The Future of Interconnected worlds, things and supply chains. Professor Sanjay Sarma Auto-ID Labs at MIT June 22, 2007

Transcription

1 The Future of Interconnected worlds, things and supply chains Professor Sanjay Sarma Auto-ID Labs at MIT June 22, 2007

2 Connectivity Taken from CETECOM Page 2

3 Standards soup Range vs data-rate trade-off Functionality horizon Functionality vs cost trade-off Technology cost Spectrum cost Taken from CETECOM Page 3

4 History (See Shrouds of Time The history of RFID, Landt 2001) 1948: Backscatter Stockman, H. "Communication by Means of Reflected Power", Proceedings of the IRE, pp , October : Automotive license plates Sterzer, F., "An electronic license plate for motor vehicles", RCA Review, 1974, 35, (2) pp : DISC, Auto-ID Center founded at MIT (Sarma, Brock, Ashton) 2001: First standards presented 2002: Gillette orders 500,000,000 tags from Alien 2003: Wal-Mart, DoD Mandates EPCglobal launched, Center retired HP sits on the board 2004: More mandates 2005: First bulk tagging Emergence of Gen 2 Multi-site deployments Beginnings of value 2006: Next Generation research 2007: Metro, Airbus announce rollouts Page 4

5 RFID Systems ID Electronic product code Read-write extra memory/sensory data Anti-collision One reader can read many tags Reader coordination Make sure readers don t interfere with each other Middleware Collect all the data and make sense of it Page 5

6 RFID Page 6

7 die size/cost, cents Low cost RFID Silicon: 4c/mm time Page 7 handling cost

8 Why is RFID expensive today? reduce functionality (Networking & software) greater functionality increased chip size reduce chip size (handle small chips) Page 8

9 The Supply Chain

10 Goods transfer in the retail supply chain: Good intentions Manufacturing plant Manufacturer s DC Retailer s DC Retailer Back Front STAGING BASKET AGGREGATION TRANSFER SORTING TRANSFER SORTING TRANSFER TRANSFER CONTAINER PALLET CASE SLEEVE SINGLES Themes: timely transfer error-proof operations minimize shrinkage Page 10

11 The road to chaos is lined with good(s) intentions Manufacturing plant Manufacturer s DC Retailer s DC Retailer Back Front STAGING BASKET AGGREGATION TRANSFER SORTING TRANSFER SORTING TRANSFER TRANSFER CONTAINER PALLET CASE SLEEVE SINGLES Too much inventory Errors Shrinkage Wasted effort Mis-shipments Shrinkage Errors Mis Inefficiencies -shipments Shrinkage Don t ask wasted actions PI resets Page 11 Holes Extras

12 Inventory TIME LOCATION TAG EPC Page 12

13 The Trace TIME Theft!! LOCATION Counterfeit! Diversion! TAG EPC Page 13

14 The Flow TIME LOCATION RECALL!!! TAG EPC Page 14

15 Supply Chain Problems TIME LOCATION Errors making plans less effective RFID enables Real-time detection of errors Real-time correction Run-to-run improvement i.e., tactical, operational, strategic enhancement. TAG EPC Page 15

16 What folks are doing with RFID

17 Sending ASN to Store(s) Example 2: Shipping Sending Completed ASN to Store(s) ASN sent to Store 0563 ASN send to Store 0477 DISTRIBUTION CENTRE Page 17

18 Page 18

19 STORE 0234 BACKROOM SHOPFLOOR Page 19

20 Other retail applications Out-of-stocks Back-room management BR-SF transition Display promotion compliance Tracking valuable/sensitive goods Storage and transport Display Insurance Cold Chain FEFO assurance Expiry/consumer safety Markdowns In-store tracking Pharmacy processes Loyalty cards Open-box items Returns management Warranty tracking Cycle-counting Apparel stock tracking Assortment monitoring Planogram compliance Shipping & Receiving Reusable assets Clamp sensors Page 20

21 The future goes well beyond the supply chain Healthcare: Cold chain Hospital supply Home supply Telemedicine Smart cabinets Developing country care Counterfeit/dilution Heavy industries Asset management (active) Parts tracking (passive/active) Equipment monitoring Wireless sensors Environment Recycling Disposal and dumping Environmental sensing Transportation Traffic management Railways Cylinder tracking Container tracking Building management Building controls Health and safety Maintenance assurance Page 21

22 Example: Applications of RFID in Hospitals People Tracking infirm patients Tracking babies Tracking doctors and staff Equipment Tracking mobile units Tracking wheel-chairs and other patient equipment Blood Tracking blood from bank to storage to hospital Ensuring cold-chain compliance Paperwork Tracking of X-Rays Tracking of documents Medicines and Medical Devices Tracking pill dispensation Consignment tracking of stents, pacemakers, etc. Cold-chain compliance FDA is now requiring unique numbering and tracking Detecting counterfeits Operation Theater Tracking of instruments and history Ensuring that sponges, instruments leave the patient Emergency Services Making sure that kits/ambulances have necessary equipment Page 22

23 Opportunities

24 The opportunities Technology Tags Semiconductors Packaging Protocols Antennae Readers Middleware/Reader Middleware Databases Enterprise architecture Distributed systems Identity management Business process Applications Supply chain Retail Healthcare B2B Critical goods Logistics Travel/airports Defense Heavy industries Asset management Operations Factory DC/warehouse Institutions Maintenance Personal systems. Analysis RF Systems Communications Security System dynamics Supply chain Planning Execution Policy Demand planning Social/ethical Business planning Macroeconomics Policy/frequency Page 24

25 References 1. University of St Gallen (2004) 2. Credit Research Foundation (2003) 3. National Retail Security Survey (2003) (University of Florida; Centre for Studies in Criminology and Law) 4. Gruen, Corsten, Bharadwaj (2002) Retail Out-of-Stocks 5. National Retail Security Survey (2002) 6. J. P. Emond, University of Florida (2006) 7. EPCglobal (2005) 8. EPCglobal Promotions Vignette (2006) 9. D. Mishra, Pepperdine University (2006) 10. US Department of Commerce (2005) Page 25