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

RFID (Radio Frequency Identification)… A utomatic 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 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… theme  industry 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 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