Cloud RFID UHF Gen 2

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1 Cloud RFID UHF Gen 2 Supply chain visibility In store stock management and security. - Stock take by RFID - Stock search - Reorder report, - Dynamic reorder, Security.

2 Introduction The Adilam RFID system is a Cloud based RFID application, providing an end to end supply chain management solution giving value to vendors and their customers. Being cloud based the manufacturer, distribution centre and retail outlet can be part of the supply chain. Traditional supply chain management systems require users to manage inventory when they move them around various locations. RFID can provide a seamless system that does not require users to manage stock in different locations, as product moves around they can be scanned and dynamically moved in the database. When products are used or discarded they can be replenished automatically, providing a faster supply chain management solution. RFID and cloud brings visibility in the supply chain, providing a mechanism to find missing inventory, reduce inventory levels of slow moving stock, and have a closer more dynamic understanding of the end customers buying habits. RFID value in the supply chain RFID can provide a valuable return across the supply chain, connecting many operating systems in many locations closer together - VMI Vendor Manage Inventory, Consignment stock - Retail PDA Stock take control, Self Service, Security, Authentication. - Quicker purchasing cycles. Lower stock levels - Industrial Laundry Control with aging of sheets. - Pharmacy authentication. Authentication of counterfeit drugs and delivery to patients. - Asset identification/tracking. Supply chain management - Patient tracking Alarms for wandering patients. - Pallets Control pallets in a supply chain, reduction in lost pallets. - Stock control across branches. Stock visibility. - Loyalty cards Screen prompt when key customers enter a store All these functions can be integrated together via the Cloud based application.

3 What is RFID RFID is similar to barcode. Barcodes can only be read one at a time and need line of site. RFID tags does not need line of sight, many can be read within a box at the same time, and they have individual numbers providing serialization. Barcode = Item id RFID = Serialized item There are the three main RFID frequencies: 125khz, 13.56Mhz and 900MMhz. Adilam uses the UHF Gen Mhz technology which is the fastest growing RFID technology. UHF RFID has more Reader and Tag manufacturers than other frequencies and provides a faster and greater read distance. RFID replaces the tradition barcode and EAS security system where they use barcode for identification and EAS for article surveillance (Security). Presently major supermarkets use barcode for inventory control and Self Service. Barcode works well and using the traditional security with AES only alarms the gate with an ON/OFF but it does not state what set off the alarm. The advantage of using RFID is it s similar to the Coles Self Service but with added item level security, and very quick stock take and searching for lost items. Typically in a supply chain in particular Vendor Managed Inventory (VMI) systems, all care and no responsibility is often used due to no ownership of individual items. To provide ownership the serialized item number needs to be tracked to know where it was last seen in the supply chain. Security with RFID Maximizing sales opportunities, security and controlling of inventory are important keys to long term success in the retail sector. Not having the correct inventory or being able to find the product for the customer reduces sales opportunities. Existing EAS (Electronic Article Surveillance) systems use a magnetic on/off activating the security, this option provides a proven alarm system, but does not identify what item has been stolen, only that something was stolen. Lost inventory is generally only known at stocktake or when a customer asks for the product. RFID not only provides an intelligent security system by highlighting not just that something has been stolen, but what item was stolen. RFID works on a level above EAS and barcoding by providing security and serialized stock taking. RFID Benefits of UHF Gen2 ISO part c UHF Gen2 RFID provides longer and faster read ranges than other RFID frequencies, whilst longer read ranges are possible, shorter read ranges are also easy managed with reader and antenna combination. Reader ranges of up to 8 meters can be achieved, whilst the same reader can have its settings changed to accommodate almost touch before tags are read. This versatility allows for readers to be used in wide opening security gates as well as short ranges for Workstation and or Self Service applications. UHF Gen 2 RFID is faster than previous technologies and does not have as many problems with tags hiding each other when placed on top of each other (known as masking). This allows for many items to be returned at the same time without items being missed. UHF Gen2 conforms to the standard ISO18000 Part c, all readers and tags from different manufactures are able to read each other. The technology conforms to EPC Global standard which assists in providing an open standard.

4 Over the last 5 years UHF Gen2 has advanced more than any other RFID technology with the most varied industry installations. Tag advancement and the number of manufactures have radically increased. Impinj, a leading manufacturer of RFID tags and readers, have also released a 3D chip antenna further increasing readability a varied angles Paper Industrial On metal Autoclave Hightemp Sub miniature 2.5x2.5mm Tag packing is advancing on an ongoing basis, the UHF gen 2 silicon chips are being released with added features. Whilst some tags differ in memory they are all able to be read and programed by readers from different manufactures. Adilam typically uses tags with a minimum of 128 bits of EPC (Electronic Product Code) memory. (Refer example of the NXP G2im data sheet which also has built in RFID EAS PSF for security and 250bit of EPC and 512bit of extended user memory.) Typical tag memory The RFID tags solution by Adilam is UHF Gen2 ISO18000 partc. The memory size is bit plus a 640bit extended memory total bits or memory. There is also a 112 bit TID which is factory programed that cannot be altered. Using TID along the with RFID number authentication of tag id s can be used. The Adilam solution holds the TID along with the EPC and extended memory for recall. The NXP G2iM has a separate dedicated memory bank specifically designed for security on tag. Key features of NXP G2im UHF RFID Gen2 tag chip according EPCglobal v bit of EPC memory / up to 448 bit in G2iM+ 96 bit Tag IDentifier (TID) including 48-bit factory locked unique serial number 112 bit User TID memory 32 bit Kill Password to permanently disable the tag 32 bit Access Password to allow a transition into the secured state 32 bit User Password to allow access to the private user memory segment Read protection BlockWrite (32 bit) Write Lock BlockPermalock Up to 640 bit User Memory which can be segmented in the UCODE G2iM+ Private User Memory area protected by special User Password Memory read protection Integrated Product Status Flag (PSF) Using the EPC and the TID the tags can be used for authentication and anti-counterfeiting. Typical memory structure. EPC Programmable bits Used to serialize an item. Extended memory Programmable bits Can be used to hold the barcode item number. TID Factory programmed bit Can be used for authentication PSF Programmable Used for security

5 RFID Readers Long range Porthole readers, - Short range USB readers. - PDA integrated readers with GPS 3G Bluetooth etc Benefits of UHF Gen 2 and Cloud Technology The Adilam solution takes advantage of latest in technologies in Hardware and Software. The systems hardware platform is UHF Gen2 whist the software is Cloud based. Each of these technologies individually have their own values. Cloud computing Cloud Computing is fast becoming a direction for consumers who want a system that grows with their applications. Over the years Industry has moved from Mainframes, to networks of Thick and then Thin clients to now Cloud managed services. The RIA (Rich Internet Application) functionality provides an interactive method using push technology of delivering information to web browsers. This allows readers to update web based screens without the need for user triggered screen refreshing. The messaging system makes it easy to set up a reader in a remote location. Applications such as Self Service, Returns, Security, etc, are managed by the cloud, making upgrades simple and quick with no need to go on site. Readers are managed by the cloud via the client software managing each station. The RIA server is web based providing quick deployment and a central management of applications Advantages of cloud. - No local servers required on site, lower cost. - Lower cost of one cloud server with a few global redundancies servers; compared to multiple Local servers in locations. - Lower cost PC s managing applications; they do not need to be powerful, they are mainly running web browser applications. - Setup of readers and stations is quick. Each station has the same piece of small client software which manages individual names and passes setups to devices. It only takes 5-10 min per station. - Reader and setup of other devices is driven by the cloud. - Upgrading of cloud servers is quick and easy by adding CPU s, RAM, etc. - Lower maintenance costs, little need to go on site. On site mainly for RF issues. - Can see easier what s happening remotely for error logging, no need to remotely dial into a server. Can have a dashboard to show the status of all stations globally. - Easier quicker upgrades, all sites can be upgraded simultaneously. - Can do conversion off site. - RAM on the local pc managing the security gate. - Can SMS or from the Cloud to mobile devices. - HTML based screens allow quick change appearance, based on login ID.

6 RFID in Retail The retail cloud solution provides item level visibility in the supply chain and in the store. 1. Supply chain from factory to store. 2. In store stock control and security The Return of Investment in using RFID in the retail are; - Stock takes by PDA o RFID PDA s can stock take 10,000 items in an hour. Typical stock takes only count a quantity of a stock number. RFID stock takes count individual items, so if an item is missing we know not only that one of the quantity is missing, but which one and where it was in the supply chain. - Searching for missing inventory with the handheld PDA. o Lost stock can result in missed sales. Searching for missing items at 2 meters with PDA search function. - Security gates showing what was alarmed. o Security gates are wide span allowing for openings of 2-8 meters - POS Self Service with integrated security (Optional in development) o Giving patron the ability to purchase product without the need for staff intervention. Barcodes are used in supermarkets for Self Checks but do not have security. The RFID Self Service units deactivate the security, the gates keep track of all items as the pass security alarming the gate when an item is not paid. The Self Service option is the same as the existing Self Service product in Libraries bit with the payment integrated into the Self Service machine. RFID replaces the tradition barcode and EAS security system where they use barcode for identification and EAS for article surveillance (Security). Presently major supermarkets use barcode for inventory control and Self Service. Barcode works well and using the traditional security with AES only alarms the gate with an ON/OFF but does not state what set off the alarm. The advantage of using RFID is its similar to the Coles Self Service but with added item level security, and very quick stock take and searching for lost items. Whilst RFID can add value in the retail store it can provide visibility in the supply chain. Stock association Stock association is made by associating an inventory item with a RFID number. Being cloud based the association can be made off site at the distribution centre or within the store. Association off site allows for complete supply chain visibility.

7 RFID Retail supply chain visibility. Multiple scanning locations provide visibility across the supply chain. The central cloud connects Manufacturing, Distribution and Point of Sale together. Where Manufacturing, Distribution and Retail may have different ERP systems to cater for their own requirements, the cloud can be a central point of traceability for each ERP system. Warehouse Re order from factory Stock association at factory Stock passing portholes giving item level supply chain visibility Distribution Warehouse management with PDA stock taking and searching for inventory Inventory tracking from warehouse to store receipt Re order from distribution center Wide span floor security gates. For more information contact POS checkout by item level with integrated item level security. Retail Stock takes upload to the cloud Receipt into store Adilam Technologies Pty Ltd

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