RFID Circle Event: DISRUPTIVE INNOVATION: The Internet of Things & Long-range RFID + Sensors -Improving the Retail Flow of Goods
November 5, 2012
Range matters! Tag size matters! Sensing often matters! All at a very low cost!
TODAY’S PROBLEM: Humans manually collect visibility data – it should be automatic! Data on the Internet has been largely created by human beings—typing, bar code scans, digital photos and more. Initial deployments of RFID solutions have relied heavily upon human intervention. Manual data collection is very time consuming and prone to errors. Implementing RFID solutions is a lot of hard work!
THE SOLUTION – Smaller, Cheaper, Faster, Longer, Better!
Long-range, low cost RFID takes the human out of the loop.
The market for visibility solutions is soaring. The “Internet of Things” is hitting the mainstream. Today sensors, cameras, RFID, bar codes, and a variety of visibility viewing platforms are commonplace throughout the working world. In 2012 over 4 billion long-range RFID tags are expected to be produced for retail apparel. We are experiencing the initial stages of an onslaught of BIG Data automatically generated by an abundance of highly distributed wireless devices.
Long-range RFID to track elements of the physical world couples with ubiquitous connectivity to the Internet to distribute BIG DATA and view information generated by these ubiquitous digital identifiers and sensors.
TODAY’s CHALLENGES
End users are confronted by an overwhelming number of questions.
What to buy? What’s good? What to avoid? Typical pitfalls?
How best to organize?
How to install the systems?
‘Peaceful co-existence’ with legacy systems and business processes . . . . . POS, bar code, inventory management . . . . . How to blend the old with the new? Seamless adoption, integration and deployment?
How best to analyze BIG DATA? For what purpose?
‘Fit’ with other innovative technologies?
Costs? Tags, Infrastructure, Integration . . . . .
Speakers:
Sprague Ackley, Technologist, Intermec
Christophe Loussert, VP, RFID integration, Tagsys
Greg Morello, CMO, Port Logistics Group (PLG)
Thomas Reese, Sr. Director, Business Development, Intelleflex Corp.
Moderator:
Michael Ohanian, retired President of Intermec Technologies
Implementing RFID without disrupting already successful Bar Code systems
H. Sprague Ackley, Technologist, Intermec
There are many ways of encoding RFID data, yet none seem compatible with the data in existing bar code applications.
The two main data encoding methods, GS1 and ISO, offer different and incompatible methods with current bar coding applications.
There’s a recent a major breakthrough in simplicity. GS1 just published a definitive guideline.
How to progress towards a seamless future?
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Thomas Reese, Sr. Director, Business Development, Intelleflex Corp.
1. On-Demand, Data Visibility Solutions
Tom Reese
Sr. Director, Business Development
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2. Agenda
• Intelleflex Introduction and Overview
• Technology Overview:
Long Range RFID (BAP Class 3)
• Enabling the Intelligent Supply Chain
• Retail Food and Managing the Fresh
Supply Chain
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3. XC3 Technology Platform
Readers Tags Tag ICs
Solutions enabled by platform
• Reader and Tag must balance performance and
functionality to deliver best system
• Intelleflex delivers the complete solution, where other
RFID companies develop a single component (i.e.
reader, tag or IC) delivering a compromised solution
• Layering value from tag (product tracking) up through
data services
• Intelligent Supply Chain enabled through remotely
managed smart devices (no IT networking).
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4. Technology Overview:
Long Range RFID (BAP Class 3)
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5. XC3 RFID - The Best of Both Worlds
Passive RFID XC3 Technology Active RFID
PROS Combines the best of both PROS
• Reader talks first Passive and Active to deliver… • Long read range
communications • Long read/write range (>100m)
• Low power passive (>100m) • Reliable in RF
backscatter challenging
• Reliable in RF challenging
• Low overhead, simple environments
environments
communications • Ability to add sensors
protocol • Ability to add sensors and and store data.
• Low cost store data
• Standards Based • Security: Multi-layer
memory access control
CONS CONS
• Reader talks first
• Shorter read range • Tag talks first
communications (beacons) comms
• Even shorter write
range • Low power passive • Higher power
• Unreliable in RF backscatter requirements
challenging • Low overhead, simple • Slow inventory, poor
environments communications protocol counting at portals
• Minimal sensor • Significantly lower cost than • Relatively high cost
support active tags • Proprietary technology
• Standards Based
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Intelleflex Overview | December 2011 5
6. Distance Matters - 450’ versus 40’
Intelleflex
XC3 Technology
Passive RFID
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Intelleflex Overview | May 2011 6
7. XC3 TMT-8500 Temperature Sensor Tag
• Support for EPCglobal C1G2, ISO 18000-6C Class 3.
• Read range up to 100 meters in free space.
• Memory: 60 kbits of extended memory for Sensor, User and
WayPoint Data. User configurable.
• Security: User Access, Block Memory Access, Air Interface
and Tag Authentication.
• Sampling Interval: 1 minute to 127 days, user configurable.
• Alarms: Two high/two low temperature alarms.
• Logging Modes: 5 User selectable logging modes.
• Temperature Range: -30ºC to +70ºC.
• Temp. Sensor Resolution: 0.1ºC (1/10th degree)
over full temperature range.
• Food Grade Safe Plastic Enclosure
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9. The Intelligent Supply Chain
Actionable Data
• To achieve full efficiency, the supply chain needs
secure, accurate, timely and location aware data
on product inventory status and condition
Highly available, actionable data must span supply chain
• ROI from this increased data visibility must:
• be compelling within each trading partner’s operations
• easily extend strategic value through data sharing with other
trading partners
• Must be easy to deploy/maintain, even in remote locations
• Must be Standards-based to deliver value in open market
• Must support EPC/GS1 traceability, with complete granularity
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Intelleflex Overview – April 2012 9
10. The Intelligent Supply Chain
Shared Access Across Supply Chain to Actionable Data
ZEST Data Service enables Tactical & Strategic
efficient, secure, documented data Local, mobile & web
exchange in a low cost, flexible and based applications
future-proof architecture that is a
foundation for multiple types of Remote
applications. Management
Data Analytics
Raw Transit Processing Transit DC Transit Retailer
Materials
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11. The Intelligent Supply Chain
Simplifying the Integration of Technology in the Supply Chain
• “Smart” RTI conveyance
platforms enabled though XC3
RFID Sensing Technology
• Seamlessly monitor product
condition for Quality, Food
Safety and Traceability
purposes
• Intelleflex is working with 3 of
the largest RTI providers
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12. Retail Food and Managing the Fresh Supply Chain
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13. Cold Chain by the Numbers
Each year, perishables suppliers ship
over five billion pallets valued at $2.6
trillion of chilled meats, seafood,
cheese, produce, temperature sensitive
pharmaceutical and biomed products.
(EPCglobal)
On an industry-wide level, losses due to
spoilage and shrinkage translate into
$32 billion for chilled meats, seafood,
and cheese; $34 billion for produce;
and $5.4 billion for pharmaceutical and
biomed products.
(EPCGlobal)
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14. Perishable Produce:
Putting Shrink Numbers in Perspective
• Leading berry brand owner
averaged 7% internal shrink in
2010 for blackberries shipping
from Mexico.
• This 7% Internal shrink
equates to approx. 2 pallets
for every truckload (27 pallets
per load), or 5,760 6oz
clamshells, not being sold to
the retailer customer.
• This does not capture the
shrink at the retailer, which
can be 2x – 3x that seen by
the brand owner.
Approx. 2 pallets on every truckload did not make it to the retailer.
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15. Today’s Supply Chain is Based on Blind Trust
Raw Transit Processing Transit DC Transit Retailer
Materials QC QC
QC
• Today’s supply chain is complex and fragmented, with very little information exchanged,
especially quality data.
• Temperature abuse can - and does - occur throughout entire supply chain, leading to food safety
issues and reduced shelf life, impacting trading partners and consumers further down the supply
chain.
• Segments of supply chain are “monitored” for claims/insurance purposes and limited visual QC
inspections attempt to check quality. Significant portions of the supply chain go unmonitored,
seriously impacting the product’s Delivered Freshness & Quality.
• Inventory is managed by FIFO – blind to invisible shelf life loss and other product quality issues.
• Actionable Data does not exist to “manage” product quality throughout supply chain, “You can’t
manage what you don’t measure.”
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16. Market/Industry Dynamics are Driving Innovation
Drivers for Change:
• The food supply chain has changed from domestically sourced to
globally sourced over the last 15 years and continues to move in
this direction.
• Food safety issues are causing major disruptions globally and
seriously impacting business bottom lines.
• Regulations requiring traceability, food safety and security are
being implemented globally.
• The demand for year round product availability has lead to longer
transit times and is impacting product shelf life and quality.
• Competition among suppliers and retailers is driving innovation.
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17. Critical Factors Driving Shrink
Most common reasons:
• Mishandling
• Temperature abuses
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18. How Important is Temperature
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(Nunes et al. 2000-2006)
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19. How Important is Temperature
Strawberries
5
4
3
Quality Index 10oC 0oC
2
5oC
1
0
0 2 4 6 8 10 12 14
Days
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20. Standard Data Logger Monitoring Today
Measures ONLY the Trailer Ambient Air Temperature
This is the standard reefer ambient air temperature monitor
The truck was in transit for 5 days and there was nothing
alarming about the ambient temperature in the reefer
IDEAL
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21. Seeing Inside the Box for Every Pallet
Paints a Very Different View!
Impact of
Insufficient
Precool
IDEAL
Ambient Trailer
Monitor
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22. In reality…
13.2% of the pallets traveled at over 40°F
Placing reusable monitors on every pallet resulted in profound information…
It was like having X-Ray vision
MEASURING TRAILER AIR TEMPERATURE IS REALLY ONLY GOOD FOR
INSURANCE/CLAIMS USE – NOT FOR DETERMINING PRODUCT
QUALITY AND FRESHNESS
23. All about Shelf Life
Shelf life is the time in which a product retains its
desired quality attributes.
Shelf life depends on a multiplicity of variables and
their changes, including the product, the
environmental conditions and the
packaging.
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24. Shelf Life / Fuel Gauge
• Every pallet of produce has a unique shelf life (picked
at different times, different temperatures, different
days, different cut-to-cool times, etc.)
• Until now, produce has been shipped to random
The Goal:
destinations, without the advantage of having a “shelf Delivered
life fuel gauge”. Freshness™
• By the time shelf life loss becomes visible, it is too late!
• We can use temperature data along with other quality
parameters to better manage product quality and
Delivered Freshness™.
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25. Distribution: From Packing House to US DCs
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26. The Impact of Dynamic Routing
Optimize distribution: Dynamically match destination and
distribution routing with relative pallet shelf life expectancy to
ensure Delivered Freshness
Example: Shipping from Mexico
Pallet A 2 Days Ship to Texas
Shelf Life Index: 10 With special instructions to expedite to
local retailer
Pallet B 5 Days Ship to
Shelf Life Index: 15
Pennsylvania
With actionable in-transit data, both pallets arrive at their destination with ample
remaining shelf life – ensuring quality, reducing loss
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