RFID & Retailing Jonathan Wareham

What is RFID? RFID is an technology that uses radio-frequency waves to transfer data between a reader and a movable item to identify, categorize, track... RFID is fast, reliable, and does not require physical sight or contact between reader/scanner and the tagged item

RFID Operations

What is RFID? -- The Tags Tags can be read-only or read-write Tag memory can be factory or field programmed, partitionable, and optionally permanently locked Bytes left unlocked can be rewritten over more than 100,000 times

RFID Tags

RFID System Basics Read Only (Factory Programmed) Tag ID Only WORM - Write Once, Read Many times Reprogrammable (Field Programmable) Read/Write (In-Use Programmable) Tag ID Only Programmable Database Pointer Mission Critical Information Portable Database

What is RFID? -- The Tags Tags can be attached to almost anything: pallets or cases of product vehicles company assets or personnel items such as apparel, luggage, laundry people, livestock, or pets high value electronics such as computers, TVs, camcorders

Are All Tags The Same? Basic Types: Active Tag transmits radio signal Battery powered memory, radio & circuitry High Read Range (100 meters) Passive Tag reflects radio signal from reader Reader powered Shorter Read Range (10cm – 5 meters)

RFID the Supply Chain Tag Antenna Reader Middleware Supply chain execution - Transmits identification data to a reader - Coiled antenna of reader creates magnetic field with coiled antenna of tag Transmit data to middleware Associates tag info with product info Process information from reader Filters data Sends data to backend servers - Backend SCE or ERP systems receives Information

How far, how fast, how much, how many, attached to what? Low Frequency No regulation Penetrate materials (water, wood, tissue well) Slow read speed Small range No penetration of iron and steel Medium Frequency Little data, small distance Thin tags Low cost High data rates Govt regulated Non mental penetrating High Frequency Penetrate materials Small tag size High data transfer Long range Non-water or tissue penetrating Non-regulated in some regions expensive

Where can RFID add value? From Manufacturing Through Distribution Transportation Into a Store’s Back Room Inventory On the Shelf At the Cash Register Out the Door as an anti-theft device

RFID Video

Portal Applications Bill of Lading Material Tracking

Portal Applications Limited number items at forklift speeds 8’ X 10’ doorways Electronic receipt & dispatch Wrong destination alert Electronic marking Pallet/container item tracking

Conveyor / Assembly Line Read / Write Operations Higher Accuracy than Bar Code

Conveyor / Assembly Line Up to 450 fpm 60+ items per container Inexpensive tunnels Longer tunnel more items Electronic receipt Sorting Electronic marking

Hand Held Application Categories Batch Wireless Fixed Station

Application Examples Material Handling Wireless / Batch By Destination Inventory Management Material Handling By Destination Where is it going? Where has it been? Should it be here? Where is it? What is it? What is inside the box? Material Handling Aggregate / De-aggregate Material Handling Inspecting / Maintaining Has this been repaired? Is this under warrantee? Has this been inspected? Is this complete? What is the asset’s status or state? What have I assembled or disassembled? How many do I have? Do I have enough?

Tote/Box/Unit Level Inventory Shipping Validation Tote/Box/Unit Level Inventory

Intelligent Labels

The HazMat Label

HazMat Smart Label Low power > long range 1024 bit memory Read/write/lock on 8 bits Advanced protocol Efficient multi-id  Lock data permanently 12 ms/8 byte read  25ms/byte write Group select  Broadcast write 40 tags/second  Anti-collision

Application Requirements Wal-Mart - Suppliers will mark inbound cases and pallets with RFID - 1 January 2005 - May, 2003 specification calls for ≈256 bit read/write tag U.S. Department of Defense - Draft RFID policy to be completed by 18 September 2003 - To issue final policy in July of 2004 that will require suppliers to put passive RFID tags on selected case/pallet packaging by January of 2005. Draft policy calls for passive tags (est. 256 byte) and active tags

Is RFID GPS? NO!                           

Electronic Article Surveillance Typically retail theft deterrence applications Arguably first and most widespread commercial use of RFID “1-bit” tag Cheap, passive

Electronic Toll Collection Toll tags speed regular users through toll gates RFID tag on windshield identifies vehicle and enables toll deduction from account

Railcar Tracking 99% of every North American railcar in interchange service equipped with RFID

Access Control The ubiquitous employee badge is RFID Vehicle access NEXUS border inspection program at Peace Arch photo by HID Corporation

Product Recall Remember Ford and Firestone? TREAD Act RFID pilots underway to track tires from manufacturer to vehicle

Baggage Tracking Positive Passenger-Bag Matching initiatives (PPBM) Bar code systems work today but line-of-sight requirements make complicated solutions 1 to 2 billion tags/year Many pilots to date Tag price is key

Medicine

Counterfeits

Top 100 Suppliers: Suppliers will mark inbound cases and pallets with RFID - 1 January 2005 - May, 2003 specification calls for ≈256 bit read/write tag 1 EPC tag per carton – 100% read on conveyor 1 EPC tag per pallet – 100% read at Inbound dock Conveyor speed of up to 600 feet per minute 3 Texas Distribution Centers January 2005

Why??? Stock management /perishables (field to fork) In-stock levels Invoice reconciliation: damaged, deductions, performance penalties, etc. Scan Based Trading or VMI Improved analytics & POS data All reads available to suppliers within 30 minutes

Metro Future-Store Video RFID Retailing

RFID & Retailing PRADA

Guidelines for using RFID Bar codes cannot be used Counting versus identification (reverse logistics) Use of 3Party logistics and suppliers Data collection is chaotic (battlefields, hospitals, retails shops) Exact configuration of the good must be maintained Counterfeit protection High Risk scenarios, drugs, hospitals Collecting data outside of retailer (smart refrigerators, medicine cabinets, etc)