Radio Frequency ID (RFID): Brian E. Mennecke Deans Faculty Fellow in MIS & Associate Professor Iowa State University College of Busiess

Why is RFID a relevant technology for research and practice? RFID has the potential to significantly change how objects are tracked and managed throughout a business process or within a business’ supply chain

How is RFID unique? RFID is a unique technology because … –It can be used to identify objects and store information about the object in question Bar codes can store limited amounts of information about an object RFID can be used to store vast amounts of information –It can be used to accurately locate and identify objects from a distance using RF signals –It can be used to detect and read objects that are not in line of sight

RFID Technology Conceptually somewhat similar to bar codes in that they are used to identify and track objects of interest to the organization

RFID Technology Overview Transponders: The tags themselves Interrogators: Antenna and transceiver units Software and Information Systems

An RFID Tag

An RFID Tag: Explained CHIP ANTENNA SUBSTRATE

RFID Technology: Active vs. Passive Tags Active Tags –Catch the attention of the RFID reader by sending out a signal –Function with battery power (a battery is either connected to or built into the tag) –Can be detected over a greater distance –Are more expensive (due to the cost of the battery) Passive Tags –Alert the tag to communicate through a reader when the reader’s signal is detected by the tag –Communicates without battery power (giving them essentially unlimited life) –Derives power from the reader’s electromagnetic field

RFID Data Collection Process RFID TagRFID ReaderMiddleware Enterprise System

The Process in Context Source: Forrester Research

Frequency Differences Bio Tags Radio Toys 10khz 100khz1mhz10mhz AM RFID Smart Cards 1000mhz100mhz RFID Item Tags RFID Item Tags 2.4ghz FM and TV

Frequency Impact Lower frequencies have less range, yet penetrate fluids (biomatter) better Higher frequencies have better range, yet are easily blocked by fluids

High Frequency Transponders

Low Frequency Transponders

Systems Effected ERP Supply Chain Systems –EDI Systems –MRP Systems Manufacturing Systems Data Warehouse End User Applications

RFID Applications Just a few applications that already exist –EZ Pass Toll Systems –Pet identification technology –Inventory management (usually pallet level) –Truck routing and management –Meat traceability –Others?

So, Why the Push to RFID ? Key Industry Drivers Leading Us Toward RFID –Mandates such as Wal-Mart and the DOD –Industry Trends for Supply Chain and Manufacturing Management –Issue Pertaining to Process and Quality Control –Government Regulations

Mandates: Wal-mart On June 11, 2003 Wal-Mart CIO Linda Dillman announced their EPC (Electronic Product Code) initiative. –Wal-Mart’s top-100 suppliers have until the end of 2006 to label all cases and pallets with RFID (Radio Frequency Identification) tags. –Wal-Mart set January 2005, as the target for its top 100 suppliers to begin placing RFID tags on cases and pallets being delivered to Wal-Mart stores in the Dallas/Fort Worth metroplex area

Mandates: Department of Defense On Oct. 3, 2003, Michael Wynne, the Acting Under Secretary of Defense, announced that military’s plan to require suppliers to use active and passive RFID tags on shipments to the military by January 2005

Why All the Mandates? Q: Why do we see major players like Walmart and the DOD mandating the use of RFID? –A: Industry trend in supply chain and manufacturing management for greater integration between partners Increase process and quality control within the manufacturing process Interorganizational sharing of data and process management

Industry Drivers Process and Quality Control –RFID enables a number of process management and quality control innovations through real-time tracking Inventory expiration management Product providence and verification Quality improvement Employee management and monitoring Just in time manufacturing and delivery

Interorganizational Sharing of Data Data sharing leads to a number of benefits to members of the supply chain –Inventory information about items, quantities, and locations can be managed and monitored –Scheduling, transportation, and logistics can be streamlined, coordinated, and tuned –Information about product demand can be monitored Shelf-space can be monitored more precisely Retail inventory can be monitored and adjusted Customer service can be improved

One More Latent Driver Government Regulations and Certification –Food safety BSE E-coli (Escherichia coli O157:H7 ) –Source Verification Farm Region Country of Origin Product and Geographic Branding –Parma Hogs –I-80 Beef

A Case in Point: RFID in Meat Processing Yes, it’s already being done… Question: Can Meat be traced to the source?

RFID in Meat Traceability Currently, most meat in the U.S. is not tracked through the production process –It is primarily marketed as a commodity –Most processing plants are not designed to track meat products RFID has the potential to enable flexible manufacturing and support animal and meat traceability

Technology in the meat production chain However, RFID technology has the potential to enable identification of the product through the production chain

RFID is Integral to Traceability

Users of RFID

Where Do Benefits Arise? Compliance and Service –Achieve or retain preferred customer status –Meet or exceed customer specifications Internal Process Efficiencies –Labor efficiencies, monitoring, and control –Security Supply Chain Integration –Transparency of supply chain to management –Information integration and flow

Where is it going? (and how fast will we get there?) Now4 years out Feasibility Pallet-level Applications Case-level Applications Item-Level Applications