RFID
l. goetzinger ● m. lines ● c. mclaughlin ● c. sailer ● m. schwab
Presented to the Class of BA 457
RFID… presentation layout
• RFID Overview
• RFID and the Supply Chain
• Current Uses
• Future Uses and Controversy
• Corporate Examples
RFID… a video
RFID… history
• 1945
• Leon Theremin
- Espionage tool for the Soviet government
• The British invented a similar technology, the IFF
transponder. Used by allies in World War II to
identify airplanes as friend or foe.
• 1973
• Mario Cardullo
- Claims that his patent was the first true
ancestor of modern RFID.
RFID (Radio Frequency Identification)…
•
Automatic Identification Method
• Stores and Retrieves Data using Tags or Transponders
• Can be attached or incorporated
•
Contains Silicon Chips and Antennas
• Receive and Respond to Radio Frequency Queries from
Transceiver.
RFID… types
• Passive
- No Internal Power Supply
- Quite Small in Size.
• The smallest device can be measured at
0.15mm * 0.15mm.
- Most Common
RFID… types (continued)
• Active
- Internal Power
Supply
- Typically Beacon Tags
-transmit their tag
data and ID at a
predetermined fixed interval
- Response Tags: Only respond when an active
RFID reader requests the tags to transmit
RFID… supply chains and inventory
• Locating Inventory in Stock
• Information Storage Capabilities
• Less Error
RFID… supply chains and transparency
• Tracking Knowledge
• Safety and Security
RFID… gillette case study
RFID and Information Sharing…
• Decrease in Discrepancies
• Increased Efficiency
• A Better-Run Company
RFID… current applications
• Hospitals
• Retail
Electronic Toll Collection
• Military
• Fleet Maintenance
RFID… hospitals
• Track equipment
RFID for people
• Patient locator/information storage
• Doctor locator
• Restrict access to drugs and other
materials
RFID… military
• Tracking wounded during war
• Following personnel movement during
training exercises
• Improving movement and tracking of
supplies
• Identifying vehicles and shipments as being
either military or non-military
RFID… fleet maintenance
• Easily accessible vehicle specs
• Vehicle locator
• Records vehicle maintenance automatically
• Reduces record keeping errors
RFID… retail
• Tags in labels help track product
source/specs
• Safeguard against counterfeit products
• Reduce theft
• Allows movement of inventory to be tracked
Imagination Time
What future products (or services) will use RFID
technology?
…what cool ideas do you have for RFID….
RFID… future uses
•
•
•
•
•
•
Tire Monitoring
Refrigerator
Washing Machines
Dressing Rooms/Closets
Golf Balls
10-15 years for most
consumer products
RFID… what does this mean for customers?
Today:
• Full shelves
Tomorrow:
• Product make-up
• Ease stock keeping, shopping and
cooking
• Increased product safety
• Exchange convince
RFID… what does this mean for retailers?
Today:
• Inventory control
• Decreased manual handling
• Increased sales & long-term market share
Tomorrow:
• Increased theft protection
• Reduced spoil
• Significantly reduced inventory measures
• Counterfeit protection
RFID… themeindustry benefits
• From cradle to table
• Each product uniquely identified—EPC
• Simplifies and accelerates merchandise
management
RFID… controversy
• Video of RFID chip implanted into hand
RFID… wal-mart
• Wal-Mart’s decision to incorporate RFID into
their retail and supply chain has propelled the
technology forward
• Benefits:
• efficiency
• simplification
• Pilot trial
• 16% decrease in stock-outs and
• 2/3 reduction in replenishment times
RFID…. wal-mart (continued)
• Top 100 Wal-Mart suppliers currently
use RFID tags
• increasing to 300 by the end of 2006
• 600 by the end of 2007
• Strategic Implications
•
•
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Volume and Cost
Upstream Supply Chain extensions
Downstream Supply Chain extensions
Innovation
RFID… other corporate examples
• Target Corp.
• Albertsons
• U.S. Department of Defense
What does this mean for suppliers?
• Cost of system and setup: $9 Million+
• Smaller Suppliers: Can they do it?
• Order winner vs. order qualifier
Q&A
What are your questions?
RFID… sources