Logistics and Information Technology
EIN 5346 Logistics Engineering- Spring 2010
KATHARINE BARRANTES,
INNA MIROSHNICHENKO,
SRI RAMYA KUKUNURI
Types of Logistics Information
Management Systems
Office
Automation
Decision
Support
Communication
Transaction
Processing
Enterprise
Management
Information
•RFID
•Case Study
•Ethical
Implications
Radio Frequency Identification
RFID
What is Radio Frequency Identification
(RFID) and How it Works
• Radio Frequency
Identification (RFID)
consists of a tiny silicon
computer chip and an
antenna
• Small electronic tag
transmits data via a
radio signal to RFID
reader and related
software and hardware
What is RFID and How it Works (cont.)
• Each chip can give a unique serial number to every
product
• Its antenna helps remote scanners read the RFID tags
• Chips do not have to be visible to the reading device
• They read information through materials like fabrics,
wallets, and even cars and containers.
• Tags can be mounted to a wide variety of surfaces
including polyester, nylon, rope, wire and steel.
• RFID tags can be scanned at a distance of 69 feet
RFID Tags Can Tell
•
•
•
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What the product is
Where it has been
When it expires
When and where merchandise is
manufactured, picked, packed and
shipped
• Expiration dates
• Numbers that will have to be
stored, transmitted in real-time
and shared with warehouse
management, inventory
management, financial and other
enterprise systems
• RFID tags can be read
automatically by electronic readers
What is RFID
• http://www.youtube.com/watch?v=4Zj7txoDxbE
RFID Users
• The U.S.A. Air Force use RFID
to improve business process
ranging from tracking
hazardous material to
receiving goods from suppliers.
• Wal-Mart uses RFID for
automatic inventory counting
and locating goods in
warehouse facilities.
• Ford will equip Ford F-150, FSeries Super Duty pickups and
E-Series vans with an
embedded RFID asset tracking
system .
• Motorola embeds RFID tags in
its handheld computers.
RFID for Proof of Delivery
• Zetes provides the ultra high frequency
Gen2 ePOD system for facilitating
electronic proof of delivery.
• Combines smart card technology with
RFID and bar code scanning.
• Optimizes tracking and tracing
• Reduces return claims and shrinkage.
• Stores the information of what is
delivered and where it is stored.
• Requires no integration with existing
systems and features software based
on a touch screen interface.
• Error-free traceability throughout the
entire supply chain.
• Provides proof of delivery.
• Data and image used in verification
reporting.
RFID Provides Visibility
• Integrating RFID data into video
images to provide higher visibility of
supply chan.
• Users not only read the tag but view
video images of the products in real
time.
• Video images provides information
for recovering transport costs due to
damages.
• RFID and initPRO’s technologies give
the location of the product and
current condition at the moment of
delivery.
• Facilitates the claims for transport
damages or losses.
• The flow of goods is completely
documented throughout the logistics
centre.
RFID for Inventory Inspection and
Certification Solution
• UPM & Marnlen, Inc supplies two new durable RFID
options for both metal and non-metal applications.
• The metal application utilizes special materials to
preserve the RFID tags readability.
• Provides an efficient & accurate way to conduct
inspection and certification processes.
• Eliminates the physical paperwork and human error
associated with manual processes.
• Designed to resists harsh as a high-volume of physical
abuse, shock, UV radiation, temperature variability
and moisture.
• Serving numerous industries including construction
and fire and rescue services.
DAILY’S new Adhesive RFID on-metal Tag
• DAILY RFID has launched a new
passive RFID series for on-metal
industrial applications, such as
railway and warehousing.
• The adhesive RFID tags are
specifically designed to track
products containing metal.
• Can be easily affixed to any metal
surface with its self-adhesive 3M
Glue.
• Each tag operates at 125 KHz or
13.56 MHz
• The RFID small size metal tags can
provide an impressive read range
from 40 mm to 100 mm.
CASE STUDY DAILY’s DL910 for Parking Management
• The DL910 is DAILY RFID’s new all-purpose ultra high frequency
parking control system, designed for parking areas.
• RFID technology in the parking control systems can:
a.
b.
c.
Automatically gather and send vehicle information
Increase parking efficiency and security
Reduce parking cost
• The RFID parking control kit contains:
a.
b.
c.
RFID tags in both adhesive and clipping formats
The DL910 RFID reader
Management software
• The reader has a range up to 15 meters with multi-port interfaces
• The DL910 authorizes cars moving in and out — keeping a log of
entry and exit times
• Offers hands-free access to gated parking areas
• Allows manage vehicles more efficiently and safely
Today and Tomorrow of RFID
• Radio frequency identification (RFID) tags will
change the way industry tracks, traces, and
manages assets.
• RFID will have major impact on
manufacturing, retail, distribution,
transportation, healthcare and
pharmaceutical industries.
• RFID will improve operations management,
inventory control and production security.
NEXT GENERATION TECHNOLOGY
SOLVING INDUSTIRES PROBLEMS THROUGH LOGISTICS AND TECHNOLOGY
CASE STUDY - SENSEAWARE
Limitations of RFID Technology
• Item must be within range of sensor and with
no interference (metal, liquid, walkie-talkies or
nylon conveyors)
• Sensors must be provided and located
throughout supply chain
• Only communicates data programmed in the
chip and only those items that have passed
through a location
• Imperfect (Estimated that 20% of tags don’t
function properly)
What if you have industries in need of
more control?
Tracking every aspect of logistics
journey…
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Location
Temperature
Light
Security
Chain of custody
Types of Logistics Information Management Systems
Office
Automation
Decision
Support
Communication
Transaction
Processing
Enterprise
Management
Information
A real
solution
enables
several
or can
potentially
integrate all
Putting the pieces together
• GPS Sensor and cellular technology combined with
web based browser-based collaboration platform
allowing businesses to actively track everything:
– Location
– Temperature readings
– Whether a shipment is opened and the contents exposed
to light
– And real-time alerts about the vital signs of a shipment.
Permission granted from FAA to use inflight
• Will be available Spring of 2010
–
• http://mediacenter.fedex.designcdt.com/node/401v
More than just data, the ideal logistics solution
will enable communication and collaboration
• A surgical team collaborating with a spinal
implant company — monitoring that a safe
temperature is maintained during transit, and
enabling the OR to be prepped just ahead of the
implant's arrival.
• A pharmaceutical company collaborating with both upstream and
downstream supply-chain partners — monitoring millions of dollars of
active ingredients to their manufacturing plant, then monitoring secure
and temperature-sensitive transport from plant to wholesalers to clinics.
• A clinical trial administrator collaborating with a biotech company and a
regulatory agency — monitoring the transport of blood and other lightsensitive compounds, with precise recordkeeping for documenting
custodial control.
We can track anything… but should we?
ETHICAL AND LEGAL IMPLICATIONS
The darker side of RFID?
• http://www.youtube.com/watch?v=eob532iEpqk
Privacy Problems
How
would
you feel
if
you were
followed
everywhere?
• The most important legal aspect of using
RFID technology relates to the infringement
of individual privacy rights. RFID systems
have the potential to track individuals in an
unprecedented manner.
• The reader can read tags covertly without the
consumer’s knowledge which is undesirable.
• If tags are placed on bags, clothing, cosmetic
products, or any single retail item for that
matter, information about the item can be
linked to the purchaser to provide a more
complete consumer profile.
• Also, the consumers whereabouts can be
tracked
Illicit Use of RFID Information
• RFID Tags are world-readable and pose a risk to
both personal location privacy and
corporate/military security.
• Reader of tag can have access to the Customer’s
credit card details and make use of it without the
owner’s knowledge
• Important and confidential documents locations
can be known
• Cloning and counterfeiting of the RFID tags can
cause a lot of risk and problems.
Improper use in Medical and
Pharmaceutical industry
• RFID tags can be used to track "sensitive-type"
items such as customer’s pharmaceutical
products and personal medical data without
proper consent.
• Insurance companies may refuse providing
insurance coverage for patients after having
seen the patient’s records
Benefits of Using Technology Tracking
in Logistics
• Helps retailers provide the right
product at the right place at the
right time.
• Increases visibility throughout
the supply chain.
• Improves efficiency, cut costs,
delivers better asset utilization.
• Reduces shrinkage and
counterfeiting.
• Increases sales by reducing out
of stock.
Principles of Fair Information Practice
Since, RFID technology not only has the ability to track
products and persons, but also collect individual
information, the Federal Trade Commission’s has laid
some “Fair Information Practice Principles”
• Notice and awareness of collection of information.
• Choice and consent of how this information can be
used.
• Access to the individual’s gathered information and the
ability to contest the accuracy of the collected data.
• Integrity and security of the collected data.
• Enforcement of the aforementioned principles.
Summary and Conclusion
• RFID can be used on a large-scale with the concept of “Let
the buyer beware”
• RFID technology and its implementation must be guided by
strong principles of fair information practices
• There should be no secret databases and Tags must be
transparent to all parties
• If used legally and properly, RFID Technology can be the
next biggest emerging technology that will be widely
accepted and used.
Bibliography
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http://en.kioskea.net/contents/bureautique/burintro.php3
http://www.youtube.com/watch?v=yNPDgudPmXE&NR=1
http://articles.smashits.com/articles/computers/51821/more-on-meeting-yourbandwidth-requirements-for-supply-chain-management-applications.html
http://www.rfidnews.org/
http://www.wired.com/gadgetlab/2008/02/ford-truck-pack/
http://www.senseaware.com/SA/overview.html?PID=1
http://www.smartplanet.com/business/blog/smart-takes/fedex-launches-senseawarecollaboration-meets-gps-meets-sensory-data/2079/
http://gizmodo.com/5412307/do-you-know-when-fedex-drops-your-package-senseawaredoes
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aware.php
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