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We keep on hearing about Radio Frequency Identification (RFID) tags, but where do they fit in supply chain operations. For decades, supply chain professionals have used bar codes to tag everything from a retail-level item to a shipping box to a pallet, and even trailers and railroad cars. Now with the advent of active and passive RFID tags, will bar codes be replaced? Will RFID tags work in conjunction with bar codes and other ID technologies such as GPS and biometrics? Or is RFID a fad that will soon fade away with all the hype.

The Promise of RFID Technology. With the advent of active and passive RFID tags, bar codes have the potential to be phased out for tracking and tagging everything from boxes of items to ocean containers. Even if RFID tags live up to their potential, bar codes will continue for at least for now. The return on investment (ROI) in most cases is still not there for RFID to completely replace bar codes at the retail item level. RFID is now getting past the hype and starting to be a good ROI for supply operations. See posting, RFID Logistics - the Tempest is Moving Out of the Teapot, for more information on RFID emerging role within Automatic Identification Technology.

The Key Criteria For Using RFID Technology in Supply Chain Operations. The key criteria for using a bar code versus passive RFID versus active RFID tag is cost and functionality required for a given supply chain situation. Generally, bar codes cost less and have less functionality than RFID tags. Passive RFID tags cost less and have less functionality than active RFID tags.

Where Does RFID Fit Within Supply Chain Operations?

Below is how to best leverage bar codes, RFID, and GPS for logistics and supply chains:

• Vehicle Movement - GPS. Track vehicles that move assets using Global Position System (GPS) satellite systems. Most expensive, but provides best communications in terms of interactive communications and continuous communications. Also, requires less terrestrial communications infrastructure than active RFID tags.
• Containers - Active RFID Tags. Track containers real-time in yards and docks using active RFID tags with RF ranges of 300 feet. Active RFID tags provide more functionality than passive RFID in terms of communicating with RFID readers from hundreds of feet away versus a few feet with passive RFID tags. Active tags are smart and can do such functions as store a lot of data, read-write capability, make audible sounds, connect to sensor instruments, and so on. Active RFID does need a terrestrial communications infrastructure of RFID readers located at “chokepoints” such as ports, terminals, and docks to track containers with RFID tags.
• Asset Management - Active and Passive RFID Tags. Manage tool rooms, security items with active or passive RFID tags based on RF range required and affordability. If you just need to check-in and check-out assets such as with tools in a tool room, passive RFID tags should work. If you have expensive or need immediate visibility over items such as medical equipment on rollers or material-handling equipment, then active RFID tags would be a better choice.
• Pallets - Passive RFID Tags. Track pallets using affordable passive RFID tags with 3-15 foot RF range. By setting up a series of “chokepoints” at dock doors as well as forklifts equipped with RFID readers, passive RFID tags can save a lot on labor and optimize inventory management. Bar codes and active RFID tags may be viable for some, specific applications for tracking pallets.
• Boxes - Passive RFID Tags or Bar Codes. Track boxes with passive RFID tags or bar codes. Passive RFID tags are now affordable to track boxes with costs of under ten cents a RFID tag. Passive RFID tags provide the ability to automatically track boxes all along the supply chain from the supplier, to the distribution center, to the retailer, and inside the retail store. Active RFID tags can also be an option for niche solutions such as environmental monitoring of boxes containing perishables or medical-related items.
• Items - Bar Codes. Bar codes are still the best option for tagging individual retail items. At some point, passive RFID tags may replace bar codes. Passive RFID tags hold the promise of automating in-store inventories, automating Point-Of-Sale (i.e. no more hand-scanning items at checkout), and duel use of RFID tags for supply chain tracking as well as a retail theft-prevention devices. Active RFID tags can also be an option for niche solutions such as tires where a lot of data needs to be stored with the item as well as the value-add of monitoring temperature and tire pressure during use.

Back to Radio Frequency Identification (RFID) Technology.

EPC Tags are Radio Frequency Identification (RFID) tags that are compliant with Electronic Product Code (EPC) standards. EPC RFID tags are designed to be affixed to items and tracked using non-line-of-sight RFID readers. EPC tags are designed to eventually replace the bar code to fully automate tracking as well as offer increased functionality.

Electronic Product Code Description. The EPC standard is a family of coding schemes that are similar to the standards used for bar codes, but are used for RFID tags. The EPC was created as a low-cost method of tracking goods using RFID technology. EPC tags are designed to identify each item manufactured, as opposed to just the manufacturer and class of products, as bar codes do today.

Key EPC Tags Terms

To understand EPC tags and what you can use them for, you need to know some key definitions. Below are some definitions that are in part taken from the GS1 ECP Global Glossary.

Electronic Product Code Definition. An identification scheme for the universal identification physical objects via RFID tags and other means. An EPC construct consists of an EPC Manager Number, an object class identification, and a serial number used to uniquely identify the instance of the object.

EAS-enabled Tag. A tag that includes features supporting Electronic Article Surveillance applications. These are the security tags that you see in stores. RFID tag vendors are now providing EPC tags that can not only track items in the supply chain, but also offer theft protection within the retail store.

EPC Reader. An RFID reader that complies with EPCglobal Standards. A RFID reader is a device that communicates with RFID tags. Readers encode commands to send to tags, and decode responses from the tags. Readers communicate with tags by modulating the encoded commands on to waveforms to send to tags and by demodulating the replies from waveforms that the reader receives back from the tags. Readers send the decoded tag responses to software systems, typically for subsequent business analysis. Readers and interrogators are the same thing.

EPC Tag. An RFID tag that complies with EPCglobal Standards containing an Electronic Product Code (EPC). A RFID tag is basically a microchip attached to an antenna that sends data to an RFID reader. These tags come in all types of shapes and sizes depending on functionality and environmental considerations.

EPCglobal Inc. A joint venture between GS1 and GS1 US. EPCglobal is a neutral, not-for-profit organization entrusted by industry to establish and support the Electronic Product Code and the global adoption of the EPCglobal Network.

EPCglobal Network. The EPCglobal Network is a community of trading partners engaged in the capture, sharing and discovery of Electronic Product Code-related data using EPCglobal-certified hardware and software components and standard interfaces.

Gen2. The EPCglobal Class-1 Generation-2 UHF RFID Protocol for Communications at 860 MHz – 960 MHz.

GS1. GS1 is a leading global organization dedicated to the design and implementation of global standards and solutions to improve the efficiency and visibility of supply and demand chains globally and across sectors. The GS1 system of standards is the most widely used supply chain standards system in the world.

For more on EPC tags, see the following resources: GS1 EPC Global Glossary, Wikipedia - Electronic Product Code

Back to Radio Frequency Identification (RFID) Technology.

Radio Frequency Identification (RFID) is best used to track things that move or that can move. RFID technology has many advantages over other Automatic Identification Technology (AIT). RFID technology can track things automatically, it can be integrated with other technologies such as sensors, and it can be used in near-real-time to give true situational awareness. RFID technology is very useful in supply chain visibility as well as for asset tracking. Below are some common and not so common uses for RFID Technology.

Example Uses of RFID Technology

Track People. RFID technologies can be used to track people. Example: RFID PJs.

Track Car License Plates. Use RFID to track and monitor car license plates. Example: RFID License Plates.

Track Packages. Use RFID to track packages. Example: Packages Transmit Status.

Track Tires. Use RFID to Track Tires. Example: Tracking Tires from Manufacturer to Monitoring Tire Pressure.

Eliminate Hand Scanning at POS. Use RFID technology at Point Of Sale (POS) to automate the scanning of purchased goods. Example: RFID Item Tracking and Point-of-Sale.

Monitor Temperature of Shipments. Use RFID to monitor the temperature of goods while being shipped. Example: Monitoring Temperature of Pharmaceutical Shipments.

RFID Data Security. If data on RFID tags are sensitive, then the RFID data needs security. Example: Securing RFID Tag Data.

RFID Security Seals. RFID technology can be used to secure trailers or containers for enhanced security. Example: RFID Security Tag Seals for Containers and Trailers.

RFID Item Tracking. RFID technology can be used for inventory management and visibility at the individual product level. Example: RFID Item-Level Tracking.

More Example Uses of RFID Technology. Wikipedia has an extensive listing of the uses for RFID technologies - Radio-frequency identification - Current Uses.

Evaluating RFID Technology. There are many types of RFID technologies that can be used in any given RFID project. For example, RFID tags can be as small as a bar code label or as big as a brick depending on what functionality is needed for a given project. See posting, Picking the Right RFID Solution for more details on how to evaluate and pick the right RFID technologies for a given project.

Back to Radio Frequency Identification (RFID) Technology.