RFID Special RFID Applications in Business

RFID is used for everything from tracking cows and pets to triggering equipment down oil wells. It may sound trite, but the applications are limited only by people’s imagination. RFID is also used for security (including controlling access to buildings and networks) and payment systems that let customers pay for items without using cash. The most common applications are tracking goods in the supply chain, containers, high value tools and other assets, and parts moving to a manufacturing production line. However for tracking goods in the supply chain, the technology needs to be standardized so that it can act as a common language of business.

EPC RFID Tags

Electronic Product Code or EPC is the standard deployed within RFID technology, which acts as a common language of business across the world. The EPC number stored on the tag represents the following:

• Header - identifies the length, type, structure, version and generation of EPC

• EPC Manager - identifies the company or company entity

• Object Class - stock keeping unit or SKU

• Serial Number - specifies instance of the Object Class being tagged

Usage worldwide in various sectors

• The main driver of the technology all over the world has been the retail sector. According to Intelligent Systems Lab Study, there is a whopping 60% reduction in Out of Stocks, 20-50% reduction in shrinkage, and 8% increase in productivity, with the deployment of RFID tagging at item level within retail stores. With Wal-mart mandating the use of RFID amongst its top100 suppliers, and others like Tesco, Metro, JC Penny, Gap and Marks & Spencers joining the RFID bandwagon, the technology is well on its way to establishing a stronghold within the retail sector.

• Transport & Logistics is another sector that is embracing RFID technology to leverage on all the benefits it promises. The Hong Kong Airport has undertaken the largest RFID project in Asia. It has implemented a luggage tracking system-using RFID from January 2005. Leading logistics service providers like DHL & Menlo Worldwide have already introduced RFID Services while FedEx & UPS Inc etc. are deeply involved in driving adoption of this technology in their global operations. The Automotive sector is also getting ready to deploy RFID technology. Examples are:

• GM, Ford, Honda, Toyota, Pirelli, Michelin, Goodyear using RFID for various applications.

• Michelin embeds RFID tags on tyres

• Ford using RFID for identifying engines during production and container tracking

• Volkswagen using RFID to track engine racks & locate finished cars

In India, Maruti and Ashok Leyland have already started pilot projects. Ashok Leyland is preparing to deploy RFID within its assembling centers while Maruti’s new plant at Gurgaon will be RFID enabled whereby it will help in proper correlation between the engine and the chassis.

• RFID has also seen a partner in the modern-day, technology savvy airports. Global airlines spend as much as $1.6 billion a year on mishandled baggage and are going to be using RFID technology to deal with this problem. RFID tags have accuracy rates exceeding 95%. These tags can be inserted into luggage, and used for track and trace purposes. They are far more effective than barcodes as RFID allows the concerned authorities to track goods in real time, without a direct line of vision and also, they are not as vulnerable to being damaged as barcodes. British Airways plans to use it for baggage tracking. The airline believes it could save about $732 million by introducing RFID because the technology could reduce the read-error rate to nearly zero.

• Aerospace: In the aerospace sector too, RFID tags are being increasingly used to maintain and track critical aircraft parts. Boeing & Airbus are collaborating to use EPC Based RFID tags for the critical parts used in aircrafts. These RFID tags will help in tracking and maintaining and also repairing its aircrafts. Tata Consultancy Services Ltd. (TCS) has also commenced a radio frequency identification (RFID) pilot with Virgin Atlantic to RFID tag critical parts used in aircraft maintenance and repairs at its Heathrow Airport warehouse in the UK. The pilot will use the RFID and sensor-based solution to manage the accurate consignment, storage and dispatch of parts.

Within the Indian context also, the industry will see some deployment since at the Paris Air Show this year, India was the 3rd largest procurer for aircrafts and Boeing & Airbus have announced their plans to set up maintenance hubs in the country to service their aircrafts.

• Pharma: Counterfeiting is a rampant problem in India. India is fast becoming the capital for counterfeit drugs, accounting for one-third of the counterfeit drugs produced worldwide and such statistics give India's fledgling Pharma exports a bad image. According to USFDA, origin of spurious drugs is in regions like Latin America, and Asia. EPC/RFID can help prevent proliferation of spurious drugs. Purdue, GSK, J & J , Pfizer are affixing RFID tags on their products.

Defence: In August 2004 the DoD announced the details of its plans for use of RFID among its suppliers. It finalized the business rules for active RFID and implementation of passive RFID, to “provide global transit visibility" for foreign shipments. The DoD has approved the mandating of RFID tags across the supply chain and has already invested $100 million in RFID technology. RFID tags would be mandatory on containers or pallets of food, clothing and weapons repair parts shipped to DoD depots. All of the department’s 60,000+ suppliers would have to use the technology by Jan. 1, 2007.

13 U.S. government agencies are planning to implement RFID for twenty-four different applications covering smart containers, tracking case files to warehouse management. Department of Homeland Security will be using it to track and identify assets, weapons, and baggage on flights

Benefits:

The benefits that the technology offers are manifold and include- improved efficiency and visibility, lower costs, lower inventory levels yet constant product availability, better asset utilization, better quality goods, reduced shrinkage, targeted recalls, anti counterfeiting, and increased sales through better out-of-stock goods management.

Puneet Mehrotra is a columnist for HindustanTimes.com and a web strategist at www.cyberzest.com You can email him on puneet@cyberzest.com