EIN 5346 Logistics Engineering- Spring 2010

KATHARINE BARRANTES, INNA MIROSHNICHENKO,

SRI RAMYA KUKUNURI

Types of Logistics Information Management Systems

•RFID•Case Study•Ethical Implications

RFIDRadio Frequency Identification

What is Radio Frequency Identification (RFID) and How it Works

• Radio Frequency Identification (RFID) consists of a tiny silicon computer chip and an antenna

• Small electronic tag transmits data via a radio signal to RFID reader and related software and hardware

What is RFID and How it Works (cont.)

• Each chip can give a unique serial number to every product

• Its antenna helps remote scanners read the RFID tags• Chips do not have to be visible to the reading device• They read information through materials like fabrics,

wallets, and even cars and containers.• Tags can be mounted to a wide variety of surfaces

including polyester, nylon, rope, wire and steel.• RFID tags can be scanned at a distance of 69 feet

RFID Tags Can Tell• What the product is• Where it has been• When it expires• When and where merchandise is

manufactured, picked, packed and shipped

• Expiration dates • Numbers that will have to be

stored, transmitted in real-time and shared with warehouse management, inventory management, financial and other enterprise systems

• RFID tags can be read automatically by electronic readers

What is RFID

• http://www.youtube.com/watch?v=4Zj7txoDxbE

RFID Users• The U.S.A. Air Force use RFID

to improve business process ranging from tracking hazardous material to receiving goods from suppliers.

• Wal-Mart uses RFID for automatic inventory counting and locating goods in warehouse facilities.

• Ford will equip Ford F-150, F-Series Super Duty pickups and E-Series vans with an embedded RFID asset tracking system .

• Motorola embeds RFID tags in its handheld computers.

RFID for Proof of Delivery• Zetes provides the ultra high frequency

Gen2 ePOD system for facilitating electronic proof of delivery.

• Combines smart card technology with RFID and bar code scanning.

• Optimizes tracking and tracing• Reduces return claims and shrinkage.• Stores the information of what is

delivered and where it is stored.• Requires no integration with existing

systems and features software based on a touch screen interface.

• Error-free traceability throughout the entire supply chain.

• Provides proof of delivery. • Data and image used in verification

reporting.

RFID Provides Visibility• Integrating RFID data into video

images to provide higher visibility of supply chan.

• Users not only read the tag but view video images of the products in real time.

• Video images provides information for recovering transport costs due to damages.

• RFID and initPRO’s technologies give the location of the product and current condition at the moment of delivery.

• Facilitates the claims for transport damages or losses.

• The flow of goods is completely documented throughout the logistics centre.

RFID for Inventory Inspection and Certification Solution

• UPM & Marnlen, Inc supplies two new durable RFID options for both metal and non-metal applications.

• The metal application utilizes special materials to preserve the RFID tags readability.

• Provides an efficient & accurate way to conduct inspection and certification processes.

• Eliminates the physical paperwork and human error associated with manual processes.

• Designed to resists harsh as a high-volume of physical abuse, shock, UV radiation, temperature variability and moisture.

• Serving numerous industries including construction and fire and rescue services.

DAILY’S new Adhesive RFID on-metal Tag• DAILY RFID has launched a new

passive RFID series for on-metal industrial applications, such as railway and warehousing.

• The adhesive RFID tags are specifically designed to track products containing metal.

• Can be easily affixed to any metal surface with its self-adhesive 3M Glue.

• Each tag operates at 125 KHz or 13.56 MHz

• The RFID small size metal tags can provide an impressive read range from 40 mm to 100 mm.

CASE STUDY - DAILY’s DL910 for Parking Management

• The DL910 is DAILY RFID’s new all-purpose ultra high frequency parking control system, designed for parking areas.

• RFID technology in the parking control systems can:a. Automatically gather and send vehicle informationb. Increase parking efficiency and securityc. Reduce parking cost

• The RFID parking control kit contains:a. RFID tags in both adhesive and clipping formatsb. The DL910 RFID readerc. Management software

• The reader has a range up to 15 meters with multi-port interfaces• The DL910 authorizes cars moving in and out — keeping a log of

entry and exit times• Offers hands-free access to gated parking areas• Allows manage vehicles more efficiently and safely

Today and Tomorrow of RFID

• Radio frequency identification (RFID) tags will change the way industry tracks, traces, and manages assets.

• RFID will have major impact on manufacturing, retail, distribution, transportation, healthcare and pharmaceutical industries.

• RFID will improve operations management, inventory control and production security.

CASE STUDY - SENSEAWARE

NEXT GENERATION TECHNOLOGY SOLVING INDUSTIRES PROBLEMS THROUGH LOGISTICS AND TECHNOLOGY

Limitations of RFID Technology

• Item must be within range of sensor and with no interference (metal, liquid, walkie-talkies or nylon conveyors)

• Sensors must be provided and located throughout supply chain

• Only communicates data programmed in the chip and only those items that have passed through a location

• Imperfect (Estimated that 20% of tags don’t function properly)

What if you have industries in need of more control?

Tracking every aspect of logistics journey…

• Location• Temperature• Light• Security• Chain of custody

Types of Logistics Information Management Systems

A real solution enables several

or can potentially integrate all

Putting the pieces together

• http://mediacenter.fedex.designcdt.com/node/401v

More than just data, the ideal logistics solution will enable communication and collaboration• A surgical team collaborating with a spinal

implant company — monitoring that a safe temperature is maintained during transit, and enabling the OR to be prepped just ahead of the implant's arrival.

• A pharmaceutical company collaborating with both upstream and downstream supply-chain partners — monitoring millions of dollars of active ingredients to their manufacturing plant, then monitoring secure and temperature-sensitive transport from plant to wholesalers to clinics.

• A clinical trial administrator collaborating with a biotech company and a regulatory agency — monitoring the transport of blood and other light-sensitive compounds, with precise recordkeeping for documenting custodial control.

ETHICAL AND LEGAL IMPLICATIONSWe can track anything… but should we?

The darker side of RFID?

• http://www.youtube.com/watch?v=eob532iEpqk

Privacy Problems • The most important legal aspect of using

RFID technology relates to the infringement of individual privacy rights. RFID systems have the potential to track individuals in an unprecedented manner.

• The reader can read tags covertly without the consumer’s knowledge which is undesirable.

• If tags are placed on bags, clothing, cosmetic products, or any single retail item for that matter, information about the item can be linked to the purchaser to provide a more complete consumer profile.

• Also, the consumers whereabouts can be tracked

How would

you feel if

you were

followed

everywhere?

Illicit Use of RFID Information

• RFID Tags are world-readable and pose a risk to both personal location privacy and corporate/military security.

• Reader of tag can have access to the Customer’s credit card details and make use of it without the owner’s knowledge

• Important and confidential documents locations can be known

• Cloning and counterfeiting of the RFID tags can cause a lot of risk and problems.

Improper use in Medical and Pharmaceutical industry

• RFID tags can be used to track "sensitive-type" items such as customer’s pharmaceutical products and personal medical data without proper consent.

• Insurance companies may refuse providing insurance coverage for patients after having seen the patient’s records

Benefits of Using Technology Tracking in Logistics

• Helps retailers provide the right product at the right place at the right time.

• Increases visibility throughout the supply chain.

• Improves efficiency, cut costs, delivers better asset utilization.

• Reduces shrinkage and counterfeiting.

• Increases sales by reducing out of stock.

Principles of Fair Information Practice

Since, RFID technology not only has the ability to track products and persons, but also collect individual information, the Federal Trade Commission’s has laid some “Fair Information Practice Principles”

• Notice and awareness of collection of information. • Choice and consent of how this information can be

used. • Access to the individual’s gathered information and the

ability to contest the accuracy of the collected data. • Integrity and security of the collected data. • Enforcement of the aforementioned principles.

Summary and Conclusion• RFID can be used on a large-scale with the concept of “Let

the buyer beware”

• RFID technology and its implementation must be guided by strong principles of fair information practices

• There should be no secret databases and Tags must be transparent to all parties

• If used legally and properly, RFID Technology can be the next biggest emerging technology that will be widely accepted and used.

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