| This document is intended as a short, simple | | | | the tags and readers supplied in terms of speed and |
| summarised overview for companies thinking of, or | | | | capability. |
| wanting to, implement RFID technology within their | | | | It will be the results of the Pilot scheme that facilitate |
| supply chain operations. It is designed to increase | | | | the specific "roll out" requirements for the full system. |
| awareness of the needs, wants, dos and don'ts | | | | The exact specifications of the hardware |
| when planning your RFID supply chain systems. A | | | | requirements for the pilot scheme are to be specified |
| glossary of RFID terms is included to assist you | | | | during the site survey and process analysis by the |
| when investigating RFID systems and technology. | | | | system integrator. What are your system software |
| The single most important message is that defined | | | | requirements? |
| objectives and planning are paramount; and that input | | | | A key area for concern is handling the sheer volume |
| and assistance from independent expertise at a very | | | | and speed of data produced by an RFID system. |
| early stage, can save considerable time and money in | | | | If you were to implement an RFID system by |
| the long term. | | | | directly hooking RFID readers to the backend |
| It is recognised that RFID will enable, (and already | | | | management and ERP systems, the results will be |
| has in some cases), a new era of business | | | | disastrous due to the massive volume of data |
| optimisation, managing and increasing efficiencies | | | | directly entering the system. |
| throughout the supply chain. However knowing that it | | | | What's needed is the right system architecture, not |
| can assist your business, and understanding how it will | | | | only to maintain data accuracy and authenticity, but |
| do so, are different enough, let alone knowing how | | | | to make meaning of the vast volumes of data |
| to actually implement a system that provides a sound | | | | delivered by the RFID readers. Some estimates are |
| return on the investment, whilst meeting your | | | | that pallet, tote and item-level tracking, combined |
| objectives. | | | | with data generated by RFID readers as items move |
| The potential final cost of a fully integrated RFID | | | | within the enterprise, will increase the volume of data |
| supply chain operation would suggest that well | | | | by 100 to 1,000 times today's levels in most supply |
| planned objectives and a Pilot Scheme within part of | | | | chains (source: RFID Journal). |
| the supply chain would be the prudent route to take. | | | | Effective RFID implementations should follow the |
| This ensures that a final system properly specified | | | | architectural principles developed for financial trading |
| and implemented will actually produce the results that | | | | systems, process control and large-scale network |
| you both want and expect. | | | | management. Like RFID systems, these systems |
| Business Drivers | | | | process huge volumes of data, correct errors in real |
| The key driver for any investment of this type is the | | | | time, correlate events, detect trends and patterns, |
| cost savings it will yield. However RFID technology | | | | re-organise and cleanse data and recover from faults |
| provides additional advantages of real time and faster | | | | - all in real time. |
| data capture, with a reduced human error factor. | | | | A role of the system integrator is to develop and |
| Unlike bar code-based systems, an RFID system can | | | | implement an operational data management |
| read the information on multiple tags without | | | | architecture that captures events at the "edge" of |
| necessarily requiring line of sight and without the | | | | the enterprise, where operational activity occurs, |
| need for a particular orientation. The main business | | | | rather than in the centre, where business-oriented |
| drivers throughout most sectors are as follows:o | | | | transaction processing occurs. To achieve manageable |
| Optimise asset and resource utilisationo Optimise | | | | data then the architecture will comprise of data |
| operational process & Manage supply chain | | | | concentrators and pipelines to route relevant data to |
| exceptionso Reduce transportation costso Reduce | | | | the specific user systems that require it, thus not |
| theft, wastage and losso Increase financial return on | | | | overloading any individual back end management |
| investmentso Optimise the labour forceo Manage | | | | system. For example:- container / pallet data to the |
| KPIs and benchmarkingo Avoid congestion of assets | | | | asset management system, product and stock data |
| and bottlenecks in the supply chaino To reduce | | | | to the ERP and MRP systems cost data to the |
| overall supply chain costso To assist in making | | | | financial management systems and so on... |
| informed decisions in respect of the logistics "loop" | | | | System compatibility in a Global Supply Chain is |
| Where do you start? | | | | important, not necessarily for the pilot scheme, but if |
| The range of technologies, standards and options for | | | | it is to facilitate a successful roll out across the whole |
| RFID systems are too numerous to list here, and | | | | supply chain. Global standards are progressing with |
| there is a danger of over specifying the technology | | | | the new systems created in compliance with the |
| required. | | | | EPCglobal Generation 2 (Gen 2) standard. |
| Providing that the system objective is not forgotten | | | | Gen 2 creates a foundation on which to build |
| during the specification and implementation stage, | | | | interoperable RFID products and systems that will |
| then a suitable system integrator will ensure that | | | | improve inventory management, logistics and retail |
| there is not an over investment, or too much | | | | operations around the world. However there will be |
| needless information being produced. It is therefore | | | | significant performance and capability differences |
| crucial that the functionality requirements and | | | | among Gen 2 compliant equipment. Gen 2 is a |
| objectives are well thought out and defined in | | | | standard, and standards specify minimum |
| advance of partnering with a suitable System | | | | performance requirements and will therefore not |
| Integrator, specifically in relation to the management | | | | accommodate all systems, as standard -based |
| information you wish to extract from the system. | | | | equipment will not provide a standard performance. |
| It is widely acknowledged by all who have conducted | | | | Gen 2 specifies basic RFID communications |
| pilot schemes and RFID implementation that the | | | | performance required for common supply chain |
| most crucial factor is to conduct a pilot scheme with | | | | business processes. However, although companies |
| partners that have a proven track record, and are | | | | within the same sector have similar information needs |
| not learning as they go along. Therefore a System | | | | as their competitors and have comparable business |
| Integrator with relevant industry sector experience is | | | | practices, usage environments will be very different |
| vital. | | | | depending on age and design of the assembly |
| From experience it is preferable, in the early planning | | | | manufacturing facility, geography and culture. Gen 2 |
| stages, to have an independent project coordinator / | | | | or any RFID technology won't provide exactly the |
| facilitator assisting your project team. This individual | | | | same performance at any two facilities. That is why |
| should be separate from the Integrator and individual | | | | it is important to understand the difference between |
| system / hardware suppliers working together on the | | | | what Gen 2 specifies and the range of performance |
| project, and not part of any individual departments | | | | that Gen 2 compliant products can provide. |
| within your business that may bias the direction and | | | | What next? |
| objectives of the team. | | | | RFID does not need to be as complicated or as |
| Your RFID project team should be kept as small as | | | | daunting as some of the industry players would have |
| possible to reduce management time, training needs, | | | | you believe. Just because the technology exists it |
| misinformation, over analysis and to remain focused | | | | does not need to be used to maximum capacity |
| to the project objectives. Team members should | | | | throughout all supply chains. The following factors are |
| then feed back to their own local departments and | | | | considered to be key when moving forward:o Do not |
| teams to facilitate the actions and objectives of the | | | | over complicate the technology; use what is suitable |
| project team. | | | | to meet your objectives.o Ensure the correct partner |
| What are your hardware requirements? | | | | (system integrator / provider) is engaged from the |
| The functional requirements of the system will | | | | outset.o Ensure that the systems chosen can move |
| dictate the hardware and software specifications, for | | | | with technologyo The pilot scheme is just that - it will |
| example the read / write capabilities of the RFID | | | | need development |
| tags will ultimately be dictated by the business | | | | RFID system planning is crucial to its success but can |
| objectives. | | | | on its own be a major task. This combined with the |
| With the ability to write tags comes the ability to | | | | fact that you may have little or no RFID expertise |
| change data. This is considered by some to be a | | | | internally can prevent you from taking your first |
| very important feature of RFID, specifically when it | | | | steps to deciding if RFID is suitable to you and your |
| relates to the retail and warehousing industry where | | | | business. Specialist Materials Handing Consultants and |
| it is not just pallets and boxes, but also individual | | | | Supply Chain Consultants can assist you with |
| product items being tracked and replenished. These | | | | knowledge and experienced based RFID system |
| business operations, information needs, standards, | | | | planning and help you design a project plan with |
| customer requirements and other variables can all | | | | specific focus on: |
| change rapidly over a relatively short period of time. | | | | -Project Objectives & Scope |
| The RFID readers will be able to read tags at a rate | | | | -Resource Requirements |
| of several dozen tags per second; however the | | | | -Project Stages and Timescale |
| speed at which that data is processed into the | | | | -Project Milestones |
| system is limited and dependent on the network and | | | | -Integrator / Supplier Choice |
| database. The amount of data held on a tag will | | | | -Regular Technical Reviews |
| affect the read rates. This therefore means that the | | | | Investment into planning and consultative project |
| middleware, back end processing and management | | | | management at the outset can negate over |
| reporting systems must be wholly compatible with | | | | investment and additional cost in the longer term. |