RFID for the Supply

Chain and Operations

Professional
RFID for the Supply
Chain and Operations
Professional
Second Edition

Pamela J. Zelbst and Victor E. Sower

RFID for the Supply Chain and Operations Professional, Second Edition

Copyright © Business Expert Press, LLC, 2016.

All rights reserved. No part of this publication may be reproduced,

stored in a retrieval system, or transmitted in any form or by any
means—electronic, mechanical, photocopy, recording, or any other
except for brief quotations, not to exceed 400 words, without the prior
permission of the publisher.

First published in 2012 by

Business Expert Press, LLC
222 East 46th Street, New York, NY 10017
www.businessexpertpress.com

ISBN-13: 978-1-63157-463-4 (paperback)

ISBN-13: 978-1-63157-464-1 (e-book)

Business Expert Press Supply and Operations Management Collection

Collection ISSN: 2156-8189 (print)

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Cover and interior design by Exeter Premedia Services Private Ltd.,

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Second edition: 2016

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Printed in the United States of America.

 Testimonials and Reviews
This book is the perfect primer for the uninitiated manager struggling
to understand RFID technology and how the technology can be used
to solve problems related to existing operations and supply chain man-
agement. The book is clear and concise and easily understood due to
the nontechnical approach adopted by the authors. The reader is intro-
duced to RFID technology and instructed in the essentials and uses of
the technology. As the reader begins to appreciate the technology, the
authors provide the reader examples of solutions from all sectors. The
book is full of excellent examples of how the technology has been used
to solve existing problems. The reader will take away an understanding
of the capabilities of the technology to improve efficiency, effectiveness,
and responsiveness throughout product and service delivery processes. In
addition to the plethora of examples, the authors offer several in-depth
cases that illustrate successful applications of RFID technology in multi-
ple settings. Once you understand the technology and its potential value,
the authors provide a step-by-step approach to successfully implement-
ing RFID systems. Finally, they discuss the future of RFID technology
­utilization. Essentially, the authors describe how RFID technology can be
used to strategic advantage.
Dr. Kenneth Green, Jr.
LeMay Professor of Technology
Southern Arkansas University

This book does a great job of introducing and explaining RFID technol-
ogy, what makes it work, and the various settings and applications where
it can improve process flows. I am now more aware of where I might
encounter RFID technology, where and when it could be used to improve
processes, and how to add value to an organization.
Mr. Ken Holland
Continuous Improvement Program Manager, Supply Chain Operations
Freescale, Inc.
vi TESTIMONIALS AND REVIEWS

If you are looking for an overview of radio-frequency identification

(RFID) technology, examples of how RFID is being used effectively
everywhere from hospitals to warehouses, and guidelines for implement-
ing an RFID system, this is the book for you. The authors discuss the
benefits of RFID compared to similar technologies, and new applications
for its use in the future.
Inbound Logistics, January 2013, p. 274
Review of 1st Edition
 Abstract
The quality and effectiveness of decisions made within an organization
and its supply chain depend on the accuracy and timeliness of the infor-
mation on which they are based. Radio frequency identification (RFID)
is a technology that can provide more accurate information in near real
time and thus increase the quality and timeliness of decisions based
on that information. RFID systems are currently in use in areas such
as inventory management, process control, asset tracking and monitor-
ing, and retail point of sale. Organizations that appropriately incorporate
RFID into their operations and information management systems have
increased their agility, effectiveness, and efficiency, resulting in organiza-
tional growth and increased profitability.
The appropriate utilization of RFID allows organizations to become
more agile, resulting in their ability to respond to customers more effi-
ciently and effectively. Technology by itself does not result in improve-
ments, and RFID is no exception. RFID is not a solution for every
problem. However, when coupled with other appropriate technologies
to address an appropriate objective, RFID can offer a variety of benefits
to businesses. The proper integration of RFID into the firm’s competi-
tive plans and processes provides the ability to leverage the ­technology
for  competitive advantage and results in increased performance for
­organizations.
The intent of this book is to provide a sufficient discussion of RFID to
enable readers with no prior knowledge to develop a basic understanding
of the technology. The book discusses current applications and specific
examples of RFID usage taken from a variety of industries. The appropri-
ate coupling of RFID with other technologies such as global positioning
systems (GPS), enterprise resource planning (ERP), and robotics is dis-
cussed as well as an overview of the RFID implementation process. This
book will help readers develop an understanding of the capability of the
technology to increase an organization’s customer responsiveness.
In the second edition, the discussion and examples have been updated
to reflect the rapid advancement in RFID technology. New case studies
and examples have been added along with a new chapter about RFID
technology and the Internet of Things.
viii ABSTRACT

Keywords
agility, asset tracking, customer responsiveness, effectiveness, efficiency,
inventory management, real-time information systems, RFID implemen-
tation, RFID integration, RFID, timeliness
 Contents
Abbreviations and Acronyms�������������������������������������������������������������������xi
Acknowledgments���������������������������������������������������������������������������������xiii

Chapter 1 RFID Basics����������������������������������������������������������������������1

Chapter 2 RFID Technology Essentials�������������������������������������������13
Chapter 3 Uses of RFID Technology�����������������������������������������������33
Chapter 4 RFID Is Not a Solution Waiting for a Problem���������������61
Chapter 5 RFID and the Internet of Things������������������������������������77
Chapter 6 Implementing RFID�������������������������������������������������������91
Chapter 7 Business Cases for RFID�����������������������������������������������105
Chapter 8 Conclusions������������������������������������������������������������������133

Appendix��������������������������������������������������������������������������������������������141
Notes�������������������������������������������������������������������������������������������������171
References�������������������������������������������������������������������������������������������177
Index�������������������������������������������������������������������������������������������������185
Abbreviations and Acronyms
ADC automatic data capture
AFSP average factory selling price
AIDC automatic identification and data capture
AII auto ID infrastructure
AIM Association for Automatic Identification and
Mobility
AIT automatic information technology
ANSI American National Standards Institute
aRFID active radio frequency identification
CNC computer numerical control
DARPA Defense Advanced Research Projects Agency
DLA Defense Logistics Agency
DOD Department of Defense
EAS electronic article surveillance
EM event management
EMEA Europe, the Middle East, and Africa
EMV Europay MasterCard Visa
EPC Electronic Product Code
ERP enterprise resource planning
ETSI European Telecommunications Standards
­Institute
FCC Federal Communications Commission
FLC foldable large container
GPS global positioning system
HF high frequency
IoT Internet of Things
ISO International Organization for Standardization
ITV in-transit visibility
KPI key performance indicators
xii ABBREVIATIONS AND ACRONYMS

LCD liquid crystal display

LF low frequency
LIMS laboratory information management system
LPs long plays
MHz megahertz
NIST National Institute of Standards and Technology
OR operating room
PIN personal identification number
POS point-of-sale
pRFID passive radio frequency identification
RFID radio frequency identification
ROI return on investment
SCM supply chain management
SDK software development kit
UHF ultra high frequency
USTRANSCOM U.S. Transportation Command
VMI vendor managed inventory
WIP work-in-progress inventory
WMS warehouse management system
 Acknowledgments
The authors would like to acknowledge the peer reviewers of the manu-
script for this book for their careful review and helpful comments:

• Dr. Kenneth Green, LeMay professor of technology, Southern

Arkansas University.
• Mr. Ken Holland, continuous improvement program
­manager, supply chain operations, Freescale, Inc.
• Mr. George Dyche, product manager, Avery Dennison Corp.
• Mr. Steve Halliday, president of RAIN RFID.
• Mr. Glenn Outerbridge, CEO, Cybersoft North America.

We would like to thank Mr. Scott Isenberg, Business Expert Press

senior acquisitions editor, who provided us the opportunity to undertake
the writing of this book, and the editorial staff at Business Expert Press,
who worked with us to turn our manuscript into a finished product.
We would like to acknowledge and thank our students, Scott ­Golightly,
Hamid Bouaicha, and Devin McCullough for their contributions.
Lastly, we would like to acknowledge and thank our spouses, Charles
and Judy, for their support and encouragement during the process of
writing this book.
 CHAPTER 1

RFID Basics
On a recent international trip, one of the authors parked in a long-term
parking facility near the airport that provides an identification card to
frequent parkers. When I arrived at the parking facility, I placed my card
against a reader. My name immediately appeared on an LCD display
and the attendant addressed me by name when she directed me to my
parking space. When returning, again I placed my card against a reader,
which displayed my name, the number of days I had been parked, and
the amount due. I paid my bill with my radio frequency identification
­(RFID)-enabled smart card without speaking to an attendant. Any fre-
quent parker specials were automatically credited to my bill. This was
made possible by a RFID tag embedded in the frequent parkers’ iden-
tification card. The only information recorded on the tag was a coded
number, which matched my name in a protected database.
When I went through the customs and border security stations at the
international airport, I was required to present my passport. The security
agent saw my picture on a monitor along with other identifying informa-
tion to ensure that I am who I say I am, that I am using a valid passport,
and that I am not on any watch lists. This was made possible by the RFID
tag embedded in my passport.
When I checked into the hotel at my destination, I was given an
RFID-enabled card, which was the key to my room.
Upon returning home, I used the toll road out of the airport. An
E-ZPass transponder made it a breeze to speed through special lanes at the
toll booths. The toll authority registered my passage and automatically
billed my account. This too is made possible by an RFID tag, which is
embedded in the E-ZPass transponder.
Returning home I was greeted by Buddy, my dog. He has an RFID
chip implanted in his neck that is encoded with a number that is tied to
me in a database to identify him should he wander away from home.
2 RFID FOR THE SUPPLY CHAIN AND OPERATIONS PROFESSIONAL

The point is, believe it or not, you are already using RFID in your per-
sonal life. And each of these uses shows that businesses and governmental
agencies are also using RFID technology in order to increase efficiency,
gain a competitive advantage, increase security, or provide a service that is
better than could be otherwise provided.
Perhaps your organization has not explored the possibilities that RFID
technology has for improving performance and reducing cost. P ­ erhaps
your competitors have.
Civilian businesses and the military are already using RFID. The
U.S. Army uses active RFID tags and a variety of sensors to monitor
temperature, shock, unauthorized entry, and various other critical data
for shipments to war zones. A tortilla manufacturer saved $700,000 in
packaging costs by tracking shipping containers using RFID.1 Marathon
Oil Company estimated that using RFID on its downhole drilling tools
would result in a savings of $17 million and improve operational safety of
its employees.2 Libraries are locating mis-shelved books simply by walk-
ing through the stacks with a portable RFID reader. Many organizations
are using RFID to simplify asset management. With RFID it is possible
to inventory all tagged assets in a room in a matter of minutes without

Figure 1.1  The value of RFID

Photograph courtesy of the Sower Business Technology Laboratory, College of Business
­Administration, Sam Houston State University.
 RFID Basics 3

searching for a printed asset tag or bar code label seemingly affixed to the
most inaccessible spot on the asset.
The apparel industry is adopting this technology at an extremely fast
pace because RFID creates a real-time information environment allowing
for decision making using current information. “In recent years, a num-
ber of major retailers, including Macy’s, Kohl’s and Target, have begun
rolling out the technology chain-wide.”3 Using RFID, apparel inventories
can be monitored in the back room to track when an item arrives and
when it moves to the retailer’s floor. The real-time information system
can be extended to the sales floor to track inventory as it is purchased
so that information is updated automatically, keeping records current in
real time. Savvy retailers can use the information to identify which items
are moving quickly and keep the floor stocked so that sales can increase.
The technology can provide an advantage in vendor-managed inventory
(VMI) systems. Automated inventory management allows vendors to
have real-time information resulting in fewer stockouts. In addition, the
retailers’ cost for holding safety stock is reduced.
Health care organizations are also widely using RFID technologies.

Radio frequency identification technologies are being deployed

at numerous hospitals and clinics around the world to improve
asset-utilization rates; manage inventories of implants, drugs and
other high-value items; reduce the incidence of lost and stolen
equipment; improve patient flow; decrease medical errors; increase
hand-washing compliance; and achieve other significant benefits.4

Hospitals are using RFID, for example, to track specialized equip-

ment, such as medication pumps, incubators, and wheelchairs, to assure
that surgical implements are all accounted for prior to suturing a surgical
patient in the operating room, to assist in the prevention of medication
errors, and to ensure that newborns are not removed from the nursery
without authorization. Nursing homes are monitoring the location of
Alzheimer’s patients with RFID.
RFID can be used as a stand-alone system or as a part of integrated
systems that may, for example, include bar codes, global positioning
software, environmental sensors, and many other parts. RFID has the
4 RFID FOR THE SUPPLY CHAIN AND OPERATIONS PROFESSIONAL

potential to add value by providing increased visibility to supply chains;

however, suppliers who are mandated to tag items for a retail customer
often find it difficult to see the value that RFID can bring internally.
Manufacturers are adopting the technology to track assets, materials, and
employees. When utilizing RFID for at least a 6-month period, manufac-
turers identified an average cycle-time reduction of 19 percent, a reduc-
tion in safety stock requirements of 27 percent, and an improvement in
changeover time of 24 percent. RFID can be integrated into just about
any industry and supply chain.5 The greatest value that the technology has
to offer is the flexibility to make decisions in real time.

Structure of the Book

This book provides readers who have little or no knowledge of RFID
technology, the basic background needed to begin considering how this
technology can contribute to the success of their organizations. It also
provides examples of how other organizations are using the technology. In
the second edition we have updated the text to reflect advances in RFID
technology since the first edition was published. We have also included
new examples, illustrations, and a new case study which illustrate the
wide variety of applications for the technology.
In Chapter 2, we provide the basic technical details about RFID and
how it works. A basic knowledge of the technical aspects of RFID is essen-
tial in order to understand its capabilities and how they might be part of
the solution to problems you are trying to address. This knowledge also is
essential for being able to communicate better with manufacturers, sup-
pliers, systems integrators, consultants, and others who might be essential
to enabling your organization to take advantage of the technology.
Later in the book, we bring you up to date on the state of the tech-
nology, its current applications, and future possibilities. Chapter 5 is an
entirely new chapter for the second edition entitled “RFID and the Inter-
net of Things.” Of course there are few boundaries on the uses of RFID,
so if you do not see a discussion of the application you have in mind, then
yours might be the next innovative use of the technology, which means
you could create an advantage over others in your industry who have not
yet conceived of that application.
 RFID Basics 5

We include in the book a selection of five business cases that provide

some detail about actual organizations that have developed applications
for RFID. The cases provide insight into how a diverse group of organi-
zations went from idea to implemented process and the effect the new
process had on organizational performance. We then discuss the process
of implementation and what is next for RFID in the coming years.
Hanns-Christian L. Hanebeck’s essay (immediately following this
section) addresses the value of RFID. Over the past two decades, Chris
has focused his career on management consulting, strategy development,
and technology innovation. He currently serves as chief operating officer
at GT Supply Chain where his responsibilities include the design and
implementation of company strategies as well as handling of key account
customers and management of supply chain and procurement personnel.
Prior to this position, Chris served as chief operating officer at Revere
Security where he developed innovative encryption technologies for active
and passive RFID tags. Previously, Chris ran his own management con-
sulting firm, led the industrial sector consulting group for RFID at IBM
and spent 6 years in several executive roles at GlobeRanger, an innovative
software startup for RFID Edgeware. Chris has successfully completed
business process optimization and software implementation projects for
over 60 clients on 3 continents exceeding $65 million in overall budget
responsibility.
He has authored over 60 publications, presented at over 100 major
conferences, and has been awarded 5 U.S. patents for highly innovative
RFID and material tracking applications. He holds an MBA from the
University of Saarbrucken in Germany and teaches supply chain strat-
egy at the University of North Texas. He can be reached at hhanebeck@
yahoo.com.

The Value of RFID

by Hanns-Christian L. Hanebeck,
Chief Operating Officer, GT Supply Chain

The auto-ID industry has matured considerably over the past few
years. We have seen many innovative applications, specifically for
6 RFID FOR THE SUPPLY CHAIN AND OPERATIONS PROFESSIONAL

RFID, in fields that we did not even begin to imagine in the late-1990s
when ultra-high frequency (UHF) technology first took off. Still, we
need to ask ourselves periodically where the underlying value of RFID
technology for end users really lies. On the surface, RFID is an iden-
tification technology that allows the collection of large amounts of
data in a fast and efficient way. Obviously tags can be placed on items,
cartons, pallets, or shipping containers, which can be read as soon as
they pass an RFID gate, scanned with a handheld, or transported on a
forklift with RFID antennae. Unfortunately most of the resulting data
an RFID system captures is either redundant or obvious. If a company
plans to ship 10 pallets of its product to a customer and actually does
so, then the RFID system has little value beyond knowing that ware-
house personnel have just properly followed procedures. While this
knowledge can be valuable in itself, the advantage of RFID to monitor
business processes will not be utilized fully. However, as soon as excep-
tions occur, the value proposition for RFID changes drastically. Now
the technology can become a deterrent of errors where other technol-
ogies, such as bar codes, fail since they require that each item, carton,
or pallet is physically touched. The ability to prevent mistakes and
errors while they occur obviously stems from the automated nature of
RFID. There was a good example a few years ago when a large U.S.
automaker began to track tradeshow displays through RFID after they
had mixed up two trucks—one going to their largest annual auto show
and the other going to a small-town exhibition. The effects of this
simple mistake were far-reaching and obviously the cost to remedy
was much higher than the cost for the implementation of an RFID
system to prevent mis-shipments before they happen. In addition, we
have seen substantial labor savings in virtually all industries through
the automation of business processes and the elimination of clipboards
and barcode scanners.
This case serves as a good example of how RFID technology can
generate business value by deterring mistakes. Mistakes happen in daily
processes, just as things are lost or stolen. We cannot always change the
human element and it is difficult, as well as costly, to design and imple-
ment sufficient business controls to reduce errors to an acceptable level
 RFID Basics 7

in many cases. This is where RFID plays a crucial role; it allows users
to identify exceptions and manage business processes much more effi-
ciently. This simple ability leads to a fundamental shift in how pro-
cesses are managed: We move away from managing all aspects of a
process, such as supervising an entire operation, to mainly managing
exceptions. In other words, for process applications we should expect
RFID to provide the ability to manage errors and processes that could
break down.
A second aspect of RFID is equally valuable: its ability to scan
things quickly and from a distance without line of sight, which allows
us to locate items efficiently. Libraries and bookstores are great exam-
ples of applications that can take advantage of this aspect of RFID.
As soon as a book is misplaced, perhaps because someone took it out
of one shelf location and displaced it onto another, it becomes the
ominous needle in the haystack. It is virtually impossible to find a
misplaced book unless someone performs a manual check by look-
ing at every book on every shelf. Through the use of RFID tags, this
process can be handled quickly and efficiently by a clerk using a hand-
held device to scan through rows of books to identify misplaced items.
The system on the handheld reader only needs to know which shelf
it is scanning and what should be expected in terms of tag reads on
that shelf. The same is true for other related fields such as government
offices, law firms, hospitals, and medical practices—all of which need
to manage large amounts of documents and files that are subject to
being misplaced.
Finding the needle in the haystack does not necessarily have to
be just a remedy to mistakes. In many yard applications for example,
RFID provides an efficient way to locate items that range from cars to
ocean containers. There is a very substantial business case behind this
capability. The Defense Advanced Research Projects Agency (DARPA)
has estimated that the cost of not being able to efficiently locate ship-
ping containers that were dropped into “desert warehouses” during the
first Gulf War cost the U.S. military roughly $740 million throughout
the war. This figure includes the cost of double orders placed by com-
manders in the field who would reorder supplies to be shipped to the
8 RFID FOR THE SUPPLY CHAIN AND OPERATIONS PROFESSIONAL

troops directly, when they did not receive the first order in time. Here,
the effects of a lack of trust become apparent in that doubts about the
reliability of a supply chain quickly lead to excess inventory and thus
unnecessary cost.
Both the avoidance of errors and the ability to locate something
have a common basis often referred to as “visibility.” RFID enables
us to obtain granular data, convert it into meaningful information,
and share the resulting knowledge with the right people in the orga-
nization so that they can ultimately make the right decisions. When
we design applications, it is thus important to focus on those issues
that are most pressing, can save the most money, or have the great-
est impact on a company. This point was poignantly made at a Zeit-
geist event, the Google user conference, where Google cofounder
Larry Page stated that his company will only focus on what he called
“toothbrush problems.” He defined a toothbrush as an item that peo-
ple spend more time with than most other items during a given day.
Obviously what he meant was that his company, while not literally
reinventing the toothbrush, should focus on those applications that
impact people the most, such as consuming vital information, using
mobile phones, or operating a vehicle. For RFID solution designers
and implementers, the toothbrush problem is one that can be solved
efficiently, has lasting, sustainable effects, and touches a business in
substantial ways. What is important is that we often have the luxury
to measure the impact of RFID technology on a company or organiza-
tion through its return on investment (ROI). Hence the best business
cases can quickly become the biggest toothbrush. Of course, we have
to keep in mind that innovative applications, and those that touch
consumers in novel ways may not be as easily quantifiable. These are
often the toothbrushes we did not know existed before a solution had
been implemented.
In the automotive industry, for example, there are several dozen
meaningful applications for RFID technology across its business
processes. The key is not so much to define each and every one in
detail, but to see past this variety of possible applications to focus on
a few pressing issues and high-return applications such as returnable
 RFID Basics 9

container management, yard management, and manufacturing auto-

mation opportunities. While there are substantial opportunities in
customer-facing processes at the dealership, these may not be the first
opportunities to pursue due to the justified lure of more attractive
financial gains in manufacturing automation. On the other hand, in
the hotel and resort industry there are well over 20 meaningful appli-
cations for RFID, and the ones that stand out are all related to ease of
use such as access to rooms and facilities, automation of the check-in
and check-out process, as well as automation of payments. While
these may not have a strictly quantifiable business case, the same was
true when American Airlines invented Sabre, the first real-time air-
line reservation system, almost 40 years ago. It was initially built on
the belief that the airline could reinvent a business process, that of
booking travel, in a way that gave it a distinct competitive advantage.
Obviously, we know today that they have succeeded far beyond all
expectations and created significant value for the organization.
Another case in point is the approach an innovative retailer in the
fashion and apparel industry might take. Specifically it is the novel
use of touch screen displays and computing technology within sleek
RFID in-store portals to create unique customer experiences. A young,
affluent customer walks up to the portal where her store loyalty card
is read. The screen now changes from displaying a sequence of adver-
tisements to a web page where the customer can interact with the store
system, for example, by accessing her “wish list,” see what her friends
(if they permit access) have recently bought, access the store inven-
tory in her size, and obtain more detailed information about specific
products. She will also be able to send messages to and receive them
from her friends, view the comments that other customers have left
about products that she is interested in. Last, but not least, she can
retrieve recommendations about related products, such as sunglasses
or belts, that match what she intends to buy or has already purchased.
It is not inconceivable that the store might offer discounts based on
the frequency with which she posts her own comments and responds
to those of others. It goes without saying that the customer should be
able to pay with her loyalty card as long as it is connected to a credit
10 RFID FOR THE SUPPLY CHAIN AND OPERATIONS PROFESSIONAL

card and personal identification number (PIN) and also that, one day,
she should be able to place her loyalty or credit card on an inexpensive
RFID reader connected to her home PC to access the features outside
of the physical store locations. This is just one of many examples for
the transformational promise of RFID when process efficiency is cou-
pled with innovation to enhance the consumer experience.
Returning to process efficiency benefits, we should not overlook
an important quality in RFID technology that is often less noticed or
even neglected in initial implementations. Namely it has the ability
to enable insight into complex business processes through low-cost
sampling. In fact, RFID has provided this type of capability since
the mid-1990s in a number of industries. The technology provides a
strong mechanism to enhance process visibility and measurements of
performance outside of the immediate effects that the technology itself
has on an operation. In this role, RFID technology can help facilitate
meaningful process changes to reduce inefficiency and error by provid-
ing data that were previously unavailable. The technology allows users
to assess and document operational performance on a very granular
level thus creating value beyond the initial technology implementation.
An excellent example is the active RFID implementation at Inter-
national Post Corporation, which was first implemented in 1994. The
system has been deployed in more than 50 countries, has over 10,000
read points and uses roughly 600,000 active RFID tags today. What is
interesting about the system is not just its early date but, more impor-
tantly, that the postal industry understood the fundamental value
proposition of RFID to streamline business processes and identify
challenges in the flow of goods and materials. In this particular imple-
mentation, test letters containing RFID tags are sent along with regular
mail in very much the same way that inspection pigs are used to ensure
oil pipeline integrity: Tagged letters float among the broad stream of
normal ones to ensure that the whole system works well. The result-
ing data allows participating postal carriers to identify where business
processes break down and to draw meaningful conclusions about why
specific problems have evolved. This use of RFID technology provides
the information needed by postal carriers to improve their operations
 RFID Basics 11

by assessing the performance of the global supply chain for correspon-

dence through accurate, reliable, and unbiased performance measures.
One of the inherent advantages is that it provides factual data to deci-
sion makers who no longer have to rely on guesswork and intuition.
The technology thus takes subjectivity out of the argument allowing
participants in the system to assess and remedy inefficiencies without
doubts or emotional biases. This ability to contribute to performance
measurements has long been an interesting value proposition that
experienced implementers and users look for when they deploy RFID
systems. When viewed in the light of this RFID capability, even com-
pliance mandates can potentially become very attractive for suppliers
as long as data are shared along the entire supply chain.

Side Note 1.1

Infosphere Traceability Server is an information sharing platform
for traceability. This server allows for traceability applications that
create real-time visibility events. These servers can be used with
RFID for business and supply chain processes. (IBM Traceability
Server Overview)

To realize the benefits of performance assessments in RFID systems,

the resulting data need to be used in dashboards and business intel-
ligence applications. One example of a mature dashboard for RFID
applications is the Infosphere Traceability Server offered by IBM.
The Infosphere Traceability Server systems allow for the continuous
monitoring of operational performance, and IBM provides a platform
to analyze the data for reporting purposes on an as-needed basis. Every
information technology implementation, not just RFID, is only as
good as the resulting data and the ability to act on the information
derived from that data. In order to accomplish this, it is important to
generate the data consistently, reliably, and in an automated fashion.
Every gap and uncertainty in the data lead to second-guessing and
will eventually destroy the necessary trust. This implies that RFID sys-
tems need to be designed in a way that substantially reduces or elim-
inates false positive reads. It also means that data have to be delivered
12 RFID FOR THE SUPPLY CHAIN AND OPERATIONS PROFESSIONAL

consistently. The system needs to be set up so that it continually feeds

into user-defined key performance indicators (KPIs), which provide
meaningful insights to process designers and decision makers. The KPIs
can be built along multiple dimensions and, ideally, the data are fed
into the business intelligence system in near real time. In this manner,
suboptimal performance expressed by throughput times, rest times, or
missed opportunities (e.g., too early or too late shipments) becomes
apparent. On a broader level, additional performance measures about
cost, quality, and flexibility can be collected or inferred. The resulting
information is invaluable when it comes to business process redesign
and optimization activities. The changes facilitated by the information
provided by the system can yield cost and time reductions, as well
as increases in quality and flexibility, and generate tangible savings to
provide an additional level of value that would have been hard, if not
impossible, to attain without the use of RFID technology.
In summary, it is important to identify the effects that visibility has
on a process before RFID is used to solve a problem. Visibility leads
to confidence, which in turn leads to tangible savings. Any application
designer should identify these savings before the technology is imple-
mented. The key, obviously, is to maintain a focus on applications that
create a strong ROI or have a high impact on customer-facing activi-
ties. At the same time, investments in RFID infrastructure often allow
for secondary and tertiary application opportunities, which leverage
the same infrastructure and thus have a far lower financial hurdle in
order to achieve a lasting and solid ROI. There are probably dozens
of such issues in the industry, which we have yet to uncover. The task
for RFID application designers and implementers is to identify and
implement them swiftly. The resulting motto for RFID technology
implementation thus becomes to “think big, start small, and move
fast.”
 Index
access control, RFID, 35–36, 44–48 tracking equipment and patients,
active RFID system, 16 115–119
ADT, 44
AKJ Automotive, 128 Campbell Hausfeld, 73–74
Alien Software Corporation, 133 CHEP case study, 125–128
antenna chipless RFID tags, 140
placement of, 29–30 choke points, 39
reader, 28–30 cloud computing, 15
RFID tag, 26 Coca-Cola, 43
types of, 28 computer numerically controlled
Applied Digital Solutions, 56 (CNC), 54
asset management, RFID, 34, 37–38 Cronin, Ray, 75
asset tracking, RFID, 35, 38–40
Association for Automatic
Defense Advanced Research Projects
Identification and Mobility,
Agency (DARPA), 7
68
Del Re, Benny, 131–132
authenticity verification, RFID, 35,
Department of Defense (DOD),
41–42
49, 64
auto identification center (Auto-ID
Center), 30
automated payment systems, RFID, education and RFID, 134–135
36, 48–49 electronic keys, 35
automatic identification and data Electronic Product Code (EPC), 26
capture (AIDC) technologies, enterprise resource planning (ERP),
RFID vs., 61 RFID and, 33, 51–52
Avery Dennison, 18, 20, 25 EPC Global, 31
European Telecommunications
bar codes, RFID and, 52–53, 74–75 Standards Institute (ETSI), 30
bistatic antennas, 28
Bon Secours Richmond Health Fast Track Convenience, 48
System case study, 105, Federal Communications
115–119 Commission (FCC), 30
business cases, RFID, 105–132 firearms safety, as future RFID use,
comprehensive track-and-trace 139
solution, 107–114 food and beverage industry, RFID
container tracking, 125–128 and, 136–137
evidence tracking, 129–132 4W Solutions, 97–101
overview of, 105–106 Freedom Shopping, 48–49
supply chain improvement, frequency span, world region, 18
121–124 Friedrich, Ray, 48
186 Index

future of RFID, 133–140 Lisbon Airport, 38

education and, 134–135 low frequency (LF) passive systems,
firearms safety, 139 16–17, 22
food and beverage, 136–137 tags for, 22
health care and, 135–136
inventory management and, MacManus, Richard, 53
138–139 Mannequin Madness, 97–101
job costing and, 139–140 manufacturing and RFID, 137–138
manufacturing and, 137–138 Marathon Oil Company, 44
overview of, 133–134 matching, RFID, 35, 42–43
pharmaceutical industry and, 136 Maya, Miguel, 123
retail industry and, 137 monostatic antenna, 28
Smart Cane and, 138 Mullen, Dan, 68
traffic flow and, 138
National Institute of Standards and
global positioning systems (GPS), Technology (NIST), 34
RFID and, 55–57
Google, 8 open systems, 36
Outerbridge, Glen, 81–82
Halliday, Steve, 80
Hanebeck, Hanns-Christian L., 5–12 Page, Larry, 8
health care and RFID, 135–136 Parallax world tag, 18, 19
high frequency (HF) passive systems, passive radio frequency identification
16–17, 23 (pRFID) technology, 64
tags for, 22 passive RFID system, 16–17
tag types for, 21–24
pharmaceutical industry and RFID,
IBM, 11
136
identifier, RFID tag, 26
physical infrastructure, 86–87
information banks for, 27
point-of-sale (POS) systems, 37, 50,
Impinj, 18, 25
57
Infosphere Traceability Server, 11
polarization, 28
infrastructure, IoT, 83–86
PourMyBeer, 57–58
Intermec Technologies Corporation,
privacy, RFID and, 65–68
75
process control, RFID, 35, 43–44
International Organization for
Procter & Gamble Company, 49
Standardization (ISO), 31, 64
International Post Corporation, 10
quality life infrastructure, 88–89
Internet of Things (IoT), 77–89
inventory management, as future
radio frequency identification.
RFID use, 138–139
See RFID
reader antennas, 28–30
job costing, as future RFID use, overview of, 28
139–140 placement of, 29–30
polarization and, 28
key performance indicators (KPI), 12 selecting, 28
Kleijn, Floris, 126 types of, 28
 Index 187

readers, RFID, 18–20 standards and regulations, 30–31

retail industry and RFID, 137 tags and, 20–30
retail systems, RFID and, 57 types of, 16–17
Revere Security, 5 uses of, 33–36
RFID Ridge, Tom, 45
agility of, 63 Roberti, Mark, 52
applications, 33–58 robotics, RFID and, 54–55
asset tracking with, 35, 38–40
basics of, 1–5 Santa Clara County Crime Laboratory
benefits of using, 61–76 case study, 129–132
business cases for, 105–132 Santini, Kathy, 116
cost feasibility myths, 73 SAP, 51
current applications of, 37–50 Savi GlobalTag, 55
customer responsiveness to, 38, 137 sensors, RFID and, 53–54
future of, 134–140 service delivery infrastructure, 87–88
implementation of, 91–103 shadowing, 25, 29–30
integration with other technologies Simmons, Rob, 48
and, 51 Smart Cane, as future RFID use, 138
Internet of Things, 77–89 Smart Card Alliance, 71
inventory management and, 36 spurious emission, 24
myths, 65–68, 71–75 Sumitomo Electric Lightwave, 37
real-time information and, 3, 33, 51 supply chain management systems,
success story, 73–74 RFID, 36, 49–50
supply chain effectiveness/efficiency supply chain performance, RFID and,
of, 62–64 62–63
technology essentials of, 13–31
uses of, 33–58
world regions of, 19 tags, RFID, 20–30
RFID implementation, 91–103 antenna for, 26
asset tracking and, 97–101 classes of, 20–21
best practices for, 103–104 cost of, 24–25
identifying best system fit, 94–96 identifier for, 26–27
identifying purpose for, 93 level of, 25
level of tagging and, 96 passive types of, 21–24
management of, 92–96 placement of, 25
monitoring and, 102–103 reader antennas and, 28–30
overview of, 91–92 Teixeira e Melo, Francisco, 123
plan preparation for, 101–102 Throttleman case study, 121–124
selecting type of, 94 Tomorrow’s Mother, 37
training program for, 102 traffic flow, as future RFID use, 138
RFID Journal, 52 Trasluz Casual Wear case study, 105,
RFID system, 13–14 107–114
RFID technology, 13–31
cloud computing and, 15 ultra high frequency (UHF) passive
current applications of, 37–50 systems, 16–17, 23
future of, 134–140 readers for, 34
overview of, 13–16 robotics and, 54–55
readers and, 18–20 tags for, 22
188 Index

U.S. Department of Homeland Venture Research, Inc., 18

Security, 45 visibility, 8
U.S. Transportation Command
(USTRANSCOM), 56
passive radio frequency Walmart, 49–50, 91–92
identification (pRFID) warehouse management systems
technology, 64 (WMS), RFID and, 33
Wright, L. Tony, 97–101
Value of RFID, The (Hanebeck), 5–12 Wright, Pearl M., 97–101