During the last decade, most organizations have implemented enterprisewide applications and integration platforms. These implementations have delivered benefits in terms of data synchronization and information flows within the organization, and with trading partners providing valuable inputs for planning and optimization of schedules and reporting.However, automated data capture and tracking in realtime has been a major bottleneck, affecting the ability of organizations to optimize their investments in supply chain solutions. Radio Frequency Identification (RFID) Technology is emerging as a technology that could provide the answer to these problems. This is the reason that we chose “RFID FOR SUPPLY CHAIN” to research for our final project.
Trang 1Table of Contents
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Trang 2I INTRODUCTION
During the last decade, most organizations have implemented enterprise-wide applicationsand integration platforms These implementations have delivered benefits in terms of datasynchronization and information flows within the organization, and with trading partnersproviding valuable inputs for planning and optimization of schedules and reporting
However, automated data capture and tracking in real-time has been a major bottleneck,affecting the ability of organizations to optimize their investments in supply chain solutions Radio Frequency Identification (RFID) Technology is emerging as a technology that could
provide the answer to these problems This is the reason that we chose “RFID FOR SUPPLY
CHAIN” to research for our final project
Trang 3II RFID OVERVIEW
2.1 What is the RFID technology?
RFID stands for Radio Frequency Identification, is a technology that uses radio waves toautomatically identify and track identification tags attached to an object
Figure 1: Module RFID RC522 13.56 Mhz
An RFID system is a set of components that it performs RFID An RFID system consists of thefollowing components:
RFID systems use wireless data exchange technology for unique identification of objects,people and animals The ability of these systems is based on the usage of the following elements(Figure 2):
• Tag: that is also known as Transponder, including a semi-conductor chip, an antenna and insome cases a battery
• Reader: includes an antenna, a RF electronic module and a control module
• Controller: which is also called Host, it is often a personal computer or a workstation onwhich databases and application controls have been implemented
Trang 4Figure 2: RFID components.
Exchange of information between a tag and a reader is through radio waves When an objectcontaining a RFID tag enters the reader zone, the reader informs the tag of sending the storeddata by sending a signal Tags are capable of storing various information about an object such asserial number or configuration instructions After receiving the data stored in the tag, the readersends the related information to the controller, through a standard interface such as an EthernetLAN interface or the internet Then, the controller can use the provided information in variousfields For example, it can use this information to update an existing product in the database ordivert an object on a conveyor belt system
An RFID system may contain numerous readers within a warehouse building or assembly lines.All the readers can be connected to a controller and create a network with each other A readercan communicate with several tags at the same time RFID tags can be attached to anythingfrom an infant to a box at the store
2.2 History
Contrary to what people could think, RFID has been around for decades It is generally said thatthe origin of RFID can be traced back to World War II, where a system based on radio signalwas used so that pilots could be identified as friends by the radar stations
The 1950s were an era of exploration of RFID techniques following technical developments inradio and radar in the 1930s and 1940s Several technologies related to RFID were beingexplored such as the long-range transponder systems of "identification, friend or foe" (IFF) foraircraft Developments of the 1950s include such works as F L Vernon's, "Application of themicrowave homodyne", and D.B Harris’, "Radio transmission systems with modulatablepassive responder" The wheels of RFID development were turning
Trang 5Commercial activities were beginning in the 1960s Sensormatic and Checkpoint were founded
in the late 1960s These companies, with others such as Knogo, developed electronic articlesurveillance (EAS) equipment to counter theft
The 1970's were characterized primarily by developmental work Intended applications were foranimal tracking, vehicle tracking, and factory automation
The 1980s became the decade for full implementation of RFID technology, though interestsdeveloped somewhat differently in various parts of the world The greatest interests in theUnited States were for transportation, personnel access, and to a lesser extent, for animals.The 1990's were a significant decade for RFID since it saw the wide scale deployment ofelectronic toll collection in the United States Important deployments included severalinnovations in electronic tolling
With the growing interest of RFID into the item management work and the opportunity forRFID to work along side bar code, it becomes difficult in the later part of this decade to countthe number of companies who enter the marketplace
*TYPES
There are mainly three types of RFID tags: passive tag, an active tag, and semi-passive tag.Passive RFID tags are used for high volume tagging of low-cost items, especially in supplychain management and inventory tracking The passive RFID tags have no internal powersource and they draw the power from the RF waves sent by the interrogator They communicatewith the interrogator by reflecting and modulating these waves, which results in relatively shortread ranges from a few inches to approximately 15 feet Their memory is limited
Figure 3: A roll of Passive RFID inlays
Trang 6The active tags, on the other hand, have their own power source (a battery) and a transmitterand use these two components to broadcast the information to the interrogator(they canbroadcast even when the interrogator is not present, this is called beaconing) This type of tagscan communicate over hundreds of feet and have very large memory.
Figure 4: Example of an extremely rugged Active RFID tag
Semi-passive tags are somewhat of a hybrid of these two types of technology They have apower source but no transmitter and the battery is used to aid the communication The signalfrom the reader is still reflected, however, the battery powers the chip, so it does not need asmuch energy from the reader, which allows responding even to weaker signal and results inlonger read ranges than what could be achieved with traditional passive tags Read range forsemi-passive tags could be counted in dozens of feet and they can have also extensive memory
Figure 5
Trang 7The innovation process of RFID technology
Predominantly used in the consumer goods industry, RFID technology continues to evolve.Today’s enterprises now employ RFID data for many diverse applications, including airlineluggage tracking, electronic security, asset tracking, and supply-chain management Other usesfor RFID include monitoring out-of-stock merchandise, product distribution, receivingdocumentation, proof of delivery, asset management, product lifecycle tracking, recallmanagement, product rotation, inventory and shipping accuracy, inventory management,product shrinkage, military applications, and service sector applications Facebook isexperimenting with RFID chips embedded in wristbands or badges that allows its members tocarry out a variety of social networking tasks without the need for a computer or smartphone
Trang 8III INNOVATION OF RFID
3.1 Development of RFID
3.1.1 What RFID technology has changed
One of the ways that RFID technology has a great impact on is speed In society today, time isone of our most valuable concerns and, of course, it is reflected in technology The idea is tomake everything a little bit easier and a lot faster The problem with new technology is that itcan be hard to implement in some segments, it takes some time before it is a part of society Asmentioned before, RFID technology has been used for quite some time now and not until nowpeople acknowledges it The reason why it may be easier to implement RFID technology intosociety is that you, in most cases, cannot see it It does its work without the user needs to doanything but hold it up onto a reader or simply walk or drive past it As we have seen above,security is also an important area that is improved by RFID technology The ability to make itharder to enter buildings and cars and also keep track of items/animals has a great impact oncompanies’ priorities and costs In one indirect way RFID technology also effects theenvironment in a positively through electronic tolls by people living in cities choosing to use thesubway, walk or bicycle instead of taking their car wherever they go
Trang 9cast a shadow on the economical gain? In theory, it would also be possible to use the taggedproducts in order to find out the customers’ shopping habits This information would especially
be important for distribution companies If Coca-Cola, for example wanted to know whichsegment that purchases their products in a certain store, they would easily be able to find out thecharacteristics of the person just by looking at the linked credit card Although, the probabilityfor the parents buying the product and their children actually drink it is high It might even go
so far that money in its physical form will become obsolete With all merchandise tagged andwith the ability to connect to our credit cards, so called Smart cards, there is, theoreticallyspeaking, no need for money
Security and tracking
When it comes to security and tracking the functions will probably work on their own as well astogether in the future of RFID One way for market research companies to help their clients findout about consumer habits in different segments is to use the electric toll functions to track theirwhereabouts By doing this they will get important information about where they go and when,and through this find out where and when to emphasize marketing RFID also have the power tosave us time in our personal life at home If all products in our homes would wear an RFID tagthe risk for us loosing anything would be minimal With a reader at hand that could “call” thelost item that in turn makes a signal our lives would have potential of being much moreunorganized without loosing anything, item or time, in the mess Obviously there are a lot ofopportunities in this area, one more unbelievable than the other Surely, we will have potential
of preventing all sorts of crime, from protecting our houses with RFID keys and alarms toprotecting ourselves by carrying tags that alerts police force in case we are attacked We mighteven be able to tag an abuser during an attack in order to track him afterwards and make anarrest
Make life easier for disabled and elders
There are always obstacles in our everyday life, especially for old or disabled people Highpavements, closed doors and limited access to elevators are some Of course, RFID technologycan’t solve all of these problems but it might be a small step on the way Taking the examplewith closed doors, there wouldn’t be a difficult task to implement a tag in a wheelchair, a canefor blind or in the pocket/purse of elders By doing this the doors would have readers thatrecognize the tag ID and opens automatically when needed or asked for it The tag could alsohave the ability to lengthen traffic lights interval in order to have more time to cross the street
Trang 10The shopping solutions discussed above would probably be beneficial for elders and disabledtoo
3.1.2 What RFID technology will change
Obviously, RFID will change society more than we can ever think I have brought up two areasthat I think will show the most noticeable improvements when it comes to RFID As there isstill possibilities to make these devices even smaller and cheaper, new arenas will emergethrough time In this sense, RFID is a technology that most certainly follows the law of Moore.This is probably also the reason why people can and will easily adapt to the technology Whensomething is as small as RFID and often is embedded, the chance for people using it is big Ofcourse, there is also the chance that users become suspicious when they can’t see the functionand do not fully understand how it works As mentioned before, RFID technology followsMoore’s law in a perfect manner As the tags are getting smaller, they are also becoming fasterand cheaper at the same time RFID technology is in many ways a disruptive technology as ithas the ability to enter almost an unlimited amount of markets The ones I have discussed areonly a few and the most obvious trends It is hard to see if RFID technology will be outdated asmost technologies are, sooner or later However, as RFID often is embedded and continuously isimproving, the due date for this technology becoming obsolete is not to be found in the nearestfuture
The backsides of RFID
As with anything there is also a backside with RFID technology The main discussions are due
to the tracking possibilities though According to one article writer the dangers lies within thetags still being active when, for example, leaving a store The ability to be anonymous is erodedand police has the ability to track a person from birth to death (McCullagh 2003) The societydescribed by James Orwell in his famous book “1984” is feared, by many, to become reality.The Big-Brother society has been discussed ever since the first surveillance cameras wereinstalled and RFID technology gives it more fuel than ever The feeling of being controlled bysome higher power has always been and will always be feared by humans Although thetechnology has the ability to make us all safer there is always the possibility that someonemisuses this power If left in the wrong hands, RFID technology can be a very powerful tool ofcontrolling Another uncertainty is the connection to credit cards Although technology, in mostcases, is to be trusted; there are bugs that we cannot disregard and leap holes for greediness The
“what if”-questions increases and the feeling of no turning back becomes an issue difficult to
Trang 11deal with It will take great persuasion to make the Smart card solutions become acceptedthroughout the world although it has already been accepted and adapted in several countries.The conclusion would be that too much of anything is seldom to an advantage It is important toset boundaries in the future of RFID in order to keep the technology in a good light However,this should not set stop to the amazing innovations that are left to see
3.1.3 RFID Growth Potential
IDTechEx Research has analyzed the RFID market for over 18 years This report providesdetailed data and analysis of the entire RFID sector based on our extensive research includinginterviews with RFID adopters and solution providers in the various applicational RFIDmarkets, giving an unprecedented level of insight into the total RFID industry and what isreally happening Predominately, our research is conducted through interviews withcompanies across the value chain (many of whom provide data to us through nondisclosureagreements who allow us to aggregate the data into the total) in addition to site visits andconference visits followed by secondary research
This comprehensive report from IDTechEx gives the complete picture covering passiveRFID, battery assisted passive, active RFID, Real Time Locating Systems (RTLS) andchipless RFID It provides detailed forecasts and depth unmatched by any other IDTechEx find that in 2017, the total RFID market was worth $11.2 billion, up from $10.52 billion in 2016 and
$9.95 billion in 2015 This includes tags, readers and software/services for RFID labels, cards, fobs and all other form factors, for both passive and active RFID IDTechEx forecast that to rise to $14.9 billion in 2022
In retail, RFID continues to be adopted for apparel tagging above all other applications byvolume - that application alone demanded 8.7 billion RFID labels in 2017 - which still hassome way to go with RFID penetrating less than 20% of the total addressable market forapparel in 2017 RFID in the form of tickets used for transit demanded 825 million tags in
2017 The tagging of animals (such as pigs, sheep and pets) is substantial as it continues to be
a legal requirement in many more territories, with 480 million tags being used for this sector
in 2017
In total 18.2 billion tags were sold in 2017 versus 15.2 billion in 2016 Most of that growth
is from passive UHF RFID (RAIN RFID) labels However, in 2017 UHF (RAIN RFID) tagsales by value was only 25% of the value of HF tag sales, mainly because HF tags where used
Trang 12for security (such as payments, access etc) have a higher price point versus the cheaper,usually disposable UHF (RAIN) tags used for tagging things
Chart 1
3.1.4 Next RFID developments
While radar and IFF systems had demonstrated the principles of remotely detecting and theninterrogating objects, for the next stage in RFID history, further development was required toenable these systems to be used for low cost commercial applications
The first developments were of electronic surveillance tags used for shop packaging These verysimple low cost devices were added to the outside of packages These had two states and wereswitched at the payment desk With sensors at the doors, any tags that had not been switchedwould be detected and an alarm sounded
3.1.5 The Future of RFID Technology
At MIT, Bhattacharyya, Di Leo, Floerkemeier, Sarma and Anand are working on aninexpensive, passive RFID chip that may dramatically enhance data collection on the status offood items requiring refrigeration Their research reports on the design of a temperature RFIDthreshold sensor that registers the violation of critical temperature thresholds by inducing apermanent change in an RFID tag antenna’s electrical properties This inexpensive sensing tagwould be useful in monitoring the state of certain items, such as perishable food produce or
Trang 13other fragile goods that must maintain a constant temperature threshold at all times Thesensor would provide the RFID user with binary state information indicating whether criticaltemperature thresholds were reached during transportation allowing the user to make adecision of whether to keep or discard the goods Since the state of most goods are examined
at the distribution centers in a supply chain, rather than in transit, this type of RFIDadvancement would dramatically improve realtime monitoring for items, such as orange juicecartons, milk and meat products Within supply chain applications, an accurate and timelyassessment of the state of the product will be automatically monitored as soon as the productspass an RFID reader at the dock door of a distribution center
These types of examples illustrate the manner in which RFID technology continues to evolveand innovate at an unprecedented rate, not only in the design of the technology, but also in itsapplication In 2011, the RFID journal reported 101 innovative ways to use RFID New RFIDapplications include saving endangered species, smart supermarket carts, liquor pouringtracking at bars, protecting miners, cigarette smoking cessation programs, at-home painmanagement, and the detection of gunfire
3.2 Application of RFID technology
Manufacturing applications
Manufacturers can especially benefit from RFID since the technology can make internalprocesses more efficient There are several possible applications that allow manufacturers toreap real benefits in increased productivity, process improvements, and reduced errors andcosts For example, according to a study by AMR Research, early RFID adopters in theconsumer goods industry reduced supply chain costs between 3 and 5 percent and grew revenuebetween 2 and 7 percent because of the added visibility RFID provided
RFID applications in manufacturing include:
• Shipping: if the tag carries data about pallet content, origin, destination and customer
order number, a computer can tell the delivery and inventory systems where and how toroute the shipment, which ensures proper shipment sequence and eliminates shipmentplaced on the wrong track
• Sortation: If tags contain information on the carton destination, a computer can tell the
sortation system where to route the carton for staging and delivery, which ensuresproper item placement, eliminates incorrect shipping and decreases shipment delays
Trang 14• Product genealogy: by putting manufacturing data on the tag, a complete history of the
item can be built, which increases recall efficiency, minimizes warranty risk andeliminates wasting time
• Inventory management: by using RFID capability to track raw materials,
work-in-process and finished inventory, manufacturers can improve visibility and confidenceinto their inventory, so that inventory levels, labor costs and safety costs can be reduced
• Work-in-process tracking: by applying a tag to subassemblies in the production
process, it is possible to integrate readers with industrial control and material handlingsystems, in order to identify materials moving down the production line andautomatically route them to the appropriate next station
• Plant management and field service: plant or field equipment can be equipped with an
RFID tag containing among others maintenance data, in order to facilitate themaintenance and ensure proper location and equipment
• Labor tracking and security: an RFID tag containing worker identification and
authorizing data can be incorporating into worker badges in order to increase facilityand asset security and efficiently capture labor costs
Furthermore, the use of RFID tags allows an easier product authentication, which helps combatcounterfeiting and grey market activity This response to the need of brand owners forvalidating that the products being sold with their brand are authentic and safe for consumers
RFID in New Learning Environments
RFID tags are an increasingly important component in the toolkits that are being developed forexploring new learning environments through the use of gaming, location-based services,tangible interfaces and augmented reality In these types of contexts, children or students enterthe RFID-enabled environment with RFID reader devices and interrogate RFID-enabled'objects' (physical entities in the environment such as toys, the flash cards used in games etc.) inorder to control the flow of events and initiate their own access to information In this way,RFID tags are used as a way of embedding user control within learning and gamingenvironments
Although to date these environments have been explored in the context of younger, school-agedchildren it is likely that more sophisticated versions of such environments will be introducedinto Higher and Further education in coming years These new learning environments areproviding important test-beds for developing these ideas within an educational context