Logistics and Information Technology EIN 5346 Logistics Engineering

Logistics and Information Technology EIN 5346 Logistics Engineering- Spring 2010 KATHARINE BARRANTES, INNA MIROSHNICHENKO, SRI RAMYA KUKUNURI

Types of Logistics Information Management Systems Office Automatio n Decision Support Communicatio n Transaction Processing Enterprise Management Information • RFID • Case Study • Ethical Implications

Radio Frequency Identification RFID

What is Radio Frequency Identification (RFID) and How it Works • Radio Frequency Identification (RFID) consists of a tiny silicon computer chip and an antenna • Small electronic tag transmits data via a radio signal to RFID reader and related software and hardware

What is RFID and How it Works (cont. ) • Each chip can give a unique serial number to every product • Its antenna helps remote scanners read the RFID tags • Chips do not have to be visible to the reading device • They read information through materials like fabrics, wallets, and even cars and containers. • Tags can be mounted to a wide variety of surfaces including polyester, nylon, rope, wire and steel. • RFID tags can be scanned at a distance of 69 feet

RFID Tags Can Tell What the product is Where it has been When it expires When and where merchandise is manufactured, picked, packed and shipped • Expiration dates • Numbers that will have to be stored, transmitted in real-time and shared with warehouse management, inventory management, financial and other enterprise systems • RFID tags can be read automatically by electronic readers • •

What is RFID • http: //www. youtube. com/watch? v=4 Zj 7 txo. Dxb. E

RFID Users • The U. S. A. Air Force use RFID to improve business process ranging from tracking hazardous material to receiving goods from suppliers. • Wal-Mart uses RFID for automatic inventory counting and locating goods in warehouse facilities. • Ford will equip Ford F-150, FSeries Super Duty pickups and E-Series vans with an embedded RFID asset tracking system. • Motorola embeds RFID tags in its handheld computers.

RFID for Proof of Delivery • Zetes provides the ultra high frequency Gen 2 e. POD system for facilitating electronic proof of delivery. • Combines smart card technology with RFID and bar code scanning. • Optimizes tracking and tracing • Reduces return claims and shrinkage. • Stores the information of what is delivered and where it is stored. • Requires no integration with existing systems and features software based on a touch screen interface. • Error-free traceability throughout the entire supply chain. • Provides proof of delivery. • Data and image used in verification reporting.

RFID Provides Visibility • Integrating RFID data into video images to provide higher visibility of supply chan. • Users not only read the tag but view video images of the products in real time. • Video images provides information for recovering transport costs due to damages. • RFID and init. PRO’s technologies give the location of the product and current condition at the moment of delivery. • Facilitates the claims for transport damages or losses. • The flow of goods is completely documented throughout the logistics centre.

RFID for Inventory Inspection and Certification Solution • UPM & Marnlen, Inc supplies two new durable RFID options for both metal and non-metal applications. • The metal application utilizes special materials to preserve the RFID tags readability. • Provides an efficient & accurate way to conduct inspection and certification processes. • Eliminates the physical paperwork and human error associated with manual processes. • Designed to resists harsh as a high-volume of physical abuse, shock, UV radiation, temperature variability and moisture. • Serving numerous industries including construction and fire and rescue services.

DAILY’S new Adhesive RFID on-metal Tag • DAILY RFID has launched a new passive RFID series for on-metal industrial applications, such as railway and warehousing. • The adhesive RFID tags are specifically designed to track products containing metal. • Can be easily affixed to any metal surface with its self-adhesive 3 M Glue. • Each tag operates at 125 KHz or 13. 56 MHz • The RFID small size metal tags can provide an impressive read range from 40 mm to 100 mm.

CASE STUDY - DAILY’s DL 910 for Parking Management • The DL 910 is DAILY RFID’s new all-purpose ultra high frequency parking control system, designed for parking areas. • RFID technology in the parking control systems can: a. b. c. Automatically gather and send vehicle information Increase parking efficiency and security Reduce parking cost a. b. c. RFID tags in both adhesive and clipping formats The DL 910 RFID reader Management software • The RFID parking control kit contains: • The reader has a range up to 15 meters with multi-port interfaces • The DL 910 authorizes cars moving in and out — keeping a log of entry and exit times • Offers hands-free access to gated parking areas • Allows manage vehicles more efficiently and safely

Today and Tomorrow of RFID • Radio frequency identification (RFID) tags will change the way industry tracks, traces, and manages assets. • RFID will have major impact on manufacturing, retail, distribution, transportation, healthcare and pharmaceutical industries. • RFID will improve operations management, inventory control and production security.

NEXT GENERATION TECHNOLOGY SOLVING INDUSTIRES PROBLEMS THROUGH LOGISTICS AND TECHNOLOGY CASE STUDY - SENSEAWARE

Limitations of RFID Technology • Item must be within range of sensor and with no interference (metal, liquid, walkie-talkies or nylon conveyors) • Sensors must be provided and located throughout supply chain • Only communicates data programmed in the chip and only those items that have passed through a location • Imperfect (Estimated that 20% of tags don’t function properly)

What if you have industries in need of more control?

Tracking every aspect of logistics journey… • • • Location Temperature Light Security Chain of custody

Types of Logistics Information Management Systems Office Automatio n Decision Support Communicatio n Transaction Processing Enterprise Management Information A real solution enables several or can potentially integrate all

Putting the pieces together • GPS Sensor and cellular technology combined with web based browser-based collaboration platform allowing businesses to actively track everything: – Location – Temperature readings – Whether a shipment is opened and the contents exposed to light – And real-time alerts about the vital signs of a shipment. Permission granted from FAA to use inflight • Will be available Spring of 2010 –

• http: //mediacenter. fedex. designcdt. com/node/401 v

More than just data, the ideal logistics solution will enable communication and collaboration • A surgical team collaborating with a spinal implant company — monitoring that a safe temperature is maintained during transit, and enabling the OR to be prepped just ahead of the implant's arrival. • A pharmaceutical company collaborating with both upstream and downstream supply-chain partners — monitoring millions of dollars of active ingredients to their manufacturing plant, then monitoring secure and temperature-sensitive transport from plant to wholesalers to clinics. • A clinical trial administrator collaborating with a biotech company and a regulatory agency — monitoring the transport of blood and other lightsensitive compounds, with precise recordkeeping for documenting custodial control.

We can track anything… but should we? ETHICAL AND LEGAL IMPLICATIONS

The darker side of RFID? • http: //www. youtube. com/watch? v=eob 532 i. Epqk

Privacy Problems How would you feel if you were followed everywhere ? • The most important legal aspect of using RFID technology relates to the infringement of individual privacy rights. RFID systems have the potential to track individuals in an unprecedented manner. • The reader can read tags covertly without the consumer’s knowledge which is undesirable. • If tags are placed on bags, clothing, cosmetic products, or any single retail item for that matter, information about the item can be linked to the purchaser to provide a more complete consumer profile. • Also, the consumers whereabouts can be tracked

Illicit Use of RFID Information • RFID Tags are world-readable and pose a risk to both personal location privacy and corporate/military security. • Reader of tag can have access to the Customer’s credit card details and make use of it without the owner’s knowledge • Important and confidential documents locations can be known • Cloning and counterfeiting of the RFID tags can cause a lot of risk and problems.

Improper use in Medical and Pharmaceutical industry • RFID tags can be used to track "sensitive-type" items such as customer’s pharmaceutical products and personal medical data without proper consent. • Insurance companies may refuse providing insurance coverage for patients after having seen the patient’s records

Benefits of Using Technology Tracking in Logistics • Helps retailers provide the right product at the right place at the right time. • Increases visibility throughout the supply chain. • Improves efficiency, cut costs, delivers better asset utilization. • Reduces shrinkage and counterfeiting. • Increases sales by reducing out of stock.

Principles of Fair Information Practice Since, RFID technology not only has the ability to track products and persons, but also collect individual information, the Federal Trade Commission’s has laid some “Fair Information Practice Principles” • Notice and awareness of collection of information. • Choice and consent of how this information can be used. • Access to the individual’s gathered information and the ability to contest the accuracy of the collected data. • Integrity and security of the collected data. • Enforcement of the aforementioned principles.

Summary and Conclusion • RFID can be used on a large-scale with the concept of “Let the buyer beware” • RFID technology and its implementation must be guided by strong principles of fair information practices • There should be no secret databases and Tags must be transparent to all parties • If used legally and properly, RFID Technology can be the next biggest emerging technology that will be widely accepted and used.

THANK YOU!

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