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RFID/EPC 101 John Seaner EPCglobal US 28-July 2004.

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Presentation on theme: "RFID/EPC 101 John Seaner EPCglobal US 28-July 2004."— Presentation transcript:

1 RFID/EPC 101 John Seaner EPCglobal US 28-July 2004

2 INSERT GRAPHIC SQUARE HERE 2  2004 EPCglobal Inc Context for EPCglobal Significant, foundational industry transformations require leadership –EDI, network computing, barcodes Current mandates for the use of EPC indicate long- term commitment by global leaders –Albertson’s, U.S. DoD, Metro, Target, Tesco, Wal*Mart, etc. Industry priorities and needs must be addressed to meet timelines and avoid excessive costs –“by industry, for industry” critical success factor –Avoidance of fragmented approaches Successful path forward is a global approach –Leverage reach of committed companies and supply chains –Directly engage other industries, associations, standards bodies and governments

3 INSERT GRAPHIC SQUARE HERE 3  2004 EPCglobal Inc Overall EPCglobal Mission Partner with all industries to build communities that drive mass adoption of RFID/EPC technologies Combine technical research and user experiences to drive collaborative development and rapid deployment of EPC technical standards Reduce risk and system integration costs for implementing firms Manage integration and coexistence of EPCs with successful bar code implementations of today

4 INSERT GRAPHIC SQUARE HERE 4  2004 EPCglobal Inc From “Research” to “Real World” ResearchCommercialization Partnership between 100 global firms, including founders: Uniform Code Council EAN International Procter and Gamble Gillette Continued Research US

5 INSERT GRAPHIC SQUARE HERE 5  2004 EPCglobal Inc Creating a Global Community Market Development Training and Education Localized Member Implementation Support Drive Technical Standards Development Champion Global Trading Community Adoption Provide Public Policy Advocacy and Intellectual Property Protection Fund Current and Future Research of Auto-ID Labs Design and Administer the EPCglobal Network Global Standards Development, EPCglobal Network, and Governance Deployment of Standards, Implementations and Support Services Member Organization Supporting Global Supply Chain Convergence

6 INSERT GRAPHIC SQUARE HERE 6  2004 EPCglobal Inc Technical Standards Development Unique opportunity for members to drive industry requirements to leading hardware, software, and services providers All inter/intra industry perspectives represented All geographies and supply chain participants included Industry/member commitment determines priorities Linkages to support compatibility with the work of other standards bodies, associations, and consortium MHz, 915 MHz, 64/96 bit Tag Data, Gen 2 (forthcoming)

7 INSERT GRAPHIC SQUARE HERE 7  2004 EPCglobal Inc Public Policy and Regulatory Multi-industry, global Public Policy Steering Committee (PPSC) –Provide education and outreach to key stakeholders in the public and private sectors. –Reviews all relevant, recent and future studies on consumer privacy to inform and guide our discussions. –Studies consumer perceptions and opinions regarding privacy and EPC. –Provides state and federal bodies information that includes, relevant facts on EPC and its benefits to consumers and business. –Investigates environmental, health, and safety issues Regulatory linkages to influence/monitor global legislation, rulings, codes, etc. that effects RFID/EPC standards development and industry adoption.

8 INSERT GRAPHIC SQUARE HERE 8  2004 EPCglobal Inc Intellectual Property (IP) Free and open technology is essential for global RFID/EPC adoption Initial due diligence completed with over 6,000 patents examined Continued work to assure there is no IP that would prevent the implementation of EPC technology IP Participation Policy in place covering all members (supported by 160+ companies) –Open access/open process –Full disclosure of known patents –Specific declaration of IP –Royalty-free licensing (RAND by exception only)

9 INSERT GRAPHIC SQUARE HERE 9  2004 EPCglobal Inc Funding Auto-ID Labs Research Federation of 6 worldwide academic institutions: MIT, Cambridge, Adelaide, Keio, Fudan, St. Gallen Provides R&D related to RFID/EPC implementation: –Packaging Optimization –Manufacturing and Materials Handling –Automotive Research Initiative –Healthcare Research Initiative Effects of RFID on drug efficacy Cold chain requirements Performs fundamental research into the design and manufacture of RFID/EPC technologies

10 INSERT GRAPHIC SQUARE HERE 10  2004 EPCglobal Inc EPCglobal Network Tags are “license plates” -most information is held in the network Serialized items can be individually tracked across traditional trading boundaries in a standardized way Supports real-time, automatic identification and visibility of items at all points in the supply chain Provides high value business processes through on-demand information access Track and trace Authentication/pedigree Anti-counterfeit/diversion Product recall and expiration

11 INSERT GRAPHIC SQUARE HERE 11  2004 EPCglobal Inc Trading Community Adoption Instantiation of multiple numbering systems and data structures –Issuance and maintenance of globally unique object identifiers Existing Keys such as GTIN (Global Trade Item Number); GIAI (Global Individual Asset Identifier); SSCC (Serial Shipping Container Code); GRAI (Global Returnable Asset Identifier); GLN (Global Location Number); and NDC (National Drug Code) Supports non-EAN/UCC keys such as UID (Unique Identifier) and VIN (Vehicle Identification Number) Other numbering systems will be adopted based on industry support and implementation commitments Support member roll-outs through comprehensive, training programs and educational curriculum Solution provider compliance, interoperability, and certification testing results Steers the research agenda of Auto-ID Labs to address industry-specific needs.

12 INSERT GRAPHIC SQUARE HERE 12  2004 EPCglobal Inc The RFID Tag 3 Parts –A Chip that holds information about the physical object to which it is attached –An Antenna that transmits information to a reader via RF –The Packaging/Substrate that encases both the chip and antenna so that the tag can be attached to a physical object Class 1 tag cost for bulk order is in the.20 to.25 range (50% less than 6 months ago) Tag rail rate is decreasing due to more field testing and greater efficiency in assembly processes

13 INSERT GRAPHIC SQUARE HERE 13  2004 EPCglobal Inc Types of RFID Tags Passive –Powered by energy from reader (no internal battery) –Smaller, lighter, less expensive –Almost unlimited life –Shorter range –Requires higher power from reader Active –On-board battery power source and transmitter –Larger, heavier, more expensive –Finite life –Greater range –Requires less power from reader Semi-Active or Battery Assisted Passive –On-board thin battery power source –Uses Passive Technology (no transmitter) –Finite life –Greater range but higher cost (less than active) –Requires less power from reader

14 INSERT GRAPHIC SQUARE HERE 14  2004 EPCglobal Inc Reading and Writing Capabilities Read Only: –Information can only be read from an RFID device – programmed at manufacture User Programmable –WORM - Write Once Read Many - Ability to initialize an RFID device outside of the RFID manufacturer’s facility after manufacture Read/Write: –Information can be read from or written to an RFID transponder during the time it is presented to a reader/writer

15 INSERT GRAPHIC SQUARE HERE 15  2004 EPCglobal Inc Tags Utilize 5 Frequency Ranges 130 KHz (common of pet ID implants) –Very low read speed and very short read range –Small amount of data MHz (common of smartcards) –Low read speed and short read range –Small to medium amount of data 915 MHz (common of cordless telephones) –Medium read speed and medium read range –Medium amount of data 2450 MHz (common of Bluetooth or ) –High read speed and long read range –Medium amount of data 5800 MHz (common of toll road collection passes) –Very high read speed and long read range –Medium amount of data

16 INSERT GRAPHIC SQUARE HERE 16  2004 EPCglobal Inc Tags are Organized into 5 Classes Class 0/I –Passive with read/write only capabilities Class II –Passive with additional functionality such as memory or encryption Class III –Semi-Passive with support for broad spectrum communications Class IV –Active with the ability to communicate with other tags in same frequency range Class V –Essentially readers that can power Class I through III tags –Can communicate with Class IV tags and with each other

17 INSERT GRAPHIC SQUARE HERE 17  2004 EPCglobal Inc Gen 2 Standards Development Global interoperability and ISO certification Upward Class 0/1 migration through firmware/software update to existing readers New standard will effectively double the tag vendor base and dramatically increase production New tag will have reduced silicon requirements and thus be less expensive Protocol have locking mechanisms to prevent tampering and decoding

18 INSERT GRAPHIC SQUARE HERE 18  2004 EPCglobal Inc Several Factors Effect Performance Reader Collision –The reader interferes with the signal from another Tag Collision –More than one tag reflects a signal at the same time Interference –Proximity to other RF devices –Forklifts and conveyors –Manufacturing Noise Signal Strength –Absorptive materials (liquids) –Reflective materials (metals) Dead Spots –Signal cancellation –Movement of the reader or tag

19 INSERT GRAPHIC SQUARE HERE 19  2004 EPCglobal Inc Example of an RFID-Enabled Supply Chain Warehouse Tag: Raw Materials and Finished Goods ; Containers/Pallets/ Cases Read: Production Line, Storage Locations, and Exits Supplier Tag: Trailers Read: Gate, Back Door, Storage Location and Trailer Location/Proximity Tag: Case, Tote, and Item Read: Back Door, Storage Location, Shelf, Rack, Floor, Exits, and Entrances Store Read: Smartcarts and Point of Sale Home Read: Storage Location, Consumer Appliances, Packaging Retailer Consumer

20 INSERT GRAPHIC SQUARE HERE 20  2004 EPCglobal Inc Benefits Increase with RFID Tagging Level Product Diversion Supplier VMI Replenishment Production Planning Receiving and Put- away Inventory Control Real time ATP/ATS Inventory Reduction Labor Efficiencies Reduce Case Shrinkage Demand Planning Supply Planning High Value Goods Visibility Repackaging Visibility Pick, Pack, and Ship Cycle Counting Shelf Maintenance PALLET LEVEL Degree of Complexity CASE LEVEL Reduced Stock-Outs Store Level Pricing Dynamic Promotions Consumer Insight Shelf Availability Limit Unit/Item Shrinkage Self-Service Checkout Aging/Quality Control Assortment Planning Efficient Product Recall Warranty/Service Tracking Cumulative Value ITEM LEVEL Tracking and Tracing Inventory Management Asset Management Field Service Scheduled Maintenance ASSET LEVEL

21 INSERT GRAPHIC SQUARE HERE 21  2004 EPCglobal Inc Used by more than 1 million companies Utilized by 23 industries Presence in more than 140 countries $16.5 billion savings to date in the grocery channel alone 1 Industries and geographies continue to adopt Regulatory agencies are beginning to mandate Federal and state legislation is beginning to emerge base on critical public concerns and consumer awareness Bar Code Usage Will Continue 1 SOURCE: “17 Billion Reasons to Say Thanks: The 25th Anniversary of the UPC and Its Impact on the Grocery Industry.” Garg, Jones and Sheedy; PriceWaterhouseCoopers, InkWorld Magazine, “Potential is Tremendous,” Nov 2003

22 INSERT GRAPHIC SQUARE HERE 22  2004 EPCglobal Inc Barcodes Do Have Limitations Requires line of sight for scanning Label space issues and limited capacity for encoding information Does not have read/write capability Static information related to the class of the item Cannot simultaneously read & identify multiple codes Opportunities for human error

23 INSERT GRAPHIC SQUARE HERE 23  2004 EPCglobal Inc Ability to read multiple tags simultaneously with greater speed and efficiency No contact of line of site required Tags have read/write capabilities Tags are less susceptible to damage and can withstand extreme abrasive washes, bleaching, and heat Tags can be read through dirt, paint, steam, mud, and plastic RFID Holds Several Value Propositions

24 INSERT GRAPHIC SQUARE HERE 24  2004 EPCglobal Inc The Electronic Product Code (EPC) Globally unique object identifier –A “license plate” Currently supports the following keys: –GTIN (Global Trade Item Number) –GIAI (Global Individual Asset Identifier) –SSCC (Serial Shipping Container Code) –GRAI (Global Returnable Asset Identifier) –GLN (Global Location Number) –NDC (National Drug Code) Designed to accommodate other keys such as: –UID (Unique Identifier) –VIN (Vehicle Identification Number)

25 INSERT GRAPHIC SQUARE HERE 25  2004 EPCglobal Inc Anatomy of an EPC The SERIAL NUMBER is the unique object identifier The HEADER identifies the EPC version number, enabling different types and future revisions of EPC The EPC MANAGER is the name of the enterprise, typically the company responsible for maintaining the Object Class and Serial Number The OBJECT CLASS is the class of the product, usually the stock- keeping unit or other object-grouping schema

26 Application of the EPCglobal Network in the Footwear & Apparel Industry

27 INSERT GRAPHIC SQUARE HERE 27  2004 EPCglobal Inc Trends in the Footwear & Apparel Industry Need to Differentiate & Innovate - Private Labeling Better Merchandise Assortments Increase in Vertical Retailers - Lines Between Retailer and Supplier are Rapidly Blurring Growth of the Mass Merchandiser - Lines Between traditional segments (GMA, Grocery, etc.) are Blurring Focus on Store Ops – Minimizing Stockouts, Markdowns Improving Customer Experience Top 5 Value Chain Issues Lack real time alerts and intelligent response to reallocate and reroute product to where it is needed most Lack monitoring capabilities for all products throughout the order lifecycle (from source to settlement) across the value chain Lack visibility into store-level demand leading to stock outs and lost sales Challenge to cost effectively manage and reconcile orders while ensuring high levels of customer service Face increasing pressure to manage brand assets, differentiate product, and synchronize product attribute, pricing and promotion information with trading partners

28 INSERT GRAPHIC SQUARE HERE 28  2004 EPCglobal Inc EPCglobal Vision Global, multi-industry interoperability Small, inexpensive, high performance tags Serialized item tracking Straightforward link with current systems Networked, inexpensive readers Distributed data

29 INSERT GRAPHIC SQUARE HERE 29  2004 EPCglobal Inc The EPCglobal Network

30 INSERT GRAPHIC SQUARE HERE 30  2004 EPCglobal Inc The EPCglobal Network

31 INSERT GRAPHIC SQUARE HERE 31  2004 EPCglobal Inc Applicability in Footwear & Apparel Inventory Visibility –Item Level (Back Room and Shelf/Rack) –Case/Pallet/Container Level (Supplier/DC/Store) Returns Management Compliance Management –Deductions –Chargebacks Global Track & Trace –Events, location, and destination –Private label goods and outsourced manufacturing

32 INSERT GRAPHIC SQUARE HERE 32  2004 EPCglobal Inc Applicability in Footwear & Apparel Secure Supply Chain –Customs Trade Partnership against Terrorism (CTPAT) –Electronic Supply Chain Manifest (ESCM) –Container Security Initiative (CSI) High-Value Goods –Item counting for security purposes (i.e., Jewelry) –Shrink management –Combination with Electronic Article Surveillance (EAS) Authentication –Protection from counterfeit and diversion –Protection from black/grey market practices

33 INSERT GRAPHIC SQUARE HERE 33  2004 EPCglobal Inc Context for EPCglobal Significant, foundational industry transformations require leadership –EDI, network computing, barcodes Current mandates for the use of EPC indicate long- term commitment by global leaders –Albertson’s, U.S. DoD, Metro, Target, Tesco, Wal*Mart, etc. Industry priorities and needs must be addressed to meet timelines and avoid excessive costs –“by industry, for industry” critical success factor –Avoidance of fragmented approaches Successful path forward is a global approach –Leverage reach of committed companies and supply chains –Directly engage other industries, associations, standards bodies and governments


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