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x Radio-frequency identification (RFID) is an automatic
identification method, relying on storing and remotely retrieving
data using devices called RFID tags or transponders.
x It is a technology that incorporates the use of electromagnetic or
electrostatic coupling in the radio frequency (RF) portion of the
electromagnetic spectrum to uniquely identify an object, animal, or
person.
x An alternative to bar code
x RFID is also called dedicated short range communication (DSRC)

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x Invented in 1948 by Harry Stockman.
x Initial application was during World War II-The United
Kingdom used RFID devices to distinguish returning English
airplanes from inbound German ones.
x Came into commercial use only in 1990s.

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Forging is difficult Forging is easy

Scanner not required. No need to bring the Scanner needs to see the bar
tag near the reader code to read it
RFID is comparatively fast

Can read multiple tags Can read only one tag at a time

Relatively expensive as compared to Bar

Codes (Reader 1000$, Tag 20 cents)
Can be reusable within factory premises Cannot be reused

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x Used where unique identification is needed
x Large Retail companies ± Product Tracking.
x Hospitals & Nursing Homes ± Patient Tagging
x Airports ± Baggage Tracking.
x Security Applications ± Contactless Smart Cards.
x RFID Readers could also WRITE onto Tags.
x RFID Sensors to sense temperature, movement, radiation, food
quality.
x Passports-UK, Australia, Finland, Ireland.
x RFID is used in Libraries.
x Replacing Barcodes.

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x Patni Computer Systems Lab ± Implemented Animal Tracking System
x Wipro Technologies - Member of the Electronic Product Code (EPC) -
Setting up a lab to study RFID - Working on pilot projects
x Infosys Technologies ± RFID consulting on logistics player in the RFID
space.
x TCS have tied up with Hyderabad university to produce RFID tagged mark
sheets & degrees to deter use of fake degree.
x Intellicon - pilot project for BEL Bangalore, tags installed on employee
buses. Buses inside the BEL campus were tracked with the aim of gauging
employee punctuality.

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x A key contributor to increasing supply-chain performance, from both a
financial and a service-level perspective.

x More accurate and timely information about supply-chain execution, allows for
reduced safety stocks (thus optimizing cash-to-cash cycles and reducing
inventory carrying cost) and increased on-time performance to customer
commitments (thus driving additional revenue opportunities).

x Operating cost improves, as it significantly reduces the cost of cycle counting,

receiving, picking and shipping.

x The technology plays a critical role in addressing shrinkage and grey-market

control concerns.

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1. Asset Management:
x Can automatically track the movement and location of capital equipments
with 100 percent accuracy, eliminating labor-wasting manual searches.
x Can easily locate items necessary to fill orders and fulfill rush orders
without incurring undue managerial or labor time.

2. Production Tracking:
x Provide greater visibility into work-in-process tracking and materials
inventory.
x Industrial control and material handling systems can integrate with RFID
readers to identify materials moving down a production line and
automatically route the items to the appropriate assembly or testing station.

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O. Inventory Control:
x Inventory tracking - reduce implementation costs.
x Improve visibility and confidence into their inventory to enable overall inventory levels,
labor costs and safety stocks to be reduced.

á. Pricing and Promotion:

x Demand and Revenue Management solutions track point-of-sale, on-shelf, and inbound
inventory information to support real-time, store-level pricing and promotion optimization.
x Help to optimally price and promote their products according to inventory position and
sell-through rates.
x Have real-time visibility to what items are selling versus those that are not.
x Monitor in real time ± avoid product spoilage; product expiration; product obsolescence
x By receiving real-time updates to what products are selling, price lists can be monitored
and updated.
x Develop and run markdown and promotional strategies based on market information.
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*. Shipping & Receiving:
x Trigger automated shipment-tracking applications - valuable for cross-dock and
high-volume distribution environments.
x Incoming shipments can be automatically queried for specific containers. If a
sought-after item was present, it could be quickly located and selected.

†. Regulatory Compliance:
x Hazardous materials, food, Pharma and other regulated materials could record
the time they were received & transferred to satisfy regulatory reporting needs.

´. Returns & Recall Management:

x Provide the basic shipment identification information by writing the specific
customer and time of shipment to the tag immediately prior to distribution.
x In recall, specific shipments to specific customers could be traced, enabling a
highly targeted verification, notification and return operation and avoid cost,
diversion, counterfeit & return-frauds.
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ÿ. Service and Warranty Authorizations:

x Proprietary information could be used to authorize warranty and service.
x Upon completion of repairs or service, a record of the activity performed
could be encoded on the tag to provide a complete maintenance history that
travels with the item.
x The item's complete maintenance and configuration information could be
accessed simply by reading the tag.

è. Transportation:
x RFID updates can drive substantial visibility and optimal adaptability to
your transportation plan.
x Proactively detecting when an order is over, short, damaged, or incorrect
enables you to take control of your transportation plan, which directly affects
your financial and service level goals.

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1. Privacy concerns:
x Infringement on the privacy of buyers.
x Scan buyer behavior at the point of purchase and even after that.

2. High investment:
x The initial investment for adopting RFID is fairly large.
x Conduct an in depth cost benefit analysis before taking the plunge.

O. Limited range:
x Limited range in terms of frequency - skeptical about the efficacy of
the technology.

á. Health concerns:
x A long term exposure to radio waves causes many diseases like
cancer, ulcers and skin deformities.

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x RFID technology and the underlying standards are readily
available and mature enough to support production-level pilots.

x RFID will have a substantial and positive impact on supply-

chain performance.

x RFID will improve operating margins, speed up the flow of

inventory and improve supply-chain service levels.

x RFID-enabled supply chains will outperform their competitors

with regard to operating cost and excellence of execution.

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