Track and trace for the global supply chain using RFID. Steve Hodges

Transcription

1 Track and trace for the global supply chain using RFID Steve Hodges

2 Outline The global supply chain RFID as a barcode replacement? Drivers for RFID Lower cost Standardisation Mindset and momentum

3 The global supply chain A very sophisticated network Physical movement of trillions of real items... across the entire planet... every year Huge diversity Different companies and products Mostly all overlapping Complexity is growing Coke, P&G, Nestlé,, Wal-Mart

4 Global supply chain problems On-shelf availability Demand forecasting Shrinkage (theft, errors, damage, diversion) Replenishment from back room to store Operational inefficiencies Manual handling and checking Safety stock Track and trace Counterfeiting Product recalls

5 Operating the supply chain The simple barcode goes a long way but is there something better? In 1999 UCC and MIT proposed RFID Auto-ID Centre was created Introduction to RFID and the EPC

6 RFID as the new barcode? Recap of RFID technology RFID is older than the barcode! So why all the interest now? Three main drivers Lower cost Standardisation Mindset and momentum

7 Reducing tag costs IC design IC manufacture Antenna manufacture Antenna/IC assembly Application to package RFID has traditionally been expensive Niche applications, small volumes Big chips, increased functionality 5c target was set by Auto-ID Centre Only feasible for 10bn+ tags pa Chicken-and and-egg problem!

8 Reducing tag costs Die size reduction 100µm m saw lane reduced to 10µm m etch line Contact pads directly over active silicon 10-15k 15k dice per (8 ) ) wafer to >200k dice

9 Reducing tag costs Roll-to to-roll processing mandatory No robotic pick-and and-place! (10k chips/hour) Vibratory assembly, fluidic self-assembly, parallel assembly (several million chips/hour, 10bn/year) Printed antennas Single printing stage Customisable

10 Reducing reader costs EPC Network needs one reader to read all tags Tags may vary by region, application and over time Readers need to work to different legislative reqts Reverse the tradition of specialised readers More versatile/flexible Cheaper Commodity components GSM, DSP, network etc Agile reader Different hardware modules as required Upgradeable software-based radio communication Network interface for upgrades, monitoring and data

11 Standardisation Industry requires reassurance Before committing to the investment Prevent lock-in to proprietary systems Ensure interoperability The nice thing about standards ISO/IEC 10536, ISO/IEC RFID air interface standards Seven parts in total HF and UHF parts both have two different modes

12 Standardisation Auto-ID/ ID/EPCglobal RFID standards effort Start from premise that 5c tag is do-able Get technologists and users talking Address the generic needs of SC Require global applicability More than RFID air interface Tag content the Electronic Product Code Network communication Information processing, storage & sharing

13 Mindset and momentum No longer a mobile database Instead, more like a distributed network Merge the supply chain with the internet Need a set of technologies & standards RFID is just one component in the system Also processing and communication

14 Mindset and momentum Wal-Mart last year issued first RFID mandate World s s largest company US$245bn revenues, 3x size of Carrefour 138m shoppers per week in 4,750 stores Sell 30% of US household staples/toiletries Sell 15-20% of all CDs, videos, DVDs, magazines 10% of US imports from China are Wal-Mart Top 100 suppliers to use RFID by Jan 05 Case and pallet level To augment existing barcodes

15 Mindset and momentum Other buyers have followed suit US DoD Target, Albertsons, Best Buy Tesco and Metro Industries outside FMCG Pharmaceutical Aerospace

16 Mindset and momentum Predictions of billions of tags in next few years ABI predict 3bn tags in 2008 Wal-Mart consume 4 5bn 4 cases pa Other retailers, DoD,, pharmaceutical industry etc.

17 Summary The global supply chain RFID as a barcode replacement? Drivers for RFID Lower cost Standardisation Mindset and momentum

18 This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this material.