DHL Logbook - in cooperation with Technical University Darmstadt

Radio frequency identification (RFID) The megatrend as a possible revolution in logistics

Radio frequency identification (RFID) is a megatrend in logistics. The tasks to be assumed by RFID systems are partially like those of the barcode: the provision of information about a product, pallet or entire inventories. But RFIDs critical advantage over barcodes is that the information does not have to be read in a cumbersome line-of-sight process. Instead, everything is done with radio waves: It is fast, automatic and contactless. But before this promising technology can experience its final breakthrough, costs will have to be lowered further and global standardization must be introduced.

RFID tag, high frequency range

RFID tag, ultra-high fre-quency range

The characteristics and functions of RFID

Radio frequency identification (RFID) is, without a doubt, one of the megatrends in logistics. A search in Google turns up more than 30 million entries. Furthermore, hundreds of millions of RFID tags are sold every year. Major retailing companies such as METRO, Tesco and Wal-Mart already require their suppliers to use RFID. Nonetheless, the barcode still remains the undisputed standard in global logistics. Much more is written about RFID than is done with it. This fact gives rise to two questions: What can RFID do? And what does it mean to logistics? Using radio waves, RFID systems transport information about a product, a pallet or entire inventories. Unlike the barcode , this information does not have to be laboriously read by scanners. As a result, handling of goods is very simple - everything happens via radio transmission: It is fast, automatic and contactless. RFID hardware consists of a RFID tag and a reader. The RFID tag is also called a transponder - a combination of the words transmitter and responder. The transponder contains a microchip for information storage and a sending and receiving antenna for data exchange with the environment. The coding of the microchip is done at read-write stations that are combined with the enterprise resource planning of a company, among other areas. The readwrite process begins automatically once the RFID tag comes within the range of such a station. RFID tags come in a variety of types. A distinction is drawn between active and passive transponders . Active transponders are equipped with a battery that provides power used for data transmission and data storage. Passive

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transponders do not have batteries - they are powered by an electromagnetic field produced by the read-write station. RFID tags transmit on various frequencies, using different ranges and data transmission rates. The range of tags extends from one meter (passive and in the high frequency range) to 10 meters and more (active and in the ultra-high frequency range). Some RFID tags are equipped with extra sensors that can perform jobs that include measuring temperature or vibration. Still, not every reader understands every tag. But when readers and tags do understand one another, within something like a closed system, tremendous possibilities emerge. Transponders can be read in bulk, enabling inventories to be conducted at the press of a button.

The strengths and weaknesses of RFID systems

The strengths and weaknesses of RFID can be shown most clearly through a comparison with the traditional medium of the barcode because RFID is viewed as an alternative to the barcode in many application areas.

The benefits of RFID over the barcode

RFID is vastly superior to the barcode in many areas. Its strengths: Several hundred products can be registered simultaneously, and no direct visual contact with a reader is required. This is an obvious advantage for jobs like inventory. Receipt of goods can be considerably accelerated. For instance, an entire truckload can be automatically scanned and registered when the vehicle drives through a gate. In addition, losses and theft can be expected to decrease as the result of electronic anti-theft and monitoring systems. RFID tags are much less sensitive to soiling and minor damage. The rate of error-free read and write processes is nearly 100 percent for active transponders . Compared with the classic barcode , the tags have considerably more storage capacity. A variety of information can be stored as well, including the expiration date of perishable goods or a group of authorized users of a product. The range of the tags is significantly longer. Normally, it is several meters. By contrast, it is only about 50 centimeters for a barcode . The read speed of the information is at least 10 times higher. This means faster data processing and shorter processes. RFID tags generally are rewritable, a feature that makes them capable of repeated use. To unauthorized persons, RFID tags are relatively difficult to manipulate. Work is still being done on complex encryption mechanisms. Once such features are in place, automatic product-exchange processes in which the tag served as an electronic receipt would be possible.

The drawbacks of RFID compared with the barcode

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But, some weaknesses - that still exist at the moment anyway - can be identified: RFID is relatively expensive. This applies in particular to the tags unit costs. In addition, considerable investments must be made in the system setup. But, the unit costs will fall substantially over the middle term. A global standard, like the one for barcodes , has not been completely introduced for RFID. Somewhat different specifications exist for various frequency areas. At the moment, the electronic product code (EPC) is being established as a standard. It is to form the global, cross-sector basis for identification purposes in companies freight-management processes. The transition is to be eased by the use of hybrid tags (a combination of barcode and RFID tag) and broadband tags (a combination of several RFID standards). Problems occasionally arise during the bulk reading of a variety of chips. This occurs particularly when various types of chips are involved. Certain metals and liquids can create reading problems as well. Consumer and data-security organizations fear that RFID could do much to turn people into transparent consumers. The inclusion of transponders on clothing that could not be deactivated at the cash register could enable people to be located nearly all of the time because their position would be automatically determined every time they passed an RFID gate. RFID tags are already being put in work clothes. Consumer advocates worry that these tags could be used to monitor people on the job.

The possible application areas of RFID systems

RFID is not a recent invention. As far back as World War II, RFID applications were used, and they were not much different from the systems being described here. For instance, transponders and transmitters were used in planes and tanks to help combatants distinguish friend from foe. Even today, successor systems are being used in the military. As a result of miniaturization and reduced unit costs, a variety of potential civilian uses has arisen as well - and not just for logistics. Here are just a few examples: As previously mentioned, tags are already being added to work clothes. This makes it much easier to return washed clothing to individual employees. DHL, for instance, is successfully testing RFID technology in more than 1 million uniforms worn by its couriers. The project is being coordinated by the DHL Innovation Center. Innovation partners from the business and scientific communities are helping conduct the project as well. In fashion boutiques and department stores, RFID is being used as an antishoplifting system. The tags are attached to clothing items and other products. An alarm sounds when their signal is picked up by a reader at the store entrance. RFID is widely used in public transportation systems in cities such as Hong Kong, Singapore, Moscow and Rio de Janeiro. Normally, a user charges the RFID chip with money at a terminal, and the chip then serves as a cashless payment that can be simply made without contact when a gate is passed. A comparable use is ski passes, which are particularly popular in France and

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Spain. The payment process at the supermarket can be speeded up as well. The customer pushes the cart by a reader at the cash register and is immediately told the total price without having to place the products onto the conveyor belt. When this system is combined with credit cards, no personnel are needed to work the cash register. In the automotive industry, assembly processes use RFID tags as well. These tags simplify process documentation, and help improve quality control and quality assurance. Generally speaking, RFID simplifies goods tracking in the supply chain. Trucks arriving at and departing from points of delivery can be identified, and highway toll systems can be managed by RFID. Generally speaking, reusable containers, including transport boxes for medications, are frequently employed in logistics. RFID tags on the containers enable each individual container to be identified. They are especially robust in order to avoid the loss of or damage to tags during the transport or cleaning of the containers.

RFID in work uniforms

RFID tag with a temperature monitor

The Internet of things

Broadly speaking, RFID has the potential to revolutionize the functionality of logistics processes. By storing information on a medium that proactively communicates data, processes in the logistics chain can run largely on their own. Experts call this dialogue between RFID tags and machinery the Internet of things. As a result, a parcel could be equipped with this knowledge about where it was to be shipped. This destination information is stored in the parcels RFID tag. The parcel will no longer be passively directed by the system. Instead, the parcel will actively steer the system and purposely work its way through the logistics network on its own.

Looking into the intelligent box without opening it.

RFID technology cannot be viewed in isolation. Teamed with other technologies like sensor systems, RFID can really show off its strengths. One interesting and promising potential use involves linking RFID-based sensor tags with standard packaging like containers or boxes. The intelligent box, an invention of the DHL Innovation Center, uses RFIDbased sensor tags to measure various conditions to which the contents are subjected - like heat, cold, humidity or jolting. This box creates intriguing possibilities for the food, pharmaceutical, automotive and electronic industries.

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These industries place high demands on the amount of external stresses to which shipments may be subjected. A sensor tag can measure whether a load of electronic components was rigorously shaken. Indeed, the shipment will remain damaged. But the recipient can still order replacements ahead of time and avoid being surprised when the shipment arrives. The uses of the intelligent box are obvious. But several hurdles still have to be cleared before it can be employed in the everyday world of business. One of these hurdles is telecommunications. In sea transport, another challenge involves the transmission of the RFID tags naturally weak signal from the belly of a ship on the high seas to a receiving station. The radio signals are absorbed both by other objects loaded on the ship as well as by the ships hull. Still, these signals must be able to be relayed centrally. Finally, the RFID signals must be transmitted over the ships satellite connection to the shipping company and the recipient of the goods. In air freight, the biggest challenge is flight security. The active transmitters radio signal must be turned off during the flight. But the sensor tags continue to record the condition of the shipment. Tests of the first intelligent boxes are expected to be initiated in the near future.

Recommended reading
Logistik | Vahrenkamp 2007 DHL Innovation Center, www.dhl-innovation.com

References URL
http://www.dhldiscoverlogistics.com/cms/en/course/technologies/connection/rfid.jsp

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