rfid08 ppt kirkwood rfid101 final presentation
DESCRIPTION
RFID in PharmaTRANSCRIPT
Overview
• RFID Background
• RFID System Components
• Choosing RFID
• RFID Benefits and Applications
What is RFID?
• Radio Frequency Identification: Radio Frequency is an automatic identification method in which devices called RFID readers use radio frequency waves to retrieve information from RFID Tags
• RFID is a non line-of-sight technology which supports automated data capture for many industries
• RFID can communicate information on a product, its condition, and its history
The (not so) brief history of RFID
2010+1970’s1960’s1950’s1940’s 1980’s 1990’s 2000’s
• Major WW II development efforts
• RFID invented in 1948
•Early explorations of RFID technology
•Long –range transponder systems for “ID” of friend and Foe (IFF) for aircraft
• RFID companies Sensormatic & Check-point are founded
• Very early adopters implement
• RCA and Fairchild publish “Electronic ID System”
• NY and NJ Port Authority test electronic toll applications
• Commercial applications for RFID enter the mainstream
• Applications emerge in transport, industrial, personnel access and animal tagging
• Toll roads worldwide are equipped with RFID
• Emergence of initial RF open standards
• RFID widely deployed in toll collection, animal tagging and personal identification
• MIT establishes the Auto ID Center
• First CPG retailer auto ID pilot launched
• Gillette buys 500M tags from Alien
• Walmart & DOD announce supplier mandate
• Pharma Track and Trace requirement emerge
• RFID costs drop
• Technology hurdles eliminated
• Non clone able tags introduced
• Sensitivity and bandwidth improved in UHF
• RFID Background
• RFID System Components
• Choosing RFID
• RFID Benefits and Applications
RFID technology enables auto-identification through the use of three major components –
tags, readers and software
Tags Readers IT Architecture
• ID Device comprised of a microchip and an antenna that store/transmit data
• Memory contains Electronic Product Code (EPC) that uniquely identifies each product
• Tags may be active or passive
• Data retrieved via an antenna from the RFID tags
• Data passed to systems
• Software gathers and manages data
• Data communicated into existing enterprise applications (WMS, ERP, etc.)
• Common digital language describes products
How the three major components of an RFID system work together
• An RFID tag may store and transmit data like serial number or NDC, model, price, date of manufacturer of a tagged product
• May store information about an animal or a person’s identity, details of the account to which a tagged smartcard links, or codes required for security clearance
• May also include built-in sensors that detect and transmit information about the condition of a product – e.g., temperature or tampering
• When an RFID tag detects electromagnetic energy, its antenna enables the chip to receive and reply to radio frequency signals from an RFID Reader
• The reader decodes data it receives from the RFID tag and passes it to a computer system for processing
TAGS: Depending on the application and physical requirements, RFID systems can use active (battery
powered) or passive (reader powered) tags
•Includes power source and transmitter for read/write capabilities
•Larger than passive tags
•Additional functionality, such as monitoring temperature, humidity, shock/vibration
•Cost range $20-$50
•Effective range of 1000+ feet
•Examples: EZ Pass car toll systems, container environment monitoring
•Powered by RF waves - no internal power
•Reflects energy radiated by reader
•Sized to product
•Used for track and trace, inventory, shipping
•No batteries - Cost <$1
•Effective range of up to 30 feet
•Examples: ExxonMobil Speedpass
ActivePassive
Tag Reader
Antenna
Antenna
Interface to Host Computer (RS485, RS232/422, ethernet, 802.11 etc.)
READERS: RFID readers are designed to perform the following functions:
• Interrogate• Communicate • Translate • Resolve
There are several peripheral devices and enabled locations that support an RFID system
• Dock Portals
• Staging/holding
• Case Crusher/compactor
• POS locations
• Shelving
• Perimeter doors
• Carts and trolleys
• Forklift enabled readers
• Perimeter doors
• Receiving Dock Portals
• Applicators
• Stretch wrap
• Commissioning station
• Receiving dock portal
• Shipping dock portals
Manufacturing/Packaging Distribution Retail/Hospital
Mobile readers
In line applicators
Printers./ programmers
Turntable readers
Smartcart Dock Portal
Passive RFID tags consist of three parts:1. A silicon microchip: holds information about the
physical object to which the tag is attached
2. An antenna: transmits information to a reader (e.g., a handled, warehouse portal, pharmacy or store shelf) using radio waves
3. Conversion: encases the chip and antenna so that the tag can be attached to physical object
Sample tags
RFID systems can only use frequency ranges that have been reserved specifically for industrial, scientific or
medical applications or for short range devices
• RFID frequencies:
–Low-frequency (around 125 KHz)
–High-frequency (13.56 MHz); and
–Ultra-high-frequency or UHF (860-960 MHz)
LF:•Uses Magnetic field (Near field)•Better able to penetrate non-metallic substances•Ideal for scanning objects with high-water content•Read range is limited to < 1ft
HF:•Uses Magnetic field (Near field)•Can work around goods with high water content•Practical read range is in inches
UHF:• Uses Magnetic (Near field) and/or the Electric (Far field)• Tags are more simplistic and hence less expensive• Can be used for waters, coupled to metals for greater range• Used for items, cases and pallets• Read ranges from an inch to 100+ feet away
Magnetic Field = Inductive Field = Near Field Electric Field = Far Field
The EPC data format used with RFID is more specific and unique than bar coding
•UPC – Universal Product Code : Associated with Bar Code Technology. A means of identifying a manufacturer and generic object category.
•EPC – Electronic Product Code: A unique identification code associated with RFID Technology. A means of associating a manufacturer, object and a specific item via a unique serial number, allowing reference to a specific item, origination, date of production, etc.
EPC is the basis for RFID
•The EPC stores product information in the form of a value in each tag•This value is composed of the following elements:
Header (8 bits):
Used to indicate EPC version and may identify variant naming schemes. Also can be used for future labeling extensions
EPC Manager (28 bits):
Used to indicate the company and the manufacturer – similar to company identifier in GTIN* formats
*Global Trade Identification Number (GTIN) is the interoperable data format that USS and EAN numbering systems conform to
Object Class (24 bits):
Identifies the product group and is identical to the GTIN* number
Serial Number (36 bits):
Provides the unique product serial number
• RFID Background
• RFID System Components
• Choosing RFID
• RFID Benefits and Applications
Factors to consider when choosing passive tagsConsiderations
Where will the tags be used? Are there other RF activities?
• The location will define the frequency, cycle, antenna pattern, data rate and power limitations (to avoid interference etc.)
What will my trading partners need?
• Read only
• Read/write• Complexity and cost involved if deploying multiple technologies; e.g.
2D for small items, LF or HF for water based products, UHF for cases and pallets.
What kind of product will be tagged?
• Characteristics (round, square, liquid, glass, plastic), cartons, totes
• Determines size of tag, the kind of adhesive and placement location
How will I build my hierarchy?
• Placement of tags
• Alignment• Aggregation
What kind of environment will the tags need to withstand?
•Cold Chain
•Humid
•High temperature
While there are factors that can impact tag performance, knowing how to optimize tags and
system configurations is important for successConsiderations
Tag shape • Antenna shapes can effect performance- more sensitive silicon has improved this
Tag size • Large antenna mean larger tags and longer read range
Read rate of tags • Rapid rate is suggested
Tag packaging • May effect durability
• Foam, stickers, plastic cases (conversion)
Tag sensitivity • Greater chip sensitivity, longer read range
Tag stacking • Tags stacked closely together may interfere with one another
Number of tag antennas • Readability can be reduced if a tag has one antenna that is sensitive to orientation
• Double dipole tags alleviate orientation issues, but are more expensive and are larger
What product is attached to •Cardboard, plastic, clothing
•Metal, water
Different types of auto id tags/technologies can be used at various points in the product hierarchy
Bar Code/ Linear or 2D Passive RFID Semi-Active or Active
L1 -Item L2 -Packaging L3 -Case/Pallet/Unit Load L4 -Container L5 -Vehicle
GPS
Passive Tags:• Low cost• Long Life• Range 1- 30 ft• Typically used for L1–L3
Semi-Active Tags:• Higher cost• Battery, more memory• Range of ~150 ft• Typically used for L3-L4
Active Tags:•High cost (10-100x)•Battery and electronics (10Y life)•Long range ~ 1000+ ft•Larger in size•Wider range of applications•Typically used for L3 – L5
GPS:• Highest cost• Extended range –
satellite based data capture – cargo/vehicles
• Typically used for L4-L5
RFID is the ‘next generation bar code’ and is already delivering additional benefits
Bar Code Labeling and Scanning RFID
Price • Low cost • Material is expensive compared to linear and 2D bar codes –but can return higher ROI
Capacity • Limited space – typically only simple identifiers (e.g. lot#, SKU) are stored
• Low granularity of data• Read only
• Can hold substantial amounts of data (96-256 bits)
• Can track events and make decisions at lower level, real time = new opportunities for process optimization and traceability
• Can read and write information from partners
Flexibility • Line of site reading required
• One simultaneous scan per read
• No line of site required - proximity only resulting in simpler handling of goods
• Multiple simultaneous tag scans per read
Accuracy • Human intervention opens possibilities for errors
• Fully automated and nearly error-free
• O.H.I.O. principle – Zero Human Interventions Operations – reducing labor requirements
Durability • Labels can be easily damaged, destroyed and duplicated
•Tags are more durable
•Tags can operate in harsh environments
• RFID Background
• RFID System Components
• Choosing RFID
• RFID Benefits and Applications
RFID drives benefits that directly impact organizationsValue
Revenue Growth Operating Margin Asset Efficiency
• Upstream supply chain benefits
Regulatory / Expectations
• Counterfeit prevention• Recall management• Patient compliance
management• Clinical Trial Management
Volume
Price Realization
• Chargeback accuracy• Reduce wholesale shortages• Diversion prevention & tracking• Customer complaint data accuracy• Trade partner terms• Government pricing/ ASP• Negotiating leverage as industry
leader
SG&A
COGS
Inventory
• Brand Equity
• Regulatory relationships
Patient Safety
ExternalFactors
Strengths
• Returns management effectiveness
• Order accuracy• Recall management
effectiveness• Adverse event tracking• Demo kit controls• Transportation leakage
management• Sales force compensation• CMO efficiency• Free product controls• Shipping & Handling*• Inventory cycles
• Working capital• Channel inventory
management• Excess Inventory reduction• Clinical Product Tracking• Increase disaster response
inventory identification• Shrinkage reduction• Direct-ship to the MD*
PP&E
• Improve equipment availability, efficiency, throughput (OEE)
• Utilize more robust and scalable IT systems
• Sales uplift• Promotions effectiveness• Market data effectiveness• Demand planning • Launch planning• Provider contracting (non-
government pricing)• Anti-counterfeiting (product
authentication)
*Scale of Potential benefits will vary with the implementation of Track & Trace
Legend : • Black – Tangible; quantified • Grey – Qualitative or future benefit • Red - RFID Direct Benefit
Source: Deloitte
Point, closed and open RFID solutions can be deployed within the supply chain–with varying benefits
Point Linear, Closed Network Open
Description • Stand alone solution within four walls of facility
• Linear solution that does not have to be end-to end (e.g., a supply chain route)
• A solution that is deployed throughout a supply chain integrated network
Who benefits?
• A particular function or point in the supply chain
• All parties in the chain that ‘touch’ the RFID
• The benefits are gained by all parties in the supply chain
Examples • Tagging warehouse assets for yard management
• Tagging of returnable totes from wholesalers to retail pharmacies
•Item level tagging of medical devices through the supply chain
4. Repacker
5. SecondaryWholesaler
Contract Manufacturer
Plant
ManufacturerPlant
Contract Packaging
Plant
PackagingPlant
3rd Party LogisticsProvider
DistributionCenter
1. Manufacturer
Hospital
Community Pharmacy
Prescriber/Provider
SpecialtyPharmacy
IndependentPharmacy
Mail Order
7. Pharmacy2. Wholesaler
Hub DC
Local DC
Warehousepharmacy
Chain Pharmacy
3. Retail Chain
6. Importer
Internet
8. Patient
Initially RFID opportunities have been at discrete entities. With time, opportunities will grow to encompass the
entire supply chainSupplier Manufacturer Wholesaler 3PL Hospital/
Pharmacy Consumer
Reusable containersReusable containers
Production schedulingProduction scheduling
Reusable containersReusable containers
Inbound receivingInbound receiving
Supply planningSupply planning Pallet and tote location and trackingPallet and tote location and tracking
Inbound receivingInbound receiving Delivery planningDelivery planning
Inventory ManagementInventory Management
Pick, pack and shipPick, pack and ship Inventory visibilityInventory visibility
Back room/inventory loss preventionBack room/inventory loss prevention
Demand planning – DC and retail pharmacyDemand planning – DC and retail pharmacy
Pick, pack and shipPick, pack and ship Pharmacy LPPharmacy LPInventory countsInventory counts Self authenticationSelf authentication
Demand planning – pharmacy shelf level, pricing, availability, vmiDemand planning – pharmacy shelf level, pricing, availability, vmi
Safety and Security – Track and TraceSafety and Security – Track and Trace
Reverse Supply Chain (recalls, returns, charge backs)Reverse Supply Chain (recalls, returns, charge backs)
Pallet
Case
Item
Shor
t ter
mLo
ng te
rm
RFID applications impact every major industry
Potential Applications
Value
• Counterfeit protection
• Drug validation and compliance
• Product recall
• On shelf availability
• Inventory management & visibility
• Asset tracking
• Patient and medical records tracking
• Medical waste
• Clinical trials
Healthcare & Life Sciences
Potential Applications
Value
• Electronic Payment & Ticketing
• Baggage Management
• Yard Management
• Transportation Tracking
• Asset Tracking
• Terminal Management
• Customs Clearance
• Vehicle Access
• Auto rental
Transportation
Potential Applications
Value
• Process control
• Inventory Management & Visibility
• Part supply/auto replenishment
• Asset Tracking
• Product recall
• Total Management
• Quality control
• Transportation Tracking
• Authentication & Immobilization
Manufacturing
High Low
Early Adopters of RFID
CPG Retailers TMT Transport Healthcare and Pharmaceuticals
FSI Auto CPG Mnfg.
• Inventory Mgmt
• Asset tracking, POS payment
• Electronic payment & ticketing
• Inventory Mgmt, Loss prevention
• POS payment • Process control• Consumer
experience
• Loss prevention
• Consumer experience
• Process control
• Asset tracking
• Safety and Security
• POS payment • Inventory management
• Tool Management
• Inventory management/ productivity
• Loss prevention • Vatican Library Mgmt
• Baggage Management
• Inventory Management (IV fluids)
• POS payment • Product Recall • Asset utilization (bulk containers)
Building a Business Case for RFID
Finalize RFID Opportunities
Assess Process and Org. Impact
Step 1
Characterize Opportunities
Identify Opportunity Areas
Step 2 Step 3 Step 4
Build Business Case
Step 6Step 5
Plan Pilot and Program
Shareholder Map
Opportunity matrix
Impact assessment
Prioritized opportunities
• Quantify opportunities
• Identify people, process and technology changes & data needs
• Build cost model and pilot/program plan
It’s important that you know what you want to use RFID for before you consider implementing an RFID system
If you know what aspects of your business processes you want to improve through RFID, you can purchase the correct number of tags, put the correct systems in place, and train employees correctly for the implementation
It’s important that you know what you want to use RFID for before you consider implementing an RFID system
If you know what aspects of your business processes you want to improve through RFID, you can purchase the correct number of tags, put the correct systems in place, and train employees correctly for the implementation
What factors are influencing RFID adoption?
Considerations
Standards • Standards that govern how readers, tags and network infrastructures exist
Cost of tags • Reduction in the cost of tags is dependent upon demand
• RFID will likely remain more expensive than bar codes unless benefits beyond current systems are identified
• Closed supply chain tracking can reuse tags - open supply chain seldom does
Consumer Privacy • Consumers may have concerns that RFID device embedded in product may transmit personal data
Mixed Solutions • Complicates infrastructure – some trading partners using different identification (2D bar coding or linear)
Varying data formats • Writeable tags may contain varying data format, making them unreadable except by customized readers
What will drive the future of RFID?
RFID Acceptance and Adoption
Regulatory bodies
• Government bodies (DoD, DHS, FDA) mandate RFID usage
• US and EU outlined Food Safety and Security requirements
Standards
• Global RFID standards (EPCglobal, ISO) exist and are being augmented
Improving economics
• Reduction in cost of tags, readers
• Downward pricing on RFID hardware will continue
• Disruptive strategies
Industry pressure
• Retailers, Hospitals, Wholesalers are beginning to require suppliers become RFID capable
• Others are following
Thank You!
Questions?
Please contact :
Bonni KirkwoodNortheast Secure Value Chain Leader
Deloitte [email protected]