Impact of RFID on

Supply Chain


ASAD ALI JAVED (6731)
AHAD AHMED KHAN (13010)
IQBAL LALANI (11041)


INSTITUTE OF BUSINESS MANAGEMENT (IoBM)
RFID Technology
What is RFID ?
Radio Frequency Identification
A micro-chip in a label used to transmit data when the label
is exposed to radio waves
RFID belongs to the class of technologies that exchange
data wirelessly
RFID Basics
What are the main components ?

RFID Tags
RFID Reader Antenna and
transceiver(reader)

Host Computer


RFID Basics
How it works ?
Antenna
Passive Active
A passive tag is an RFID tag
that does not contain a battery;
the power is supplied by the
reader
An RFID tag is an active tag
when it is equipped with a
battery that can be used as a
partial or complete source of
power for the tag's circuitry
and antenna.
RFID in Retail Supply Chain
Retail Supply chain process
Supplier Manufacturing Retailer/
Distributor
Retailer store
Consumer
Manufacturers can
especially benefit
from RFID, since the
technology can make
internal
processes more
efficient.
At the distribution
center or warehouse,
tags are read
again by readers
integrated into the
warehouse gates for
incoming and
outgoing goods.
RFID in Retail Supply Chain
Automate the Supply chain process
RFID TAG
Reader
RFID in Retail Supply Chain
Benefits at a glance

Decrease in lost stock
Faster locating stock
Lower labour requirement
Reduction of out-of-stock
Low safety stock level
Facilitation of JIT

RFID in Retail Supply Chain
Benefits at a glance
Benefits for Retailers
5 8 % improvement in shelf stock rate
5 10 % lower inventory levels
3 4 % lower logistic costs
2 10 % higher sales due to lower out of stocks

Benefits for Manufacturers
5 30 % lower inventory levels
2 13 % lower warehouse and transportation costs
10 50 % reduction in lead-time (facilitates JIT)
1 5 % higher sales due to lower out of stocks

Opportunities
Time
Being able to respond more quickly
Taking quicker decisions
Feedback
Minimize human factor
Savings
Streamlining orgs
Long term savings
Cost aspect of RFID
Cost

Most companies that sell RFID tags do not quote prices
because pricing is based on volume, the amount of
memory on the tag and the packaging of the tag

Active tags are $25 and up. Active tags with special
protective housing, extra-long battery life or sensors can
run $100 or more.

A passive costs from 7 to 15 U.S. cents. If the tag is
embedded in a thermal transfer label on which
companies can print a bar code, the price rises to 15
cents and up. Low- and high-frequency tags tend to
cost a little more.


RFID system performance
Frequency is the leading factor that determines the read range, resistance
to interference and other performance attributes. The reason is that radio
waves behave differently at different frequencies, thus generating different
properties such as different ranges.
Range, besides frequency, the power output and the directional sensitivity
of the antenna may also influence the systems read range as well as the
immediate physical environment.
Antenna orientation, position, proximity and reading area of the tag
antenna are crucial to consider in order to ensure optimal reads.
Signal attenuation is not only due to the fact that an emitted signal
attenuates naturally with distance and that a reflected signal attenuates at
much faster rate.
Electromagnetic interference a wide variety of machines such as
conveyors with nylon belts or manufacturing robots can interfere with RFID
systems.
References and recommended reading
Publications

A Workshop Report from the Staff of the Federal Trade Commission. 2005. Radio Frequency Identification:
Applications and Implications for Consumers. Diane Publishing.

Finkenzeller, K. 2005. Second Edition. RFID Handbook: Fundamentals and Applications in Contactless Smart
Cards and Identification. John Wiley & Sons Inc.

Glover, B. and Bhatt, H. 2006. RFID Essentials. O'Reilly Media Inc.

Practel, Inc. 2004. RFID Report: A New Horizon for Accountable Society. Information Gatekeepers, Inc.

Shepard, S. 2005. RFID: radio frequency identification. McGraw-Hill.

Websites

en.wikipedia.org/wiki/RFID
www.rfidjournal.com/
www.rfid-weblog.com
www.spychips.com
www.verichipcorp.com
www.wethepeoplewillnotbechipped.com