Rfid Presentation Slides 2rb53

Impact of RFID on Supply Chain

ASAD ALI JAVED (6731) AHAD AHMED KHAN (13010) IQBAL LALANI (11041)

INSTITUTE OF BUSINESS MANAGEMENT (IoBM)

RFID Technology What is RFID ? • Radio Frequency Identification • A micro-chip in a label used to transmit data when the label is exposed to radio waves •RFID belongs to the class of technologies that exchange data wirelessly

RFID Basics What are the main components ? • RFID Tags • RFID Reader – Antenna and transceiver(reader) • Host Computer

RFID Basics How it works ? Antenna

Active An RFID tag is an active tag when it is equipped with a battery that can be used as a partial or complete source of power for the tag's circuitry and antenna.

ive A ive tag is an RFID tag that does not contain a battery; the power is supplied by the reader

RFID in Retail Supply Chain Retail Supply chain process

Supplier

Manufacturing Manufacturers can especially benefit from RFID, since the technology can make internal processes more efficient.

Retailer/

Retailer store

Distributor At the distribution center or warehouse, tags are read again by readers integrated into the warehouse gates for incoming and outgoing goods.

Consumer

RFID in Retail Supply Chain Automate the Supply chain process RFID TAG

Reader

RFID in Retail Supply Chain Benefits at a glance

• Decrease in lost stock • Faster locating stock • Lower labour requirement • Reduction of out-of-stock • Low safety stock level • Facilitation of JIT

RFID in Retail Supply Chain Benefits at a glance Benefits for Retailers 5 – 8 % improvement in shelf stock rate 5 – 10 % lower inventory levels 3 – 4 % lower logistic costs 2 – 10 % higher sales due to lower out of stocks Benefits for Manufacturers 5 – 30 % lower inventory levels 2 – 13 % lower warehouse and transportation costs 10 – 50 % reduction in lead-time (facilitates JIT) 1 – 5 % higher sales due to lower out of stocks

Opportunities • Time Being able to respond more quickly Taking quicker decisions

• Minimize human factor

• Savings Streamlining orgs Long term savings

Cost aspect of RFID •Cost Most companies that sell RFID tags do not quote prices because pricing is based on volume, the amount of memory on the tag and the packaging of the tag Active tags are $25 and up. Active tags with special protective housing, extra-long battery life or sensors can run $100 or more. A ive costs from 7 to 15 U.S. cents. If the tag is embedded in a thermal transfer label on which companies can print a bar code, the price rises to 15 cents and up. Low- and high-frequency tags tend to cost a little more.

RFID system performance •

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Frequency is the leading factor that determines the read range, resistance to interference and other performance attributes. The reason is that radio waves behave differently at different frequencies, thus generating different properties such as different ranges. Range, besides frequency, the power output and the directional sensitivity of the antenna may also influence the system’s read range as well as the immediate physical environment. Antenna orientation, position, proximity and reading area of the tag antenna are crucial to consider in order to ensure optimal reads. Signal attenuation is not only due to the fact that an emitted signal attenuates naturally with distance and that a reflected signal attenuates at much faster rate. Electromagnetic interference a wide variety of machines such as conveyors with nylon belts or manufacturing robots can interfere with RFID systems.

References and recommended reading Publications A Workshop Report from the Staff of the Federal Trade Commission. 2005. Radio Frequency Identification: Applications and Implications for Consumers. Diane Publishing. Finkenzeller, K. 2005. Second Edition. RFID Handbook: Fundamentals and Applications in less Smart Cards and Identification. John Wiley & Sons Inc. Glover, B. and Bhatt, H. 2006. RFID Essentials. O'Reilly Media Inc. Practel, Inc. 2004. RFID Report: A New Horizon for able Society. Information Gatekeepers, Inc. Shepard, S. 2005. RFID: radio frequency identification. McGraw-Hill.

Websites en.wikipedia.org/wiki/RFID www.rfidjournal.com/ www.rfid-weblog.com www.spychips.com www.verichipcorp.com www.wethepeoplewillnotbechipped.com