Efficient Supply Chain Management with

SAP Solutions for RFID

Tobias Götz, Sasan Safai, Philipp Beer

Contents

1 Introduction ................................................ 3 RFID-Enabled Integrated Outbound

Structure of this SAP PRESS Essentials Scenario ................................................ 26
Guide .................................................... 3 RFID-Enabled Inbound Processing ....... 27
Target Audience .................................... 4 3.6 Other Application Areas of
RFID Technology .................................. 29
2 Introduction to RFID Technology ...... 5 Military Uses ......................................... 29
2.1 System Components ............................. 5 Production ............................................ 29
RFID Tag (Transponder) ........................ 5 Access and Ticketing Systems ............... 29
Gen 2 Tags ............................................ 6 Plant Maintenance ................................ 29
Reader ................................................... 7 Livestock Identification ......................... 29
Writer ................................................... 8
EPC Repository ..................................... 9 4 Architecture of SAP AII 4.0 ................... 31
Product Description Language ............. 9 4.1 SAP AII 4.0—Technical Overview ........ 31
Device Controller ................................. 10 Device Integration ................................ 32
Electronic Product Code ....................... 11 SAP Auto-ID Infrastructure .................. 34
2.2 Physical Principles ................................. 12 Integration in the Slap-and-Ship
2.3 Data Transfer ......................................... 13 Scenario ................................................ 36
2.4 Frequencies ........................................... 15 4.2 Integrating SAP AII ............................... 37
Overview of Frequency Ranges ............ 15 Installation ............................................ 37
Preferred Frequency Ranges for Customizing SAP AII ............................. 39
Smart Labels ......................................... 16 Hardware .............................................. 41

3 Processes and Application Areas ........ 17 5 SAP AII Functions in the Standalone
3.1 Challenges ............................................. 17 Scenario ........................................................ 43
3.2 Reasons to Use RFID ............................ 18 5.1 Properties of the Standalone
3.3 Slap-and-Ship Scenario (Standalone Scenario ................................................ 43
Scenario) ............................................... 21 5.2 Requirements for Using the Standalone
Scenario with Stationary Readers and Scenario ................................................ 43
Desktops ............................................... 22 5.3 User Interfaces ...................................... 45
Scenario with Mobile Readers .............. 23 Desktop UI ............................................ 45
3.4 Returnable Items Scenario ................... 24 Mobile UI .............................................. 46
3.5 RFID-Enabled Integrated Scenarios ..... 26 SAP GUI ................................................ 46

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Contents

5.4 Outbound Processing in the Standalone Company Profile ................................... 75

Scenario ................................................ 47 Reasons and Motivation for
5.5 Slap-and-Ship Outbound Process Using the RFID Project ................................... 75
the Desktop UI/SAP GUI ...................... 48 Conditions ............................................ 75
5.6 Slap-and-Ship Outbound Process Using Project Setup and Success Factors ....... 75
the Mobile UI ....................................... 50 Process Implementation ....................... 75
5.7 Returnable Items Scenario .................. 51 7.3 Healthcare Supplier .............................. 77
Detailed Process ................................... 53 Company Profile ................................... 77
5.8 Monitoring and Reporting .................... 56 Reasons and Motivation for
the RFID Project ................................... 78
6 Functionality of SAP AII in the Process Implementation ....................... 78
Integrated Scenario ................................. 59 7.4 Postal Company .................................... 79
6.1 Business Processes in the Integrated Company Profile ................................... 79
Scenario ................................................ 59 Reasons and Motivation for
Potential Ways to Optimize the the RFID Project ................................... 79
Supply Chain ......................................... 59 Process Implementation ....................... 80
Innovations in an Integrated 7.5 University Hospital in Jena,
RFID-Enabled Supply Chain ................. 60 Germany ............................................... 81
Prerequisites for Using the Integrated Company Profile ................................... 81
Scenario ................................................ 61 Reasons and Motivation for
System Prerequisites ............................. 61 the RFID Project ................................... 82
Customizing Settings ............................ 61 Process Implementation ....................... 82
6.2 Process of the Integrated Scenario ....... 62
Outbound Process ................................ 62 8 The Next Release and Beyond ............. 83
Inbound Process ................................... 70 8.1 SAP Object Information Service ........... 83
BAPIs in SAP AII .................................... 72 8.2 KANBAN Process .................................. 86
8.3 SAP AII Studio ...................................... 86
7 Real-Life Examples and Customer 8.4 IUID Marking ........................................ 87
Projects ......................................................... 73
7.1 World Kitchen ...................................... 73 A Glossary ........................................................ 91
Company Profile ................................... 73
Reasons and Motivation for the B Literature ...................................................... 97
RFID Project ......................................... 73
Implementation Method ...................... 73 C List of Abbreviations ............................... 99
Process Implementation ....................... 74
7.2 Purdue Pharma—Customer from the Index .............................................................. 101
Pharmaceuticals Industry ...................... 75

2 © Galileo Press 2006. All rights reserved.

1 Introduction
The term Radio Frequency Identification (RFID) describes
a real-time procedure that facilitates both the flow of
information and the flow of goods. RFID tags—often also
referred to as RFID labels, RFID chips and transponders—
are attached to goods, boxes, or pallets and enable you
to constantly monitor the movement of goods. The RFID
solution SAP Auto-ID Infrastructure (SAP AII) bridges the
gap between the entry of such information and its inte-
gration into the business processes. It thus functions as a
middleware.
SAP AII receives and processes data that is provided
by RFID readers. The data that is acquired in this way can
be filtered in real time and then be made available for
further use in downstream supply-chain processes in an
ERP system. Especially with regard to the flow of goods,
the use of this data optimizes predominantly the speed,
transparency, and ease of integration in the company.
This SAP PRESS Essentials Guide describes how you
can optimally implement SAP AII in the supply chain. It
introduces the basic principles related to the subject of
RFID. The Guide describes in a clearly understandable
way the basic principles and use of RFID tags, readers,
and frequencies. It further describes the basic physical
principles and interdependencies of RFID tags, readers,
and key factors such as frequencies and materials. Stan-
dardizations commonly used today are also dealt with.
Particularly in the supply chain, you can handle many
processes more efficiently and simply by using RFID. RFID
also helps you to avoid delivery problems. On the basis
of daily goods receipt and goods issue processes, this SAP
PRESS Essentials Guide describes the functionality of the
SAP Auto-ID infrastructure. It also treats the enhanced
functionalities of Release 4.0 such as the traceability of
containers and reusable transport packaging, as well as
other enhancements in the reporting.
Structure of this SAP PRESS Essentials Guide
Chapter 2 provides an introduction to the RFID technol-
ogy. You'll learn about the required system components:
from the tag architecture, to RFID readers and writers,
to the back-end information system, and the electronic
product code. You'll also get an introduction to the major
physical principles of data transfers via electromagnetic
waves and frequencies.
Chapter 3 contains an overview of the business pro-
cesses that are enabled by the RFID technology. This
chapter introduces the different areas of usage and the
business processes and scenarios supported in the sup-
ply chain.
Chapter 4 introduces the architecture of SAP AII. The
chapter describes the structure of SAP AII and how it is
integrated into SAP NetWeaver. It also provides informa-
tion on the technical prerequisites as well as interfaces
and integration requirements.
Chapter 5 and Chapter 6 focus on the two central
scenarios: First you'll learn about the functionality of
SAP AII in a standalone scenario, including the necessary
requirements. Chapter 6 then describes the process steps
involved in using an integrated SAP ERP/SAP R/3 system
in great detail. The descriptions are illustrated with many
screenshots from the system. Aspects such as master data
maintenance and monitoring are also briefly discussed.
Chapter 7 contains first-hand information from pilot
projects that have been carried out in companies from
several different industries.
Chapter 8 provides first insights into the release plan-
ning for the next release of SAP AII and future strategic
plans of the development of SAP solutions for RFID.
The Appendix provides a glossary of the most impor-
tant RFID terms, a bibliography, and a list of abbrevia-
tions used in this book.
www.sap-press.com 3
1 Introduction
Target Audience
For those who are new to the RFID concept, this SAP
PRESS Essentials Guide provides solid basic informa-
tion on the technical principles and the business pro-
cesses that can be mapped using SAP AII. RFID experts,
for their part, can use this book for reference purposes
4 © Galileo Press 2006. All rights reserved.
in order to quickly obtain the relevant information on
technical details and enhancement options when imple-
menting SAP AII. In general, readers should have a basic
understanding of supply-chain processes as well as basic
knowledge of SAP business software.
5 SAP AII Functions in the Standalone Scenario
This chapter describes the functionality of the standalone
scenario of SAP Auto-ID Infrastructure (SAP AII). Before
going into the details of the processes involved in that
scenario, the chapter describes the properties of the sce-
nario and discusses the differences between the stand-
alone and the integrated scenarios.
5.1 Properties of the Standalone Scenario
As mentioned in Chapter 3, the standalone scenario is
intended to provide a simple RFID solution that can be
implemented quickly and cost-efficiently. Customers who
decide on this solution often want to find out the ben-
efits of using RFID in their business processes before they
implement the technology in a larger environment.
The subdivision of SAP AII for different scenarios pro-
vides a high degree of scalability. Starting from a pilot
project, customers can move step by step toward an end-
to-end business solution in the integrated scenario that
maps to standard business processes. The technology
required for this is provided by SAP NetWeaver, which
was described in detail in Chapter 4.
The requirements of the standalone scenario of SAP AII
have been implemented in all usage cycles of the solution,
which began with the general implementation. The imple-
mentation effort is drastically reduced, thanks to the use
of preconfigured slap-and-ship processes and preconfig-
ured reporting functionality via the optional SAP Business
Information Warehouse (BW). The reporting functions are
described in greater detail in Section 5.6.
As the standalone deployment option does not require
any back-end integration, the effort for setup and instal-
lation is low. In addition to the standard business pro-
cesses already contained in the solution, you can quickly
and easily implement new requirements using the rule
processor described in Chapter 6. Because the SAP solu-
tion can be used out of the box, there is no additional
configuration work to be done. The architecture of SAP
AII allows you to implement the RFID middleware with-
out having to replace or modify the existing landscape.
The architecture has been designed in such a way that
it can be extended gradually. Moreover, system updates
are made available as support packages in order to ensure
the compliance with standards, eliminate potential pro-
gram errors, and close important security gaps.
5.2 Requirements for Using the Standalone
Scenario
To successfully use the standalone scenario, you must
enter a few settings in the system prior to the first start.
First, the electronic product code (EPC) version to be
used must be entered after the installation.
This way, you can decide which EPC version meets
your specific requirements. Note that this decision can-
not be undone once the EPC version has been used for
the first time. SAP AII supports several of the EPC ver-
sions mentioned in Chapter 2. Figure 5.1 shows how to
select an EPC variant in SAP AII.
Furthermore, you must choose the device communi-
cation settings (see Figure 5.2).
In this context, Customizing controls the services that
are responsible for the connection to other devices linked
to the RFID middleware. The actual connections to the
devices are then created in the integration settings using
the previously enabled services (see Figure 5.3). In this
context, you must distinguish between HTTP and RFC
connections.
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5 SAP AII Functions in the Standalone Scenario

Figure 5.1 Setting the EPC Version to be Used

Figure 5.2 Overview of Internal and External System Connections Figure 5.3 Sample RFC Connection to a Device Controller

You also must set the data profiles and print settings. For
instance, you can select the fields to be printed and posi-
tion them in the tag layout.

44 © Galileo Press 2006. All rights reserved.

 5.3 User Interfaces

Figure 5.4 Assigning Label Formats to Profile and Printer Device Group

These settings, which are shown in Figure 5.4, are rel- UI Area of Use Technology
evant to the format of the printed tags and—along with Desktop UI Designed for daily operations Web Dynpro
the values in the profile—represent the print output. A and execution
process for operational exception handling must be set up Mobile UI Built for running on mobile Web Dynpro
to deal with unexpected events such as a printer failure. devices to perform mobile
transactions
The standard version does not contain any reason keys
SAP GUI To be used for setup, custo- SAP GUI/Dynpro
for unexpected events, but you can define them to meet
mizing, and configuration
your requirements. The reason keys provide a predefined
Table 5.1 Overview of Available User Interfaces
explanation for an unforeseen incident that occurs at
runtime. Product and device settings must be maintained
in the master data. These settings are required in order to Desktop UI
be able to define product hierarchies. The product hier- The desktop user interface (UI) can be used in specific sce-
archies specify the types of units and the quantities in narios. The relevant categories are:
which the items are to be packed. The most powerful 왘 Execution
settings in the solution include the definable conditions 왘 Monitoring
and rules. 왘 Exception handling

The execution supports the picking of tags, packing,

5.3 User Interfaces
The SAP Auto ID Infrastructure provides several user
Interfaces for different purposes (see Table 5.1).
loading, and the assignment of documents. Monitoring
focuses on the statuses of documents, object queries,
and unexpected events. Exception handling enables you
to either correct the latest step performed (for instance,
to un-assign EPCs from a document) or to perform the

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5 SAP AII Functions in the Standalone Scenario
Figure 5.5 Exception Handling Using the Desktop UI
next expected step manually (without scanning). If tags
have been misread, this can be easily corrected (see Fig-
ure 5.5). In summary, the desktop UI is suited for the
daily operation and exception handling to be performed
by the warehouse operator.
Mobile UI
In case the process requires a mobile device at a certain
process step, SAP AII provides a browser-based mobile UI
that runs on such devices as mobile readers and printers.
Figure 5.6 Menu Structure of the Mobile UI
46 © Galileo Press 2006. All rights reserved.
The user interface for mobile devices enables you to per-
form the following tasks (see Figure 5.6).
왘 Pack, move, and load items, crates, and pallets
왘 Assign and close documents or undo a document
assignment
SAP GUI
In addition to the desktop UI and the mobile UI, you can
also use the classical SAP GUI, which is an established
SAP technology. The application server sends data to SAP
GUI and receives data from it whenever R/3 application
screens are displayed. In this context, the SAP GUI pro-
cess interacts with one or several front-end processes.
The classical SAP GUI is predominantly used for the
setup, customizing, and configuration of SAP AII. How-
ever, you can also use it as a user interface for business
scenarios in the standalone scenario. An example of this
use is the transaction used for writing RFID tags, shown
in Figure 5.7.

Figure 5.7 SAP GUI Transaction for Writing and Verifying RFID Tags
5.4 Outbound Processing in the Standalone
Scenario
The outbound process can be supported in the stand-
alone mode of the SAP AII in order to dispatch goods.
This process does not require the integration of an exter-
nal system such as SAP R/3 or mySAP ERP. It enables the
execution of simple slap-and-ship goods issue, while at
the same time providing a platform for migrating to the
integrated scenario. This way, you can roll out the RFID
solution on a broader basis at a later stage.
The standalone scenario supports the following pro-
cess steps:
왘 Tag encoding
왘 You can print tags using either the mobile UI or
the desktop UI.
왘 You can use the mobile UI or the desktop UI to
write EPCs to new tags.
5.4 Outbound Processing in the Standalone Scenario
왘 Packing with or without document assignment (see
Figure 5.8)
왘 The packing itself can be carried out using station-
ary readers for packing and the desktop UI.
왘 In addition, packing can be done using the mobile
UI.
왘 Automatic packing is possible, for instance by
using a conveyor belt process without the need
for a UI.
왘 When using tags that already have been encoded,
the crates and pallets can be automatically
scanned once the pallets have been physically
packed.
왘 Loading
왘 The loading process can be carried out using
stationary readers for loading along with the
desktop UI.
왘 Loading also can be carried out using a mobile
device and the mobile UI.
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5 SAP AII Functions in the Standalone Scenario
Figure 5.8 Assigning a Document ID to a Device Group
5.5 Slap-and-Ship Outbound Process Using
the Desktop UI/SAP GUI
This section describes the process flow of the standalone
scenario (see Figure 5.9) using SAP GUI. The flow of the
goods-issue process in the standalone scenario begins
with the completion of production. The crates to which
no tags have been affixed yet arrive in a specific sequence
on a conveyor belt. In the first step, you must assign the
document ID and key fields including the Global Trade
Item Number (GTIN) from a production order to a device
group on the conveyor belt.
Then a stationary reader registers a crate on the con-
veyor belt. The device controller sends an observation
message to the SAP AII rule processor via the messaging
mechanism. The rule processor performs the following
activities:
1. Create EPC to write
Here, a unique EPC is created based on the GTIN of
the product.
48 © Galileo Press 2006. All rights reserved.
2. Print tag
The rule processor sends a message to the RFID
printer or device controller, which in turn writes the
EPC to the tag and prints it out. The tag is written
by a stationary RFID device and affixed to the crate
along with the label.
After that, an RFID device on the conveyor belt reads the
new EPC on the crate. This, in turn, causes the device
controller to send an observation message to the rule
processor, which carries out the activity Verify Written
Tag. This way, the system makes sure that the EPC has
been written successfully. In order to check the quality of
this process, the system measures the percentage of tags
that have been read successfully.
Once the picking process has completed, packing can
begin. When the crates arrive at the packing station, they
are read by a stationary RFID device. The device con-
troller once again sends an observation message to the
rule processor that verifies and registers the crate EPCs as
objects of the same pallet. In addition, the system regis-
ters each crate in the stock inventory. Once a pallet has
 5.5 Slap-and-Ship Outbound Process Using the Desktop UI/SAP GUI

User SAP AII 4.0 Preconfigured BW RFID

Device

Generate EPC Tag picking

for crates (RFID printer)
Tag is affixed
Tag Picking

to crate

Heat-seal Generate Tag picking

pallets pallet EPC (RFID printer)

Affix pallet
tags to
plastic film Scan
packed Stationary
Pack

Optional check of EPC,

pallets to reader at
place, and time for this
associate packing station
process step
crates with
pallets

Move/ Stationary
scan pallets Optional check of EPC, reader at
Load

using place, and time for this packing station

loading reader process step

Figure 5.9 Process Flow in the Standalone Scenario of SAP AII

been completely packed, the printout of a pallet EPC can
be triggered from the UI (see Figure 5.10). The printed
pallet EPC then can be manually affixed to the pallet
Figure 5.10 Creating a Pallet EPC
This EC is stored in the system, and all crate EPCs that
are located on this pallet are associated with it. The last
step in the goods-issue process of the standalone sce-
nario involves the loading of the pallets. In this step, the
document IDs are assigned to a reader at the loading sta-
tion. The reader reads the pallet EPCs and most of the
crate EPCs. A notification message then is sent to the
rule processor. This message can define how many of the
crate EPCs must be read so that the read process can be
regarded as successful. For example, a read process can
be considered successful if 80% of the crate EPCs that are
assigned to the pallet are read. In the standard version,
the rule processor carries out the following actions once
it receives the notification message.
1. Validate
Validate EPCs
2. Register
Write information to the database
3. Remove stock
Delete information on all objects that have been
loaded from the stock table

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5 SAP AII Functions in the Standalone Scenario

If a corresponding Web service is loaded, shipping noti- to evaluate actions for a specific delivery. Object infor-
fications can be sent now. A reliability check is also per- mation, such as the assignment of crates to a pallet, is
formed at the end of this process step. This check consists recorded during the packing process.
of a comparison between the number of crates that have
been actually read and the number of expected crates.
The expected number is derived from the number of
crates that have been associated with the pallet EPC dur-
ing the packing process.

5.6 Slap-and-Ship Outbound Process Using

the Mobile UI

When you use the mobile UI instead of the desktop UI,

the process flow in the standalone scenario is different.
The reason for the different structure of this process can
be found in the different options that are available for
executing the RFID process in a mobile environment.
In a first step, the EPC for a crate is created using a
mobile device and a corresponding UI.
The warehouse operator must select the required
printer, set the relevant EPC filter for writing crate EPCs,
and choose the appropriate EPC type. After that, the
employee either can enter a product for which he or
she wants to create the RFID tag or read a product bar
code. The bar code including its data is then forwarded
to the mobile station. Once all crates have been assigned
an EPC, the pallet EPC must be created. For this pur-
pose, the EPC filter must be set to Pallet. The employee
picks the tag in the SAP AII Mobile UI and selects the EPC
writer. After that, the picking process is completed, and
packing can begin.
In packing, the pallet EPC must be scanned first. In
order to assign the crate EPCs to the pallet EPC, the crate
EPCs must be scanned as well. In this context the sys-
tem creates a hierarchy (see Figure 5.12). The user can
optionally assign a document to a mobile RFID reader.
The document would have the function of a logical data
container. It could, for instance, be a delivery reference
ID or a freely selectable ID code. Logical data contain-
ers aggregate actions that refer to a specific goods-issue
process.
Once the pallet has been completely packed and pre-
pared for storage, the RFID tag is affixed to its outer pack-
aging. Monitoring functions enable the user to analyze
performed actions. Among other things, it is possible
Figure 5.11 Scanning a Pallet Using the Mobile UI with Reference
to a Delivery, Packing Process
A mobile RFID reader allows you to move a pallet that
has been packed to the stock inventory. When the cor-
responding demand arises, the pallet is taken from the
assigned storage location and provided for delivery. Note
that the current version does not provide for integration
into SAP Warehouse Management (see also Chapter 8
and upcoming product-release plans).
At the loading station, a delivery reference ID can be
assigned to the mobile RFID reader (see Figure 5.11). At
this stage it is no longer necessary to read all the EPCs
that have already been registered. The assignment of
crate EPCs to pallet EPCs was defined during the pack-
ing process and then used for the creation of the hier-
archy. These assignments have been stored in the SAP
AII system. It is therefore sufficient to scan the pallet
EPC during the loading process (see Figure 5.11) as the
crate EPCs assigned to it are automatically confirmed. The
same holds true for the goods-movement process (see
Figure 5.13).

50 © Galileo Press 2006. All rights reserved.

A Glossary
isting IT environments that are able to smoothly imple-
ment end-to-end scenarios by using different IT systems.
European Article Number (EAN)
EAN stands for International Article Number (formerly
European Article Number) and serves as a product iden-
tification number for trade items. The EAN is a number
that consists of 13 or 8 digits, is centrally managed, and
is assigned to manufacturers on request. Usually, the
EAN is printed onto the product packing as a machine-
readable bar code and is decoded by a laser scanner at
scanner-driven cash registers.
Ferroelectric Random Access Memory (FRAM)
A FRAM is an electronic memory based on crystals with
ferroelectric properties. Similar to ferromagnetic ma-
terials, ferroelectric materials can contain a permanent
polarization without an external field. An external field
can “switch” this polarization to a different direction,
and this switching capability provides the basis for the
memory mechanism. These types of memories are not
suited for RFID systems because of the magneto-electri-
cal properties of the RF field.
Global Returnable Asset Identifier (GRAI)
The GRAI format is an EPC code that was developed in
order to monitor and track reusable packing and ship-
ping containers.
Global Trade Item Number (GTIN)
The Global Trade Item Number (GTIN) is an identifica-
tion number from the EAN-UCC system. It is used to
uniquely identify items worldwide. The data field of the
item number consists of 14 digits. The EAN numbers
that were originally developed for Europe now either
consist of 13 digits or have been extended to 14 dig-
its. For this reason, it is useful to install new systems for
the use of 14 digits. These allow for the identification
of logistical containers and trade units whose quanti-
ties are subject to change. The first digit from the left
indicates an attribute of the delivery. Here, the num-
ber 0 indicates standardized delivery units, the num-
bers 1 through 8 describe different delivery and packing
units, and the number 9 stands for delivery units whose
weights can vary. The second through the 13th digits of
92 © Galileo Press 2006. All rights reserved.
the GTIN stand for an EAN-UCC-13 item number with-
out an EAN check digit. The 14th digit is a check digit
that is calculated by digits 1 through 13.
Handling Unit (HU)
A handling unit (HU) is a physical unit that consists of
packaging materials and the material they contain (for
instance, load carriers and packaging materials). An HU
has a unique, scannable identification number that can
be used to call up the associated data.
Hypertext Transfer Protocol (HTTP)
The hypertext transfer protocol (HTTP) is a stateless pro-
tocol that is used for the transfer of data. It is part of the
application layer. In the ISO/OSI model, this layer rep-
resents Layer 7. In the TCP/IP reference model, which is
usually used on the Internet, it corresponds to Layer 5.
The protocol is primarily used for transferring Web sites
on the World Wide Web. Web browsers almost exclu-
sively use this protocol to access Web servers. However,
due to extensions to its request methods, header infor-
mation, and error codes, the protocol is not limited to
the use of hypertext and is increasingly used for data ex-
change purposes. For communication purposes, HTTP
must use an additional transport protocol. This is—in
nearly all instances—TCP. Along with URL and HTML,
HTTP was invented in 1989 by Tim Berners-Lee at the
CERN. On that date, the World Wide Web (WWW) was
born.
Inductance
Inductance is a physical unit that describes the electro-
magnetic effectiveness or self-inductance of a coil or an
electrical conductor in general. Moreover, inductance
also describes an electromagnetic component such as
a transformer, a coil, or a throttle, in particular when
discussing the quantitative or qualitative effects of that
component. In terms of its construction an inductance
or induction coil consists of an electrical conductor such
as a wire that is coiled in spirals of one or several lay-
ers. This coil either can have no core or a ferromagnetic
core. In borderline cases, a straight conductor can also
be regarded as a very small inductance. (Source: Wiki-
pedia)

Industrial, Scientific and Medical Band (ISM Band)
This band is a frequency range for high-frequency send-
ing devices used in industry, science, and medicine. It is
not subject to government regulations and can be used
without a license. The only limitations are conditions re-
garding the transmission power and the interference of
neighboring frequency ranges. Because of this situation,
manufacturers are able to produce relatively cheap wire-
less devices. The disadvantage of the ISM band is that
several frequency ranges such as the 433 MHz and the
2400 MHz bands are used extensively, which can lead
to interference among the devices.
Kanban
This is a concept related to lean or just-in-time (JIT) pro-
duction. Note, however, that these concepts are not
the same thing. The Japanese word “kanban” is a com-
mon everyday term meaning “sign” or “card” and utterly
lacks the specialized meaning which this loanword has
acquired in English. According to Taiichi Ohno, the per-
son credited with developing JIT, Kanban is the means
through which JIT is managed. Kanban is a signaling
system. As its name suggests, Kanban uses cards to sig-
nal the need for an item. Other devices such as plastic
markers (Kanban squares) or balls (often golf balls) can
also be used to trigger the movement, production, or
supply of a unit in a factory. For example, for the pro-
duction of an item, the operator has two shelves, one
on either side of the workplace. The raw materials arrive
on one shelf and the finished item goes on the other.
These shelves act as Kanbans. The outgoing Kanban sig-
nals the customer's need so that when it is empty, the
operator must produce one more item. The Kanban is
sized so that it can only hold the number of items the
customer needs (usually one). When the operator be-
gins work, he takes the raw material from the incom-
ing Kanban, thus signaling to the supplier that he needs
more. Kanban is frequently known as a “pull” system,
as everything is pulled in response to past demand. De-
mand forecasts are not used in Kanban systems. This
is the opposite of the traditional “push” manufacturing
philosophy, in which everything is made according to
forecasted future needs. (Source: Wikipedia)
A Glossary
Mass Customization
Mass customization describes the production of goods
and services for one (relatively) big sales market that
meet the different needs of every individual buyer of
these products, while costs approximately correspond
to those of mass production of comparable standard
products. The information that is collected during the
customization process is used to build up a permanent
individual relationship with each buyer. (Source: http://
www.mass-customization.de)
Master-Slave Principle
This principle describes a situation in which a central de-
vice (the master) controls several subordinate devices
(the slaves).
Middleware
Numerous definitions are available in IT for the term
middleware: One of them is that middleware is an ap-
plication-independent technology that provides services
to support the communication between applications so
that the complexity of the underlying applications and
infrastructure does not become obvious. In other words,
middleware is software that connects heterogeneous
systems with each other.
mySAP Business Suite
The mySAP Business Suite, which is based on SAP
NetWeaver, is a software package that consists of open
enterprise solutions that enable flexible business pro-
cesses, a complete integration, and a smooth collabo-
ration over the Internet. mySAP Business Suite con-
sists of mySAP ERP, mySAP SCM, mySAP CRM, and
mySAP SRM.
mySAP Supply Chain Management (mySAP SCM)
mySAP SCM provides functions that support planning,
execution, coordination, and collaboration tasks in the
supply chain. It consists of the following modules SAP
APO (Advanced Planning and Optimization), SAP ICH
(Inventory Collaboration Hub), and SAP EM (Event
Management). mySAP SCM is part of mySAP Business
Suite.
www.sap-press.com 93
A Glossary
Object Name Service (ONS)
This is a mechanism that leverages the Domain Name
System (DNS) to obtain information about a product
and related services from the Electronic Product Code
(EPC). It is a component of the EPCglobal Network.
ONS is published by the EPCglobal board. Version 1.0
of the specification was ratified by the board in October,
2005. (Source: Wikipedia)
Physical Markup Language (PML)
PML is a file format (similar to XML) that is used to de-
scribe physical objects. The ONS servers and services are
supposed to be operated by the regional organizations
of EPCglobal, Inc. The final decision on this is still pend-
ing.
Remote Function Call (RFC)
In an SAP software, RFC describes a remote call that is
used to call function modules in SAP R/3. This enables
external subsystems to transport data into or out of an
SAP system and thus to make SAP data available in al-
most any programming language.
Resonance
In physics, resonance describes the resonating of an os-
cillable system when it is excited by an excitation fre-
quency that is close to its own frequency.
SAP Auto-ID Infrastructure (SAP AII)
When mapping a logistical process in the IT system, the
SAP AII is supposed to track and control the actual phys-
ical process in real time. To do that, SAP AII harmonizes
information on expected processes such as the process-
ing of a delivery in the ERP system with events that have
actually occurred and been determined by the sensor
technology. The processes that have actually been deter-
mined and the involved objects are then reported. The
RFID solution is available as an ERP-integrated variant
and as a standalone system.
SAP Business Information Warehouse (SAP BW)
SAP BW is SAP's data-warehousing and reporting inter-
face. It provides data warehousing functions, a business-
intelligence platform, and business intelligence tools.
94 © Galileo Press 2006. All rights reserved.
These tools enable you to integrate, transform, and con-
solidate relevant business information in SAP BW. SAP
BW provides simple options for reporting and analyzing
information, and it enables the distribution of that infor-
mation.
SAP Event Management (SAP EM)
This mySAP SCM module is used to monitor all pro-
cess steps within the logistics network along the supply
chain. Thus, it is possible to process information from
heterogeneous systems and different suppliers at all lev-
els of the supply chain.
SAP Exchange Infrastructure (SAP XI)
SAP XI provides open integration technologies that sup-
port a process-oriented collaboration between het-
erogeneous SAP and non-SAP components within and
across companies. The knowledge required for accessing
functions as well as for systems integration and process
support is merged in a shared knowledge base.
SAP NetWeaver
SAP NetWeaver is SAP's integration and application
platform that enables the integration of users, informa-
tion, and business processes. Information and applica-
tions from different sources can be integrated here. The
SAP platform is compatible with the widely used Micro-
soft .NET and IBM WebSphere technologies. It is exten-
sible and supports the Java 2 platform, Enterprise Edi-
tion (J2EE). SAP NetWeaver is the technical basis of the
mySAP Business Suite and SAP xApps.
SAP Solutions for RFID
SAP solutions for RFID collect and process RFID data,
streamline, and automate logistical processes, and inte-
grate RFID files in company systems. SAP solutions for
RFID is based on SAP NetWeaver, which enables its in-
tegration in existing IT landscapes. This way, RFID data
can be processed by SAP applications and third-party
software systems. A comprehensive Auto-ID infrastruc-
ture (SAP AII) integrates the different Auto-ID technolo-
gies such as RFID, bar codes, speech recognition, mag-
netic stripes, and biometrical recognition.

SAP Web Application Server (WAS)
SAP Web Application Server is the proven open applica-
tion platform of SAP NetWeaver.
Serial Shipping Container Code (SSCC)
The number of the shipping unit is a globally unique
ID for a shipping unit such as a pallet. It is a compo-
nent of the EAN128 bar code symbology. The data de-
scriptor that identifies the number according to the
EAN128 standard is “00.” The number itself consists
of 18 digits including the check digit. Example SSCC:
340456789012345678. Encoded in bar code, it is:
00340456789012345678. As a plain text line (under
the bar code): (00)340456789012345678.
Stock Keeping Unit (SKU)
A stock keeping unit (SKU) is an identification number
used in warehouse management. Each product in the
warehouse is assigned a SKU by the trader (in contrast
to an EAN which is assigned by the manufacturer). The
SKU is then used to order a product from stock, to de-
termine the current location, and to manage the inven-
tory. Each product and product variant has a separate
SKU, in order to refer to such attributes as different col-
ors or models of the same product.
Total Cost of Ownership (TCO)
TCO is a calculation method that was developed in the
1980s. The approach is used to help consumers and
companies to estimate the costs to be expected for in-
vestment in goods such as IT software and hardware.
The idea behind it is to obtain a calculation that contains
the acquisition costs and all aspects related to the future
use of the relevant components, such as energy costs,
A Glossary
maintenance, and repair. This way, you may be able to
identify known cost drivers or even hidden costs prior to
making an investment decision. The most important ba-
sis for understanding the TCO concept is the differentia-
tion between direct and indirect costs.
Unique Identifier (UID)
A Globally Unique Identifier (GUID) or a Universally
Unique Identifier (UUID) is a globally unique number
that is used in distributed computer systems.
Universal Product Code (UPC)
The Universal Product Code, UPC, was introduced in
1973 in the US. Products are assigned number codes
that can be read by scanners without a physical contact.
Three years later, the UPC was followed by the (Euro-
pean) Article Number Code, EAN. The EAN is compat-
ible with the UPC, but it encodes one additional charac-
ter, which is why it will replace the UPC.
Write Once Read Many (WORM)
The acronym WORM describes non-volatile storage me-
dia that can be written to only once, but be read as of-
ten as required.
XML-Schema
The Extensible Markup Language—XML—is a meta-lan-
guage used to create documents in the form of a tree
structure. XML is used to define the rules for structur-
ing such documents. It is thus a standard for defining all
markup languages whose basic structures are all closely
related to each other. The physical markup language
(PML) is one example.
www.sap-press.com 95
B Literature

B.1 Literature
SAP Auto-ID Infrastructure in general:
왘 Finkenzeller, Klaus: RFID-Handbook, Wiley Publish- 왘 http://help.sap.com/saphelp_autoid40/helpdata/en/
ing 2003 index.htm
왘 Heinrich, Claus: RFID and Beyond: Growing Your 왘 http://sdn.sap.com (search for the term “RFID” or
Business through Real World Awareness, Wiley Pub- post questions in the RFID forum)
lishing 2005 왘 http://service.sap.com/sizing
왘 Heinrich, Claus: Adapt or Die, Wiley Publishing 2003
왘 ITU: Internet Report “The Internet of Things”, SAP ERP, SAP EM, SAP BW:
November 2005 (http://www.itu.int/osg/spu/ 왘 http://help.sap.com
publications/internetofthings/index.html) 왘 http://service.sap.com
왘 Simchi-Levi, David; Kaminsky, Philip; Simchi-Levi, 왘 http://sdn.sap.com
Edith: Designing & Managing the Supply Chain,
McGraw-Hill Education 2002
B.3 Web Sites

왘 http://www.epcglobalinc.org–International Web site

B.2 Information on SAP Software
Installation of SAP AII:
왘 http://service.sap.com/instguides–
SAP Components RFID-Enabled Supply Chain
Execution · Using SAP Auto-ID Infrastructure 4.0
왘 http://service.sap.com/notes
of EPCglobal (global EPC standards)
왘 http://www.gs1.org–International Web site of GS1
(global EAN standards)
왘 http://www.autoidlabs.com/researcharchive/
MIT White Papers

www.sap-press.com 97
Index

Mobile UI 46, 50 Remote Function Call (RFC) 87 Slap & Ship scenario 씮 Standalone
Modem 5 Remove stock 49 scenario
Monitoring 35, 45, 56 Reporting 56 Smart labels 6, 9, 16
mySAP ERP 38 Returnable Transport Item (RTI) scenario Standalone scenario 36, 37, 43, 47, 48,
51 49, 50, 51
Return on Investment (ROI) 61 State machine 5
N RFC 43 Status 35
Notification messages 35 RFC connection 39, 44
RFID device 32 T
O RFID middleware 43
Tag 5, 6, 7
RFID printer 63
Object hierarchy 51 Tag picking 47
RFID project 33, 73, 75, 78, 79
Object Name Service (ONS) 9, 84 Total Cost of Ownership (TCO) 31, 61
RFID system 13, 32
Outbound delivery processing 78 Trace 35
RFID tag 5, 6, 12, 31
Outbound process 씮 Goods issue Tracing 75
ROM 5
process Transceiver 씮 Reader
Rule processor 43, 48
Transformer coupling 14
Rules 40
Transponder 씮 RFID tag
P
Packing 41, 47 S
Packing lines 74 SAINT 38 U
Pallet EPC 49, 50 SAP AII Studio 86 User interface 45
Pedigree document 83 SAP APO 80 US Food and Drug Administration (FDA)
Personal digital assistant 8 SAP Auto-ID Infrastructure 6.0 3 83
Picking 45 SAP Business Information Warehouse
PML 9 (BW) 41, 43
Printer 45 SAP ECC 5.00 38
V
Product bar code 50 SAP Event Management (EM) 35, 38, Validate 49
Product description language 9 56, 61
Product Tracking and Authentication SAP GUI 46, 47, 48 W
(PTA) 83 SAP NetWeaver 3, 31, 43 Web service 50
Proxy 36 SAP SCM Event Management 38 WORM 5, 6, 9
SAP Web Application Server 34 Writer 8
SAP XI 26, 32, 36, 37, 61
R Savant 씮 Device controller
Radio frequency field 5 Scanning 51
X
RAM 6 SCM application 32 XML 9
Reader 5, 7, 10, 31 Serial Shipping Container Code (SSCC) 53
Recall campaigns 75 SGTIN 12
Register 49 SKU (Stock keeping unit) 73

102 © Galileo Press 2006. All rights reserved.

ISBN 1-59229-081-7
ISBN 13 978-1-59229-081-9

1st edition 2006

© 2006 by Galileo Press GmbH
SAP PRESS is an imprint of Galileo Press,
Boston (MA), USA
Bonn, Germany

Translation Lemoine International, Inc., Salt Lake City, UT

Copy Editor John Parker, UCG, Inc., Boston, MA
Cover Design Vera Brauner
Printed in Germany

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