RFID & Retailing

1. RFID & Retailing Jonathan Wareham

2. 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

3. RFID Operations

4. 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 berewritten over more than100,000 times

5. RFID Tags

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

7. 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

8. 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)

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

10. 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

11. 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

12. RFID Video

13. Portal Applications Bill of Lading Material Tracking

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

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

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

17. Hand Held Application Categories Wireless Batch Fixed Station

18. Application Examples Material Handling By Destination Wireless / Batch Inventory Management Material Handling Aggregate / De-aggregate 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 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?

19. Shipping Validation Tote/Box/Unit Level Inventory

20. Intelligent Labels

21. The HazMat Label

22. 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

23. ApplicationRequirements • 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

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

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

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

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

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

29. Product Recall • Remember Ford and Firestone? • TREAD Act • RFID pilots underway to track tires from manufacturer tovehicle

30. 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

31. Medicine

32. Counterfeits

33. 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

34. 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

35. Metro Future-Store • Video RFID Retailing

36. RFID & Retailing PRADA

37. 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)