Innovative Technology in Logistics Pavla ŘEHOŘOVÁ Abstract In my contribution I deal with RFID technology (Radio Frequency IDentification). Automatization, and with that connected acceleration of production and business processes, is coming in consequence of increasing utilization of information technologies in real time. By means of scanners the process events are in real time catch, analysed and immediately used for process management. In the future RFID technologies will be used more and more, i. e. identification with the help of radio signal broadcasting and acceptance. Managers should take this fact into consideration because it may become a great competitive advantage in the future. Key words: RFID, EPC, supply chain, logistics 1. Introduction Radio Frequency IDentification (RFID) is a technology of automatic identification. Data in digital form are saved into tags (chips), from where they could be simply, by means of radio waves, counted and transcribed. Tag, bearer of information, can be in the form of a smart label or in the encapsulated form of different shapes, sizes and materials. [1] RFID systems are operated on various wave lengths. For findings of goods movements in logistics process it is necessary to install several scanners on the planned transport way. These scanners broadcast high-frequency signal within the range of MHz or GHz. This signal is tuned in to the same frequency as the oscillating circuit of individual chips. When label and with it connected object arrived at the reach of broadcasters and scanners, then the oscillating motion accepts a signal of broadcasters and simultaneously modulates it. This modulation serves to transfer of identifying code EPC (Electronic Product Code) from the chip/object to the scanner. Scanner subsequently decodes the information from high-frequency transfer signal of chip and hands the ascertained EPC over into the logistics process. 1.1 Electronic Product Code (EPC) EPC contains the producer number and other important components. It presents the access to description of object recognized by the scanner. Through the list on Object Name Server (ONS) we acquire the internet address (URL), which shows (on Information Service) where the object, described by Physical Markup Language (PML), is located. [3] The structure of EPC according to standard is on Chart 1. Chart 1 Structure of EPC Source: [3]
1.2 Advantages and disadvantages of RFID RFID technology offers some substantial advantages: direct visibility for reading and recording to tags is not necessary, sinking of error rate, improved management of goods flow, higher level of automatization, digital obtaining of information, speed of information acquisition, mobility, resistance and variability of medium. [2] Its main disadvantages are: impassableness of radio waves through water and metal, sharing of frequency with other older phone and wireless technologies, i. e. frequent interruptions of frequency, RFID tags placing on marked objects (codes are not read by reason that they are covering, there are impassable stops etc.). 2. Supply Chain on RFID platform RFID technologies may carry to business partners considerable benefits if they settle on marking the goods by EPC. The new EPCs must be registered by supplier, so that they could be confirmed later by a consignment. These information may be used already at the moment of order, however the supplier must guarantee the confirmity of signature with product. Object Name Server is a centre of supply chains on RFID platforms. It ensures the access to products description for all partners (see Chart 2). Chart 2 Object Name Server system Source: [3] Mutual agreement of all partners is a presumption of this system s functions. At the first sight it is clear that it serves the higher certainty of planning process and it gives a possibility of uneconomical stores restriction.
3. Possibilities of RFID utilization Possibilities of RFID utilization are very heterogenous and they could have a substantial benefit in some branches (see 3.1 to 3.4). 3.1 Sales chains There is a possibility to automatize by RFID technology a lot of activities utilizing barcodes and replace by that expensive and erroneous human factor. We talk above all about stores monitoring in stocks and racks (we can count the amount of stores without any manipulation). RFID technology also speeds up all payments. 3.2 Production logistics We can think of RFID technology in logistics process management as a fundamental innovation. It brings new possibilities but they are not in full analysed and used yet. Transition to their utilization is qualified not only by development of its technology but also by creation of corresponding support from the side of application software. As extremely advantageous RFID application we can name the car production in Audi. There is on every car fixed a label containing in its memory all operations, which are necessary to make. The assembly process is operated according to this specifications directly in place. In the central system it is conversely. Actual assembly status is kept on the label of an appropriate car. In case of any problem there is a possibility to set aside a car from the line, after this removal to place it again and continue fluently in assembly. The general management and check on the assembly process is kept by central system. 3.3 Intelligent household This technology will be able to bring to households increased comfort in the future, e. g. scanner of labels in refrigerator may continuously observe groceries durability, size of reserves; automatic setting of microwave program; automatic setting of washing machine according to inserted clothes; etc. 3.4 Other utilization RFID technologies will be used in many other branches in the future: in combination with other scanners of: temperature, dampness, pressure, orientation support of blind people by means of labels distributed in their neighbourhood, transport systems (payments of fees), personal tickets for sports meetings exclusive of hooligans (FIFA World Cup 2006), etc. 4. Evaluation of RFID possibilities 4.1 Technical viewpoint Passive and cheap labels, which acquire the energy needed for their activity from the broadcasted signal, have a limited reach. It is done by allowed broadcaster achievement and it is different for individual countries. The labels with reach higher than 10 cm always demand an antenna and it must be fixed to goods. It is surely not so simple as in the case of bar codes. Labels reading, based on radio broadcast, has very limited possibilities of direction ensuring where the label is situated. Mobile scanners do not offer any information about their positions and therefore it is not possible to find out where the scanner or the goods is located.
4.2 Viewpoint of business economy The automatic data acquisition, about the movement of goods within the whole supply chain, is the main benefit of RFID implementation. Also the supplementation of empty racks may be accelerated by the help of technically evoked warning. It is possible to discover the incorrect consignments already at the moment of expedition or to recognise it at the moment of consignment s arrival to the customer, etc. If we want to achieve an advantage of better view of supply chain, any resistence must be suppressed (as it was during EDI or CPRF (Collaborative Planning, Forecasting and Replenishment) implementation). The enterprises cooperate together only if they have any advantages from that. Therefore RFID technologies implementations, connected with significant expenses, must bring benefits for all participants. 4.3 Viewpoint of needed infrastructure RFID technology is the alternative of barcodes in term of infrastructure only by the superficial surveying. By barcodes utilization for facilitation of data collection there are business processes performed by a human, regardless of the product moves or not. From the view of architecture s proposal the events are evoked analogously, as in the case of data inserting throught computer key board. RFID scanners work totally unlikely. They broadcast and monitor the restricted place, pursue all labels there and register the changes, processing by service program which receives permanent data flow. But it is not possible to derive the axis of goods motion from the scanner s signal. In RFID it is possible only by using consequential scanners, that subsequently record the movement of goods. Nowadays it is not exactly clear how to create an optimal infrastructure for RFID. We take into account above all decentralized data processing, maybe multistep architecture with autonomous units. It will also contribute to the total robustness of that system. 4.4 Security viewpoint EPC is, from its definition, open uncoded information. Therefore every interested person can (during his/her walk throught department store) unheeded find out what goods is situated in racks. It is enough when his/her scanner works on labels frequency. 5. Current situation and perspective of RFID utilization 5.1 Situation in Germany Results of several studies (dealing with radio frequency identification technology) were published recently. The study about RFID situation and perspectives (among 670 German production, transport, logistics and business enterprises) brought a disillusion: only 31 % of enterprises have properly dealt with possibilites of this technology utilization; in addition then majority decided against RFID implementation. [4] Table 1 Current situation in RFID utilization (Germany) Source: [4] The utilization in logistics dominates there by RFID implementation. Almost all enterprises, which decided for implementation of this technology, intend to use it in branches like transport, logistics, distribution and movement of goods (see Table 2).
Table 2 Possibilities of RFID utilization from the view of users Source: [4] 5.2 Situation in the Czech Republic The first complete exam of RFID technology proceeds in the Czech Republic in T-Mobile company. This project fulfils last year authorized all-european norm ČSN ETSI EN 302 208. This norm is established entirely just for RFID equipments and it ensures the special frequency 868 MHz in the whole Europe. This frequency enables the reach of reading about 5 m. It deals about breaking through another border, which moves RFID technologies. It is next step to more massive utilization in almost all branches where technologies, for evidence and stores movement monitoring, are using. In most cases we talk about stocks and logistics; property marking; inventory; etc. T-Mobile company, which pursues trends of modern technologies, decided to use RFID for evidence and stores monitoring. Project is then primarily focused on RFID technology utilization in branches of property evidence and identification of benefits and risks accompanying. Seznam literatury: [1] RFID technologie. [online] Dostupné z: <http://www.kodys.cz/index.php?typ=ksa&showid=249> [2] Cesta k inteligentní logistice a úloha RFID. Měsíčník Logistika, č. 5/2006. Praha: Economia, 2006. ISSN 1211-0957, s. 48 49 [3] RFID Radio Frequency IDentification. [online] Dostupné z: <http://www.sbs.siemens.cz/web/main_topic> [4] Stav a výhled využívání RFID. Měsíčník Logistika, č. 4/2006. Praha: Economia, 2006. ISSN 1211-0957, s. 46
[5] RFID technologie budoucnosti? [online] Dostupné z: <http://www.bvv.cz/i2000/akce/b-inv.nsf/wwwallpdocsid/bexp- 6HGPU6?OpenDocument&LANG=CZ&NAV=1&ID=0> [6] RFID druhé generace v ČR. Měsíčník Logistika, č. 5/2006. Praha: Economia, 2006. ISSN 1211-0957, s. 29 Autor: Pavla ŘEHOŘOVÁ, Ing. Ph.D. Kontaktní adresa: E-mail: Technická univerzita v Liberci, Hospodářská fakulta, Katedra podnikové ekonomiky, Hálkova 6, 460 01 Liberec Telefon: +420 485 352 353 pavla.rehorova@tul.cz