We will soon see radio frequency identification (RFID) playing an expanded role in the supply chain. One of the latest developments is the introduction of battery-assisted RFID tags that can be read up to 80 feet away. The distance reduces to about 15 feet if the tag is located on a human in the form of a badge.
When I read about this development, several applications came to mind. As far as the supply chain is concerned, we will see more RFID applications in the sales and marketing sectors, because of the obvious gains in proximity readings.
The battery-assisted cards are unique in that the battery is on only during the polling and read cycles. As soon as the reading is completed, the battery goes to sleep to conserve energy. With their increased reach and amplified signal, RFID cards can remain in a wallet or purse and be identified without owner or user intervention or knowledge. That is why I believe one of the strongest markets for these tags will be in store loyalty cards.
I have Office Depot, Best Buy, and Safeway cards that help me get discounts and earn rewards. I have to present the cards or give my phone number at the register to enjoy the benefits. When new cards come out with the battery-assisted RFID tags, the store will be able to identify me when I walk within 15 feet of a reader and track me inside or outside a building. With my card in my wallet, as soon as I enter a store with readers placed in the ceiling or in kiosks in the aisles, my shopping history will be recalled quickly, and a computer will know how to target me and help direct my buying decisions.
For instance, a reader somewhere near the register will send my name and last purchased items to a display facing the cashier, who will greet me with "Hello, Mr. Alexander. How are those new boots that you bought last Tuesday working out for you?" The cashier will then spin the display around for me to see. "By the way, these boots made by the same company are on sale today to our loyalty card members who have purchased from this company in the last 15 days. You will get 20 percent off the retail price if you buy within the 15-day period." Because I liked my earlier purchase, my buying decision will be influenced by a completely customized offer.
Another in-store application may be a kiosk coupon dispenser that offers a voice greeting initiated by my loyalty card. If I'm standing in front of the coffee section, a voice could ask me if I would like to buy a pound of the same blended coffee as my last purchase -- with a second pound at half price.
Point-of-sale displays will become much more effective with flat panel displays that customize themselves instantaneously while referencing the viewer's purchasing histories. RFID-enabled loyalty cards will become standard in the very near future. You will not be asked for proof of membership before checking out, and the discounts and rewards will be integrated automatically into the register totals.
I have given just a few examples of where we might see these new RFID applications. If you change the venue and include instant recognition, you can consider how many other semi-automated processes will become fully automated. Key hospital personnel could be located instantly. Students would not be able to wander the hallways and miss classes. Pets could be detected at property perimeters. When everything is tied into the Internet and time stamped, various overt and covert readers could be networked to track an individual's movement.
In the old setup, a person would have to walk very close to a reader to be sensed. With the extended range of battery-assisted tags and the ubiquitous deployment of low-cost readers, it would be possible to follow the human dots on a map in real-time. When these RFID or similar tags become standard issue for driver's licenses or a national ID card, start looking over your shoulder. Someone really will be following you.
I can see great applications for this technology in supply chain management. On a personal level, I am not a big fan of revealing my purchasing history for someone else to use - it feels like a loss of control. Time to start wrapping my cards in tin foil!
@flyingscot annoying it may be, but it is already here. If you carry a smartphone, you can get offers not only based on your purchasing history but on your location.
I envisage a future like the scene from the movie "Minority Report " where Tom Cruise walks through a store and holographic service personnel recognize him and greet him, trying to sell him stuff they imagine he would be interested in. The background info is gathered from mining data on his shopping or surfing history and I find this whole idea annoying and frankly quite scary.
There's a huge amount of supply chain academic material on youtube to supplement what is here on EBN. I thought it might be useful to sort of "review" some of these videos once in awhile here on EBN. Plus they are just interesting (but no substitute for the up-to-date and more electronics-focused material on EBN).
@Rich, You were right about the rambling but when you consider it was first posted in 2008, this is a good general overview of the areas of academic concern and potential further areas for development. But in 4 years, we have come a long long way and Sanjay seemed to anticipate the potential technologies that would come to play in both the readers and the tags themselves. I also thought it was to his credit that he was able to see back in 2006 that it would be MIT that would take the bull by the horns to instigate the bulk of the research papers and open the door to advancements in the various applications for RFID. I was impressed with his foresight. Thanks for the link.
It would have been better if this hadn't been so rambling (and followed a script instead of its own tail so much), but it's still interesting if you are patient, or if you have a beer in your hand.
Make sure you're not close enough to hurt your computer when watching this.
@Bolaji, I like the turn of phrase making a big splash one drop at a time. That implies some big drops as opposed to a steady flow. If we say the drops are implementations, I would agree as the infrastructure investment for a system beyond a handheld reader and RFID tags can be quite extensive and therefore somewhat costly. But once the infrastructure is in place and more chips come with integrated on board storage with read/ write functionality, then we will see those drops getting closer together accelerated by converging technologies using the cloud, sophisticated polling techniques, and extensive adoptions of universal standards like GS1's Gen 2 RFID with EPC and eEPC now agreed upon by 111 committee members impacting over 2 million companies worldwide. Though not always the case, EPC bar codes and data bars can be included in the RFID carrier so if you use the printed bar code as a model for volume predictions, then RFID is about to turn from a drop system into a firehose.
@Bolaji, I like the turn of phrase making a big splash one drop at a time. That implies some big drops as opposed to a steady flow. If we say the drops are implementations, I would agree as the infrastructure investment for a system beyond a handheld reader and RFID tags can be quite extensive and therefore somewhat costly. But once the infrastructure is in place and more chips come with integrated on board storage with read/ write functionality, then we will see those drops getting closer together accelerated by converging technologies using the cloud, sophisticated polling techniques, and extensive adoptions of universal standards like GS1's Gen 2 RFID with EPC and eEPC now agreed upon by 111 committee members impacting over 2 million companies worldwide. Though not always the case, EPC bar codes and data bars can be included in the RFID carrier so if you use the printed bar code as a model for volume predictions, then RFID is about to turn from a drop system into a firehose.
LOL! And like a steady leak, it's now spread everywhere! My goodness, I bought an inexpensive drain basket yesterday for my kitchen sink, and even it had an RFID tag.
RFID makes it possible not only to increase the quantity and types of products streaming through the supply chain, but also to build higher-level products and services.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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