Drivers of RFID adoption• Standards• Challange• As Is• To Be• Questions
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Several industry-wide pain points continue to challenge traditional retail business models… (As IS)
Consumers Employees Enterprise/Vendors
§ Anonymous consumers§ Out of stocks§ Shelf searching§ Lost sales/defection§ Price sensitivity
§ High labor costs§ Employee turnover§ Training time & costs§ Overburdened
managers§ Disconnected
applications§ Best practice sharing
§ Manual and error-prone processes § Limited inventory
visibility§ Point to point supply
chain integration§ Reliance on
markdown selling§ Lack of local market
assortment planning
Pain Points
> Industry overview
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To Be
• Tag everything• Drivers of RFID adoption• Standards• Challange• As Is• To Be• Questions
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…and has forced retailers to respond to three key imperatives (To Be)
“Transform theExperience”
“Take outCosts”
“Enable yourPeople”
• Build differentiated market position
• Re-invigorate customer relationships
• Embrace emerging technologies –selectively
• Influence customers during the entire shopping process
• Focus on the core retail business
• Optimize and strengthen supply chain
• Automate interactions with trading partners
• Create common/shared infrastructure
• Integrate applications and data across functions
• Maximize operating efficiency
• Increase employee productivity
• Deliver real-time information to associates and managers
• Enhance employee experience and extend their tenure
> Industry overview
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Our analysis identified many potential benefit areas across the value chain (To Be)
Physical Product Flow
Demand/ Information Flow
PullPull Pull Pull
Sales uplift –readers @ home drive one to one
consumer relationships
Reduced close outs/run offs -improved rollover execution
Sales uplift - improved promotions execution
Transportation savings - reduced internal
transfers
Reduced finished goods inventory
Reduced holdings of RM and
Finishing Supplies
Improved manufacturing reliability - enhanced
production scheduling
Lower net landed supply
cost
Reduced deductions -Automatic POD
Sales uplift - reduced out of stocks via shelf-driven replenishment
Supplier Plant & DC Retailer DC Retail Store Home
Improved margins -identification of sources of
diversion
Improved labor efficiencies
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Questions
• Tag everything• Drivers of RFID adoption• Standards and technology• Challange• As Is• To Be• Questions