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RFID IT

 Inventory Management Using RFID

INTRODUCTION
Radio-frequency identification (RFID) is an automatic identification method, relying on storing and remotely retrieving data using devices called RFID tags or transponders. An RFID tag is an object that can be applied to or incorporated into a product, animal, or person for the purpose of identification using radio waves. Some tags can be read from several meters away and beyond the line of sight of the reader.

RFID tags are often a replacement for UPC or EAN barcodes, having a number of important advantages over the older barcode technology. The new RFID, along with several other schemes, is widely available at reasonable cost.

An FDA nominated task force came to the conclusion after studying the various technologies currently commercially available, which could meet the pedigree requirements. Amongst all technologies studied including bar coding, RFID seemed to be the most promising and the committee felt that the pedigree requirement could be met by easily leveraging something that is readily available.

BENEFITS
Operational Benefits Commercial Benefits
Availability of real time stocks of all location. Reduction in manpower by 30-40%.
Reduces manpower deployment. Reduction in theft by 80-90%.
Reduces communication costs. Reduction in stock holding by 30-35%
Reduce inventory. Reduction in transportation cost by 20-25%.
Allows tracking of product till sold. Reduces communication cost by 50-60%.
Auto Order generation Will help in improving rotation to at least 3-4 times per year which will give over all enhancement in manifold. This can be improved to 6-7 rotations upon strict following of laid practices over a period of time.
ERP planning.
Reallocation of non moving goods.
Interoffice correspondence.

Feasibility And Usage of RFID

In the last few years, technological developments and more recently, industry standardization, have centered on High Frequency (13.56 MHz) and Ultra High Frequency (868-915 MHz) systems development. We focus on these two frequencies. Each of these frequencies has strong price/performance trade-offs that relate to specific applications.

RFID tags are today generally sold at prices between $0.25 and $1.00 at 13.56 MHz and between $0.08 and $2.00 at UHF, depending on volume, function and packaging.

Relative Strengths and Weaknesses of HF and UHF Technologies:

                HF                            UHF
Frequency           13.56 MHz (global)       868 MHz (Europe) or 915 MHz (USA)
Primary Use
  • Item-level track and trace
  • Short/medium read range (up to 1 meter)
  • Pallet and case tracking
  • Long read range (several meters)
Some Current Applications
  • Gaz cylinders
  • Box/crate-level supply chain
  • Waste management
  • Pharmaceuticals
  • Fashion
  • Library items
  • Laundry items & linens
  • Container tracking
  • Pallet tracking
  • Electronic toll collection (active tags)
Strengths
  • Small form factor tags
  • Insensitive to tag orientation
  • Works in liquid environments
  • Works in metallic environments
  • High reliability (near 100% read rates)
  • International single frequency and harmonized operating standards
  • Operates well for densely packed goods
  • Resistant to electrical interference
  • Long read ranges
  • Low tag prices
Weaknesses Modest read ranges (nominal 1 meter)
  • Poor suitability to liquids
  • Environment sensitivity, interference, presence of metal Performance spread
  • Poor dense pack reading
  • Different global frequencies
  • Lack of standards limits the utility of the solution in Europe and Asia
Global Standards
  • Universal global regulatory characteristics
  • Standards provide significant interoperation of HF products
  • Under development
  • Regulated differently across the US, Europe and ASPAC

has been actively involved in the standardization works for HF and UHF .
                                      

OUR FOCUS
Item-Level RFID tracking applications

Our’ core focus, will see the most drastic growth in the next few years and will grow disproportionately to the RFID market as a whole. The industry is currently targeting a number of these item-level applications with a total addressable market of several billion tags.

  • Garment, mats and linen tracking in industrial laundries / 2 billions
  • Library books, CDs, magazines, video tapes / 2 billions
  • Pallets and reusable containers / 1 billion
  • LPG gas cylinders / 500 millions
  • Parcel tracking / 5 billions
  • Airline luggage handling / 2 billions
  • Retail point of sale – Billions
  • Supply chain management – Billions

The RFID market for asset tracking applications can be segmented into two broad categories: open and closed loop systems. To date, RFID development has been stronger in the closed loop applications where articles circulate frequently. The cost of tagging the articles is offset by the frequent use of the tags. RFID application in open loop systems will grow from its nascent stages as tag prices continue to fall.

Closed Loop Applications

(or rental item tracking) -- In closed loop applications the tag has a long life and is used through tens or hundreds of cycles. The primary applications for closed loop RFID tags are applications that involve reusable or rental assets such as LPG cylinders, library items, laundry linen and supply-chain articles applications where the assets periodically circulate through the system. Necessary features in closed loop applications are long life RFID tags, durability, ability to perform under sometimes hostile industrial conditions, and capacity of suppliers to provide a complete turnkey RFID system, plug and play in the existing item handling infrastructure of the customers.

Open chain Applications

(or supply chain) -- In open chain applications the tracked object is not returnable and therefore the RFID tag is lost after use. Various pilots are in development to address open chain applications, representing significant potential volumes including express mail and package tracking, textile distribution, food distribution, and retail applications where RFID tags may ultimately complement bar codes on valuable items. These applications are very different when compared to the Closed Loop markets in that they are price sensitive, require the adoption of user-groups standards, and must be endorsed by all the players belonging to the chain before being rolled out. RFID system implementations are expected to increase significantly in the future due to several key factors that are driving growth and adoption