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Overview

Discover how RFID can save your business money

See what goes into an RFID set-up, choose your equipment, and test your system

Is the rush to implement RFID causing you sleepless nights? Take heart! As more and more retailers require their suppliers to get on the RFID bandwagon, this book can save the day. Even if you're IT challenged and skipped physics class, you'll discover how RFID works and how to set up and deploy your network — just in time.

Discover how to

  • Plan your RFID implementation
  • Evaluate and choose system components
  • Compare types of RFID tags
  • Assess your site
  • Set up and test readers
  • Administer and maintain your system
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Editorial Reviews

From Barnes & Noble
The Barnes & Noble Review
After you succeed, you can decide whether to tell the CEO that you ran your entire RFID planning and deployment process out of a For Dummies® book. You should, though. RFID For Dummies is the most realistic, practical, usable RFID guide we’ve ever seen.

Author Patrick J. Sweeney II runs a leading RFID infrastructure software and services company; he’s got several RFID patents in the works. He knows the reality of RFID as well as anyone -- at the business, process, and technical levels. In this book, he takes on the knotty issues instead of finessing them. (How do you make sure your testing correlates to what you’ll actually see in the warehouse? How do you ensure high-speed reads? How far will tag prices really drop, and when?)

Sweeney begins with one of the clearest explanations of the technology and the business drivers we’ve ever read. Next, he introduces his “Four Ps” methodology for driving value from RFID: planning, physics, pilot, production. You’ll get solid answers to questions like: How do you identify the right applications, and integrate RFID into your business processes? How do you systematically understand your electromagnetic environment? How do you capture all the knowledge your pilot should deliver? How do you organize deployments so they’re easier to manage afterward? Once you’ve successfully deployed, what do you do next?

There’s even a full section on “speaking bean counter”: a nine-step process for making the business case; how to align RFID initiatives with your company’s strategic plans; how to evaluate outsourcers. Don’t let Sweeney’s entertaining writing mislead you. There’s nothing “fluffy” about this: It is the definitive guide to making RFID work. Bill Camarda, from the May 2005 Read Only

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Product Details

  • ISBN-13: 9780764579103
  • Publisher: Wiley
  • Publication date: 4/1/2005
  • Edition number: 1
  • Pages: 408
  • Sales rank: 823,606

Read an Excerpt

RFID For Dummies


By Patrick J. Sweeney

John Wiley & Sons

ISBN: 0-7645-7910-X


Chapter One

Taking the Mystery out of RFID

In This Chapter

* Discovering RFID

* Getting a handle on the technology

* Figuring out what you need to know

* Knowing what to expect in the future

With all the recent hype over radio frequency identification (RFID) and the requirements to implement it, you might think that RFID can turn water into wine, transform lead into gold, and cure the world's diseases. You might also be worried that RFID will enable Big Brother to track your movements to within a foot of your location from a satellite five hundred miles up in space. The truth is, RFID can do none of these things.

In this chapter, you find out the basics of what RFID is, what forces are driving RFID as a replacement for the bar code in the marketplace, and what benefits RFID can offer.

If you are responsible for complying with high-profile mandates from one of your suppliers or customers, this chapter also offers a framework to help you begin setting up a system and making it work within your existing business process. The bad news is that an RFID implementation is a daunting project even at a minimal compliance level, sometimes referred to as slap and ship or, more appropriately, tag and ship. The good news is that the benefits to the business are substantial, particularly if your trading partners are involved. RFID technology is here to stay, sothe sooner you understand it, the quicker you can make key strategic decisions for your company.

What Is RFID?

RFID is a very valuable business and technology tool. It holds the promise of replacing existing identification technologies like the bar code. RFID offers strategic advantages for businesses because it can track inventory in the supply chain more efficiently, provide real-time in-transit visibility (ITV), and monitor general enterprise assets. The more RFID is in the news, the more creative people are about its potential applications. For example, I recently heard from someone who wanted to use RFID to track fishing nets in the North Sea.

The origins of RFID in inventory tracking

Wal-Mart has spent millions of dollars since the late 1990s researching the efficacy of RFID systems to replace bar codes (which have been in use since the days of The Brady Bunch and Gilligan's Island - that's the early 1970s, for those of you with all your hair left).

In 1999, with the help of scientists at the Massachusetts Institute of Technology (MIT), a consortium of companies formed the Auto-ID Center - a center for continued research into the nature and use of radio frequency identification. The consortium had a new idea about how organizations could identify and track their assets. The vision underlying automatic identification (or Auto-ID) is the creation of an "Internet of Objects." In such a highly connected network, devices dispersed through an enterprise can talk to each other - providing real-time information about the location, contents, destination, and ambient conditions of assets. This communication allows much-sought-after machineto- machine communication and decision-making, rendering humans unnecessary and mistakes a thing of the past.

Today, Auto-ID can track not only enterprise assets, but also the movement of products, containers, vehicles, and other assets across vast geographic areas. For more about the Auto-ID Center and the current organizations involved in developing RFID technology, see Chapter 2.

Tracking goods with EPC codes

RFID is actually nothing new. Just as goods today have bar codes, goods in RFID systems have codes that enable systems to share information. Because the mandated RFID systems require businesses to share information with each other, the different systems need to use the same code - the electronic product code (EPC). The EPC is the individual number associated with an RFID tag or chip.

The EPC was developed at MIT's Auto-ID Center in 2000 and is a modern-day replacement for the Universal Product Code (UPC). A tag's embedded EPC number is unique to that tag. However, the EPC protocol is universal to all EPC-compliant systems and serves two specific functions:

  • Telling how data is to be segregated and stored on the tag, or what is also known as the numbering scheme.
  • Determining how the tags and readers communicate (also called the air interface protocol).

Wal-Mart, like other large retailers, had more pragmatic issues at hand when they established an RFID requirement for their suppliers. Under Wal-Mart's mandate, each supplier is required to identify their products not by bar codes and waybills, but through EPCs that are automatically broadcast by RFID tags as new products arrive at the retailer's warehouse, distribution center, or store. In Chapter 2, I explain how EPC works in more detail.

Sizing Up the Benefits of RFID

Capturing inventory as it arrives from the supplier is the first step in a company-wide tracking system that "knows" where every item is throughout its lifetime in the store. This tracking offers retailers tremendous insight into their inventory, which enables those retailers to control costs and reduce investment on inventory, which means lower prices and better competition for consumers.

Having better information about inventory offers retailers all sorts of potential benefits. The retailers know how much inventory is still on pallets in the warehouse, how much is on its way to distribution centers and stores, and how much is currently on the shelves in each of its stores. With this knowledge, retailers have the foundation for measuring product consumption, seeing buying patterns, and controlling inventory more efficiently. Through this process, a retailer ensures that its shelves are stocked and that customers can buy high-volume products (such as razor blades, diapers, and toilet paper) when they need them and in the quantity they need.

Of course, businesses don't spend money unless they expect to make money off that investment. Major retailers believe that a comprehensive RFID program - tying suppliers to inventories to retail outlet shelf stock - will generate savings of around 10 to 16 percent, based simply on inventory cost reduction in each of their distribution centers (DCs). This translates into billions of dollars in savings each year - a pretty impressive result by any measure. The benefits can extend to other applications beyond retailers: Third-party logistics companies can speed up their billing cycle and create a new revenue stream with RFID; government agencies can reduce loss and increase security; museums can reduce cost to conduct inventory; sports teams can increase sales at games - the applications are limitless.

In an RFID system that uses an electronic product code (EPC) or similar numbering scheme, the following RFID attributes lead to those kinds of savings:

  • Serialized data: Every object in the supply chain has a unique identifying number.
  • Reduced human intervention: RFID allows tracking automatically without needing people to count or capture data or scan bar codes, which means reduced labor costs and fewer errors.
  • Higher throughput supply chains: RFID allows many items to be counted simultaneously.
  • Real-time information flow: As soon as an item changes state (off the shelf, out of a truck, sold to customer), the information can be updated across the supply chain.
  • Increased item security: Tagging items allows them to be tracked inside a confined facility or space.

In the following sections, I explain each of these benefits in more detail. In Chapter 2, I compare RFID to other auto-identification technologies, like the bar code, and offer tips for developing an overall Auto-ID strategy so that you see how you might apply RFID's benefits to your own business.

REMEMBER

Obviously, there is a genuine reason for the excitement surrounding RFID and the EPC. People are anxious to implement the technology so they can track supplies from the factory to the foxhole, or from the grower to the grocer. Much like the excitement surrounding the Internet, RFID carries the promise of a very disruptive technology with substantial future rewards. The excitement (dare I say hype?) needs to be tempered by the real-world limitations of the technology and the laws of physics. Adding to the practical limitations of today's RFID technology is a deluge of misinformation and broken promises. Today's marketplace dynamic is the cause of much of this RFID heartache. I introduce a well-balanced approach to RFID in "Finding Success with Four Ps in a Pod," later in this chapter, to make sure that you stay on an even keel and take a pragmatic, process-driven approach to the technology.

Tracking individual items with serialized data

Serialized data means that each item has its own unique identifier or serial number. This helps an enterprise

  • Keep very accurate account of each item in the supply chain or property list. Instead of knowing that there are 1,000 boxes of Cap'n Crunch (get it? serialized data) in the back room, a grocer knows which box has been sold and which one has been sitting there for a long time.
  • Know which item was produced where, in companies that produce the same item at multiple plants. This is critical for tracking total quality, aiding in recalls, verifying warranties, and so on.
  • Prevent counterfeiting and diversion. Serialized data allows items such as high-cost drugs to travel through a supply chain while recording every stop they make.

The benefit of serialized data is better inventory control, reduced loss, reduced carrying cost, and improved customer satisfaction (customers at every level, not just walk-in-off-the-street Joe Brown). Each of these advantages over the existing system has a benefit of reducing cost and improving productivity (another way of saying the same thing!).

RFID tracks individual items by associating the unique EPC number to a secure database. This concept is often likened to license plates. Just like the DMV knows who owns a car by looking up the license plate number on a central server, an RFID system can pull up a limitless amount of information about a tag based on its unique identifier.

In some instances, particularly with active tags, the RFID tag allows all the critical information to be stored directly to the tag. No need to look to a database - all the info is right on the tag. This technology can be very useful in instances such as the shipment of military supplies to overseas theaters, where accessing a central database is nearly impossible.

Reducing human intervention

Thousands of applications require humans to scan an object with a bar code scanner or read information on a label. When you check out at the supermarket, the checker has to pass each item in your cart over the lasers that scan the bar codes. RFID technology has the potential to eliminate this human intervention. If all your groceries had RFID tags, you could walk straight out the door and have all the items in your basket read automatically as you passed by a portal, with no need to take things out and scan them.

Think about cases of items coming off of a tractor trailer into a distribution center. Today, someone scans each box one at a time with a bar code scanner and often sticks a label on the box as it leaves the truck. From a logistics perspective, RFID can automatically verify a shipment, optimize cross-docking and flow of goods, and automate much of the pick-and-stow functions. With RFID, things can move off the truck by the pallet-load. Hundreds of items can be read simultaneously, and the data can immediately hit the inventory system as being on-site, identifying what it is, where it came from, where it's going, and so on.

The benefit of having fewer human hands involved is reduced errors, which produces reduced costs, faster throughput, and reduced damage and returns. The overall implication of reduced human intervention, given the high cost of salaries, benefits, and the cost of management associated with crews of human workers, is a dramatic reduction in operating costs.

Automated toll systems are a prime example of how the lack of human intervention saves both time and money. Remember how long the lines at highway tollbooths used to be? This was especially annoying if your daily commute was on a toll road. With automated toll systems (made possible by RFID), no longer does a car have to stop to hand cash to an exhaust-inhaling person stuffed in a 2-x-3-foot box all day. Zoom by and smile. Less traffic, lower cost, elimination of a hazardous job. Thank you RFID!

Moving more goods through the supply chain

Supply chains that can move more goods (also called higher throughput supply chains) reduce processing time, which leads to reduced costs, higher turnaround for billing customers, improved cash flow, a better bottom line, and, of course, reduced error rates, which also contribute to improved customer service. This leads to better customer retention, higher sales, and an increase in profitability and throughput performance.

Before RFID systems became a viable Auto-ID technology, systems with highvolume throughput (airline luggage handling, package delivery, road race participants) all had to be read one item at a time because a bar code scanner can read only one bar code at a time. Whenever only one item is read at a time (manually or with a bar code), the maximum throughput is - you guessed it - one.

Entire systems were designed around processing one as quickly as possible. Fred Smith, the CEO of FedEx, spent millions trying to figure out how to collect one package at a time and read it in the shortest amount of time as it goes down a very high-speed conveyor. That was the design goal of systems that required optimization of a one-at-a-time bottleneck.

RFID changes all that by allowing a whole bundle of packages, a trailer of luggage, or tens of runners to be read all at once, greatly increasing throughput. With RFID, you can read hundreds of objects all nearly simultaneously. No longer will systems be designed to optimize the speed of one; rather, they will be designed using the laws of physics to maximize the number of simultaneous reads.

Capturing information in real time

Real-time information can help you reduce costs, improve sales, increase cash flow, allow for specialized servicing and manufacturing for top customers, and thus capture a larger market share and improve overall capitalization per client and per employee. Because you know, in real time, where everything is, you can deliver on promises, reduce errors, increase customer loyalty, reduce waste, optimize materials use, and directly impact the tactical (departmental) and strategic (corporate and division-level) bottom line.

If time is money, information is insurance. What is on a store shelf, off the shelves, selling well, about to spoil, running low in back, and missing is all critical information to a retailer, producer, or supplier.

An RFID system can also allow machine-to-machine communication and automated decision-making. Automated decision-making is based on two principles of RFID: lack of human intervention and real-time information flows. In real time, a conveyor can close a gate and route a package at 600 feet per minute from one line to another line all because it reads the data off an RFID tag and retrieves a command specific to that individual item (it's that serialized data benefit again).

Increasing security

RFID's increased security means improved delivery and control and increased anti-counterfeit measures, as well as theft reduction, which leads to a significant reduction in costs.

If you are responsible for the tracking and accounting of property items, or if shrinkage to you is more than what happens when you jump into that frigid Cape Cod Bay, RFID is a dream come true. (Shrinkage in an inventory sense is the loss or theft of items in the supply chain.) The ability to permanently affix a tag to every item of value in a location and know exactly where that item is at all times as it passes through various doorways is something no other technology can offer. From a security perspective, RFID's ability to track and trace property can help everything from the war on terrorism to anti-fraud and anti-counterfeit measures. Here are some examples:

  • The pharmaceutical industry not only deals with fake drugs being passed off as the real deal, but is fighting a multibillion-dollar issue of diversion. Drugs have different price scales for different buyers. Distributors know who pays less for drugs - like hospitals and nursing homes - and some less-than-upstanding distributors take advantage of these price differences to illegally turn a profit. See Chapter 6 for more details.

(Continues...)



Excerpted from RFID For Dummies by Patrick J. Sweeney Excerpted by permission.
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.

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