Meet Industry Mandates

Do you have RFID mandates that you need to meet?

Download our White Papers. More detailed information is available on specific White Papers. And, Contact SCM Technologies for assistance with your RFID or Supply Chain Management projects.

Radio Frequency Identification (RFID) technology has received heightened visibility recently due to mandates from leading retailers and other industries to incorporate RFID solutions into their supply chain operations. However RFID is not limited to these programs and has extended into manufacturing control and materials management, cargo logistics, pharmaceutical security, asset management patron, patient tracking and many other areas.

Significant industry leaders which have mandated RFID technologies driving change within the market place are as follows:

In June 2003 Wal-Mart, the largest retailer in the world, announced that its top 100 suppliers must start implementing RFID at pallet and case level by 1st January 2005. This was followed by further announcements requiring next 200 suppliers to implement RFID by the end of 2006

The US Department of Defense (DoD) made a similar announcement regarding the RFID tracking of pallet and case level plus item by 1st January 2005. Current systems employed by DoD use active RFID technology for the tracking on containers.

Metro Group began a pilot before the end of 2004 for top 100 suppliers to deliver RFID enabled pallets.

Marks & Spencer has attached significant amount of RFID tags to returnable delivery trays and focusing on individual garments. The tagging aims to assist with stock management throughout the distribution chain.

Tesco mandated in 2004 that it will apply RFID tags on cases of non food items at its distribution centers and track them through their stores.

RFID Technology

Because of market and regulatory mandates, companies in life science, retail, and consumer packaged goods and other industries are turning to Radio Frequency Identification (RFID) technology to improve supply chain security, efficiency and visibility. As its name suggest, RFID devices use radio frequencies to automatically communicate electronic product codes or other information automatically over varied distances to compatible readers. Consisting of chips and antennas, RFID tags provide instant verification of any goods or people to which they are attached. As they initiate pilot programs, companies must think big and start smart. This is how they can efficiently deliver returns on what are likely to be sizable investments. Organizations that rush forward with large scale pilots and implementations may put themselves at risk of data overload, excessive spending and operational gridlock.

There are many opportunities to generate value with RFID, from reduced transportation costs and increased labor efficiencies to improved inventory. Companies that adopt an intelligent, holistic implementation approach are likely to realize these benefits. The key is to prepare the organization for the RFID revolution, by developing a clear strategy that matches RFID investments to bottom line business benefits and leverages emerging best practices and standards.

RFID can provide immediate and tangible benefits throughout the supply chain. Organizations who take the time to understand the technology’s capabilities and limitations can increase their inventory visibility while streamlining their operations.

Technology Overview

RFID wirelessly exchanges information between a tagged object and a reader/writer.
An RFID system is comprised of the following components:

• One or more tags (also called transporters), which includes a semiconductor chip and antenna;
• One or more read/write devices (also called interrogators, or readers);
• Two or more antennas, one on the tag and one on each read/write device;
• Application software (middleware) and a host computer system.

Radio waves are used to transfer data between the RFID tag (transponder) and the read/write device (interrogator), which is tuned to the same frequency. The interrogator sends out a signal, which is received by all tags tuned to that frequency that are present in the RF field. Tags receive the signal with their antennas, and selected tags respond by transmitting their stored data. The tag can hold many types of data bout the item, such as its serial number, configuration instructions, what time the item traveled through a certain zone, even temperature and other data provided by sensors.

The read/write device receives the tag signal with its antenna, decodes it and transfers the data to the host computer system. RFID tags can be attached to virtually anything, from a semi tractor, to a pallet, to a case, to an item on a store shelf. If multiple tags are present in the field, more efficient RFID implementations have anti-collision algorithms, which determine the order of response so that each tag is read once and only once.

Tags
RFID tags must have two basic elements, a computer chip and an antenna. Various types of tags are needed for use in different environmental conditions.

Reader/Writer Options
Because direct line of sight between the reader and tags is not necessary, there are many more placement options for RFID readers than were possible with bar code labels. Readers can be either placed in a fixed position or be portable, just like bar code scanners. Interrogator capabilities have also been engineered to now be able to fit into smaller mobile devices.

Performance Features
Radio frequency is not an optical technology and does not require line of site between the tag and reader, which is an important distinguishing feature that gives RFID many performance advantages compared to bar code and other automatic identification technologies. As RFID is a radio based technology, performance considerations for its implementation are that:

1. RFID can be susceptible to interference from other radio transmissions and metal;
2. Some materials absorb RF signals more readily than others;
3. Sensitivity to interference varies by frequency and the usage environment.

Security
It is extremely difficult to counterfeit radio frequency identification chips. Different levels of security can be applied to data on the tag, and some consumer goods manufacturers are embedding it into their products to fight counterfeiting and diversion.

Range
A RFID system’s read range, the distance a reader antenna must be from the tag in order to read the information stored on its computer chip, varies from a few centimeters to tens of meters, depending on the frequency used, power output, whether a tag is active or passive, and the directional sensitivity of the antenna.

Frequency
Frequency is one of the leading factors that effects range. Virtually all RFID systems used today fall into one of four frequency bands as follows:

• Low Frequency
• High Frequency
• Ultra-High Frequency
• Microwave

Standards
Standards initiatives for logistics and item level tracking also specify these frequencies. Major retailers are basing RFID supplier tagging requirements on the proposed Electronic Product Code specifications that were developed at the MIT Auto-ID Center.

Would you like to get more information? Do you have RFID mandates that you need to meet? Contact our team at SCM Technologies.

Download our White Papers. More detailed information is available on specific White Papers. And, Contact SCM Technologies for assistance with your RFID or Supply Chain Management projects.