RadioFrequency Identification An automatic method relying on storing

Radio-Frequency Identification An automatic method, relying on storing and remotely retrieving data using devices called RFID tags or transponders Diane Brayman Raul Calienes Casey Davidson Reed Mc. Calmon Megan Mills

History of RFIDs Began in WWll 50 s, 60 s, 70 s developing 80 s toll booth RFIDs 1999 System better suited for supply chain

What is Automatic Identification? Technology to identify object or person Types: 1. Bar codes 2. Voice Recognition 3. Retinal Scanning 4. RFIDs

How do they work? Transponders, tags Readers

Passive and active tags Passive tags Active Tags

Costs Readers $500 - $3, 000 Tags: Active - $10 - $50 or higher Passive -. 20 cents -. 50 cents or higher

BENEFITS OF RFID

RFID Technology & Benefits to a Business RFID tagging allows unique information to be identified by what product it is attached to, allowing computers and networks to be tracked efficiently

If you are considering whether or not RFID would be a beneficial application to your business, the following should be taken into account 1. Processing speed is essential or could provide a competitive advantage 2. Bar codes cannot sufficiently survive your manufacturing process 3. You need more information on an item than a bar code can provide 4. You deal with high-value assets that need to be protected 5. Some areas of your facilities need to be protected from unauthorized access 6. You are a highly automated company, and need to minimize human intervention 7. It would be beneficial to your company to know locations of each product at all times during the supply chain

What does a business do to adopt RFID technology? There are many benefits gained by assessing internal business processes to determine the priorities, needs, and capabilities of your company. Whether your business adopts RFID technology immediately, or at some point in the future, your business will gain a competitive advantage In order to go about implementing RFID, business’ should take a needs-focused analysis of their business processes, their systems architecture, and their internal capabilities

Steps to Implement RFID Technology 1. Assess your EPC numbering options 2. Assess management of your RFID readers & devices 3. Assess management of your data 4. Assess integration of your business applications 5. Assess integration with your trading partners 6. Assess management of your processes 7. Assess your scaling capabilities & management of architecture

ONCE YOU HAVE COMPLETED THE ASSESSMENT PROCESS, YOU SHOULD BE MUCH MORE ORGANIZED AND ON YOUR WAY TO IMPLEMENT RFID TECHNOLOGY INTO YOUR BUSINESS

OTHER BENEFITS OF RFID

Asset Tracking One of the most common applications for RFID. Placing RFID transponders on or in high-value assets and returnable transport containers enables companies to gather data on their location quickly and with little or no manual intervention. Tagging assets allows companies to increase asset utilization, identify the last known user of assets, automate maintenance routines and reduce lost items. NYK Logistics Air Canada

Could RFID benefit the consumer? Cost cuts for the retailer can almost always relay to cheaper goods especially if you look at all the ways the retailers are saving: Reduced inventory through a one-time cash savings estimated at 5 percent of total inventory An annual benefit from a reduction in store and warehouse labor expenses of 7. 5 percent With a reduction in out-of-stock inventory there will be a recurring annual benefit of $700, 000 per $1 billion in annual sales for retailers who reengineer their current shelf fulfillment processes

Consumer vs. Retailer cost change Clearly with all these cost cuts across the board for the retailers they see a feasible profit increase With our highly competitive markets there is no reason why the consumer would not benefit from such cost cuts, not to mention all the other possible uses for such an advanced technology

Other RFID consumer benefits RFID is recently being researched to assist people with Alzheimer's disease or other cognitive impairments It can also help with increasing speed on recalls for products such as meat and other food products The future could also hold such items like tagging food so that when you put it in your microwave it knows by its RFID tag exactly how long to cook it for or your washer knows exactly how to wash what clothes you put in

Raising prices The only price increase for consumers could come from the involved costs to retailers transferring to an RFID system In the long run the numbers add up to show benefits for both consumer and retailers so it is just the initial startup fees that could create a price jump for certain items Once the major companies all get on board the entrance costs will decrease allowing the technology to be more prevalent in many markets

DISADVANTAGES OF RFID

Cost of Implementation High switching costs Cost of chips Cost of equipment Testing Training Maintenance

RFID Cost Estimate Investment Area RFID Tags No. of Units Cost Per Unit (USD) Total Cost (USD) 10, 000 $. 15 $1, 500, 000. 00 RFID Readers 100 $8, 000. 00 $800, 000. 00 RFID Printers 100 $3, 000. 00 $300, 000. 00 Edge Servers 50 $2, 500. 00 $125, 000. 00 RFID Middleware N. A. $200, 000. 00 RFID Consulting N. A. $128, 000. 00 RFID Training N. A. Variable Cost Tag Validation N. A. $80, 000. 00 Total Cost $3, 133, 000. 00 Zhang, Qingyu. E-Supply Chain Technologies and Management. Hershey, PA: Information Science Reference, 2007. 112 -141.

Security/Privacy Concerns Spy on data transmissions Data tampering Frequency Jammers Physical Location Kill Tag or Blocker Tag Approach Customer Tracking Buyer Price Manipulation Garfinkel, Simson. RFID Applications, Security, and Privacy. Upper Saddle River, NJ: Addison. Wesley, 2006.

Usage Inefficiencies Obstruction ErrorsInterference Large palliates of RFID, possible to miss tag Limited transmission through metal or moist surfaces Collusion of different RFID tags when scanned by the tag reader Preplanned object movement Difference of RFID tagsreaders between vendors RFID Tag Standard Sabri, Ehap H. , and Arun P. Gupta. Purchase Order Management Best Practices: Process, Technology, and Change Management. Fort Lauderdale, FL: J. Ross, 2007.

With all the pros and cons weighed out there are obvious reasons why this technology will be seen more and more in the future The skeptics are afraid of us all becoming “barcoded” and the majority of them don’t know enough to judge whether it is beneficial or not RFID is going to cut costs for everyone and make utilizing this new technology beneficial for all who partake