Available online at ScienceDirect. Procedia Engineering 178 (2017 )

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1 Available online at ScienceDirect Procedia Engineering 178 (2017 ) th Conference on Reliability and Statistics in Transportation and Communication, RelStat 2016, October, 2016, Riga, Latvia RFID in Logistics and Production Applications, Research and Visions for Smart Logistics Zones Martin Kirch, Olaf Poenicke*, Klaus Richter Fraunhofer Institute for Factory Operation and Automation IFF, Sandtorstr. 22, Magdeburg, Germany Abstract The demands on the automatic identification and localization as also the condition monitoring of logistics objects as sources of data for a secure supply chain s documentation and control are increasing. By using such technologies Smart Logistics Zones are created for logistics and production processes. This paper describes an approach to define such Smart Logistics Zones. As examples for Smart Logistics Zone applications two RFID bases use cases are described. By that the potential of using Smart Logistics technologies is shown. One example focuses on the RFID tagging of prototype parts for the automotive industry. The other example describes the use case and the methodology for the integration of RFID for a pallet management application The Authors. Published by Elsevier by Elsevier Ltd. This Ltd. is an open access article under the CC BY-NC-ND license ( Peer-review under responsibility of the scientific committee of the 16th International Conference on Reliability and Statistics in Peer-review Transportation under and responsibility Communication. of the scientific committee of the International Conference on Reliability and Statistics in Transportation and Communication Keywords: auto-id, RFID, smart logistics zone, automotive, retail 1. Introduction Smart Logistics are a key approach to more efficient organization of physical and information logistics in crosscompany and international transportation chains and networks. Such networks are exposed to environments characterized by increased volatility, uncertainty and unpredictability. Therefore the need for robustness, flexibility, agility and resilience must become the focus of attention for future logistics system designs. * Corresponding author. address: olaf.poenicke@iff.fraunhofer.de The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license ( Peer-review under responsibility of the scientific committee of the International Conference on Reliability and Statistics in Transportation and Communication doi: /j.proeng

2 Martin Kirch et al. / Procedia Engineering 178 ( 2017 ) Besides the identification, localization and condition monitoring of objects and resources within logistics and production processes also the aggregation and processing of the gathered data is an important aspect of Smart Logistics. Based on the definitions of Smart Services and Smart Products, Uckelmann described Smart Logistics as constituted by employing technical components to gain data on the level of material flow and to process these data for monitoring and further purposes. As key technologies he mentioned the following technical components (Uckelmann, 2008): Identification esp. RFID, Locating RTLS like GPS and others, Sensing e.g. temperature and humidity sensors. Based on the description of Smart Logistics the physical areas of Smart Logistics applications can be defined as Smart Zones. This concept will be further described in section 2.In the sections 3 and 4 the paper describes the use of passive UHF-RFID as a central element for Smart Logistics Zone applications. It also shows some in depth challenges that have to be met for a successful technical integration of such solutions. Section 5 gives a short conclusion and outlook on further aspects of Smart Logistics Zones. 2. Smart Logistics Zones Smart Logistics Zones define a multiple use concept of technical systems for the identification, localization and condition monitoring of different object levels in logistics and production processes. Furthermore a spatial reference needs to be integrated into the definition, as transport and production related logistics processes are defined by moving and handling objects along space and time. By that, several spatial and object levels have to be taken into account along typical supply chains: individuals (staff), single objects (goods/freight), mobile resources, infrastructures. The integration of the technical systems along those spatial and object levels in supply chains marks a central challenge to establish Smart Logistics Zones. The Logistics Zone is understood as the sphere of action of mobile objects (vehicles, handling equipment, goods, staff, etc.) in logistics and production infrastructures. By that the logistics zone is defined by the logistics process in its topographic-technical and time frame. This definition makes logistics zones scalable reaching from geographical regions and traffic routes to defined logistical nodes and single areas of interest like receiving areas, single containers or single production workplaces with their material supply and outgoing products. Smart Logistics Zones are equipped with ICTs which form an ambient intelligence. Ambient intelligence describes the technical paradigm to support humans in its actions (e.g. within logistics processes and environments) by linking several supporting sensor, communication and processing modules and providing according IT-Tools for analyses, monitoring and performance measurement functionalities. Following these requirements systems for identification, localization and condition monitoring are linked in multi sensor systems to seamlessly monitor logistics processes of goods, resources and staff in Smart Logistics Zones Elements of Smart Logistics Zones and technological requirements As the use of Information and Communication Technologies (ICT) in logistics and production processes provides several information of the handled objects and resources being more and more available in real-time, the employment of those sensor information for additional purposes in the fields of safety and security becomes increasingly relevant. The basic idea of integrating sensor technologies into logistics and production processes is to

3 528 Martin Kirch et al. / Procedia Engineering 178 ( 2017 ) monitor the process reliability. Due to regulations (e.g. for food logistics, dangerous goods) the use of sensor technologies gains further relevance for security aspects. On the other side esp. solutions for real-time object tracking and tracing can be employed for aspects of workplace safety and process reliability (see Figures 1 and 2). Fig. 1. Elements of Smart Logistics Zones (Schenk et al., 2012). As shown in figure 1 the definition aspects of Smart Logistics Zones can be subdivided in the levels of safety/security, spatial/object reference and information flow. Logistics Zones Infrastructure City Cargohub Airport Building Incoming/ Outgoing Picking Warehouse Goods Mobile Object Carrier Container Parcel Ambient Intelligence IT-Technology Identification Localization Condition Communication monitoring Sensor Technology Radio based Image based Real-time ability Documentation Quality assurance Monitoring Control Logistics Processes Intelligent Objects Infrastructure Mobile Equipment Staff Vehicles Process Transportation Handling Storing Controlling Safety/Security Workplace Safety Process Reliability Civil Security Fig. 2. Morphology for characteristics of Smart Logistics Zones (Schenk et al., 2012). The technological requirements for the identification, localization and condition monitoring systems have to be met throughout all stages of supply chains since their weak point is inevitably located wherever information is not acquired with absolute certainty. One of the key challenges for seamless smart logistics is the creation of comparable technical levels at all points in supply chains. This defines the requirements for Smart Standardized Logistics Zones subsuming the different requirements. The creation of Smart Standardized Logistics Zones facilitates the integration of all information relevant to logistics throughout the transportation chain and thus pursues the vision of a secure supply chain (Schenk et al., 2007) Technologies for Smart Logistics Zones The demands on the automatic identification and localization as also the condition monitoring of are increasing for objects in logistics and production both as sources of data for a secure supply chain s documentation and

4 Martin Kirch et al. / Procedia Engineering 178 ( 2017 ) control. Significant synergies for safety and security tasks can be obtained by combining the use of radio and image identification and positioning technologies to automatically determine the status of logistics processes by motion and state analyses. ICTs are entering infrastructures (e.g. logistical nodes) as well as becoming essential to equipment, freight and operative staff to ensure that necessary information such as the location and status of shipments is available even at the logistical boundaries. A Smart Logistics Zone is established individually in any supply chain and constitutes the target area in which information must be acquired in the particular logistics systems and processed. A key challenge of information logistics is the necessity for compatible and interfaced execution of the numerous subsystems, from sensor sources to performance measurement functions, which exist on the individual levels of a logistics zones in parallel and partly in competition. For that reason R&D in cooperative operation and interoperability of ICT systems is a key development area for logistics applications (Schenk et al., 2010). To establish Smart Logistics Zones an increasing set of technologies is available speaking of identification and localization technologies as also of different sensor technologies for status monitoring. To give an overview on some basic applications for Smart Logistics Zones, two different applications using passive UHF-RFID in logistics and production will be described within the next two sections. For these applications RFID has been identified as the best fitting technology for the object identification along the referring supply chains nevertheless Smart Logistics Zones can be also based on other technologies. To implement smart logistics and production processes it is always essential to analyse the technical and economic feasibility of aimed identification, localization and condition monitoring technologies. 3. Secure object identification in the Automotive Industry Since the use of AutoID technologies like RFID is increasing in a wide variety of sectors, the number of objects to be scanned is rising equally. For that reason novel scanning technologies are needed to ensure a secure identification of the objects at all stages of the supply chain. With the implementing of different RFID gates in logistics and production zones of enterprises for different business cases it has been observed an increasing problem with the coexistence of RFID applications. The correlation of sensitivity and the range of radio frequency signals for the basic RFID applications are different in the applications for single reading, bulk reading and localization of a passive RFID tags. A good example for the requirement of new standardized technical solutions along the supply chain is the introduction of RFID in the automotive industry. By introducing RFID the OEM companies and their suppliers are able to track their products on the item level. The extensive use of RFID transponders on assembly parts of a vehicle enables the new possibility of item based tracking for logistics processes (e.g. control of incoming goods) as also for production processes (e.g. control of correct parts assembled). Besides established applications like the RFIDbased identification of single cars or car bodies within production further fields for RFID applications have recently been developed. Especially using RFID for marking and identification of prototype parts in single reading application as also in bulk reading applications for assembled parts offers a good development and test case for the integration of RFID in automotive processes. Along with the technical developments also the definition of automotive RFID standards (structures of numbering systems) is an important aspect. In the vehicle development process the prototype vehicles and parts are subject to ongoing development. Therefore, uniquely identifying the vehicles and parts is particularly important. The vehicle quantities to be handled are considerably smaller than the ones in series production. This reduces the scope and the cost of the RFID implementation and learns about RFID technology rather than directly introducing RFID technology to large-scale series production. The vehicle development process addresses vehicles and components that are used for internal purposes only, i.e. they are not delivered to end customers. This helps to reduce unforeseeable risks such as potential privacy issues. (Peppel et al., 2014). The principle for a system that automatically identifies multiple RFID transponders in a common read range like an engine or passenger compartment of a vehicle in quick succession is called bulk detection. In addition to a suitable RFID system to read the transponders, the read space must also have a sufficient energy density with homogeneous field strength distribution in any polarization to read RFID transponders highly reliably even when

5 530 Martin Kirch et al. / Procedia Engineering 178 ( 2017 ) their orientation is unknown. In the particular use case of the vehicle development process up to 100 single items are positioned in one vehicle, which need to be securely identified. The RFID based processes of the Smart Logistics application for automotive prototypes is shown in Figure 3: Fig. 3. Use of RFID for automotive prototype parts (Peppel et al., 2014). As the reliable identification of RFID transponders within bulk reading processes (e.g. bulks of incoming prototype parts / bulk of assembled parts within a prototype car) is a technical challenge, different technical approaches have been analysed. One possible technical solution for such high performance bulk reading (high number of RFID transponders, short reading time) is the RFID Tunnelgate as it has been developed by the FraunhoferIFF. This solution uses the principle of a reverberation chamber. The reading zone is bounded by a conductive medium and employs electromagnetic reverberation while combining one or more antennas of an RFID system in the UHF band. A reverberation chamber provides a periodic electro-magnetic environment, that means: the phase between all waves is random, the energy density in the chamber is uniform everywhere, the energy flow in all directions is the same. The technical advantages of the Tunnelgate using the principle of the reverberation chamber over conventional gates are: RFID transponders are read reliably with minimal reader output power, A shielded read zone prevents false positive readings, Complete independence from polarization ensures that readings of RFID transponders are accurate regardless of the transponders orientation. The Reverberation Chamber facilitates reliable automatic scanning of items tagged with RFID in bulk in established material flows. The principle of electromagnetic reverberation s flexibility and scalability makes it an ideal reference technology for Smart Logistics Zones where high performance bulk reading is required. The solution of the Tunnelgate can be applied throughout supply chains in a wide variety. From object scanning in Tunnelgates to the integration of the principle into smart containers each application forms a Smart Logistics Zone (see Fig. 4).

6 Martin Kirch et al. / Procedia Engineering 178 ( 2017 ) Fig. 4. The principle of electromagnetic reverberation among RFID applications (Schenk et al., 2012). 4. RFID Based Pallet Management A typical application field for passive UHF-RFID is the identification of returnable shipping equipment like pallets or containers. As there are currently developments to establish standard containers with integrated RFID functionality (e.g. within the automotive industry) there are still only few large scale applications in place, where RFID tagged shipping equipment is used reliably in longer terms. The use case described below gives an approach for a methodology to develop and establish RFID tagged shipping equipment. This methodology has been successfully carried out for the development and the rollout of an RFID tagged plastic for a German retail company and has been further described (Poenicke and Kirch, 2016). With that application a deeper technical look into the implementation of RFID for a Smart Logistics application is given Pallets in the Retail Process The demand for technical solutions to track products and shipments of products automatically is steadily growing in the retail industry. Product tracking makes it possible to register incoming and outgoing shipments reliably and in real time as the frequency of deliveries steadily increases and the variety of products grows. Technical solutions also help meet regulatory standards and requirements (e.g. food traceability). Tagging single articles with RFID transponders is state-of-the-art for certain product categories (e.g. in fashion industries as described by Loebbecke et al., 2006). But still for most of the goods in retail it is inexpedient. The palletized items are often of such low value individually that tagging them with RFID is not cost effective. The use of RFID on non-returnable secondary packaging also has to be viewed critically since the transponders could not be reused sustainably. Furthermore, the variety and diversity of items make it difficult technically to tag and automatically identify everything with RFID in every potential packaging structure reliably. This is why product tracking based on RFID is focusing on shipping equipment such as pallets. Studies of the use of RFID on different levels of objects have been conducted (see Ten Hompel, 2012). Given the problems on the level of articles and secondary packaging, integration of RFID has primarily been focused on the level of shipping equipment and pallets. Although different manufacturers have developed pallet solutions with integrated RFID transponders, they have failed to become established in the field because they are focused on open pallet pools. Therefore the focus is on closed pallet pools, thus making RFID integration cost effective. In retailer s shipping and supply networks RFID pallets are used to record shipments in the ERP system on the basis of the shipping equipment. Each of the items picked is identified and assigned to the shipping equipment. RFID stations at individual transfer points in the supply chain automatically identify the pallets, thus making it possible to track products continuously from production to warehouses and local stores. Apart from product tracking, pallet trips are also recorded for purposes of pallet management (pooling). The temporary locations of a pallet can be documented from its manufacture at the pallet manufacturer s facilities to its

7 532 Martin Kirch et al. / Procedia Engineering 178 ( 2017 ) delivery at the retailer s warehouse, the palletization of products, the delivery to a store s stockroom and the retail space, and its return trip as an empty pallet. The technical basis allows an unlimited pooling of RFID-tagged pallets. The higher purchase price is recovered very quickly through a plastic pallet s significantly longer service life associated with a higher number of pallet trips Methodology for RFID integration For the use of UHF-RFID tags to identify shipping equipment like plastic pallets, several requirements have to be analysed. These requirements can be classified in object level, process level and IT level (see Fig. 5). Concerning the object level e.g. different materials have to be considered as they affect the selection and technical feasibility of RFID transponders. Because of that the impact of these materials on the tag performance has to be evaluated. Furthermore the number and potential positions of the tags are important requirements that have to be analysed. Fig. 5. Procedure of definitions and laboratory examinations (Poenicke and Kirch, 2016). For the process level the supply chain processes the shipping equipment goes through are analysed. This also includes an analysis of environmental conditions. E.g. within the retail processes the RFID-tagged pallets have to withstand temperatures of 20 C (e.g. in refrigerated warehouses) to +60 C (e.g. exposed to direct sunlight in summer) in conjunction with rain and snow for a minimum of at least five years. These are important information for the RFID integration as selected RFID labels have to remain securely stuck in the pallet and keep functioning despite these environmental extremes. On the IT level it is clarified what kinds of information have to be stored on the RFID transponder and what information will be kept centrally (data on tag / data on network). Based on the predefinitions and background knowledge about RFID integration a first selection of feasible RFID components can be made. For the further steps these components (e.g. transponders) need to be evaluated in laboratory performance measurements. By that it is ensured, that the best fitting RFID components are selected for the evaluated application. Furthermore the results of such laboratory measurements can give a quality reference that suppliers must guarantee once the RFID application is productively implemented.

8 Martin Kirch et al. / Procedia Engineering 178 ( 2017 ) Operation of the Systems Solutions Following the selection of a RFID transponder and its integration into the plastic pallets a complete system solution has been developed by FraunhoferIFF together with the pallet manufacturer. This includes RFID gates for the bulk reading of pallet staves, RFID assembly benches to initialize and repair the RFID tagged pallets, mobile RFID handheld applications as also a central data base where all pallet related information are stored. The systems solution runs stably with yet a remarkable number (> 1 million) of RFID-tagged pallets in productive circulation and fully meeting the specifications for reliable RFID scanning defined in advance. 5. Conclusions + Outlook Smart Logistics Zones are an enhancement of the term of Smart Logistics. For the further research on Smart Logistics Zones a structured analysis of logistics processes, frameworks and resources along global supply chains is needed to cluster the requirements towards ICTs and possible benefits of employing those. This analysis will mark a permanent process as the demand and development of further sensor technologies will increase due to administrative regulations as also customer needs and requests. The RFID applications given are first example applications where such Smart Logistics solutions are already in use. For certain domains the use of RFID may be considered to be a mandatory feature for the object identification in Smart Logistics applications. But already the technology RFID alone is offering further features in the future from high memory capacity to integration of passive sensor functionalities. Besides RFID of course also other established technologies (e.g. GNSS and RTLS localization; image based AutoID) and emerging technologies (e.g. BLE beacons) are important elements to generate data for the Smart Logistics Zones. Once the data have been generated they need to be processed. For that reason logistics and production applications of Smart Logistics Zones are also an important field for Big Data solutions from the analysis of the data to their usage within planning and control as also assistance solutions. (DHL 2013) References Big data in logistics a DHL perspective on how to move beyond the hype. DHL Loebbecke, Claudia; Palmer, Jonathan; and Huyskens, Claudio, RFID s Potential in the Fashion Industry: A Case Analysis (2006). BLED 2006 Proceedings. Peppel, F., Müller, M., Siveira, M., Schmidt, M. and Richter, K. From Theory into Practice Implementing RFID-driven Track & Trace Concepts in the Vehicle Development Process. In: 16. Forschungskolloquium am Fraunhofer IFF. Forschung vernetzen Innovation beschleunigen. Herausgeber: Prof. Schenk, S , Magdeburg Poenicke, O. and Kirch, M.: RFID Based Pallet Management Manufacture and Implementation of RFID-tagged Pallets in Retail. Smart Systech Proceedings, Schenk, M., Krampe, A., Poenicke, O., Richter, K. and Seidel, H. (2012): Informationslogistik, in: Grundlagen der Logistik, 4. Auflage, Huss- Verlag, München Schenk, M. and Richter, K. (2007): Telematik und RFID Elektronische Beobachter gestalten die gesicherte Warenkette, in: Internet der Dinge, Springer, Berlin Heidelberg Schenk, M. and Jumar, U. (2010): Galileo-Testfeld Sachsen-Anhalt Anwendungsschwerpunkte Verkehr und Logistik. BVL, 27. Deutscher Logistik-Kongress, Berlin Ten Hompel, M.: Studie: Radio-Frequenz-Identifikation 2004 Logistiktrends für Industrie und Handel. Dortmund, Uckelmann, D. (2008): A Definition Approach to Smart Logistics. In: S. Balandin et al. (Eds): NEW2AN 2008, LNCS 5174, pp , Springer, Berlin Heidelberg 2008.