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The Future of Interconnected worlds, things and supply chains
Professor Sanjay Sarma
Auto-ID Labs at MIT
June 22, 2007
Page 2
Connectivity
Taken from CETECOM
Page 3
Standards soup
• Range vs data-rate trade-off
• Functionality horizon
• Functionality vs cost trade-off
• Technology cost
• Spectrum cost
Taken from CETECOM
Page 4
History (See “Shrouds of Time The history of RFID,” Landt 2001)
• 1948: Backscatter– Stockman, H. "Communication by Means of Reflected Power", Proceedings of the IRE,
pp1196-1204, October 1948.
• 1974: Automotive license plates– Sterzer, F., "An electronic license plate for motor vehicles", RCA Review, 1974, 35, (2) pp
167-175
• 1998: DISC, Auto-ID Center founded at MIT (Sarma, Brock, Ashton)
• 2001: First standards presented
• 2002: Gillette orders 500,000,000 tags from Alien
• 2003: Wal-Mart, DoD Mandates– EPCglobal launched, Center retired
– HP sits on the board
• 2004: More mandates
• 2005: First bulk tagging– Emergence of Gen 2
– Multi-site deployments
– Beginnings of value
• 2006: Next Generation research
• 2007: Metro, Airbus announce rollouts
Page 5
RFID Systems
• ID
– Electronic product code
– Read-write extra memory/sensory data
• Anti-collision
– One reader can read many tags
• Reader coordination
– Make sure readers don’t interfere with each other
• Middleware
– Collect all the data and make sense of it
Page 6
RFID
Page 7
Low cost RFID
time
5
10
15
20
die
siz
e/co
st,
cen
tshan
dlin
g co
st
Silicon: 4c/mm2
Page 8
Why is RFID expensive today?
increased chip size greater functionality
reduce functionality
(Networking & software)
reduce chip size
(handle small chips)
The Supply Chain
Page 10
Goods transfer in the retail supply chain: Good
intentions
CONTAINER
PALLET
CASE
SLEEVE
SINGLES
AGGREGATION TRANSFER
Back
Front
Manufacturing plant Manufacturer’s DC Retailer’s DC Retailer
TRANSFERSORTING SORTING TRANSFER
STAGING
TRANSFER
BASKET
Themes: timely transfer
error-proof operations
minimize shrinkage
Page 11
The road to chaos is lined with good(s) intentions
CONTAINER
PALLET
CASE
SLEEVE
SINGLES
AGGREGATION TRANSFER
Back
Front
Manufacturing plant Manufacturer’s DC Retailer’s DC Retailer
TRANSFERSORTING SORTING TRANSFER
STAGING
TRANSFER
BASKET
Too much inventory
Errors Shrinkage
Wasted effort
Mis-shipments Shrinkage
ErrorsInefficiencies
Shrinkage
Mis-shipments
wasted actionsPI resets
Don’task
HolesExtras
Page 12
Inventory
TAG EPC
TIME
LOCATIO
N
Page 13
The Trace
TAG EPC
TIME
LOCATIO
N
Theft!!
Counterfeit!Diversion!
Page 14
The Flow
TAG EPC
TIME
LOCATIO
N
RECALL!!!
Page 15
Supply Chain Problems
TAG EPC
TIME
LOCATIO
N
RFID enables• Real-time detection of errors• Real-time correction• Run-to-run improvement
i.e., tactical, operational,strategic enhancement.
Errors making plans less
effective
What folks are doing with RFID
Page 17
DISTRIBUTION CENTRE
Sending ASN to Store(s)
Sending ASN to Store(s)Completed
ASN 9903876 sent to Store 0563
ASN 9087244 send to Store 0477
Example 2: Shipping
Page 18
Page 19
STORE 0234
BACKRO
OM
SH
OPFLO
OR
Page 20
Other retail applications
• Out-of-stocks
– Back-room management
– BR-SF transition
– Display promotion
compliance
• Tracking valuable/sensitive
goods
– Storage and transport
– Display
– Insurance
• Cold Chain
– FEFO assurance
– Expiry/consumer safety
– Markdowns
• In-store tracking
– Pharmacy processes
– Loyalty cards
– Open-box items
– Returns management
– Warranty tracking
• Cycle-counting
– Apparel stock tracking
– Assortment monitoring
– Planogram compliance
• Shipping & Receiving
– Reusable assets
– Clamp sensors
Page 21
The future goes well beyond the supply chain
• Healthcare:
– Cold chain
– Hospital supply
– Home supply
• Telemedicine
• Smart cabinets
– Developing country care
– Counterfeit/dilution
• Heavy industries
– Asset management (active)
– Parts tracking
(passive/active)
– Equipment monitoring
– Wireless sensors
• Environment
– Recycling
– Disposal and dumping
– Environmental sensing
• Transportation
– Traffic management
– Railways
– Cylinder tracking
– Container tracking
• Building management
– Building controls
– Health and safety
– Maintenance assurance
Page 22
Example: Applications of RFID in Hospitals
• People
– Tracking infirm patients
– Tracking babies
– Tracking doctors and staff
• Equipment
– Tracking mobile units
– Tracking wheel-chairs andother patient equipment
• Blood
– Tracking blood from bank tostorage to hospital
– Ensuring cold-chaincompliance
• Paperwork
– Tracking of X-Rays
– Tracking of documents
• Medicines and Medical Devices
– Tracking pill dispensation
– Consignment tracking ofstents, pacemakers, etc.
– Cold-chain compliance
– FDA is now requiring uniquenumbering and tracking
– Detecting counterfeits
• Operation Theater
– Tracking of instruments andhistory
– Ensuring that sponges,instruments leave the patient
• Emergency Services
– Making sure thatkits/ambulances havenecessary equipment
Opportunities
Page 24
The opportunities
Technology
• Tags
• Semiconductors
• Packaging
• Protocols
• Antennae
• Readers
• Middleware/Reader
• Middleware
• Databases
• Enterprise architecture
• Distributed systems
• Identity management
• Business process
Applications
• Supply chain
– Retail
– Healthcare
– B2B
– Critical goods
• Logistics
– Travel/airports
– Defense
– Heavy industries
– Asset management
• Operations
– Factory
– DC/warehouse
– Institutions
– Maintenance
• Personal systems….
Analysis
• RF Systems
• Communications
• Security
• System dynamics
– Supply chain
• Planning
• Execution
• Policy
– Demand planning
• Social/ethical
• Business planning
• Macroeconomics
• Policy/frequency
Page 25
References
1. University of St Gallen (2004)
2. Credit Research Foundation (2003)
3. National Retail Security Survey (2003) (University of Florida;
Centre for Studies in Criminology and Law)
4. Gruen, Corsten, Bharadwaj (2002) “Retail Out-of-Stocks”
5. National Retail Security Survey (2002)
6. J.–P. Emond, University of Florida (2006)
7. EPCglobal (2005)
8. EPCglobal Promotions Vignette (2006)
9. D. Mishra, Pepperdine University (2006)
10. US Department of Commerce (2005)
