Transcript RFID/EPC 101

RFID/EPC 101
John Seaner
EPCglobal US
28-July 2004
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Context for EPCglobal
• Significant, foundational industry transformations
require leadership
– EDI, network computing, barcodes
• Current mandates for the use of EPC indicate longterm commitment by global leaders
– Albertson’s, U.S. DoD, Metro, Target, Tesco, Wal*Mart, etc.
• Industry priorities and needs must be addressed to
meet timelines and avoid excessive costs
– “by industry, for industry” critical success factor
– Avoidance of fragmented approaches
• Successful path forward is a global approach
– Leverage reach of committed companies and supply chains
– Directly engage other industries, associations, standards bodies
and governments
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Overall EPCglobal Mission
• Partner with all industries to build
communities that drive mass adoption of
RFID/EPC technologies
• Combine technical research and user
experiences to drive collaborative
development and rapid deployment of EPC
technical standards
• Reduce risk and system integration costs
for implementing firms
• Manage integration and coexistence of
EPCs with successful bar code
implementations of today
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From “Research” to “Real World”
Partnership between 100 global firms, including
founders:
• Uniform Code Council
• EAN International
• Procter and Gamble
• Gillette
Research
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US
Continued
Research
Commercialization
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Creating a Global Community
Member Organization
Global Standards Development,
EPCglobal Network, and
Governance
• Drive Technical Standards Development
• Champion Global Trading Community
Adoption
• Provide Public Policy Advocacy and
Intellectual Property Protection
• Fund Current and Future Research of
Auto-ID Labs
• Design and Administer the EPCglobal
Network
Deployment of Standards,
Implementations and Support
Services
• Market Development
• Training and Education
• Localized Member Implementation Support
Supporting Global Supply Chain Convergence
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Technical Standards Development
• Unique opportunity for members to drive industry
requirements to leading hardware, software, and
services providers
• All inter/intra industry perspectives represented
• All geographies and supply chain participants
included
• Industry/member commitment determines priorities
• Linkages to support compatibility with the work of
other standards bodies, associations, and
consortium
• 13.56 MHz, 915 MHz, 64/96 bit Tag Data, Gen 2
(forthcoming)
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Public Policy and Regulatory
• Multi-industry, global Public Policy Steering
Committee (PPSC)
– Provide education and outreach to key stakeholders in the
public and private sectors.
– Reviews all relevant, recent and future studies on consumer
privacy to inform and guide our discussions.
– Studies consumer perceptions and opinions regarding privacy
and EPC.
– Provides state and federal bodies information that includes,
relevant facts on EPC and its benefits to consumers and
business.
– Investigates environmental, health, and safety issues
• Regulatory linkages to influence/monitor global
legislation, rulings, codes, etc. that effects RFID/EPC
standards development and industry adoption.
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Intellectual Property (IP)
• Free and open technology is essential for global
RFID/EPC adoption
• Initial due diligence completed with over 6,000
patents examined
• Continued work to assure there is no IP that
would prevent the implementation of EPC
technology
• IP Participation Policy in place covering all
members (supported by 160+ companies)
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Open access/open process
Full disclosure of known patents
Specific declaration of IP
Royalty-free licensing (RAND by exception only)
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Funding Auto-ID Labs Research
• Federation of 6 worldwide academic institutions:
MIT, Cambridge, Adelaide, Keio, Fudan, St.
Gallen
• Provides R&D related to RFID/EPC
implementation:
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Packaging Optimization
Manufacturing and Materials Handling
Automotive Research Initiative
Healthcare Research Initiative
• Effects of RFID on drug efficacy
• Cold chain requirements
• Performs fundamental research into the design
and manufacture of RFID/EPC technologies
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EPCglobal Network
• Tags are “license plates” -most information is held
in the network
• Serialized items can be individually tracked
across traditional trading boundaries in a
standardized way
• Supports real-time, automatic identification and
visibility of items at all points in the supply chain
• Provides high value business processes through
on-demand information access
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Track and trace
Authentication/pedigree
Anti-counterfeit/diversion
Product recall and expiration
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Trading Community Adoption
• Instantiation of multiple numbering systems and data
structures
– Issuance and maintenance of globally unique object identifiers
• Existing Keys such as GTIN (Global Trade Item Number); GIAI (Global
Individual Asset Identifier); SSCC (Serial Shipping Container Code); GRAI
(Global Returnable Asset Identifier); GLN (Global Location Number); and
NDC (National Drug Code)
• Supports non-EAN/UCC keys such as UID (Unique Identifier) and VIN
(Vehicle Identification Number)
• Other numbering systems will be adopted based on industry support
and implementation commitments
• Support member roll-outs through comprehensive, training
programs and educational curriculum
• Solution provider compliance, interoperability, and certification
testing results
• Steers the research agenda of Auto-ID Labs to address
industry-specific needs.
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The RFID Tag
• 3 Parts
– A Chip that holds information about the physical object to
which it is attached
– An Antenna that transmits information to a reader via RF
– The Packaging/Substrate that encases both the chip and
antenna so that the tag can be attached to a physical object
• Class 1 tag cost for bulk order is in the .20 to
.25 range (50% less than 6 months ago)
• Tag rail rate is decreasing due to more field
testing and greater efficiency in assembly
processes
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Types of RFID Tags
• Passive
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Powered by energy from reader (no internal battery)
Smaller, lighter, less expensive
Almost unlimited life
Shorter range
Requires higher power from reader
• Active
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On-board battery power source and transmitter
Larger, heavier, more expensive
Finite life
Greater range
Requires less power from reader
• Semi-Active or Battery Assisted Passive
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On-board thin battery power source
Uses Passive Technology (no transmitter)
Finite life
Greater range but higher cost (less than active)
Requires less power from reader
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Reading and Writing Capabilities
• Read Only:
– Information can only be read from an RFID device –
programmed at manufacture
• User Programmable
– WORM - Write Once Read Many - Ability to initialize
an RFID device outside of the RFID manufacturer’s
facility after manufacture
• Read/Write:
– Information can be read from or written to an RFID
transponder during the time it is presented to a
reader/writer
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Tags Utilize 5 Frequency Ranges
• 130 KHz (common of pet ID implants)
– Very low read speed and very short read range
– Small amount of data
• 13.56 MHz (common of smartcards)
– Low read speed and short read range
– Small to medium amount of data
• 915 MHz (common of cordless telephones)
– Medium read speed and medium read range
– Medium amount of data
• 2450 MHz (common of Bluetooth or 802.11)
– High read speed and long read range
– Medium amount of data
• 5800 MHz (common of toll road collection passes)
– Very high read speed and long read range
– Medium amount of data
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Tags are Organized into 5 Classes
• Class 0/I
– Passive with read/write only capabilities
• Class II
– Passive with additional functionality such as memory or encryption
• Class III
– Semi-Passive with support for broad spectrum communications
• Class IV
– Active with the ability to communicate with other tags in same
frequency range
• Class V
– Essentially readers that can power Class I through III tags
– Can communicate with Class IV tags and with each other
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Gen 2 Standards Development
• Global interoperability and ISO certification
• Upward Class 0/1 migration through
firmware/software update to existing readers
• New standard will effectively double the tag
vendor base and dramatically increase
production
• New tag will have reduced silicon requirements
and thus be less expensive
• Protocol have locking mechanisms to prevent
tampering and decoding
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Several Factors Effect Performance
• Reader Collision
– The reader interferes with the signal from another
• Tag Collision
– More than one tag reflects a signal at the same time
• Interference
– Proximity to other RF devices
– Forklifts and conveyors
– Manufacturing Noise
• Signal Strength
– Absorptive materials (liquids)
– Reflective materials (metals)
• Dead Spots
– Signal cancellation
– Movement of the reader or tag
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Example of an RFID-Enabled Supply
Chain
Supplier
Tag: Raw Materials and
Finished Goods ;
Containers/Pallets/
Cases
Read: Production Line,
Storage Locations, and
Consumer
Exits
Warehouse
Tag: Trailers
Read: Gate, Back
Door, Storage
Location and Trailer
Location/Proximity
2004 EPCglobal Inc
Retailer
Tag: Case, Tote, and
Item
Read: Back Door,
Storage Location,
Shelf, Rack, Floor,
Exits, and Entrances
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Store Read:
Smartcarts and
Point of Sale
Home Read: Storage
Location, Consumer
Appliances,
Packaging
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Benefits Increase with RFID Tagging
Level
ITEM LEVEL
Reduced Stock-Outs
CASE LEVEL
Cumulative Value
PALLET LEVEL
ASSET LEVEL
Product Diversion
Supplier VMI
Store Level Pricing
Inventory Reduction
Dynamic Promotions
Labor Efficiencies
Consumer Insight
Reduce Case Shrinkage
Shelf Availability
Demand Planning
Limit Unit/Item
Shrinkage
Supply Planning
Self-Service Checkout
Tracking and Tracing
Replenishment
Inventory
Management
Production Planning
High Value Goods
Visibility
Asset Management
Receiving and Putaway
Repackaging Visibility
Assortment Planning
Field Service
Efficient Product Recall
Inventory Control
Pick, Pack, and Ship
Scheduled
Maintenance
Real time ATP/ATS
Cycle Counting
Warranty/Service
Tracking
Shelf Maintenance
Degree of Complexity
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Aging/Quality Control
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Bar Code Usage Will Continue
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Used by more than 1 million companies
Utilized by 23 industries
Presence in more than 140 countries
$16.5 billion savings to date in the grocery channel
alone1
• Industries and geographies continue to adopt
• Regulatory agencies are beginning to mandate
• Federal and state legislation is beginning to emerge
base on critical public concerns and consumer
awareness
1SOURCE:
“17 Billion Reasons to Say Thanks: The 25th Anniversary of the UPC and Its Impact on the
Grocery Industry.” Garg, Jones and Sheedy; PriceWaterhouseCoopers, 1998
3InkWorld Magazine, “Potential is Tremendous,” Nov 2003
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Barcodes Do Have Limitations
• Requires line of sight for scanning
• Label space issues and limited capacity for
encoding information
• Does not have read/write capability
• Static information related to the class of the
item
• Cannot simultaneously read & identify multiple
codes
• Opportunities for human error
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RFID Holds Several Value Propositions
• Ability to read multiple tags
simultaneously with greater speed and
efficiency
• No contact of line of site required
• Tags have read/write capabilities
• Tags are less susceptible to damage
and can withstand extreme abrasive
washes, bleaching, and heat
• Tags can be read through dirt, paint,
steam, mud, and plastic
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The Electronic Product Code (EPC)
• Globally unique object identifier
– A “license plate”
• Currently supports the following keys:
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GTIN (Global Trade Item Number)
GIAI (Global Individual Asset Identifier)
SSCC (Serial Shipping Container Code)
GRAI (Global Returnable Asset Identifier)
GLN (Global Location Number)
NDC (National Drug Code)
• Designed to accommodate other keys such as:
– UID (Unique Identifier)
– VIN (Vehicle Identification Number)
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Anatomy of an EPC
The HEADER
identifies the EPC
version number,
enabling different
types and future
revisions of EPC
The EPC MANAGER is
the name of the
enterprise, typically the
company responsible for
maintaining the Object
Class and Serial Number
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The OBJECT CLASS is
the class of the product,
usually the stockkeeping unit or other
object-grouping schema
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The SERIAL
NUMBER is the
unique object
identifier
Application of the EPCglobal
Network in the Footwear & Apparel
Industry
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Trends in the Footwear & Apparel Industry
Need to Differentiate &
Innovate Private Labeling
Better Merchandise
Assortments
Increase in Vertical
Retailers - Lines
Between Retailer and
Supplier are Rapidly
Blurring
Growth of the Mass
Merchandiser - Lines
Between traditional
segments (GMA, Grocery,
etc.) are Blurring
Focus on Store Ops –
Minimizing Stockouts,
Markdowns
Improving Customer
Experience
Top 5 Value Chain Issues
• Lack real time alerts and intelligent response to reallocate and reroute product to where it is
needed most
• Lack monitoring capabilities for all products throughout the order lifecycle (from source to
settlement) across the value chain
• Lack visibility into store-level demand leading to stock outs and lost sales
• Challenge to cost effectively manage and reconcile orders while ensuring high levels of
customer service
• Face increasing pressure to manage brand assets, differentiate product, and synchronize
product attribute, pricing and promotion information with trading partners
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EPCglobal Vision
Small, inexpensive,
high performance
tags
Networked,
inexpensive readers
001
002 Serialized
003 item tracking
Straightforward link
with current systems
Global, multi-industry
interoperability
Distributed
data
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The EPCglobal Network
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The EPCglobal Network
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Applicability in Footwear & Apparel
• Inventory Visibility
– Item Level (Back Room and Shelf/Rack)
– Case/Pallet/Container Level (Supplier/DC/Store)
• Returns Management
• Compliance Management
– Deductions
– Chargebacks
• Global Track & Trace
– Events, location, and destination
– Private label goods and outsourced manufacturing
2004 EPCglobal Inc
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Applicability in Footwear & Apparel
• Secure Supply Chain
– Customs Trade Partnership against Terrorism (CTPAT)
– Electronic Supply Chain Manifest (ESCM)
– Container Security Initiative (CSI)
• High-Value Goods
– Item counting for security purposes (i.e., Jewelry)
– Shrink management
– Combination with Electronic Article Surveillance (EAS)
• Authentication
– Protection from counterfeit and diversion
– Protection from black/grey market practices
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Context for EPCglobal
• Significant, foundational industry transformations
require leadership
– EDI, network computing, barcodes
• Current mandates for the use of EPC indicate longterm commitment by global leaders
– Albertson’s, U.S. DoD, Metro, Target, Tesco, Wal*Mart, etc.
• Industry priorities and needs must be addressed to
meet timelines and avoid excessive costs
– “by industry, for industry” critical success factor
– Avoidance of fragmented approaches
• Successful path forward is a global approach
– Leverage reach of committed companies and supply chains
– Directly engage other industries, associations, standards bodies
and governments
2004 EPCglobal Inc
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