«Basics of EPC» Student s Handbook

Transcription

1 «Basics of EPC» Student s Handbook V2.0 Faculty : EPC DocType : Student s Handbook Delivery: Classroom Status : Final Date : 12/11/2008 Author : Mark Van Eeghem - 1 -

2 Document Change History. Author Date Review Actions Mark Van Eeghem 16/01/2008 Creation Mark Van Eeghem 12/11/2008 Bridge review Incorporated comments from the Bridge review (2.0) Document Conventions Icons The following icons appear in the Student s Syllabus. We included icons to draw attention to the text beside them and to give an immediate visual clue about the meaning of the material contained in the section. Useful information, often summarised. Hints and tips This information icon indicates additional information or resources. This icon represents an exercise that you are to complete

3 Table of contents Document Change History...2 Document Conventions...2 Table of contents INTRO WHAT IS EPC? EPC is one of GS1 s Products EPC Concepts The Basic Needs of the Supply Chain The EPC Solutions for the Basic Needs of the Supply Chain EPCglobal Inc Summary Exercise The GS1 Identification Keys Summary What is the Electronic Product Code? EPC as a Unique Identifier EPC as a pointer to information EPC Coding Schemes The EPCglobal Network Summary Exercise The Secrets of RFID How it works RFID Tag Components RFID Reader Components Summary Exercise Exercise Chapter Summary Benefits of EPC Applications for the Supply Chain Advantages of RFID Advantages of RFID Summary Exercise RFID EPC Standard Coding Scheme RFID EPC Standard Coding Scheme Summary EPCglobal Network with RFID Tracking and Tracing Product Recall Anti Counterfeiting Applications New Applications Summary Exercise Consumer Benefits related to the use of EPC Chapter Summary

4 4. Technical Information The EPC number The Header The EPC Manager Number The Object Class The Serial Number GS1 Code Schemes Summary Exercise RFID Tags The Tag and its Elements Different Types of Tags Summary Exercise Readers Readers Summary Exercise Frequencies Frequencies Summary Exercise EPCglobal Network Data Capture EPCIS Discovery Services Summary Exercise Chapter Summary EPC & RFID Implementation How to lead an EPC Project Reasons for implementing EPC & RFID The Five Steps of an EPC Project Examples of EPC Projects Baggage Food Traceability High Value Products Healthcare Summary Chapter Summary Answers to the exercises Reference Material Handouts of the powerpoint slides of this course Business Cases Business Cases Application Area: Manufacturing Application Area: Warehouse Application Area: Warehouse Application Area: Retail Case: Hong Kong International Airport

5 7.2.5 Case: Wal-Mart Case: Hp Case: Prada

6 1. INTRO Welcome to this Basics of EPC course. We are happy to present you with the EPC Basics course where you will learn more about the basics of EPC, EPCglobal Network(TM) and RFID. Our objectives are to make you aware of all the concepts, develop your technical knowledge and to show you which benefits are expected from their implementation. Last but not least, we will explain what the 5 steps for implementation are and show examples of use of RFID. This first course is very important because the learnings within it are the corner stones on which your knowledge of RFID and the EPCglobal Network will be built. Enjoy the course! - 6 -

7 2. WHAT IS EPC? 2.1 EPC is one of GS1 s Products GS1 is a leading global not-for-profit organisation dedicated to the design and implementation of global standards and solutions to improve the efficiency and visibility of supply and demand chains globally and across sectors. The GS1 system of standards is the most widely used supply chain standards system in the world. GS1 is a fully integrated global organisation with over 30 years experience in global standards. GS1 offers a range of products, services and solutions to fundamentally improve efficiency and visibility of supply and demand chains. GS1 operates in multiple sectors and industries. Notes - 7 -

8 The GS1 System is an integrated system of global standards that provides for accurate identification and communication of information regarding products, assets, services and locations. It is the most implemented supply chain standards system in the world. The GS1 System is the foundation of a wide range of efficiency-building supply chain applications and solutions. Based on GS1 Identification Keys, a common recurring set of identification keys, the GS1 System is composed of four key product areas: Global data and application standards for bar codes that use the globally recognised GS1 Identification Keys to automatically identify things such as trade items, locations, logistic units, and assets. Global standards for electronic business messaging that allow rapid, efficient and accurate automatic electronic transmission of agreed business data between trading partners. Based on two components: GS1 EANCOM and GS1 XML. The Global Data Synchronisation Network (GDSN ) is an automated, standards-based, global environment that enables secure and continuous data synchronisation, allowing all partners to have consistent item data in their systems at the same time. Global Product Classification (GPC) is a key component of GDSN, enabling effective category management

9 A new global standards system that combines RFID (radio frequency identification) technology, existing communications network infrastructure and the Electronic Product Code (a number for uniquely identifying an item) to enable immediate and automatic identification and tracking of an item through the whole supply chain globally, resulting in improved efficiency and visibility of the supply chain. GS1 also offers solutions integrating a number of GS1 products. Traceability is a robust solution for tracking and tracing items through the food supply chain. Patient Safety ensures prevention of medical errors and counterfeiting through the healthcare supply chain. GS1 standards improve patient safety and reduce costs in the healthcare supply chain. Automatic product identification on all product levels and full traceability ensure a safe and secure supply chain by providing greater visibility, accuracy and velocity for the benefits of all parties involved. Preventing medical errors and combating counterfeiting are top-ofmind concerns facing the healthcare sector GS1 standards help to solve these issues

10 For information about the GS1 HUG (Healthcare User Group) visit the GS1 HUG website at For more information about the GS1 EPCglobal HLS (Healthcare and Life Sciences Industry Action Group, visit _hls/ Conformance and Certification is a program to ensure integrity and equivalency of various certification and accreditation programs for GS1 BarCodes and ecom messages worldwide. Today, 100% reliable GS1 BarCodes and GS1 ecom messages are an absolutely vital part of the supply chain. GS1 has a responsibility to do all it can to help ensure that its standards are being used in a systematic and consistent way across the globe. A single global conformance assessment and certification programme will benefit all actors in the supply and demand chain, by helping to ensure faster adoption, improved service and operational efficiency. Notes

11 2.3 EPC Concepts In this topic we will provide you with an overview of how EPC provides a solution to 3 basic needs in the supply chain and who provides and manages the standards The Basic Needs of the Supply Chain In the supply chain a number of different companies (manufacturers, warehouses, customs agent, forwarders, retailers, wholesalers) have a need to work together and share information on a regular basis. Given the number of partners involved, we have the need to capture and share information in an easy and automated way. When setting an information system in a supply chain, there are 3 basic needs that have to be fulfilled: the need for identification; the need for data capture; and the need for data exchange

12 The need for Identification <<Basics of EPC>> In a Supply Chain, there is a constant flow of goods and information between trading partners. As long as a company is working all by itself and without external partners, it can afford to identify goods using a proprietary system. But different companies often have different identification systems. Some use the GTIN (Global Trade Item Number), some use their own numbers, others use the distributor s numbers and yet others use a third party numbering system: all to identify a single product. It is clear that when information needs to be exchanged between different parties, they need to create a mapping for all these different numbers for a single product. The more numbering systems in use, the more error-prone any information exchange process is. Hence, the importance of a Global Numbering System for the identification of goods and services. This way, a product is uniquely identified throughout the world and the different supply chains. The need for Data Capture The Supply Chain exists only by virtue of information. In order to know what is going on in the Supply Chain (regardless whether we think about goods, services or assets), we need to capture data about the goods, services and/or assets at given points in time and at given places or points in the process. As the demand for more accurate and detailed information keeps rising, largely because of demands of increased efficiency and accuracy, we need to have the right and timely data. In a supply chain, identification of the item and other information physically attached to the item are to be captured in the IT system, preferably in an automated way

13 A serialised identification, where each item has a different number, enables the capture of information about each item and track these at any point of the supply chain. The Need for Data Exchange As the supply chain consists of many supply chain partners, information about the item must be shared between them. At each point where information on the item is captured, information about it is updated by each partner. This allows for (near) real-time information. The data exchange allows for effective tracking and tracing of products within the Supply Chain (e.g. for safety/recall purposes) and it allows to better manage inventory within the Supply Chain (e.g. JIT) Notes

14 2.3.2 The EPC Solutions for the Basic Needs of the Supply Chain Solution to the basic needs: EPC Solutions for Identification In order to identify items, a code called the EPC has been created: EPC = Electronic Product Code This code is actually a numbering scheme for objects. Because it includes a serial number, it allows to have a unique identifier for every object. The EPC is designed to be scaleable and extensible. The EPC numbering scheme is further explained in the topic What is the Electronic Product Code

15 EPC Solutions for Data Capture <<Basics of EPC>> The EPC, the Electronic Product Code, is captured using RFID, Radio Frequency IDentification. RFID is a wireless technology. RFID is the main technology for EPC, but as an alternative you could also use barcodes or manual data entry to capture the data if these means are more relevant to the business case. Within this course, however, our primary focus is on Radio Frequency Identification. As such we will explain the use of EPC only in the context of RFID. EPC Solutions for Data Exchange In a supply chain, trading partners need to share information about the items. EPCglobal Network is a system that allows the trading partners to capture and share information about the items in an automated way. EPCglobal Network provides real-time information about each item. Notes

16 2.3.3 EPCglobal Inc. The development of the EPC, the provision of RFID standards and the EPCglobal Network specifications are managed by EPCglobal Inc. EPCglobal is a subsidiary of GS1. EPCglobal is user-driven: the same companies that are using the standards, specifications and publications of EPCglobal are also the ones involved in developing and maintaining these. The development process of the standards starts with gathering user requirements. The standards are then developed based on these user requirements, by technical experts from solution providers. These are open standards. All solution providers can then develop products such as tags, readers and sofware, based on these open standards

17 2.3.4 Summary This topic presented the three major concepts of identification, data capture and data exchange in the Supply Chain and how EPCglobal Inc has provided solutions to these key questions: the Electronic Product Code (EPC) to identify items; RFID to capture information; the EPCglobal Network to exchange data between trading partners. Notes

18 2.3.5 Exercise Give the three Supply Chain needs to which EPCglobal has a solution Circle the correct answer: A. Data Tracking, Classification, Data Exchange B. Identification, Data Capture, Data Exchange C. Identification, Data synchronisation, Data capture

19 2.3.6 The GS1 Identification Keys Introduction The above diagram is a simplified representation of the GS1 System, showing all its basic components. In order to understand this diagram, it is necessary to go back, and ask oneself the question what purpose GS1 has as a standards organisation. As a standards organisation, GS1 works on improving and facilitating the supply chain. In a supply chain, there is a flow of goods or services. The standards that GS1 has developed and continues developing over the years, manages to link the flow of goods to the flow of information that goes along with it. That is where the painpoint is for most companies in the supply chain: ensuring the right information about the right items flowing through the supply chain is available. The GS1 System provides for the use of unambiguous numbers to identify goods, services, assets, and locations worldwide. These numbers can be represented in bar code. The system is designed to overcome the limitations of using company, organization, or sector specific coding systems, and to make trading much more efficient and responsive. GS1 Identification Keys provide access to database information relevant to trading partners. They aim at creating a single, open, business led, integrated system of identification for effective supply chain management in any company, in any industry, anywhere in the world. The Identification Keys are relevant and applicable to any supply chain, independent of who assigns, receives, and processes them, wilst at the same time enabling only one way to achieve a given, global, identification requirement

20 Fixed attributes (master data) of an item or service should be looked up from a database by entering a GS1 identification key. GS1 Identification Keys, provide identification at different levels. Trade items: Any item (product or service) upon which there is a need to retrieve pre-defined information and that may be priced or ordered or invoiced at any point in the supply chain Logistic units: An item of any composition established for transport and/or storage which needs to be managed though the supply chain Locations: Physical or legal entities requiring a permanent identification (company, department, warehouse,...). Assets, Service Relationships, Coupons,.(similar principles apply) GS1 Keys: GTIN GLN EPC SSCC GRAI GIAI GSRN GDTI Trade Items The GTIN or Global Trade Item Number is a GS1 Identification Key, providing access to information on trade items, held in computer files. The main characteristics of the Global trade Item Numbers are: Unique: every variant of an item is allocated a separate unique number Non-significant numbering structure: they identify an item but contain no information about it International: GS1 identification keys are used across all countries and all sectors Secure: GS1 identification keys are fixed length, numeric and include a standard check digit Foundational: Provide access to business solutions (traceability, data synchronisation, compliant bar coding,..) It is the responsibility of GS1 Member Organisations to administer number allocation and set the rules in their territory. THESE RULES MUST COMPLY WITH THE GS1 GENERAL SPECIFICATIONS

21 Each different series of trade items is allocated its own GTIN GTINs do not carry information about the item. They are a key to access data base information about the trade item that must be communicated to all business partners. GTINs remain the same as long as the characteristics of the trade items are not modified. There are different GTIN data structures, 4 of which we ll discuss here. GTIN-14 Data Structure The GTIN-14 Data Structure is used for grouping of items. The indicator digit takes the value 1 to 8* and allows for the identification of eight packaging levels. * 0 is a filler digit and 9 has a special application for Variable Measure GTIN-13 Data Structure This is the original data structure for Trade items. The exact structure is left to the discretion of every Member organisation. The main methods are:

22 The different areas, as colour-coded, are: - GS1 Prefix, this is the country number assigned to the MO that assigns the GTINs. - Company Number, which is the number that the MO assigns to the company that will be using the GTINs - Item number, which is the number that is assigned uniquely to a specific trade item. - Check digit, this is an automatically calculated check digit to ensure the number as a whole is correct and unique. GTIN-12 Data Structure GTIN-8 Data Structure The recommended method for assignment is the direct assignment, by the Member Organisation, of single GTIN-8 numbers to each separate product. The GTIN-8 Data Structure may be used if : - The largest side of the printed label < 40 cm² - The total printable area < 80 cm² The first three positions are the prefix, whereas the positions 4-7 represent the item reference

23 GTIN Use The use of GTINs is strictly regulated. Below are a couple of the main rules you should certainly know. A single product cannot have more than 1 GTIN allocated to it. The reverse holds also true: a single GTIN can only be allocated to a single product. A GTIN identifies always the lowest level. In the example below, it doesn t identify the pants, but the pants of a specific type, specific colour and specific size

24 The last important rule about GTINs, is that there is no such thing as significant numbering. As already hinted at in the previous image, GTINs are about identification, not classification. Often companies try to build a certain logic into the way they construct GTINs, such as a department number or a product id. The goal of a GTIN is to provide non-significant numbering about trade items. The number is a pointer to information which is held in data files. The GTIN is enough to retrieve the necessary additional information from the computer files. This is at the same time also the basis of GS1 products like Gepir or GDSN

25 Locations The GS1 Identification Key used to identify physical locations or legal entities. The key is comprised of a GS1 Company Prefix, Location Reference, and Check Digit Global Location Number (GLN) is used to identify locations. This could be a physical location such as a warehouse or a legal entity such as a company or customer or a function that takes place within a legal entity. It can also be used to identify something as specific as a particular shelf in a store. Being able to identify locations with a unique number is key to many business processes. The GLN is used in electronic messaging between customers and suppliers, where location advice is important. GLN is also used within companies to identify specific locations both electronically in a database or physically where the GLN can be produced in a barcode or GS1 EPC tag. The GLN will identify any location uniquely thus ensuring that it is always identified correctly anywhere in the world. Companies may choose to allocate one GLN for the whole business whilst others may allocate a GLN for every location that they need to identify. This could be a warehouse goods-in door or a hospital bed location in a ward. GLN allows complete flexibility for whatever level location identification is required. As a GS1 Identification Key the GLN will always be unique which allows trading parties to exchange GLN data for location identification with no danger of number duplication. Each company can assign GLNs to their own locations. It is the assigning company s responsibility to keep their trading partners informed of numbers allocated and the corresponding data such as address and contact information that is associated with the location. In some countries a national GLN database is administered by the local GS1 Member Organisation. However, if you have a GS1 Company Prefix then you can allocate your GLN location reference numbers. Within the GS1 System the GLN and the GTIN (Global Trade Item Number) are two distinct data identifiers. There is no conflict when a GTIN and a GLN have the same digits, the data carrier (electronic data interchange, machine readable symbol, or radio frequency) will distinguish between the two identifiers. For example, when GLNs are used in Automatic Identification and Data

26 Capture (AIDC) and electronic communications, the context (Application Identifiers and qualifiers) will prevent any misinterpretation The GLN is constructed as: Logistic Units The GS1 Identification Key used to identify a logistic unit. The key is comprised of an Extension digit, GS1 Company Prefix, Serial Reference, and Check Digit. The Serial Shipping Container Code (SSCC) is used to identify individual logistic unit. A logistic unit can be any combination of units put together in a case or on a pallet or truck where the specific unit load needs to be managed through the supply chain. The SSCC enables this unit to be tracked individually which brings benefits for order and delivery tracking and automated goodsreceiving. As the SSCC provides a unique number for the delivery it can be utilized as a look-up number to provide not only detailed information regarding the contents of the load but also as part of an Advanced Shipping Notice (ASN) or Despatch Advice process. Typically this means that just one scan at a goods-in bay of the SSCC on a logistic unit can be linked to a pre-received electronic ASN/Despatch Advice of the contents of the logistic unit to facilitate speedy goods-in and put away processes. Alternatively when tracking a unit in transit the SSCC provides all the information required for accurate identification. An SSCC is different to a traded unit in that it is used when an item or unit load need to be identified specifically when moving from one place to another. It is possible to have a single item identified with both an SSCC and a GTIN (an example would be a pallet of bottled water that needs to be tracked in the supply chain but is also bought and sold). The SSCC can be captured when a specific logistic unit is

27 dispatched, arrives at the destination or at any other intermediary point in the supply chain. The SSCC will identify any logistic unit uniquely thus ensuring that it is always identified correctly anywhere in the world. Combined with GS1 standards for electronic messaging, this license plate facilitates simple tracking of goods from carton to even trailer load level. In addition it allows reliable look up of complex load detail. In turn this saves having to encode long detailed consignment information on individual logistic unit labels. The serial reference component of the SSCC provides virtually unlimited number capacity simplifying number allocation and guaranteeing unique identification. The SSCC is constructed as shown below: The Other GS1 Identification Keys GS1 supports a number of other identification keys for specific applications. Each of these have to comply with a number of basic rules: Users need a GS1 company prefix to generate any GS1 Identification Key The assigned GS1 Company Prefix gives users access to all GS1 Identification numbers. The remaining GS1 Identification Keys are: GRAI Global Returnable Asset Identifier The GS1 Identification Key used to identify Returnable Assets. The key is comprised of a GS1 Company Prefix, Asset Type, Check Digit and optional serial number. Global Returnable Asset Identifier (GRAI) is one of the two GS1 keys for asset identification. GRAI is used to identify returnable assets. It is for re-usable packages or transport equipment, this could be a tray, pallet or a beer keg. The GRAI enables returnable assets to be identified by type or individually for tracking or sortation purposes

28 In simple terms this means an asset that will be sent outside the company that contains, protects or transports physical items and will be used for multiple trips. Examples are crates, bread trays, pallets or kegs of beer. The GRAI identifies the asset being used for the purpose of tracking its location and return. It can be used for tracking purposes only or as part of a hiring or rental system where companies collaborate on the use of these assets. The GRAI is an identification key that can be used globally to identify the asset. Detailed information regarding the asset will be recorded in a database and the GRAI is the key that provides the link to that information. It may be produced as a GS1-128 bar code, or held in a GS1 EPC tag or used in a database. The function of a GRAI is to provide an identification point which can be used to retrieve information held in a database associated that particular asset. This information can show the asset type and optionally identify the particular asset uniquely if required. The GRAI will identify each individual asset type uniquely thus ensuring that it is always identified correctly anywhere within a business or the world. Each asset type is allocated an Asset Type number to ensure that it can be identified correctly. There is an option to also include a serial number which will allow unique identification of each asset. The GRAI itself has no meaning and this allows the asset to be looked-up in a database and its associated information retrieved at any point or location. GRAIs will work in any business sector. Having an identifier for a returnable asset allows businesses to identify, track and manage their assets. As it is based on the GS1 system using Company Prefix, Asset identifier and optionally a serial number, allocation of numbers is simple and uniqueness guaranteed. The GRAI is constructed as follows: Assets may have their GRAI in either a bar code or GS1-EPC tag. GIAI - Global Individual Asset Identifier The GS1 Identification Key used to identify an individual Asset. The key is comprised of a GS1 Company Prefix and Individual Asset Reference. The GIAI is one of the two GS1 keys for asset identification. GIAI is used to identify fixed assets. This could be a computer, a desk or a component part of an aircraft. It enables assets to be

29 individually recorded as part of a fixed asset inventory control system. In simple terms this means any individual asset within a company of any value that needs to be identified uniquely. The GIAI is a unique identification key that can be used globally to identify the asset. Detailed information regarding the asset will be recorded in a database and the GIAI is the key that provides the link to that information. It may be produced as a GS1-128 bar code, or held in a GS1 EPC tag or used in a database. The function of a GIAI is to provide an identification point which can be used to retrieve information held in a database associated that particular asset. The GIAI will identify each individual asset uniquely thus ensuring that it is always identified correctly anywhere within a business or the world. Each asset is allocated a unique serial number or individual asset number to ensure that it can be identified separately. The GIAI itself has no meaning and this allows the asset to be looked-up in a database and its associated information retrieved at any point or location. GIAIs will work in any business sector. Having a unique identifier for an asset allows business to identify, track and manage their assets. As it is based on the GS1 system using Company Prefix and a serial number allocation of numbers is simple and uniqueness guaranteed. If you are a business that wants to track and manage its assets GIAI is a simple tool to enable this. Assets may have their GIAI in either a bar code or GS1-EPC tag. GSRN - Global Service Relationship Number The Global Service Relation Number (GSRN) is the GS1 Identification Key used to identify the relationship between a service provider and service recipient. Global Service Relation Number is the GS1 key to identify a service relationship between a business and a client. GSRN is a simple tool to identify this relationship. It can identify business relationships between businesses or individuals. It does not identify a business or individual specifically for purposes other than the service being provided and therefore does not raise privacy concerns. In simple terms a company or business will issue a GSRN to a customer to identify their

30 relationship. This could be a club membership, a member of a Loyalty scheme or to identify a patient attending hospital. The GSRN will be the key that links to a database to identify the specific detail of the service offered and the contract with the individual. The GSRN may be held as a database record and may be encoded in a barcode that the customer may use to identify themselves to the service provider. The GSRN may be encoded in a GS1-128 bar code, or held in a GS1 EPC tag or used in a database. The function of a GSRN is to provide an identification point which can be used to retrieve information held in a database associated that particular service relation. The GSRN will identify each service relationship individually thus ensuring that it is always identified correctly anywhere within a business or the world. An individual may have many GSRN s from different service providers. As it is the service provider that allocates the GSRN there is no danger of the individuals other service relationships being linked. The GSRN itself has no meaning and this allows the service to be looked-up in a secure database and its associated information retrieved only by the service provider. As it is based on the GS1 system using a GS1 Company Prefix and a serial number allocation of numbers is simple and uniqueness guaranteed. GDTI - Global Document Type Identifier The GS1 Identification Key used to identify a document type with an optional Serial number. Global Document Type Identifier (GDTI) is the GS1 key to identify a document by type that is important. GDTI is a simple tool to identify the document and can identify documents uniquely where required. The term document is applied broadly to cover any official or private papers that infer a right (e.g. a proof of ownership) or obligation (e.g., notification or call for military service) upon the bearer. The issuer of the document is normally responsible for all the information contained upon the document, both bar coded and Human Readable Interpretation. Such documents typically require storage of the appropriate information ontained on the document. Examples of the kind of documents that could have a GDTI are tax demands, proof of shipment forms, insurance policies, internal invoices etc

31 A company or business will issue a GDTI where it is important to maintain a record of the document. The GDTI will provide a link to the database that holds the master copy of the document. The GDTI may be produced as a GS1-128 bar code and printed on the document as a method of identification or for detail or information retrieval. The GDTI will identify and enable bar coding of any document that requires document control. The GDTI will identify the class or type of document. In many cases individual document identification will also be required and for this an optional serial number can be used to uniquely identify each document. The allocation of numbers is always under the control of the issuing party. The GDTI itself has no meaning and this allows the document number to be looked-up in a secure database and its associated information retrieved only by the document issuer. As GDTI is a GS1 system using Company Prefix, document type and optionally a serial number, allocation of numbers is simple and uniqueness guaranteed. If you are a business or organisation that issues documents that require tracking and control GDTI is a simple tool to enable this

32 2.3.7 Summary This topic presented the GS1 Identification Keys: Once assigned, GS1 Identification Keys are Global and acceptable everywhere. Notes

33 2.4 What is the Electronic Product Code? In this topic we explain the purpose of the Electronic Product Code (EPC) and how the EPC is designed to include different coding schemes The Electronic Product Code is used as a unique item identifier and a pointer to information. Below, the two different functions of the EPC are described EPC as a Unique Identifier The Electronic Product Code identifies each individual item since it contains a serialisation - a unique number allocated to each occurrence of the item. Source: Auto ID Center This EPC number, applied to an RFID tag allows to uniquely identify 309,485,009,821,345,000,000,000,000 identities As an example, a pallet of trade item A will have a different EPC from another pallet of trade item A. The coding scheme is organised in such a way that companies can allocate numbers that are globally unique

34 2.4.2 EPC as a pointer to information It is important to retain that the identity is decoupled from the data. Only the EPC is stored on an item: i.e. a number. Additional information is held in a database and can be accessed using the EPC as the key. The Electronic Product Code is a key to information contained in IT systems. It enables the retrieval of item information. Information can be about the movements of the item or static production related data (mass, dimensions, date of production, best before date, )or master data. The master data is stored in the Global Data Synchronisation Network

35 2.4.3 EPC Coding Schemes The Electronic Product Code is designed to include different coding schemes. The primary coding scheme that is being used is GS1. GS1 codes can be embedded in the EPC code. Notes

36 2.4.4 The EPCglobal Network The EPCglobal Network is a system enabling the exchange of information between trading partners. Information is read from the Tag and put into the EPCglobal Network. The network provides real time information on items as they move through the supply chain. EPCglobal Network is based on intra- and cross-enterprise standards and uses the internet as the main communication channel

37 2.4.5 Summary This topic showed how the EPC plays the role of a unique identifier and a pointer to information. Its use in conjunction with the EPCglobal Network provides serial level identification attached to items and in IT systems. Notes

38 2.4.6 Exercise What is the purpose of the EPC? Circle the correct answer: A. The Electronic Product Code contains the batch number. B. The Electronic Product Code replaces the GTIN. C. The Electronic Product Code is used as a unique item identifier and a pointer to information. D. The Electronic Product Code is computer to computer Data Interchange

39 2.5 The Secrets of RFID In this topic we will focus on RFID and its origins. You will learn how RFID works and compare it to other technologies How it works RFID was developed during World War II for the Identification Friend or Foe (IFF) system. The system is a means of identifying friendly from enemy aircrafts. The aircraft has a transponder onboard that replies to a signal sent by radar. The reply is analysed and the aircraft identified as friend or foe. RFID stands for Radio Frequency Identification. It uses radio waves to transmit identification, as shown in the aircraft example. The digital information thus received is entered into the IT System. RFID uses a label that contains the data. This label is called a "tag". RFID also uses a reader that captures the data from the tag. It works as follows: 3. The reader receives and decodes. 1. The reader sends energy and data in the form of radio waves to the tag; 2. The tag transmits its identity back;

40 RFID is one of the technologies that used for Automatic Identification and Data Capture (AIDC). For this kind of information capture, machines are used to identify objects in an automated way. Other systems include barcodes, magnetic stripe, Smart Cards Biometric Technologies, Voice recognition, Optical Character Recognition (OCR), etc. Notes

41 2.5.2 RFID Tag Components A tag consists of three parts: - the chip - the antenna - the substrate (also called packaging). The chip stores data and is able to process information received from the reader. The antenna is used to catch and to transmit radio signals. The packaging is what holds the chip and the antenna together and is used to attach the tag to the physical item

42 Notes

43 2.5.3 RFID Reader Components The reader contains a module that acts as a transmitter and receiver, a control unit and an antenna. The main function of a reader is to transmit and receive, process and transmit data to the computer. Notes

44 2.5.4 Summary This topic showed how the RFID reader and tag work together to transmit information by radio waves. The components of the tag and the reader with their relevant functions have been described. Notes

45 2.5.5 Exercise What does RFID stand for? Circle the correct answer: A. Radio Frequency Identification Device. B. Radio Frequency Identification C. Rapid Frequency Identification Exercise You see an image of a tag. Circle its main components and name them

46 2.6 Chapter Summary In this chapter, the course presented the solutions developed by EPCglobal Inc.: - The EPC, the code; - Using RFID for data capture; - EPCglobal Network for data exchange. The EPC is a code that acts as a unique identifier of the item and a pointer in IT systems. It is stored in a label, also called tag, that is physically attached to the item. When energised by the reader, the tag can process and emit information back to the reader. This is how the identification of the item, the EPC, can be captured in the IT system. Notes

47 3. Benefits of EPC Applications for the Supply Chain In this topic you will learn about the benefits of EPC for the supply chain. EPC applications are built upon RFID technology. RFID has multiple advantages such as: No line of sight required Multiple object read simultaneously Capture of product information at low cost 3.1 Advantages of RFID Advantages of RFID Scanning Bar Codes RFID REQUIRES NO LINE OF SIGHT BETWEEN Scanning EPC/RFID Tags In RFID, data is transmitted through radio waves. Unlike with barcodes, there is no need to position the tag and the reader for the radio waves to reach the tag; no line of sight is required. In most cases with RFID it is possible to read at a longer distance than with barcodes. Therefore it is easier to capture information with RFID

48 RFID readers can capture up to several hundreds of tags per second. For example: an RFID reader can read information from a pallet and at the same time read the information from all the individual boxes on that pallet. Since there is no special positioning of the tags and because many tags can be read simultaneously, EPC enables the capture of a lot of information at low cost. Costly, manual and individual positioning or scanning of goods is not needed. Notes

49 3.1.2 Summary - Readers do not have to be in front of the tag; - Multiple objects can be read simultaneously; - A lot of information can be captured at low cost Exercise Which one is an advantage of EPC? Circle the correct answer: A. Items can be loaded automatically B. Automated inventory control is possible C. No line of sight required

50 3.2 RFID EPC Standard Coding Scheme In this topic you will learn what a standard coding scheme is and how it is compatible with current GS1 coding schemes RFID EPC Standard Coding Scheme The EPC is a standard. By using EPC the company uses a standard coding scheme that guarantees that the items have a unique number. Notes

51 EPC is compatible with several GS1 codes. Companies that are using GS1 codes such as serialised GTINs, SSCCs, can embed them in EPCs and do not have to migrate to a new coding scheme. (c) easyepc and Auto-ID Labs UK, 2006, all rights reserved

52 3.2.2 Summary This topic explained that the EPC is a standard coding scheme that guarantees the uniqueness of codes allocated by a company. Existing GS1 codes can be re used. Notes

53 3.3 EPCglobal Network with RFID In this topic you will learn how and why the EPCglobal Network and RFID are used together. When used together, RFID and the EPCglobal Network provide strong tools for track and trace applications, product recall, anticounterfeiting strategy and new applications Tracking and Tracing Tracking is the ability to know where an item is located. Tracing is the ability to know the history of an item. It answers the question where has the item been in the supply chain?" RFID captures information real-time and the network can make it available to all partners upon request

54 For example: RFID is very useful to track RTIs. RTIs are Reusable Transport Items that are used to transport and store goods. Pallets, plastic crates and beer kegs are examples of RTIs. With RFID tags, each individual asset can be recognised and located. Better knowledge on the inventory of RTIs enables to decrease the number of RTIs needed. Notes

55 3.3.2 Product Recall Product recall is needed when products in the supply chain cannot be consumed because of errors during production, storage, or even transport. Therefore they have to be returned to the retailer or manufacturer. The EPCglobal Network provides comprehensive information about the defective product and the evaluation of the problem is easier. It is also a reliable source of information when trying to locate, return or block defective products. The network also provides information to assess the cause of the defect. Notes

56 3.3.3 Anti Counterfeiting Applications Counterfeits are products that have been copied illegally without manufacturer's knowledge and approval. Luxury products suffer from counterfeiting but also pharmaceuticals, health products, toys or spare parts. These copies are dangerous for the consumer and patient safety since they do not follow the safety regulations and/or list of ingredients they claim to. The EPCglobal Network combined with RFID gives the possibility to inquire about the origin of products. Moreover, counterfeited products do not have EPCs or have invalid EPCs or EPCs that are duplicates of authentic products. EPCglobal Network can also offer a solution for the grey market and illicit trade. Notes

57 3.3.4 New Applications EPCglobal Network brings value to new applications, which ultimately increases sales. For example: The management of books in a bookshop. Each book is equipped with an EPC tag. Tags are read and the location of books can be provided. This provides a better service to the consumer. Notes

58 3.3.5 Summary This topic demonstrated how the EPCglobal Network and RFID provide tools to set efficient systems for applications such as: - Track and trace - Product recall - Anticounterfeiting - New applications Notes

59 3.3.6 Exercise The EPC Global Netwoprk and RFID are used together to provide strong tools for: Circle the correct answer: A. Financial transactions, Product Identification, Anticounterfeiting applications. B. Track and Trace, Date Synchronisation, Anti-counterfeiting applications, New applications C. Track and Trace, Product recall, Anti-counterfeiting applications, New applications

60 3.4 Consumer Benefits related to the use of EPC Using the RFID and the EPCglobal Network, manufacturers and retailers can better track retail trade items and recall defective items more efficiently. RFID and the EPCglobal Network are also efficient tools to fight counterfeiting that affects - pharmaceuticals and - health products, - toys etc. The EPCglobal Network helps reach higher levels of - food safety, - produce freshness and - product safety in general. RFID and the EPCglobal Network also provide improved services to the endconsumer at point of sale, such as: - Better information about availability and/or origin of a product; - Better after-sales services, such as recalls, warranties; - Improved shopping experience, improved availability of products, customer service etc. - Instrumental in reducing waste and energy consumption

61 3.5 Chapter Summary This chapter illustrated the benefits that EPCglobal applications provide. In terms of data capture, RFID provides easy and efficient operations since there is no requirement for positioning of tags in front or close to the reader, and simultaneous reads are possible at a low cost. As far as numbering is concerned, the EPC is a standard coding scheme that guarantees the uniqueness of codes allocated by a company. Existing GS1 codes can be re-used. With the EPCglobal Network efficient systems for applications such as track and trace, product recall, anticounterfeiting and a lot more can be set up. Beyond business benefits, the EPCglobal Network also brings benefits to the end consumer especially in terms of safety. Notes

62 4. Technical Information In this chapter, you get more detailed information on the structure of the EPC. You will learn every part of the structure and who is responsible for the different parts. If you want more detailed information on the EPC number please refer to the website of EPCglobal. At The EPC number The EPC is composed of two building blocks. The first building block is assigned by EPCglobal and consists of a header and an EPC manager number. The second one is assigned by the Owner of the EPC manager number, usually a user company (for example: a manufacturer). This user company assigns the Object class and the serial number

63 4.1.1 The Header The Header is a code that defines the type of code scheme being used. For example, it indicates if the code scheme is a GS1 Serialised GTIN. It also defines the overall length of the EPC and its structure. Notes

64 4.1.2 The EPC Manager Number The EPC manager number is the number allocated to a company by EPCglobal. With the EPC manager number, the company can assign EPCs to its items. The company is also responsible for maintaining the EPCs. Notes

65 4.1.3 The Object Class The object class identifies a class or type of items. The object class numbers must be unique for a company. In other words: for a manager number. For example, A bottle of shampoo Beautiful Brunette 150 ml is a class of items (product type). A box of 50 bottles of that same shampoo is another class of items. The bottle of shampoo is identified by an Object Class, the box by another Object Class. Notes

66 4.1.4 The Serial Number The Serial Number identifies each individual item of an Object Class (product type). It is unique within each object class. For example, One of the bottles of Brunette shampoo 150 ml is assigned serial number 1, another bottle of Brunette shampoo 150 ml is assigned serial number 2. It is the company that manages the EPCs that is responsible for allocating unique numbers in an Object Class. Notes

67 4.1.5 GS1 Code Schemes The EPC is designed to embed some of the existing GS1 code schemes (identity types). These codes are: - SGTIN (Serialised Global Trade Item Number); - SGLN (Serialised Global Location Number); - GRAI (Global Returnable Asset Identifier); - GIAI (Global Individual Asset Identifier); - SSCC (Serial Shipping Container Code)

68 4.1.6 Summary This topic explained the structure of the EPC: At the highest level, the EPC is composed of two building blocks: the first one is determined by EPCglobal and the second one is allocated by the user company. In the EPCglobal managed part, the first digit is used to identify the type of code contained in the EPC. The second part is the number allocated to the user company. The user company managed part is composed of the code of the class or type of items. It is followed by the serialised number. Notes

69 4.1.7 Exercise The EPC code structure consists of different pieces of data, which pieces? Circle the correct answer: A. Header, Footer, Object class and Serial number. B. Header, Indicator, Object class and Check digit. C. Company Prefix, Item Reference and Check digit. D. Header, EPC Manager Number, Object class and Serial Number

70 4.2 RFID Tags In this topic you will get more information about the tag and its parts. You will also learn the 3 different kinds of tags and their usage The Tag and its Elements As explained earlier, a tag is composed of three elements: - the chip, - the substrate and - the antenna. The antenna is a critical element to the RFID operation. The antenna is designed for a specific usage and read range; The location of the antenna is critical, since it depends on the type of material it is applied to. Please note that the antennas of both reader and tag are equally important!

71 4.2.2 Different Types of Tags There are three kinds of tags: - Passive tags; - Semi-passive tags; - Active tags. We will provide you with more detailed information about and explain the differences between these types of tags. Passive Tags Passive tags do not have their own source of power. They receive power from the reader in order to process data. A passive tag is the cheapest type and since they do not need a battery they are much smaller than the other types, with a lifetime of more than 20 years. Notes

72 Semi-Passive Tags Unlike passive tags, semi-passive tags have batteries, however they do not use their battery to communicate with the reader. Like passive tags, they use the power received from the reader to communicate. Their batteries are used to power their sensors that record information about the environment. For example, sensors that record the temperature, humidity, light, radiation. The information, that the temperature sensor records, helps control the integrity of the cold chain. Notes

73 Active Tags Active tags contain batteries that are used to transmit data, they work better at longer distances and they can include sensors to record information about the environment. They are more expensive and bigger than the other types: that can limit their applications. Notes

74 Tags, their usage and environment <<Basics of EPC>> Notes

75 4.2.3 Summary This topic explained how critical the antenna is for the tag. The antenna has to be chosen based on the intended usage of the tag and the read range of the application. The location of the antenna requires attention since it depends on the type of material it is applied to. The topic also described the three types of tags: passive, semi-active and active and explained the differences. Notes

76 4.2.4 Exercise What is the most critical element in a tag? Circle the correct answer: A. The chip. B. The antenna. C. The substrate

77 4.3 Readers Readers In this topic you will learn more on the reader and its elements and you will understand that there are different types of readers depending on the usage. The reader contains a module that acts as a transmitter and receiver, a control unit and one or several antennas. The antenna is a critical element because its shape and positioning will determine the reading capability. There are different types of readers. The choice of one type of reader over the other is based on the intended usage of the reader. The following criteria will have an impact on your choice: - the placement of the antenna; - number of items to be read simultaneously; - product type to be read (boxes, pallets, individual items)

78 A hand-held reader will be used for example in a warehouse for picking goods or a store for inventory control. Readers can be installed near conveyor belts to read moving goods. Portals are used at the dock doors in a warehouse, or distribution centre where pallets and crates need to be read. Notes

79 4.3.2 Summary This topic showed the different components of readers and among them, focused on the antenna. As for the tag, the antenna is a critical element that determines the reading capability. There are different types of readers available on the market. The choice of type of readers depends on the intended usage and the expected performances of the readers. Notes

80 4.3.3 Exercise What typical kind of reader would you use at the dockdoors in a warehouse? Circle the correct answer: A. Hand-held reader. B. Portal reader. C. Conveyor-belt reader

81 4.4 Frequencies Frequencies In order to understand how RFID works, the frequency component needs to be addressed. We are all familiar with radio wave transmission since many devices, from every day life, use radio transmission: television, radio, cell phones. These devices use different frequencies. Notes

82 In the entire available spectrum of frequencies, some bands of frequencies are usable for RFID: - Low frequency (LF) - High frequency (HF) - Ultrahigh frequency (UHF) Notes

83 The frequency bands have different properties. The table shows these properties. For example, frequency 13,56 Mhz (high frequency band) has poor performance on metal and good performance in moist conditions. UHF on the contrary is poor in moist conditions and good on metal but provides a better read-range and fast data rates. Technical advances in the field of UHF are constantly improving technical capabilities of UHF tags

84 Frequencies are assigned at global level by ITU, the International Telecommunication Union. The actual frequency band and regulatory requirements differ between ITU regions and individual countries. For the UHF band, different regions, or countries have allocated specific portions of the 860 to 960 MHz range for RFID. However, a UHF tag can be used worldwide in this range. Notes

85 4.4.2 Summary This topic explained that the concept of frequency is important in RFID. 3 different bands are available for RFID: - High Frequency (HF); - Low Frequency (LF); - UltraHigh Frequency (UHF). These bands have different properties and therefore different usage. Frequencies are allocated at global level by ITU. Some countries or regions have allocated part of the UHF band. However a UHF tag can be used worldwide in this range. Notes

86 4.4.3 Exercise What does UHF stand for? Circle the correct answer: A. Ubiquitous High Frequency. B. United High Frequency. C. Ultra High Frequency

87 4.5 EPCglobal Network In this topic you will learn about the different elements of the EPCglobal Network. We will discuss the three most important and most visible elements. The three most important and most visible elements of the EPCglobal Network are: - Data Capture (includes RFID and ALE Application Level Events) - EPC Information Services, EPCIS - Discovery Services Other elements of the EPCglobal Network are for example: - Reader Management - Security - ONS Object Naming Service Data Capture Data capture includes RFID and ALE. RFID has already been explained in the previous chapter. Now we will focus on ALE. ALE, Application Level Events provides a standard interface to filter the collected data from the tag. The events that are communicated are statements of the "what", "where" and "when". For example, at the ALE level,

88 there might be an event that says "at location L, in the time interval T1- T2, the following 100 cases were aggregated onto the following pallet" EPCIS EPCIS is used to manage the storage and exchange of information between trading partners. Each company uses its own EPCIS('ses) to manage and store its own information. The company manages access to its EPCIS. The EPCIS data can be divided into the following categories: product data: product description, lot number, expiration date,...; quantity information: 1000 instances of product x in this warehouse at this time; transaction event: for example EPC number x was shipped from this warehouse at this date and time. Notes

89 4.5.3 Discovery Services In the supply chain there can be several companies storing information on one item in their EPCIS. It is thus necessary to have a service that defines where you can find information on a specific product. Discovery Services enable users to find data related to a specific EPC Discovery Services return links to the EPCIS services (or other places) where the data is stored so that the requester can query these EPCIS services. The standard that defines it is not available yet. Discovery Services make it possible for companies to retrieve information on all the events of a specific item. An example is the traceability information: EPC x was produced at 01/02/2006. EPC x left the factory at 04/02/2006 to go to warehouse y. It left warehouse y at 09/02/2006, from where it went to store z. Notes

90 4.5.4 Summary In this topic, 3 major components of the EPCglobal Network are described: ALE or Application Level Events is a standard interface that filters the collected (read) data; EPCIS or EPC Information Services manage the storage and exchange of information between partners. Information collected from the tags is managed in the EPCIS. Other data can be added, such as transaction information. Discovery Services are used to find where information is stored. In the EPCglobal Network, information is not centralised but managed by each relevant partner. The Discovery Services are needed to locate the source of information. Notes

91 4.5.5 Exercise Read the statements below. They are applicable either to EPCIS or ALE. Put a check in the right column. EPCIS ALE 1 Is connected to the readers in the architecture 2 Is used in data exchange functionality 3 Can provide the purchase order number related to the event 4 Allows read information to be filtered and aggregated 5 Is used in data storage functionality 6 Is reachable by trading partners 7 Can handle transaction information related to the product 8 Can provide the expiration date of the product 9 Is involved in data capture 10 Can provide the lot number of the product 11 Deals only with the what,when,where of product data 12 Is queried by Discovery Services 13 Can provide the description of the product 14 Is used to aggregate information collected by the reads 15 Is used to filter data collected through the reads

92 4.6 Chapter Summary This chapter explained in more detail the technical aspects of EPCglobal applications: How the EPCs are created; The importance of the antenna for tags and readers; Why frequencies have to be taken into account; The key components of the EPCglobal Network (ALE, EPCIS and Discovery Services) and how they interact. Notes

93 5. EPC & RFID Implementation In this last chapter you will learn how to lead an EPC project, what the different steps towards implementation. You will also read a number of real life cases of implementation

94 5.1 How to lead an EPC Project In this topic we will focus on the implementation of an EPC project. What are the different steps a company should take in order to make the implementation a success? Reasons for implementing EPC & RFID There are different reasons why a company would implement EPC & RFID: Because they want to improve their efficiency; Because they are mandated by their customers; Because of legislation. Notes

95 5.1.2 The Five Steps of an EPC Project 1. Investigate 2. Experiment 3. Trial 4. Pilot 5. Deploy Investigate The purpose of the investigation step is to develop the RFID/EPC knowledge. The investigation step comprises 4 actions to be taken. A company should first learn the technology of EPC /RFID in order to implement it. After that there is the need to understand the business drivers and secure the executive sponsorship and funding. A company should identify the use cases that are relevant. And last but not least the company should learn about the available resources in the EPC/RFID community and form a research based RFID project team

96 Experiment After the investigation step, the experiment step is about gaining hands-on experience in the laboratory. This step also comprises 4 actions to be taken The first action to be taken is to understand the technology and information flow. After that the baseline work process and key measurements or Key Performance Indicators can be identified. The third action to be taken is to conduct tag placement analysis and categorise product/packaging characteristics. Once this is done the technology partners can be identified and various RFID products can be tested. Notes

97 Field Trial In this step, the project enters real application with a test of the targeted applications with 1 to 3 locations. There are 4 actions to be taken. To conduct this step you first have to define and map the current supply chain processes and examine process and environmental related issues. After that you can document EPC/RFID impacts to business processes and define testing success criteria before going into the pilot. The third action is to define EPC system/data architecture and the EPC numbering scheme and obtain EPC manager numbers. And as a fourth step you have to identify cost drivers, form a crossfunctional RFID team and develop communication plan with the trading partners. Notes

98 Pilots The project enters the pilot step in which a scalable rollout solution is developed. In order to succeed, you have to consider the following steps. Verify the adoption strategy and cost items (products, quantity, how and where to tag). Then decide which EPC reading to be added to the baseline and develop a long term plan based on pilot result. Analyse the in-process data and validate performance in end-to-end systematic testing. Coordinate testing with trading partners and select technology for rollout. Notes

99 Deployment For this last step, the purpose is to engage in a phased rollout. It is required to follow the steps as explained Develop a scoreboard of metrics to adjust implementation parameters. After that measure and track improvements of key measurements / key performance indicators. Refine business cases for targeted RFID initiatives and continue collaboration with trading and technology partners on process and data flow improvement. Notes

100 5.2 Examples of EPC Projects In this section, we will focus on the implementation of an EPC project. We will give you 4 examples of implementation cases in different sectors: Baggage Food traceability High value products Healthcare

101 5.2.1 Baggage Hong Kong International airport One of the busiest airports in the world: -Passenger: 350 million per annum -Air cargo: 3 million tons per annum Named the world s best airport by Sky Trax (UK) in Apr 2004 & received special recognition award from IATA 40% of luggage handled comes from transfer flights Major hub to/ from mainland & volume is expected to be increasing The Hong Kong international airport has developed a system to tag and read tags on luggage. 17 million items are tagged yearly. The primary objectives are to improve operational efficiency and customer service. On average, a lost bag costs $ 100. Currently 2 per cent of all baggage is lost each year. The system directs the right piece of luggage to the right direction automatically instead of manually. An RFID label is attached to the regular baggage label and is read on conveyor lines. Notes

102 5.2.2 Food Traceability <<Basics of EPC>> The Ministry of Agriculture in Japan has developed a project to tag fruit and vegetables. The primary objectives are to ascertain the country of origin of the products and to trace the items that are coming from contaminated regions. At the time the fruit and vegetables are packed, the packages are also tagged so they can be tracked to the store. In the stores, fruit and vegetables are tagged individually. Customers can use a small RFID reader attached to their mobile phone to inquire about the origin of the product. Notes

103 5.2.3 High Value Products A retailer has developed a RFID application for high value products such as mobile phones or DVDs. The objectives of the project are to improve the availability for the endconsumer by knowing if the products are in stock and where they are. For the staff, the replenishment is easier and process accuracy is improved

104 The distribution centre and shops are equipped with RFID readers. When the goods are prepared for shipment, RFID tags are placed on trays, dollies and roll-cages. They are read when the shipping units leave the distribution centre and are loaded on the trucks. The system checks if the right goods are loaded on the right truck. When delivering the goods, tags are read and the accuracy of the delivery is controlled Notes

105 5.2.4 Healthcare There is an IT system in which drugs are tagged in order to prevent counterfeiting. Packaging is tagged and is read at various points in the distribution chain. The package location is traced and the inventory is updated using these reads. Retailers and distributors can inquire at the manufacturer if a package is authentic. Notes

106 5.2.5 Summary This topic showed 4 implementation cases of RFID. These cases demonstrated the possibilities of RFID in different processes such as food traceability, management of luggage, high value products shipping and inventory and drug anticounterfeiting. Notes

107 5.3 Chapter Summary This chapter presented the steps that user companies follow to conduct an EPC project. It also showed 4 successful RFID projects for several different applications. This is also the end of this course. In the next sections of this sylabus, you will find a test you should take to verify whether you ve mastered the course material. You will also find reference material and links to related websites and documents. Notes

108 6. Answers to the exercises Give the three Supply Chain needs to which EPCglobal has a solution B. Identification, Data Capture, Data Exchange What is the purpose of the EPC? C. The Electronic Product Code is used as a unique item identifier and a pointer to information What does RFID stand for? B. Radio Frequency Identification You see an image of a tag. Circle its main components and name them Which one is an advantage of EPC? C. No line of sight required

109 3.3.6 The EPC Global Network and RFID are used together to provide strong tools for: C. Track and Trace, Product recall, Anti-counterfeiting applications, New applications The EPC code structure consists of different pieces of data, which pieces? D. Header, EPC Manager Number, Object class and Serial Number What is the most critical element in a tag? B. The antenna What typical kind of reader would you use at the dock-doors in a warehouse? B. Portal reader What does UHF stand for? C. Ultra High Frequency

110 4.5.5 Read the statements below. They are applicable either to EPCIS or ALE. Put a check in the right column EPCIS ALE 1 Is connected to the readers in the architecture X 2 Is used in data exchange functionality X 3 Can provide the purchase order number related to the event X 4 Allows read information to be filtered and aggregated X 5 Is used in data storage functionality X 6 Is reachable by trading partners X 7 Can handle transaction information related to the product X 8 Can provide the expiration date of the product X 9 Is involved in data capture X 10 Can provide the lot number of the product X 11 Deals only with the what,when,where of product data X 12 Is queried by Discovery Services X 13 Can provide the description of the product X 14 Is used to aggregate information collected by the reads X 15 Is used to filter data collected through the reads X

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173 7.2 Business Cases The following business cases for EPC/RFID have been put graciously at our disposal by GS1 Hong Kong Application Area: Manufacturing In this area, the main benefits reside within: Inventory Control Production Tracking Automatic, responsive manufacturing environment Tagging Distributed intelligent control Counterfeit Total recall Eliminating Shipping and Receiving Errors Sub-contractor performance Monitoring Waste Management: identify product at end-of-life Re-manufacturing and re-use Application Area: Warehouse EPC/RFID technology connects all phases of the supply chain, from resourcing and manufacturing to inventory and distribution. Whether your business needs to identify and manage raw materials, manufactured goods, or products in transit, RFID creates real time information links that speed production, improve quality and streamline delivery

174 In this application area, the primary benefits of using EPC/RFID are: Visible DC utilization -First in first out vslast in first out -Inventory Control -Physical stock check

175 7.2.3 Application Area: Warehouse In this application area, the primary benefits of using EPC/RFID are: Value added service -Track and trace information (EDI) Logistics resource plan Customs clearance Reduce the delivery lead time Fleet Management

176 7.2.3 Application Area: Retail In this application area, the primary benefits of using EPC/RFID are: Track and trace Product recalls Streamlined shipping and receiving Automated invoice reconciliation Shrinkage reduction Improved demand planning Improving On-shelf Availability / Shelf replenishment Product Monitoring Smart check out (POS) Stock loss Physical stock check Reduce unauthorized and diverted sales

177 7.2.4 Case: Hong Kong International Airport Issues Currently bar code system is 85-95% read rate (Manually handling failures) Remove & check all Unit Loading Device on the plane to identify baggage Security measurement Velocity and Baggage handling accuracy Solutions Deploy RFID technology on extensive baggage-handling facilities alongside the bar code system to bring up visibility, improve accuracy and efficiency, step up security measurement Benefits Improve customer satisfaction Improve security Cut operating costs

178 7.2.5 Case: Wal-Mart Business Background Wal-Mart operates retail stores worldwide in various format As of Jan 2004, operations (in the US) were 1,478 discount stores 1,471 super centers 538 SAM sclubs 64 neighborhood markets Others (online biz & International operations) Products allocated through 90DCsand/or direct from manufacturer Total sales 2004 US$ 256.3B Requested EPC RFID tagging by Jan 2005 to increase supply chain visibility and eliminate many manual process. Estimated annual saving is ~ 3.3% of sales (i.e. ~ US$ 8B) Issues Without merchandise visibility along this huge supply chain may lead to OOS, shrinkage, and operation inefficiency that could ultimately reduce competitive advantages

179 Solutions Mandated suppliers to affix EPC compliance RFID tags to cases and pallets before shipping to Wal-mart s DCs. The tags allow Wal-mart utilize automatic tracking on product movement that will provide productvisibility without additional human intervention. Benefits Eliminated many manual processes in the area of I) receiving, II) product movement in warehouse and DC, III) shipping to stores, and IV) paying suppliers. Reduce inventory shrinkage and out-of-stock situations. Function Scanning Out-of- Stock Shrink Tracking Product visibility Execution Eliminating bar code scanning on pallets and cases in the supply-chain and on items in-store can reduce labour costs by 15% Smart shelves monitor on-shelf product availability Real-time product monitoring reduces warehouse shrink, administration errors and vendor fraud Improved tracking of the more than 1 billion pallets and cases moving through DCs annually Improved visibility of where products are in the supply chain in Wal-Mart's DCs and supply's warehouses offers reduced inventory and costs of carrying this inventory

180 7.2.6 Case: Hp Business Background 1B customers in 178 countries 21,000 patents and 140,000+ employees No. 1 in material expenditure US$ 40B No. 1 in contract manufacturing spending US$ 5B No. 1 in electronic industry logistic procurement US$ 1.7B Daily delivers 1.3M inkjet cartridges, 110K printers, 75K PC, 3.5K servers E2E visibility and process control is must Wal-mart requirement: 1 EPC tag per carton 100% read on conveyor 1 EPC tag per pallet 100% read at inbound dock Conveyor speed of up to 600 feet/ min. 3 Texas DC Comply by Jan 2005 Issues As an electronic industry s largest supply chain, end-to-end visibility & process control are crucial to the company s efficient operation, bottom line, and customer satisfaction. Wal-mart RFID tag requirement

181 Solutions Initiate cases and items EPC tagging to improve WIP and inventory visibility along the supply chain for auto-capture of data Benefits Improving Supply Chain Efficiency Avoid slowing down & positioning for barcode scanning Automatic configuration validation Real time inventory visibility & control Accurate validation / Count of multi core and mixed pallets Improved Data Collection Identify items on the move towards next process Enable accurate measurement of operations Identify trends and process choke points Financial impact Reduced working capital, labor cost, COGS, and increased sales,improved 10 days cash-to-cash cycle with US$ 67M

182 7.2.7 Case: Prada Business Background In late 90s, as part of the strategy to protect brand image, Prada began to review the design of their retails store format Emerged to create some stores, in the trend-setting shopping district, that should break away from the traditional store format and to carry the house s cutting edge products. Decided to apply technologies to enhance and support the shopping experience of shoppers as well as customer services Issues Spending time on non-value added services while leaving customers unattended may ruin the customer shopping experience in this highly services oriented retail operations Solutions Apply RFID technologies to identify customers, merchandise, and link individual shoppers with information of their selection before and after their purchase Benefits Personalize customers shopping experience Release staff for stock checking and enhance customer relationship Theft prevention