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.
RFID isn't dying and it's not getting some great play either relative to the way it's been hyped in recent years. It's making a splash, one drop at a time!
" Its extremely beneficial for supply chain security. "
The Supply Chain security can be enhanced by RFID for sure and it can also help optimize the supply chain management. It can help track product flow and identify inbound and outbound product in the warehouse.
I see, if the ads/offers are relevant that may entice potential customers to commit to buying. I was just skeptical about the loyalty of the targeted audience.
_hm, Instead of going into the details here, I am including a PDF URL that will let you review the standard for yourself. There is a basic information standard called EPC described in the PDF, but when RFID carriers also include both read and write capabilities via EEPROM associated add-ons, then the data is defined by the developer of the software and is only limited to the size of the memory. In real-time applications for tracking, the data can be forwarder via Wi-Fi in real time. There are lots of variations but here is the PDF that starts with the standard EPC. http://www.gs1.org/gsmp/kc/epcglobal/tds/tds_1_5-standard-20100818.pdf
What typical data is contained in RFID tag? Is it barcode type product code and serial number? Or date of manufacturing and best before date? Is there international standard for RFID tag data?
@Rich, You are correct. There will be an upcharge from passive to active and I think the decision to implement will be similar to the smartcard now used in Cable TV systems to ensure against piracy. These smartcards have microprocessors built in with encryption technologies that require a 1:1 subscriber to operator's authorization relationship. I was buying smartcards in quantities of 10,000 for $9.75 each and charging the subscriber to cover my cost. If we begin to see loyalty cards issued in the same fashion, then we will probably see some unique marketing techniques designed to defray the cost of the cards so the retailer does not take the entire hit. I don't think customer's will pay for the cards nless there is an added incentive in promised savings over X period of time. I think of people buying coupon books like Diner's Club in order to realize greater savings at each meal. The idea being that the card pays for itself after Y number of uses.
@_hm, I think we are still in the early stages of RFID development. There are specific areas that RFID was originally targeted to address. Back in 1989 Savi Technology began with logisitics tagging products. Back then, I talked with them as they were developing a hand held, walk-around polling device for area inventory management. As a person walked up and down the aisles of stacked inventory, the hand-held reader would gather the counts for rapid inventory accounting. I was so excited about their company, I almost asked for an interview for employment. So that was 23 years ago and they are still in the asset management/tracking business. This is still the primary application for RFID. The key term here is "Asset." If you consider humans as assets that need to be tracked for location and information data gathering purposes, then the next step is to ask how important are those assets to track and what are the consequences of losing track of them. So if those assets are tanks and very expensive military gear, then the asset becomes a liability if lost. I think _hm, we will see greater and greater deployments proportional to the cost of the RFID as measured against the considered worth of the asset. As development continues, the lower the cost of the RFID components, the lower the value of the asset will have to be to merrit the installation of a tracking system. Animals, People, Things, and Documents are all prospective candidates for massive tracking and data gathering technologies. That doesn't leave much out. My guess is that in the next couple of years we will be living with RFID as part of our daily experience as much as we now are adjusted to stop signs, traffic signals, and Starbucks on every corner.
RFID seems look very popular. However, when there is problem and suggested solution is RFID, an organization does implement it and are reluctant. What can be reason for this? May be RFID need more work to do - hardware or software.
Radio frequency identification device technology is rapidly gaining interest by assuring the integrity of supply chains through rules-based management.
Machine-to-machine technology is growing so rapidly that one report says there could be 10 billion connected devices by 2016. That's a big market opportunity.
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.
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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