Benefits of RFID inBenefits of RFID inLogistics ManagementLogistics Management

What is RFID?What is RFID?

RFID is Radio Frequency RFID is Radio Frequency Identification.Identification.

• The main purpose behind RFID The main purpose behind RFID technology is automatic identification technology is automatic identification using radio waves.using radio waves.

• The technology uses tags to identify The technology uses tags to identify products from long and short distances. products from long and short distances.

TagsTags

Tags are used to store and retrieve Tags are used to store and retrieve data.data.

Tags can be used with animals, food, Tags can be used with animals, food, plants, humans, and variety of plants, humans, and variety of products. products.

There are 3 different types of Tags.There are 3 different types of Tags.• Active, Passive, and Semi-Active.Active, Passive, and Semi-Active.

Active TagsActive Tags

Active Tags have a power source.Active Tags have a power source.

Battery Life is longer (up to 10 years).Battery Life is longer (up to 10 years).

Ability to function in RF challenged Ability to function in RF challenged environment.environment.• Water, metal, long distances, oil, etc.Water, metal, long distances, oil, etc.

Active Tags have sensor capabilitiesActive Tags have sensor capabilities• Sensor monitors temperature, lighting, etc. Sensor monitors temperature, lighting, etc.

Semi- Active TagsSemi- Active Tags

Battery used differently in semi-Battery used differently in semi-active tags.active tags.

• Battery only used to power onboard chip Battery only used to power onboard chip and not antenna.and not antenna.

• Antenna powered by receiving signal.Antenna powered by receiving signal.

Passive TagsPassive Tags

Battery and onboard power chip not Battery and onboard power chip not used in passive tags.used in passive tags.• Not able to function in RF challenged Not able to function in RF challenged

environmentenvironment• Tags can only be identified from short Tags can only be identified from short

distances (4 inches away). distances (4 inches away).

Antenna used in passive tags are Antenna used in passive tags are powered by the receiving signal. powered by the receiving signal.

SecuritySecurity

US companies lose approximately 30 billion annually US companies lose approximately 30 billion annually due to theft.due to theft.

RFID can display the location of a product at all RFID can display the location of a product at all times due to it being tagged. times due to it being tagged. • RFID can reduce theft of products.RFID can reduce theft of products.

Wal-Mart estimates that it will save 575 million Wal-Mart estimates that it will save 575 million annually alone once RFID is implemented. annually alone once RFID is implemented.

Asset ManagementAsset Management

Valuable assets can be tagged and located Valuable assets can be tagged and located when misplaced with 100 percent accuracy.when misplaced with 100 percent accuracy.• Tags can set off alarms if tampered with.Tags can set off alarms if tampered with.

Tags are undetectable when used with Tags are undetectable when used with assets, trailers, pallets, and vehicles. assets, trailers, pallets, and vehicles.

Asset ManagementAsset Management

With some assets the quality is very With some assets the quality is very important.important.• Products are being shipped internationally.Products are being shipped internationally.• Some products can’t be exposed to Some products can’t be exposed to

temperature extremes like fruit, and temperature extremes like fruit, and pharmaceutical assets. pharmaceutical assets.

• Tags can monitor environmental factors and Tags can monitor environmental factors and report quality issues directly to managers report quality issues directly to managers information systems, eliminating the need to information systems, eliminating the need to check each product by hand. check each product by hand.

LaborLabor

Labor accounts for 50%-80% of cost Labor accounts for 50%-80% of cost incurred for an organization. incurred for an organization.

Everything with a barcode must be Everything with a barcode must be scanned manually. scanned manually.

What if you could just walk straight out of What if you could just walk straight out of the store and all of the products are the store and all of the products are automatically scanned and credited to automatically scanned and credited to your account?your account?

LaborLabor

Tags don’t require direct line of sight Tags don’t require direct line of sight scanning like barcodes.scanning like barcodes.

Less hands on products equals less errors Less hands on products equals less errors and damage. and damage.

Inventory ManagementInventory Management

Correct verification of inventory Correct verification of inventory means that organizations will be able means that organizations will be able to deliver on promises to customers, to deliver on promises to customers, and increase customer loyalty.and increase customer loyalty.

With RFID inventory levels will be With RFID inventory levels will be known and out of stock situations known and out of stock situations will be avoided. will be avoided.

The GovernmentThe Government

Government uses RFID to address lack Government uses RFID to address lack of asset management/visibility, loss of of asset management/visibility, loss of equipment to support the soldier during equipment to support the soldier during combat operations, and bottlenecks combat operations, and bottlenecks created in the supply chain as a result of created in the supply chain as a result of material being stacked up.material being stacked up.

Ultimate goal of government is to make Ultimate goal of government is to make sure that the soldiers get the right sure that the soldiers get the right materials when and where they need materials when and where they need them. them.

Government Use of RFIDGovernment Use of RFID

Radio Frequency In-Transit VisibilityRadio Frequency In-Transit Visibility Traces the identity, status, and location Traces the identity, status, and location

of cargo from origin to destination. of cargo from origin to destination.

Active RFID (aRFID)Active RFID (aRFID) Tag can be read from 300 feet away.Tag can be read from 300 feet away. Battery has 3-5 year life span.Battery has 3-5 year life span. Implemented to provide in box visibility Implemented to provide in box visibility

of material in the supply chain. of material in the supply chain.

Wal-MartWal-Mart

Wal-Mart uses RFID to Wal-Mart uses RFID to address inventory address inventory mismanagement and out mismanagement and out of stock situations. of stock situations.

Wal-Mart has led the Wal-Mart has led the RFID adoption and is RFID adoption and is requiring all of its major requiring all of its major suppliers to start using suppliers to start using RFID by a certain date. RFID by a certain date.

ConclusionConclusion

RFID has potential to change the RFID has potential to change the entire industry.entire industry.

We are approaching a new era in We are approaching a new era in which barcodes will be a thing of the which barcodes will be a thing of the past and RFID is the future.past and RFID is the future.

THE ENDTHE END