WHAT IS A SMART TAG?...

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1 ANSWERING Is it fresh? SMART TAGS AND SOFTWARE FOR PERISHABLES WHAT IS A SMART TAG?... A SMART TAG IS A SMALL ELECTRONIC LABEL THAT ACTIVELY MONITORS THE PERISHABLE PRODUCT TO WHICH IT IS ATTACHED. 1

2 ABOUT PERISHABLES PERISHABLES HAVE UNIQUE SHELF LIVES. SHELF LIFE = AN INDICATOR OF QUALITY. A PERISHABLE S QUALITY IS AFFECTED BY PHYSICAL, CHEMICAL OR BIOLOGICAL FACTORS (OFTEN INTER-RELATED). HOWEVER: TEMPERATURE IS THE PREDOMINANT FACTOR IN DETERMINING THE LONGEVITY OF QUALITY. TODAY S PERISHABLE TAG: THE DATE STAMP EXPIRATION DATES USE BY, SELL BY, BEYOND USE REPRESENT EITHER: THE PERISHABLE PRODUCER S RULE OF THUMB/ BEST GUESS OF SHELF LIFE OR A GOVERNMENT MANDATED EXPIRATION DATE. PRODUCT DATES ARE BASED ON AN ASSESSMENT OF THE TEMPERATURE TO BE EXPERIENCED BY THE PERISHABLE. PRODUCT DATES ARE DEAD DATES. 2

3 IN THE NEWS PERISHABLE TAG MARKETS BULK: PRODUCE, MEAT, POULTRY, FISH, COFFEE, WINE, BEER, ORGANICS FOOD CUT FLOWERS FLORAL VACCINES, BLOOD, PHARMA MEDICAL/PHARMACEUTICALS FILM, ADHESIVES, PAINT, CHEMICALS INDUSTRIAL/OTHER 3

4 WHAT YOU MIGHT NOT KNOW FOOD REFRIGERATED FOODS: 41 F OR LESS TO ENSURE SAFETY. (FDA) INDUSTRIALS POLYSULFIDE, EPOXY, ADHESIVES, PHOTOGRAPHIC AND X-RAY FILM, SOLDER PASTE, MUNITIONS and... ARE SUBJECT TO TEMPERATURE ABUSE. 55 SUBSTANCES IN OVER 3,000 PRODUCTS COMMONLY DISCARDED PREMATURELY BECAUSE OF CONSERVATIVE SHELF LIFE ESTIMATION. (Arthur D Little Shelf Life Specifications for Mission Readiness ) WHAT YOU MIGHT NOT KNOW PHARMACEUTIALS MOST PHARMACEUTICALS ARE PERISHABLE. TEMPERATURE ABUSE OF LIVE VACCINES INACTIVATES THE VACCINE. WORLD HEALTH ORGANIZATION AND UNICEF HAVE MANDATED THAT ALL ORAL POLIO VACCINES MUST INCLUDE A VACCINE VIAL MONITOR (VVM) THAT MONITORS TEMPERATURE. U.S. PHARMACOPEIAL/U.S. ARMY MEDICAL MATERIEL AGENCY STUDY (JUNE 2000) ON SHIPMENTS OF ANTHRAX VACCINE: 24.4% OF SHIPMENTS WERE NOT MAINTAINED AT AVERAGE TEMPERATURES WITHIN TEMPERATURE RANGE RECOMMENDED FOR ANTHRAX VACCINE. 4

5 WHAT YOU MIGHT NOT KNOW PHARMACEUTICALS (CONTINUED) GOVERNMENT REGULATIONS REQUIRE THAT MANY DRUGS EXPIRE AFTER ONE YEAR DESPITE THAT MANY DRUGS, KEPT UNDER OPTIMAL CONDITIONS, REMAIN VIABLE LONGER THAN EXPIRATION DATES. SIGNIFICANT ECONOMIC BENEFIT OCCURS IF DRUG CAN BE DETERMINED FRESH AFTER THE ONE-YEAR CUT-OFF. IN LATE 1980 S U.S. MILITARY HAD $1 BILLION OF EXPIRED DRUGS THAT NEEDED TO BE DESTROYED 90% WERE SAFE AND EFFECTIVE BEYOND ORIGINAL EXPIRATION DATE. RESULT: DoD SHELF LIFE EXTENSION PROGRAM (SLEP) TO TESTS DRUGS FOR ACTUAL SHELF LIFE. TODAY S SOLUTIONS Mirror a product s shelf life with a known chemical reaction that progresses at the same rate as the product deteriorates. CHEMICAL TAGS Storage/logistics/accuracy issues. Customer knows first. No data transfer to supply chain systems. Inexpensive. DATA LOGGERS-RS232 or RF Meant to monitor temperature of refrigeration units & transport. Not clear what to do with perishable products when temperature threshold exceeded. Expensive. 5

6 INFRATAB S SOLUTIONS TAGS READERS SOFTWARE SMALL BUSINESS USE NOW RF HF ISO I8000 UHF EPC CLASS 1 NOTEBOOK HANDHELD WEB SERVER SHELF LIFE LEFT 86% SHELF LIFE DATA. -5 C XXXX -4 C YYYY -3 C ZZZZ 5 C AAAA 10 C BBBB. HIGH TEMP THRESHOLD 45 C LOW TEMP THRESHOLD 0 C ALERT AT 80% RECEIVING 50% SELL 30% USE ENTERPRISE PORTAL EPC TRADING PARTNERS COMPATIBLE WITH EXISTING RFID INFRASTRUCTURE SUPPLY CHAIN VISION PRODUCT RECEIVED OK SHELF LIFE LEFT: 86% SHELF LIFE-BASED LOGISTICS INDUCTION RECEIVING IDENTIFICATION SORTING RELEASE THIS FIRST AT THIS TEMPERATURE SHIPMENT MUST ARRIVE AT RETAILER IN 1 DAY STORES FIRST IN/ LEAST SHELF LIFE OUT SHIPPING PERISHABLE SHIPPING SERVICES 6

7 PERISHABLE PRODUCER VISION HIGHER YIELD/ HIGHER QUALITY FRESHER COMPONENTS WHEN SHELF LIFE IS MONITORED BEYOND USE DATE TRACKING THAT INCLUDES SHELF LIFE USER VISION FOODS, COSMETICS, FLOWERS AND DRUGS: RETAILER QUALITY ASSURANCE SHELF LIFE WITHIN ACCEPTABLE RANGE PAINTS/ADHESIVES/CHEMICALS OK TO USE WINE HIGH VALUE WHEN PROOF OF STORAGE CONDITIONS 7

8 USER VISION RECEIVING SHELF LIFE WITHIN ACCEPTABLE RANGE STORAGE USE THIS FIRST BEFORE USE AT THIS TEMPERATURE, USE WITHIN 3 HOURS ADOPTION DRIVERS FDA STRATEGIC ACTION PLAN If You Build It, They Will Come, Accenture, February 1, 2003, page 8, Forrester Research, Inc., RFID: The Smart Product Revolution, August

9 ADOPTION DRIVER FDA FDA STRATEGIC ACTION PLAN (AUGUST 2003) FOODS AND COSMETICS IMPLEMENTATION OF A SCIENCE-BASED LIFE CYCLE APPROACH TO FOODS AND COSMETICS. TRACK A PRODUCT S HISTORY FROM RAW MATERIALS, THROUGH PRODUCTION, TRANSPORTATION TO THE U.S. MANUFACTURER OR PRODUCER, IF THERE IS ONE, STORAGE AND TO THE ULTIMATE CONSUMER. FIRST APPLICATION: PERISHABLE IMPORTS. PHARMACEUTICALS CONCERN FOR COUNTERFEIT DRUGS. CONCERN FOR SHIPMENTS OF DRUGS THRU THE MAIL. INFRATAB FreshAlert TAGS USE NOW REUSABLE OR DISPOSABLE RF RF READER & INTERNET ON THE OUTSIDE OF THE TAG BARCODE OR LOGO DISPLAY (OPTIONAL) GAS GAUGE OR FRESH, USE NOW, TOSS PRESS N CHECK BUTTON. INFRATAB FreshAlert mirrors in real-time a product s shelf life and reports status of shelf life at any point in time. INSIDE THE TAG CUSTOM RFID CHIP WITH SHELF LIFE SENSING RF: ISO HF EPC UHF Class 1, 2 BATTERY ANTENNA 9

10 SHELF LIFE rate = 1/ s helf life Arrhenius Plot Milk Shelf Life y(1/days ) = 7E+14e /T R 2 = Ea= 20,289 Kcal/mole ko= 7 x 10^ / T K SHELF LIFE SHELF LIFE DATA IS PERISHABLE PRODUCER PROPRIETARY! BASED ON TEXTURE, TASTE, AROMA & QUALITY THAT PRODUCER WANTS CUSTOMER TO EXPERIENCE. INFRATAB SENSES TEMPERATURE AND DETERMINES SHELF LIFE LEFT AT PRODUCER SELECTED INTERVALS. ALERTS VISUAL DISPLAY ON TAG OR REPORTED AT READER MULTIPLE ALERT CONDITIONS SUPPORTED FOR RECEIVER, SHIPPER, RETAILER, OR USER. HISTORY EXCEPTION LOG HISTORY SHELF LIFE SOFTWARE & CONSULTING FINETUNING CONFIGURABLE TAG COMPONENTS DISPLAY Electrochromic Bi-stable Printable with paper-like properties (thin and flexible) Viewability range: 1x-2.5x newsprint Minimum radius of curvature: 2.5cm Drive power: 0.75mA/cm2; sustain power: ~0.05 ma/cm2 Cell thickness: microns Operating temperature range: -20 to 60 C; Shelf life: 24 months + Unique burn-in feature for indicating shelf life has ended. RF INTERFACE & ANTENNA Standards: ISO HF ; EPC UHF CLASS 2 (FUTURE) Antenna characteristics dependent upon frequency and application. BATTERY Primary or Secondary (Printed): 3V 12-26mAh Format thin, 53mm x 28mm x.35mm Meets ISO 7826 flexible test Chemistry lithium-manganese Use temperature range:-20 C to 80 C Storage: -20 C to 60 C Safe contains no volatile liquid or gelled electrolyte Other: withstands lamination temperature of 140 C. Primary (Printed): 3V 200mAh Format thin, 8.20cm x 6.93cm x.47cm Chemistry Leclanche (zinc & manganese dioxide) Use temperature range: -7 C to 54 C Storage recommended under 27 C Safe no mercury; proven leak resistant with >1 billion sold 10

11 THE INFRATAB ADVANTAGE FLEXIBLE, PRINTABLE DISPLAY AND BATTERY USE NOW SEMI-PASSIVE RFID IMPLEMENTATION ISO HF AND EPC UHF FOR FLEXIBILITY IN INTERFACING TO EMERGING RFID NETWORKS STRONG PARTNERSHIPS IN RFID IP, READERS AND INFRASTRUCTURE LOW-POWER, LOW-COST TEMPERATURE SENSING & SHELF LIFE DETERMINATION BASED UPON US PATENT SHELF LIFE EXPERTISE REALTIME SOFTWARE EXPERTISE EARLY ADOPTERS COMPANIES WHO: HAVE A QUALITY FOCUS COMPETITIVE STANCE: QUALITY VS. COST PREMIUM DIFFERENTIATION WITHIN BRAND PRODUCTS WITH LESS PRESERVATIVES CUSTOMER VISIBILITY INTO PRODUCT S QUALITY EXPERIENCE HIGH SPOILAGE RATES LEAST SHELF LIFE LEFT SUPPLY CHAIN MANAGEMENT NEED HACCP/FDA COMPLIANCE WANT MORE ACCURATE USE BY, SELL BY BEYOND USE DATES 11

12 INFRATAB ANSWERING Is it Fresh? Terry Myers CEO, Infratab, Inc Raytheon Road Oxnard, CA (805) x 220 tmyers@infratab.com 12