RFID in Supply Chains

1. RFID in Supply Chains • Post production in the manufacturing supply chain • Retail manufacturing - one of the first large-scale applications of RFID

2. Walmart Mandates • Tagging of pallets and cases was the first requirement by Walmart / other retailers and DoD • Use of 900 Mhz EPC tags • Tag read at various Distribution Centers or DCs • Web site: • Walmart - http://www.rfidjournal.com/article/articleview/956/1/1/

3. DOD Mandates • DoD mandates on suppliers http://www.military-information-technology.com/article.cfm?DocID=351 - “….The military made substantial use of RFID technology in operations Enduring Freedom and Iraqi Freedom, achieving major gains in efficiency in moving needed goods to the front lines and avoiding the massive supply back-ups that marked the military supply chain during the 1991 Gulf War…” • RFID tags placed on containers, pallets or individual items with a value of $5,000 or more by 2005 • Motivated by • losses in supplies at terminal points • Build-up of supplies at intermediate point • To handle dynamically changing inventory needs at terminal points • Some depots now have RFID reading capability

4. Characteristics of supply chain • Integrated approach required to manage entire supply chain • Several intermediaries are involved – each one has to be convinced to install readers and connect them • Product is not in the hands of only one organization – different handling, security, etc. • Intermediaries (such as trucking companies) often have different levels of technological sophistication • Some intermediaries are in foreign countries where it may be difficult to replicate or even to have RFID infrastructure due to RF constraints • Real-time inventory redirection requires visibility • With bar code, the level of granularity of tracking becomes limited due to cost • In retail supply chains, based on demand, requirement for dynamic redirection of inventory is required. RFID provides real-time visibility.

5. Hardware Technology selection • EPC, 900 Mhz has become a standard • Provides longer read range • Cheaper tags • I.D. only – works well for retail • 4 Fields in EPC (96 or 64 bit) • a header, defining the variety of EPC among a number of possible structures • a domain manager number which is effectively a manufacturer number (middleware such as WinRFID can help map the number to a company via an ONS) • an object class which is equivalent to a product number • a serial number

6. Picture taken from UCLA-WINMEC Web site • http://winmec.ucla.edu • Software to support Supply Chain • EPC-based • Connects different vendors • Manages reader networks • Has knowledge-base of rules for managing action items • Edge-of-network filtration reduces large amounts of data • Removes redundant reads at edge • Connects with ERP systems

7. Conclude - RFID in Supply Chains Rajit Gadh

8. RFID in Retail • Rajit Gadh

9. RFID in Retail • Benefits to retailer • Inventory management and replenishment • Finding items in shelf • Automatic checkout of items • Theft/security • Dynamic price updates • Challenges in item level tagging • To create a homogeneous infrastructure, need to come up with a system design that uses a single tag on each product. Tag itself might depend on the type of product (metal, liquid, etc.). • Cost of tag • Interference between tags closely packed in shelves • Interference with materials such as metal/liquids

10. RFID in Retail - Technology • Technology • Smart shelf • UHF or HF depending on type of product tagged • Technically challenging • Location of antenna • Problem with existing shelf design • http://news.zdnet.com/2100-9584_22-979710.html • http://winmec.ucla.edu/rfid/winrfid/smartshelf.asp • http://www.rfidjournal.com/article/articleview/1474/1/9/ • Smart cart • Automatic checkout within cart • Integrated with loyalty card

11. Retail – considerations • Short range tags since long range will cause interference between different tags • Product placed into a smart cart which has a reader • Reader should not miss any of the tags • Reader must not read tags from neighboring carts or shelves • Payment can be done directly to cart • Data can be written into tag that indicates that the part has been paid for. Would require encoding – implies current EPC tags not usable • Loyalty card belonging to customer may be used to show promotions by the cart display to the customer • Loyalty card may be used for collecting payments • The cart informs exit doorway if products have been paid for

13. Privacy Concerns • Alleviating privacy concerns in retail applications • Tag read range can be made small • No need to write customer information on tag • Company need not store customer information within their database – processing similar a credit card • Communication can be secured • Kill tag after transaction (but then loses the advantage for handling returns)

14. Other considerations • EPC touted for usage is UHF and its longer range and open format may become a security issue for item level tagging • Cost/item still high for all retail products to be tagged

15. RFID for Grocery– WINMEC Lab • Plastic crates are misplaced at customer’s retail site • Technical solution captures tag data on stacked crates • Reconciled data upon crate return • Future – Inventory planning

16. Conclude - RFID in Retail • Rajit Gadh

17. Manufacturing of complex products (non-retail) • Rajit Gadh

18. Manufacturing assembly Line • http://www.activewaveinc.com/applications_manufacturing_line.html • From ACTIVEWAVE - …”Assembly line personnel could use an RFID reader to verify which processes have been completed, to determine which inspections or tests are required and to automatically update the central production database. And production planners and inventory control personnel could use the ActiveWave RFID tags to automatically update the customer database and finished goods inventory, using an RFID reader and PC, rather than manually creating data entry sheets, which could introduce errors into the system…” • Applications of RFID in assembly lines • For controlling inventory and production schedules • Locating item in factory • Quality control – ensuring completion of product assemblies - can automatically notify the central product database when each process has been completed • Real-time tracking of inventory, part kits and sub-assemblies • Maintains current item information on the tag - ideal for managing production of complex or customized products and assemblies, eliminates the need for separate paperwork on assembly status and content • Field/maintenance personnel could use RFID tag to determine product features, date of manufacture, revision levels, etc.

19. Aerospace manufacturing • Complex environment • Large metallic components • Expensive parts • Loss of part or assembly kit results in delay of assembly line

20. Aerospace Image source - Boeing

21. Automotive Image Source – TWI, Automotive assembly Line

22. WinRFID Tool-Track • Store Reading Station • Administration • Report • Check-in / Check-out • Inventory • Machine-Tool Reading Station

23. Conclude – Manufacturing of Complex Products