RFID Implementation in Japan
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1 RFID Implementation in Japan RFID World Asia 2010 Michio Hamano GS1Japan/EPCglobal Japan
2 Contents Infrastructure for RFID systems in Japan Newest introductions of practical RFID system in Japan Publishing Industry Management of high pressure gas cylinders Supply chain of pharmaceutical products Apparel Industry Roadmap for the future
3 Market of RFID & Related Equipments in Japan (Mill. Yen) 40,000 35,000 30,000 25,000 20,000 Related Equipments RFID Tag Reader/Writer Summary 15,000 10,000 5, Source:The Japan Automatic Identification Systems Association (JAISA)
4 RFID Tag Market in Japan (x 1000 pieces) 80,000 70,000 60,000 50,000 40,000 30,000 20,000 ~ 135KHz 13.56MHz UHF 2.45GHz 10, Source:The Japan Automatic Identification Systems Association (JAISA) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% GHz UHF 13.56MHz ~ 135KHz
5 950MHz band assignment MHz IMT 2000 (Mobile phone) RFID (Active, passive) PDC (Mobile phone) Plan to release to RFID STL (NHK fixed station) DME (Aviation radio station)
6 Recent deregulation for UHF RFID in Japan Now [January 2006~] [January 2006~] [May 2008~] [December 2006~] 950MHz Passive High Power 950MHz Passive Low Power 950MHz Active 433MHz Active Freq. Band MHz MHz MHz MHz MHz (433.67~434.17MHz) Antenna Power 1W (License) 10mW (No License) 10mW 1mW 1mW (Container Yard only) May 2010~ 950MHz Passive High Power 950MHz Passive Middle Power 950MHz Passive Low Power 950MHz Active 433MHz Active Freq. Band MHz MHz MHz MHz MHz MHz (433.67~434.17MHz) Antenna Power 1W (License) 250mW (No License) 10mW (No License) 10mW 1mW 1mW (Container Yard only)
7 Middle power RFID device : Use case 1) Pick up, delivery 2) Assist elderly / disabled person Prospecting to increase the RFID used situation When middle power device will be come into the market. 2) Maintenance work 7
8 Contents Infrastructure for RFID systems in Japan Newest introductions of practical RFID system in Japan Publishing Industry Management of high pressure gas cylinders Supply chain of pharmaceutical products Apparel Industry Roadmap for the future
9 Current Status of Book Market in Japan 160,000 No. of Books (in million) Books returned No. of New Titles 90,000 No. of New Titles 140, , , , ,000 60,000 部数 ( 万冊 ) 80, , ,000 40,000 30,000 新刊点数 40, ,000 20, ,000 Books sold 返品部数販売部数新刊点数 0
10 Major Problems facing Publishing Industry in Japan The total book market is gradually declining from 90s. Return rate of books is getting higher, now close to 40%. Resale Price Maintenance System Consignment Sales Contract 25% of returned books are thrown away and recycled to paper. Total loss of thrown away books amounts to 170 bill. yen/year. Shoplifting is also a big issue for the industry.
11 RFID enables Parallel Use of Consignment Ordering and Optional Non-consignment Ordering Publisher/Distributor Bookstore Returning ISBN Barcode + RFID Dictionary A(consignment) Accepted Check by RFID Dictionary B (non-consignment) Not accepted RFID prevents the return of books that were ordered with option.
12 RFID tagged books increasing <2008> 1 title / 75,000 copy <2009> 4 title / 537,000 copy <2010> 1 title / 60,000 copy and more
13 Contents Infrastructure for RFID systems in Japan Newest introductions of practical RFID system in Japan Publishing Industry Management of high pressure gas cylinders Supply chain of pharmaceutical products Apparel Industry Roadmap for the future
14 Management of high pressure gas cylinders by Japan Industry and Medical Gases Association (JIMGA) It is estimated that there are 15 million gas cylinders in distribution in Japan. Problems: No standardization for management method for gas cylinders (Varied by manufacturer to manufacturer) How to find neglected cylinders How to find missing cylinders Track and trace is not possible - bad asset management Neglected? Missing
15 Adoption of EPC/RFID for the management of high pressure gas cylinders Challenged Result Attachment of barcode on cylinders Standardization by barcode was unsuccessful due to use of different barcode standards and methods by manufacturers From above result, JIMGA has been studying the use of EPC/RFID expecting; Extermination of neglected and missing cylinders Improvement of asset management Track and trace of cylinders, and bulk data reading versus individual barcode reading
16 Adoption of EPC/RFID for the management of high pressure gas cylinders EPC Tag Antenna Gate Lorry with gas cylinders passing through antenna gate Ring type EPC tag Acquired data will be stored at the JIMGA data base (Planning) Schedule first half Operation test using test software 2010 second half onwards Operation test at real environment Rubber type EPC tag
17 Contents Infrastructure for RFID systems in Japan Newest introductions of practical RFID system in Japan Publishing Industry Management of high pressure gas cylinders Supply chain of pharmaceutical products Apparel Industry Roadmap for the future
18 Introduction of RFID System to Drug Supply Chain Subject Precise Inspection Innovation of Supply Chain Speedy Operation Easy Track & Trace Subject Track & Trace Traceability Adoption of RFID Medical (Patient) Safety Developed a new check & track system using RFID which began operation in April 2008 ~ For the dissemination of RFID system in medical industry ~ At first, upper supply chain Psychotropic Drug that needs strict management Apply to shipping case level (One Way) From factory to agents (between the companies) Factory D.C. Forwarder Agent Hospital 18
19 D.C. Forwarder Receiving Check Shipping Check Internet Sorting Check Agent Ideal Process! Receiving Check Shipping Check 19
20 Label with RFID attached at factory (UHF Gen2 Tag) A RFID Tag (Label) is attached at D.C. if a case has no RFID attached at factory Label with RFID GS is also printed 20
21 Quality of Distribution (Result of 2 months comparison trial) To avoid mixing in of wrong products 96%/Visual Check vs 100%/RFID <Comparison Trial> Wrong products (wrong lot, etc.) were intentionally mixed in the pile of products after the first inspection. then second inspection was done by visual check and by using RFID separately. Visual Check Rate of discovery of mixed product Using RFID NG NG Mixedin NG NG NG NG Mixed in NG Mixed in NG NG Mixed in 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% (96%) Visual Check (100%) Using RFID NG NG NG 21
22 Efficient Operation (Result of 2 months comparison trial) Shorten the operational time of inspection <Comparison Trial> To measure time of inspections by visual check and by using RFID Visual Check Comparison of Operatinal Time of Inspection 45M00 40M00 35M00 30M00 Using RFID Time 25M00 20M00 15M00 10M00 5M00 M No. of Cases 22
23 Future Vision of RFID Application in Healthcare Material Supplier Secure and Traceable Supply Chain from Material Supplier to Hospital Factor y Distribution Center Agent Hospital RFID Internet Internet Traceability DB Manufacturer Correct Dosage Information Internet Hospital Condition of Dosing Internet Internet RFID Managed by Pharmaceutical Dept. RFID Wrist Band Show / Tell the Instruction on Administration Administering with Relief RFID Patient Prevention of Medical Errors Bed Side 23
24 Contents Infrastructure for RFID systems in Japan Newest introductions of practical RFID system in Japan Publishing Industry Management of high pressure gas cylinders Supply chain of pharmaceutical products Apparel Industry Roadmap for the future
25 Benefit from using RFID in apparel supply chain apparel company 1. Visibility of merchandise in supply chain Precise control of SC Reduce cost Acknowledge Bottle Neck Trading Company 3. Economical store Operation Concentrate on sales support Design the best planogram Minimize chance loss China Factory China DC Japan DC Stores 2. Efficiency in logistics Accuracy in merchandise assortment Reduce from-store-to-store shipment Reduce chance loss 4. Designing and planning for high sell-through merchandise Utilize hidden information at store Grasp consumer behavior obtain information of `almost sold` items Stores
26 RFID armed store image Fitting room Inventory check In-shop gate Smart shelf POS
27 RFID equipments in Flandre (pilot in 2008) B.Smart Shelf A.In-shop gate From Back room From shop Arrival from DC D.Smart Fitting Room ant RW ant Shop C.POS system Back room ant RW Sensor ant Power Inside of Fitting
28 New EPC enabled Apparel Shop Open!! Flandre, Sumikin Bussan and other 3 companies established a new apparel brand I.T. S. international, and advantage of RFID system is to be realized in this brand shops. In February 2010, the first flagship shop of I.T. S.international opened in the center of fashion district, Harajuku area.
29 First item level tagging implementation in Apparel industry! From jackets, skirts or trousers to socks, every single item in the shop has an EPC/RFID embedded hangtag or product label. RFID RFID
30 RFID Application in the shop Currently, the company is utilizing RFID mainly for faster checkout at POS and efficient inventory check. Antenna Reader
31 RFID Application in the shop Inventory check time has been drastically reduced!! <Before> <After> 4 days by 2 person 2 hours by 1 person Next phase Smart fitting room, RFID based EAS, etc
32 Contents Infrastructure for RFID systems in Japan Newest introductions of practical RFID system in Japan Publishing Industry Management of high pressure gas cylinders Supply chain of pharmaceutical products Apparel Industry Roadmap for the future
33 Roadmap of RFID Implementations Startup Period Introduction Period Spread/ Developing Period ~ Department Store (Shoes) Implementation for Ladies shoes and bags (Apparel & Cosmetics) Implementation for Apparel & Cosmetics (Trial) Apparel (International Supply Chain) (Store Front) Implementation in Supply Chain Implementation in Store Front Publishing (Supply Chain Publisher ~ Distributor ~ Bookstore ~ Recycle) Implementation for Limited Books Consumer Electronics FMCG Grocery Packaged food Fresh food (Supply Chain Life-cycle Model) Adoption by a large electronics retailer Announcement of tag adoption for folding container - Establishment of JRCCE (Future Store) (Supply Chain ) - EPCglobal Consumer Electronics IAG (Supply Chain - RTI ) If tag price goes down to a few cents, tag implementation to case and item level become a real possibility Implementation for RTI Implementation in Life-cycle Model (?) Pilot Test :Pallet/Case/Returnable box level :Item level
34 Thank you! GS1Japan / EPCglobal Japan
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