1. RFID l. goetzinger ● m. lines ● c. mclaughlin ● c. sailer ● m. schwab Presented to the Class of BA 457

2. RFID Overview RFID and the Supply Chain Current Uses Future Uses and Controversy Corporate Examples RFID… presentation layout

3. RFID… a video

4. 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. 1973 Mario Cardullo - Claims that his patent was the first true ancestor of modern RFID.

5. 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.

6. RFID… types Passive - No Internal Power Supply - Quite Small in Size. The smallest device can be measured at 0.15mm * 0.15mm. - Most Common

7. 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

8. RFID… supply chains and inventory Locating Inventory in Stock Information Storage Capabilities Less Error

9. RFID… supply chains and transparency Tracking Knowledge Safety and Security

10. RFID… gillette case study

11. RFID and Information Sharing… Decrease in Discrepancies Increased Efficiency A Better-Run Company

12. RFID… current applications Hospitals Retail Military Fleet Maintenance Electronic Toll Collection

13. RFID… hospitals Track equipment Patient locator/information storage Doctor locator Restrict access to drugs and other materials RFID for people

14. 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

15. RFID… fleet maintenance Easily accessible vehicle specs Vehicle locator Records vehicle maintenance automatically Reduces record keeping errors

16. RFID… retail Tags in labels help track product source/specs Safeguard against counterfeit products Reduce theft Allows movement of inventory to be tracked

17. Imagination Time What future products (or services) will use RFID technology? …what cool ideas do you have for RFID….

18. Tire Monitoring Refrigerator Washing Machines Dressing Rooms/Closets Golf Balls 10-15 years for most consumer products RFID… future uses

19. 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

20. 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

21. RFID… theme  industry benefits From cradle to table Each product uniquely identified—EPC Simplifies and accelerates merchandise management

22. RFID… controversy Video of RFID chip implanted into hand

23. 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

24. RFID…. wal-mart (continued) Top 100 Wal-Mart suppliers currently use RFID tags increasing to 300 by the end of 2006 600 by the end of 2007 Strategic Implications Volume and Cost Upstream Supply Chain extensions Downstream Supply Chain extensions Innovation

25. RFID… other corporate examples Target Corp. Albertsons U.S. Department of Defense

26. What does this mean for suppliers? Cost of system and setup: $9 Million+ Smaller Suppliers: Can they do it? Order winner vs. order qualifier

27. Q&A What are your questions?

28. RFID… sources