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DEDICATED TO RADIO FREQUENCY IDENTIFICATION AND ITS BUSINESS APPLICATIONS

• PERSPECTIVE How To Develop An Internet Of Things Strategy PAGE )( • TunEd In A Monumental Shift At LIVE! *(), PAGE ,/

• SuPPly ChaIn lInkS RFID Takes The Guesswork Out Of Shipping www.rfidjournal.com May/June 2014 And Receiving PAGE -)

Honoring the Best in Bechtel PAGE ). Marks & Spencer PAGE ** hy-Vee PAGE *. RFI Skyview high School PAGE +( Fiscal Information agency, Taiwan PAGE +, Post Foods PAGE +/ nXP Semiconductors PAGE ,* Joseph andraski PAGE ,- CTO3 223 OCT.CTO3 CTT.. 20144102 DEXTER HOUSE LONDON,ONDON,LONDON, ENGLAND

» Find the best RFID technology for Hear from Companies your needs. Using RFID Technology » Learn best practices from early to Address Real Business adopters. » Meet the right technology partners Challenges Today. to help you move forward. HEAR FROM THESE AND OTHER SPEAKERS

Alexander Bols Karl Jordan General Manager, Senior Loss Prevention Intersport Jan Bols Investigator, Wilko

Alastair Booker Lilian Mariani Manufacturing Project Director, Systems Lead, Vente-privee Aston Martin

Dr. Bill Hardgrave Glyn Matthews Dean, Harbert Senior IT Project College of Business, Manager, Innovations, Auburn University Speedy Services

Richard Jenkins Mark Roberti Head of RFID Founder and Editor, Programme, RFID Journal Marks & Spencer

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16 RFID Helps Bechtel Manage a Megaproject The engineering and construction giant is tracking materials from mainland Vol. 11, No. 3 May/June 2014 storage areas to three sites on a remote island, to ensure the correct materials EDITORIAL arrive at the right place on time. By John Edwards Mark Roberti, Editor [email protected] 22 Marks & Spencer Embraces Change Andrea Linne, Executive Editor/Magazine [email protected] Based on the benefits achieved from RFID-tracking all apparel—and recognizing Paul Prince, Executive Editor/News the importance of omnichannel shopping—the U.K. retailer plans to tag all [email protected] general merchandise in stores. By Samuel Greengard John Hull, Creative Director [email protected] Rich Handley, Managing Editor 26 Hy-Vee Supermarkets Track Perishables to Ensure Freshness [email protected] Suppliers include RFID temperature tags in shipments to the retailer’s Beth Bacheldor, Senior Editor [email protected] distribution centers, and the DCs reuse the tags to monitor goods en route Claire Swedberg, Senior Editor to the stores. By Jennifer Zaino [email protected] Edson Perin, Brasil Editor [email protected] 30 RFID Protects Students and Teachers Sam Greengard Skyview High School deployed a safety solution that can summon help in a Contributing Writer [email protected] disciplinary, medical or violent emergency. By Minda Zetlin Bob Violino Contributing Writer [email protected] 34 Electronic Invoices Reduce Paper Consumption Rhea Wessel The Taiwan Fiscal Information Agency uses RFID and NFC technologies to enable Contributing Writer/Europe [email protected] shoppers to receive e-receipts. Bob Violino Jennifer Zaino Contributing Writer [email protected] 38 Post Foods Adds NFC to Cereal Marketing Mix RFID JOURNAL EVENTS Concertgoers access custom content with their smartphones. By Jill Gambon Kimberly A. Ray, VP of Events [email protected] 42 Smarter Things Cheryl Johnson Senior Director of Events Management NXP’s NTAG I² NFC chip enables consumers and businesspeople to use [email protected] smartphones to communicate with myriad electronic devices, cars and Debbie Hughes Senior Editorial Director of Events buildings. By Paul Prince [email protected] Deborah Lambert Editorial Coordinator of Events 45 Item-level Idealist [email protected] Joseph Andraski saw the value of RFID in retail and worked energetically to SALES promote its adoption. By Mark Roberti Alan McIntosh, Senior Director of Sales [email protected] Matt Singer, Senior Director of Sales [email protected] SUBSCRIPTIONS departments columns [email protected] ARTICLE REPRINTS 5 Editor’s Note 47 Software Savvy [email protected] The best of the best. The state of reader interfaces. By Ken Traub RFID JOURNAL LLC 6 Out in Front Editorial office: RFID sensors sniff out chemicals; 48 Tuned In PO Box 5874 Hauppauge, NY 11788 giving RFID ears and eyes; fakes A monumental shift at LIVE! 2014. Mark Roberti, Chief Executive on a plane. By Bill Hardgrave [email protected] Kathleen Knocker, Director of Finance 10 Perspective 51 Supply Chain Links [email protected] Three lessons the RFID industry An impartial observer. Sonja Valenta, VP of Marketing [email protected] can learn from Apple ; how to By Ian Robertson Kathy Roach, Marketing Coordinator develop an IoT strategy. [email protected] Lydia Sum, Administrative Assistant [email protected]

Contents © 2014 RFID Journal LLC COVER ILLUSTRATION:

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Find New Business Opportunities Most-Read Stories in May RFID providers now have a source where they can find • Zebra Buys Motorola Solutions’ companies worldwide that are actively seeking to deploy Enterprise Business the technology. RFID Requests for Proposals is updated regularly, with new RFPs from companies in diverse • Companies Deliver New Apps for industries. Each RFP includes detailed information, con - Bluetooth Beacons “ tacts and submission deadlines. • Sanford Health Opens New RTLS- Enabled ‘Patient-Centric’ Facility The Inside Scoop Coming Soon to RFIDJournal.com • Airbus to RFID-Tag and Track All Parts What are end users saying These live interactive programs offer a Made In-House behind the scenes? Why con venient way to learn why and how should the RFID community companies are employing RFID to improve • Fujitsu Buys GlobeRanger, Bringing be optimistic about the the Electronics Company Into the U.S. industry? Who’s spreading the way they do business. Presenters will misinformation? Get insight answer your individual questions. RFID Market and perspective at the RFID JJLKIGH Blog . RFID in Aerospace & Aviation , June 19, 11 am to 1 pm EDT Top 32 Search Terms RFID in Retail, Sept. 11, 11 am to 1 pm EDT On RFIDJournal.com RFID in Harsh Environments , Oct. 8, 11 am to 1 pm EDT RFID in Manufacturing , Nov. 6, 11 am to 1 pm EST 3 Hospital 4 Internet of Things 5 NFC 6 Find products that can Motorola Ideas Exchange help you deploy RFID suc - 7 RTLS RFID JJLKIGH maintains cessfully, such as Conver - 8 Brazil an Ask the Experts forum , gence System’s CS468 where you can submit 16-Port RFID Reader . The 9 Airbus questions about RFID EPC Gen 2 device is de - : Security technology and its applica - signed for tracking jewelry, tions. Your questions will be documents, vehicles and ; Construction answered by RFID JJLKIGH other applications that require highly controllable read 32 Bechtel editors or outside experts. zones. It boasts a long read range and high read rate. Recent questions include: • What is the cost of an RFID system for a large hospital? POLL RESULTS • Where can I find an RFID system for monitoring a Do you think power facility? the RFID market Yes , Somewhat , • Can an RFID tag be tem - we are moving but the growth porarily disabled? is maturing? is far too slow. closer to mass • Can an RFID tag easily be adoption. 551 linked with Facebook? 651 No, • Where can I find RFID tags Cast your vote. things are Each week, RFID J JLKIGH Don’t and Wi-Fi readers for tires? not progressing takes the pulse of the RFID Know • Are on-metal RFID tags community. See what other as anticipated. people are thinking—and 361 vibration-resistant? make your opinion count. 321

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visit www.rfidjournalevents.com. PHOTO: ISTOCKPHOTO CUT COSTS AND IMPROVE PATIENT OUTCOMES WITH RFID This one-day event is designed to help hospitals and clinics leverage RFID technologies.

The conference sessions will cover a wide variety of Exhibitors participating in the event will be applications relevant to health-care organizations. displaying health-care solutions covering a range Lear how to: of RFID technologies, including: › Boost asset-utilization rates › Passive ultrahigh-frequency (UHF) › Improve inventory management › Passive high-frequency (HF) › Increase bed turnover and monitor patient flow › Ultra-wideband (UWB) › Reduce the incidence of objects being left › 802.11x behind › Active UHF › Enhance patient safety › ZigBee › Improve supply chain management › Hybrid tags › And much more › And more

Case studies presented by health-care organizations already using RFID technologies will help attendees determine the best RFID technology for their needs, learn best practices from early adopters, find the right technology partners and move forward.

REGISTER NOW TO SAVE WITH OUR EARLY-REGISTRATION PRICING! FOR MAXIMUM SAVINGS, USE CODE HCES . www.rfidjournalevents.com/healthcare editor’s note

The Best of the Best

We have been honoring outstanding RFID only a few companies are using temperature deployments for eight years now. In that time, tags to monitor some food products. That’s we have seen the quality of the submissions likely to change when companies learn how improve significantly. supermarket company Hy-Vee is tracking all This year, in the Best RFID Implementation shipments of perishable goods from suppliers category, there were many large-scale deploy - to its distribution centers, and then to the ments that merited recog - stores. For ensuring customers get the freshest nition. The independent foods, Hy-Vee earned the award for Best Use of panel of judges cast their RFID to Enhance a Product or Service. votes, and two companies This year’s Green Award went to the Fiscal were tied: Marks & Spencer, Information Agency of Taiwan for an RFID- which is RFID-tagging all based electronic-invoice solution designed apparel and general mer - to save trees and reduce CO2 emissions. chandise items at 750 U.K. We introduced a new award this year, Best stores, and Bechtel, which NFC Deployment, to highlight the use of Near- is using RFID to manage Field Communication technology, particularly materials for three major in consumer applications. Post Foods was construction projects off selected for its use of NFC cards to engage the coast of eastern Aus - customers and generate brand loyalty. tralia. RFID Journal edi - Our annual Best In Show award, given to the tors tried to break the tie, best new product introduced at RFID Journal but in the end, we gave LIVE!, went to NXP Semiconductors for its both companies the award NFC Connected tag, which makes washing for Best Implementation. machines, refrigerators and other electronic We profile their deploy - devices smarter. And Joseph Andraski was ments in this issue. honored with the Special Achievement Award One of the reasons I like to publish deploy - for his support for and commitment to pro - ment case studies is to inspire other companies moting RFID adoption at the item level in retail. to think about how they could use RFID, either Congratulations to all the companies hon - for the same application or in a different way. ored with an RFID Journal award, as well as all When Skyview High School was looking for a the finalists. And thanks to the many other way to improve the safety of schoolchildren, a companies that submitted entries. Look for guidance counselor’s husband read about RFID case studies about some of their excellent RFID tags being used for personnel safety at a psy - projects in “Premium Content” on our website. chiatric hospital in California and pointed out I’m sure you’ll be inspired. L

A the idea. The school worked with the RFID N R U provider, Ekahau, to adopt the health-care O J

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I solution for the education sector. For thinking R

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S outside the box, Skyview was honored with the R U H Most Innovative Use of RFID award. M O T

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O RFID Journal has been covering cold-chain T O H

P technologies and solutions for many years, but Mark Roberti, Founder and Editor

RFID J  • May/June %#$& 5 out in front

SECURITY RFID Sensors Sniff Out Chemicals Researchers at Georgia Tech Research Institute have developed wireless devices that can detect the presence of hazardous gases in the atmosphere.

RJFIDLG RHJG EKDLGHG an a wired input port. The RFID American Airlines flight from Paris transponder can then transmit that to Miami on Dec. 22, 2001, with information to a reader wirelessly. explosives packed in the soles of Software would gather data from his shoes. He attempted to detonate dozens of sensors and use pattern the explosives but was subdued by recognition to determine the pres - other passengers. In the not-to- ence of a chemical and reduce the distant future, tiny wireless sensors likelihood of false alarms. deployed throughout airports Song and Valenta developed a might be able to “sniff out” the prototype sensor that is 10 cen - chemicals in the explosives of such timeters square, but their goal is to would-be bombers. improve the design so a multiple- A team of researchers at Georgia sensor array and an RFID chip can Tech Research Institute (GTRI) has be squeezed into a 1-millimeter- developed sensors that can be square device. The current proto - linked to radio frequency identifi - type uses a battery-assisted 5.8 cation transponders, which would GHz tag developed by GTRI. The enable them to alert security wire - team chose 5.8 GHz because it lessly if they detected any of a vari - allows for a smaller microchip, ety of chemical vapors they are A prototype of a wireless chemical sensor, pictured faster data transfer rates and designed to pick up. “We can make inside a flow-cell test chamber. better performance around metal, the sensors at very low cost, and but Valenta says, “we could easily they consume very little power, so they can be scattered link the sensor to a completely passive 5.8 GHz tag or a throughout an environment,” says Xiaojuan (Judy) Song, commercially available 915 MHz passive tag.” a GTRI senior research scientist who is a principal investi - Low-cost sensors that could be read by off-the-shelf gator on the project. “They could provide an early-detec - and widely deployed passive ultrahigh-frequency RFID tion system for better security.” readers could also be used to monitor air pollution, detect Song is a chemical engineer who has researched wired vapors emitted by ripening fruit and vegetables to moni - chemical sensors. She teamed up with Christopher tor freshness, and detect hazardous gases in chemical and Valenta, a GTRI research engineer and co-principal inves - power plants. “The sensors could be made small enough tigator on the project, who has been working with RFID that people could wear them,” Song says, “and they would systems for the past seven years. Wireless sensors are alert you if you were exposed to small amounts of poten - cheaper to deploy, because they do not require running tially harmful gases.” cable throughout an environment. The researchers tested the prototype in a mock airport The sensors have a thin film made of carbon nanotubes checkpoint. The sensor detected a specific chemical being and other materials. They are designed to detect specific targeted despite the presence of many other harmless H C

chemicals, such as ammonia, which is present in most chemicals, and the RFID component transmitted the E T

A I explosives. When chemical molecules land on the film, sensors’ readings. They have begun talking to companies G R O E G

they either attract electrons from the carbon or the carbon interested in the technology. With appropriate funding, |

T L E F attracts electrons from the molecules. This changes the Song says, wireless sensors based on the team’s work B O R resistance in the chemical sensor and that change can be could be available commercially in three to five years. And : O T O H

communicated to the chip in the RFID transponder through then we can all sleep a little more soundly. — Mark Roberti P

5 RFID J ')(&$% • May/June 2014 H E A L T H C A R E Giving RFID Ears and Eyes A researcher at Duke University has shown that audio and video can be transmitted via passive RFID transponders, which could make way for new medical applications.

attached to the back of a dragonfly. They attached sensors to the insect’s body to capture neural signals, and the information from those signals was transmitted in real time via the custom RFID chip, which can communicate with a reader at 5 megabits per second (conven - tional UHF RFID systems transmit at 640 kilo - bits per second). “As the dragonfly flew around, we were able to capture its neural signals in real time using passive backscatter communi - cation,” Thomas says. Fakes on Thomas then used the same passive backscatter technique to stream audio a Plane recorded on an iPod and video from a slow- Typically, passive ulTrahigh-frequency scan television. This approach has enormous Number of RFID transponders transmit a unique serial potential in the medical field. Passive tags passengers number and perhaps some text information could help remotely monitor the movements impacted by an to readers. But Stewart Thomas, a research and vital signs of the sick or elderly. Rich data airport bomb scientist in Duke University’s electrical and could be sent from implants monitoring a threat: computer engineering department, has patient’s heart, brain or other organs—and proved they can do a whole lot more. Passive because the tags don’t require batteries, the Norway, 2013 tags can transmit sound and video recordings, implants would be relatively small and less #, which could open the way for new invasive than other tags. “This kind of system implantable medical device applications. could be used to capture information about Spain, 2006 While Thomas was studying to be an RF the movement of animal or human muscles engineer, working on his Ph.D. at Duke under simply by using a patch placed on the skin,” ", the guidance of Matthew Reynolds, he began Thomas says. to wonder if sound and moving images could The system used a special chip and air- Michigan, 2013 be sent via the backscatter technique used by interface protocol, but Thomas believes ordi - !, passive UHF systems. He got a chance to find nary passive RFID systems could eventually out when he connected with Anthony be used to transmit neural signals as well as Texas, 2012 Leonardo, a researcher at Howard Hughes audio and video. “There’s no fundamental Medical Center, who studies the neural basis difference between the tags and readers we !, of animal behavior. Leonardo was looking for are building and existing passive UHF RFID China, 2013 a way to transmit data from a dragonfly in systems,” he says. “The big challenge with flight, but battery-powered transmitters were sending a lot of data via existing RFID systems , too heavy for the insect to fly normally. is making sure you get power to the tag O T O

H Working with Reid Harrison, founder of constantly. Since the tag has no battery and Scotland, 2013

P K O T C O O Intan Technologies, which makes microchips only the means to store a small amount of T H S P I

"

K : C N that sense the weak electronic signals pro - energy for short periods, you’d need to keep O O T I S T I

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duced by biological systems, the researchers the tag powered to capture continuous data O T T S O U H L L

P –Rich Handley

I created an RFID transponder that could be from a patch on the skin.” — M.R.

RFID J ')(&$% • May/June 2014 6 Learn how leading energy producers, refineries and distributors, as well as mining and utility companies, are using RFID and related technologies to track tools and equipment, manage inventory, streamline business processes and achieve other business benefits.

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Exhibitors

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STRATEGY Three Lessons the RFID Industry Can Learn From Apple

While RFID products continue to improve, technology providers must do more to make them easier to deploy and safer to invest in.

Apple is the most successful technology company on the adoption of their products, it’s worth looking at Apple to learn planet. As I write this, its stock is trading at $585 per share a few lessons. (down from a peak of $700 in 2012), and it boasts a market cap - italization of $500 billion. Apple has become the “gorilla”— " Build the Whole Product O T the dominant technology provider—in MP3 players, smart - The first MP3 player was introduced in 1997. At the time, O H P K C

phones and tablets. It is rare for a tech company to dominate consumers needed to purchase a CD-ROM ripper that could O T S I

:

any one market, and no other company has done it three copy songs from a music CD to a computer. They had to pur - O T O H times. So as RFID companies seek to foster widespread chase software to organize songs and copy them to an MP3 P

GF RFID J (*)'% N • May/June HFGJ

player, and they had to purchase the MP3 player itself. This ware, software and services for tracking medical instru - was too complicated for most consumers, so by 2001, sales ments (see Xerafy, RFID Global Solution, Alien Technology of MP3 players had reached just 750,000 units. Partner on RFID Kit for Hospitals ). Around 2000, three years after returning to Apple, Steve Jobs surveyed the field of MP3 players and found most either # Make Products Easy to Use “big and clunky” or “small and useless.” He created a team to Steve Jobs was not an engineer. He had limited technical develop a new MP3 player. At the same time, Apple acquired skills and was not a proficient software coder. But Jobs a company called SoundJam MP, which offered software that understood his customers and what they wanted. He under - ran on Apple Macintosh computers and allowed people to stood they wanted the technology to work, and they didn’t manage digital music and copy songs to MP3 players. Apple want to spend hours making it work. When Jobs saw the improved the SoundJam user interface and added the ability original graphical user interface developed at Xerox Palo to write to CD-ROMs. The software was released as iTunes in Alto Research Center (Xerox PARC), he knew immediately it 2001, and the iPod was released later that year. would appeal to consumers more than the text-based com - Sales of MP3 players jumped to 1.6 million units in 2002. mands then used by all computers. Two years later, sales had more than doubled, and by 2007, In Walter Isaacson’s biography Steve Jobs , Jobs recounts sales of MP3 players, dominated the story of a friend who took his by iPods, topped more than 150 iPad to Africa. He gave the iPad to million units. Apple’s iPod sales RFID systems are still children in a poor area who had peaked in the first quarter of 2011, never seen a computer, and within a at just less than 20 million units. too difficult to use . A few minutes they had figured out The whole product is impor - how to use the device. This gave tant because it reduces risk. For non technical person Jobs enormous satisfaction. nontechnical consumers—the RFID systems are still too diffi - vast majority of us—having to cannot easily set up a cult to use. A nontechnical person buy a CD-ROM ripper, software reader portal and cannot easily set up a reader portal and an MP3 player and get them and begin reading tags. It’s true that all to work together means sub - begin reading tags. tags and readers have improved jecting ourselves to risk. What if tremendously. Readers are more we can’t figure out how to write sensitive—they can pick up fainter songs to the MP3 player? Then, signals from tags. Tags can be orien - we’ve wasted a lot of money. tation insensitive—they can be read regardless of their ori - Risk is a huge barrier to adoption of RFID technology. entation to the reader antenna. Tags also have many new What if we buy a lot of tags and readers, purchase expensive features, including security and privacy capabilities. But ask software and hire an integrator, and some or all of it doesn’t any businessperson to reduce the power output of the work as advertised? Then, we’ve wasted a lot of money. reader antenna on a passive ultrahigh-frequency reader and Offering a whole product helps ensure the system will work you will witness an exercise in frustration. and, therefore, reduces risk. Last year, we were working with a company on a project There have been many acquisitions in the RFID industry, that involved coding tags. The reader manufacturer walked but none have been similar to Apple’s acquisition of me through the process of writing data to the tags. When I SoundJam, geared toward creating a whole product. But a tried on my own, I could not figure out how he had done it. few recent partnerships are aimed in that direction. I had to call him again to walk me through it. When I still Checkpoint Systems announced a strategic partnership with had problems, he had one of his engineers do it for me. Mojix that could enable the two companies to offer retailers Many of the smaller RFID companies are led by the overhead readers, software, and deployment and systems engineers who developed the products. They make great integration services (see Checkpoint Partners With Mojix to products that often do more than the end user really Offer Passive RTLS in Stores ). Alien Technology, RFID Global needs, and they tend to resist any effort to simplify their Solution and Xerafy recently came together to offer hard - products because they see this as a “dumbing down.” But no

RFID J (*)'%& • May/June HFGJ GG perspective

technology can achieve mass adoption if it requires lots of that,” Jobs is quoted as saying. “That meant that we com - highly skilled engineers to deploy it. pletely dominated the [advertising] market for music play - ers. We outspent everybody by a factor of about a hundred.” $ Market Aggressively By contrast, most RFID companies spend nothing on Jobs was well-recognized for his intuitive understanding of advertising. They invest a lot of money in developing new consumers and what technology they will and won’t buy. products, but often leave no resources for promoting the But Jobs was also a brilliant marketer. Apple’s 1984 Super new products. As a result, many end users who could use Bowl commercial introducing the Macintosh computer is those products don’t know they exist. still considered by many to be the best TV ad ever made. Small companies will argue they simply don’t have the Within a year of the iPod’s launch, there were limited- money to invest in advertising and when adoption picks up, edition models featuring the engraved signatures of they will be able to spend more. But adoption can’t pick up Madonna, skateboard star Tony Hawk and singer-songwriter if no one knows what technology is available and who Beck. The goal was to make the iPod hip. makes it. Jobs also approved an advertising campaign that When Steve Jobs took over Apple, the company was strug - consisted of humans silhouetted against brightly colored gling and Jobs was only brought back in a desperate attempt backgrounds, enjoying music through white earbuds to save the company (its share of the PC market had fallen attached to white iPods. There was almost no text in the from 10 percent to roughly 4 percent, and it was losing ads—just the Apple logo and the word “iPod.” These ads money). Apple did not have unlimited resources to develop conveyed “cool”; they became iconic. Jobs, who initially the iPod and iMac and to promote them. When Jobs came in, resisted the ads, according to Isaacson’s biography, backed he slashed the number of products Apple was selling and them up with an aggressive budget. focused on a few that had promise. Apple’s advertising budget for all products in 2002 was There is no single business formula that will be $125 million. Jobs realized the popularity of the iPod could successful for all companies, but Apple has done many drive sales of Macintosh computers (a Windows version of things right since 1997. It seems clear that if RFID vendors iTunes did not come out until the following year). So he partner with or acquire other companies to deliver the decided to shift advertising dollars away from computer whole product, make their products easier to use and products to the iPod. market them to a targeted group, they would grow sales “I moved $75 million of advertising money to the iPod, significantly and the overall demand for RFID solutions even though the category didn’t justify one hundredth of would soar. — Mark Roberti

Follow Apple’s Year Company Acquired Product Derived Product Acquisition Strategy GMML NeXT Computers OS X HFFF SoundJam MP Software iTunes Apple has never made an acquisition simply to bolster its bottom line. Nor has it pur - HFFG Labs Productivity software iWork chased companies to add customers to whom it could sell existing products. Apple’s acquisi - tions have been about making its products HFFK FingerWorks Gesture recognition software iOS easier to use or providing software to make its computers and laptops more complete HFGF Siri Voice control software Siri solutions. Here are some of Apple’s most sig - nificant acquisitions over the years. HFGH Chomp App search engine App Store

GH RFID J (*)'% N • May/June HFGJ How to Develop an IoT Strategy

Forget the hype and think about whether a technology or application adds value to your company.

one of the hottest buzzwords in business these days is themselves. This would enable computers to collect and “Internet of Things.” Cisco hypes it in TV commercials, and analyze information about what was happening in the real Google, and Microsoft are reportedly investing in world, without people having to type information into a Internet of Thing technologies. Internet of Things confer - computer or scan a bar code. ences are held worldwide, and April 9th was the fourth Today, some companies have expanded the term IoT to annual Global Internet of Things Day, with events held in include a wide range of smart devices, cloud computing, more than 18 countries. Google Glass and other technologies they are trying to pro - The term Internet of Things, now commonly referred to mote. The truth is, experts struggle to define exactly what O T O

H as IoT, was coined in 1999 by Kevin Ashton, who was trying the Internet of Things is. The European Union has funded P K C O

T to explain radio frequency identification to executives at IoT research, but the project’s website does not define S I

: N

O Procter & Gamble. Ashton envisioned a world in which com - the term. Cisco says the IoT is a “network of physical I T A R

T puters would communicate with passive RFID transponders objects accessed through the Internet.” TechTarget, a S U L L

I on cases of P&G products and maybe even the products popular IT website, says it is “a scenario in which objects,

RFID J (*)'% N • May/June HFGJ GI perspective

animals or people are provided with unique identifiers the Internet of Things as something important they need and the ability to automatically transfer data over a to focus on. The question is: How do you develop an IoT network without requiring human-to-human or human-to- strategy when it’s not clear exactly what the IoT is? computer interaction.” Taken literally, the term Internet of Things covers any RFID JournAl recently surveyed its readers to learn their technology that links a physical object (other than a com - views on the Internet of Things. Six percent of the 516 puter) to the Internet. There are, fundamentally, two reasons respondents said the IoT is just a buzzword without much you would want to connect an object to the Internet. One substance behind it. Half said it covers RFID and other tech - is to be able to track and manage it. The second is to make nologies that are important, and 32 percent said it is an it smarter. important trend their companies take seriously. Tracking and managing items is what RFID is all about, and With the growing media hype, many businesspeople see many companies have been deploying RFID to identify assets, equipment, inventory, tools, work-in-process and other “things” to reduce operational Smart Product Interfaces costs, increase sales, improve safety and enhance customer satisfaction. Often, RFID data is filtered and transferred to software running in the cloud so it can be shared within an organization. Inventory data, for What makes a product “smart” is not press tiny buttons on a hard-to-read example, can be made available in near-real always clear. Whether improving the timer display. time to salespeople or to alert employees way customers control products makes For applications in which products the items smarter, embedding an RFID can be programmed remotely and when goods need to be replenished. transponder in an electronic device to automated over the Internet, wireless The vast majority of “things” will be enable remote control is going to communications protocols such as connected to the Internet via passive RFID become more common. Intel recently Bluetooth, Wi-Fi and ZigBee will likely technologies so they can be tracked and developed a computer and tablet cen - be employed. For example, Nest, managed. This is because passive RFID costs tral processing unit that has a wired link recently purchased by Google, makes to an ultrahigh-frequency RFID chip. By smart thermostats and smoke/carbon much less than most other wireless tech - sending signals to the chip, the user can monoxide detectors that connect to the nologies, does not require line of sight and is control the device. The CPU, for exam - Internet via a home Wi-Fi network. truly automatic. There are already stan - ple, could be locked until it receives a These devices can be programmed and dards, including the Electronic Product Code password via an RFID reader. Or it could controlled remotely; the smoke detector Information Services (EPCIS) standard, for be customized without opening the box sends messages to the user’s phone and sharing passive ultrahigh-frequency data if the user sends instructions to the other Nest devices in the house if it RFID transponder (see A New Tool for detects smoke. — M.R. with supply-chain partners via the Web. Electronics Companies ). Some items might be tracked and man - NXP Semiconductors received the aged with other technologies, sometimes in Best in Show award at RFID Journal conjunction with RFID. Vehicles, for exam - Live! 2014 for its new Near-Field ple, might be located in a distribution yard Communication chip that has input/out - put ports similar to the passive UHF with an active RFID-based real-time location chip Intel is using (see page 42). The system (RTLS), but use GPS and telematics advantage of NFC is that many mobile systems linked to cellular networks when on phones have a built-in NFC reader, so the open road. And in some niche tracking companies can create new products applications, technologies such as 2-D bar that receive instructions from a smart - codes, QR codes, infrared sensors or ultra - O

phone. You could, for example, use a T O

sound, work better than RFID. H smartphone’s relatively large, well-lit P K C O

touch screen to set an automatic NFC- Tracking and managing assets, products T S I

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enabled light timer, instead of having to N

and other things with RFID and sharing data O I T A R

via the Internet increases visibility and T S U L L

delivers other benefits. Take, for example, I

GJ RFID J (*)'% N • May/June HFGJ Almacafé, a subsidiary of the National Federation of Coffee An object can interact with other objects around it—for Growers of Colombia. The organization uses passive UHF H example, a printer might know that an ink cartridge RFID systems to track premium coffee beans from farms being inserted is counterfeit and not allow it to be used. through processing and warehousing to better compete in An object can sense the world around it and react—a the global market. The RFID solution also helps Almacafé I shipment of drugs might send an alert when it is being boost sales and improve customer loyalty by enabling coffee stored at a temperature outside an acceptable range, or a manufacturers and consumers to access information building might sense when rooms are empty and turn off regarding the origins of a specific batch of beans via the the lights. Internet (see RFID Helps Ensure That Special Cup of Joe ). The object can be controlled remotely—a coffee maker The buzz surrounding the Internet of Things is more J might be programmed via the Internet to start brewing about making objects smarter by connecting them to the using a smartphone application (see “Smarter Product Internet. Making products smarter increases the potential Interfaces” on opposite page). profit margins they bring, because they are perceived as Today, the Internet of Things is a fuzzy concept, and there more valuable. There are several ways companies can is little agreement about which technologies are IoT increase the perceived value of their products by connecting technologies and which standards apply. What’s important them to the Internet: is to focus on creating value for your company. That can be An object can provide more information about itself— done by tracking and managing “things” more effectively or G where it has been, how it was produced and so on. by adding intelligence to your product. Choose the right Embedding an RFID transponder in a product could enable a technology for each application, and don’t worry about consumer to read the tag and go to the Internet to find the whether the “experts” call it an IoT technology or something product’s entire history. else. — M.R .

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RFID Helps Bechtel Manage a Megaproject The engineering and construction giant is tracking materials from mainland storage areas to three sites on a remote island, to ensure the correct materials arrive at the right place on time.

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ven if the name doesn’t sound processing and export facilities on construction materials a formidable familiar, there’s a good chance Curtis Island, an ecologically fragile challenge. “It’s basically an uninhabited you’ve visited, traveled on or mile-long speck of land off the coast of island in the area we’re working,” says Eotherwise benefited from at Gladstone, Australia. The facilities are Ed Koch, the company’s construction least one of Bechtel’s many global being constructed to process coal seam automation specialist. megaprojects. Headquartered in San gas (CSG) produced by collection facili - With limited room on the island, the Francisco, the engineering, construc - ties on the Australian mainland. The majority of the project’s materials re - tion and project management firm has plants will purify the gas into a liquid ceiving and laydown (storage) sites are built, or played a major part in building, state for export to customers worldwide. on the Australian mainland. The con - such modern marvels as the Bay Area Even by megaproject standards, it’s struction materials must be loaded onto

N O Rapid Transit (BART) system, the Chan - an epic undertaking. Each of the three ferries and transported across a harbor I T A R O

nel Tunnel, Hoover Dam, Las Vegas’ sites will employ several thousand before reaching their installation loca - P R O C

McCarran International Airport and the workers during construction. Yet there tion. “All the materials have to be han - L E T H

Trans-Alaska Pipeline. are no roads connecting the facilities to dled multiple times before arriving at C E B

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Bechtel is now involved in the con - the mainland or each other, which their final destination,” Koch says. O T O H struction of three liquefied natural gas makes moving people, vehicles and The materials that sail across the har - P

+. RFID J 1320./ • May/June ,*+- 2014 RFID JOURNAL AWARD | BEST RFID IMPLEMENTATION

All materials are identified with Identec i-B2 active tags—roughly 60,000 so far. Some tags are recycled, so Bechtel estimates it has tracked well over 100,000 items. bor must arrive at the correct island First Steps find things approximately eight times project destination on time and in the faster, and we had seen, during the correct quantity. Mistakes are likely to Since Bechtel couldn’t do much to im - study, productivity improvements in generate a ripple effect, delaying con - prove the projects’ transportation situa - excess of 4 percent,” Koch says. struction in multiple areas simultane - tion, due to the island’s remote location A crossfunctional team was formed ously. “When you have materials mixed and protected wildlife habitats, man - in November 2011 to develop a formal for three different sites, all in multiple agers knew they needed to take steps to design and deployment strategy. The storage areas, you really have to make ensure the efficient coordination and team included representatives from sure the right thing gets selected and management of construction materials. Bechtel’s business corporate divisions, transported to the right place by the The search for a solution began in fall and project technical experts from pro - right time,” Koch notes. 2011, when they formed an evaluation curement and construction. “Involving Bechtel needed an efficient, cost- committee in the United States to study all key stakeholders was vital to suc - effective way to track and organize the how other major construction projects cess,” Koch says. The team identified materials involved in the construction of dealt with similar logistics challenges. three key goals: the three facilities. The company selected Managers also closely scrutinized a pilot • Integrate RFID into existing com - RFID to serve as the nucleus of a new study Bechtel conducted in 2008 with pany-developed supply-chain software cutting-edge localized materials-man - the Construction Industry Institute that to achieve transactional benefits during agement system. “For Bechtel, RFID pro - quantified the benefits of RFID tracking materials handling. vides a world of opportunity,” Koch says. and management. “We knew we could • Track the location of materials as

RFID J 1320./ • May/June ,*+- +/ 2014 RFID JOURNAL AWARD | BEST RFID IMPLEMENTATION

tive tags—roughly 60,000 so far. Some tags are recycled, so Bechtel estimates it has tracked well over 100,000 items. Atlas’ proprietary Jovix software is used across the entire deployment to support the project’s complex multi - site materials-control processes. The software is integrated with Bechtel’s procurement system to exchange information such as materials receipt, movement, requests, picking and issuing. Since it was designed from the outset to handle complex construction- site tasks, Jovix required only a few minor modifications to mesh success - fully with Bechtel’s internal business software. Supply-Chain Logistics As workers move tagged materials, the new locations are recorded with either vehicle- mounted readers (pictured) or gate readers. When the company completed final de - ployment in mid-2012, Bechtel found they move through a complex localized actually went to the field,” Koch says. itself with a system that met or ex - supply chain from mainland distribu - “You’ve got to plan how you’re going to ceeded all its project goals. Although tion centers to Curtis Island job sites. deploy and then, once you get to where the Curtis Island facilities require a • Shorten cycle time and reduce costs you’re really going, you have to adapt.” wide array of construction products, for collection of materials and transfer Bechtel and Atlas needed to move the materials logistics and manage - of those materials to the individual fast to keep pace with an unyielding ment processes are virtually identical project sites by using fewer personnel construction timeline. It took roughly for all the materials, with only slight and equipment resources. six months to “recalibrate,” Koch says, variations. To develop a system that would meet which included redesigning processes Materials are sent to Australia from all these goals within the limited time and conducting further tests. suppliers worldwide. Upon arrival at the available, Bechtel turned to Atlas RFID So - Bechtel installed 13 gate readers from laydown yards, the materials are tagged. lutions, based in Birmingham, Ala. The Identec Solutions at the entrances and Then, Bechtel employees use their company, Koch says, was selected for its exits of the project facilities: five at tablets to complete a formal receipt focus on construction-industry solutions mainland-based materials storage yards, work process and upload detailed - and its successful work with Bechtel on a one at a pipe spool fabricator, four at rials data from the tablets into Jovix, previous project. Atlas was awarded the mainland port sites, and one at each of via Wi-Fi from the storage site or later if RFID project contract in late 2011. the three Curtis Island port facilities. Wi-Fi is not available onsite. “This is The company distributed 37 Mobile our first knowledge that materials have Designing the System Demand T7200 Tablets—equipped with been received,” Koch says. Once the Atlas completed the system’s basic de - Identec RFID readers, integrated bar- information is received in Jovix, it be - sign in early 2012. A limited trial—Koch code scanners and built-in GPS tech - comes accessible via Bechtel’s internal calls it “proof of reality”—was launched nology—to materials workers at all procurement system as well. in the second quarter. But the deploy - mainland and island project sites. The As workers move materials around ment failed to meet Bechtel’s expecta - tablets are used in conjunction with during laydown yard organization, the tions. “With that first deployment, we four vehicle-mounted readers (VMRs), new locations are recorded with either very quickly realized that everything with one supporting the storage yards the VMRs or the gate readers, which that had been cobbled together state - and one at each project site. All materi - then feed the information into Jovix. side was not 100 percent reality when it als are identified with Identec i-B2 ac - When a materials withdrawal request

+0 RFID J 1320./ • May/June ,*+- 2014 RFID JOURNAL AWARD | BEST RFID IMPLEMENTATION

(MWR) arrives from a project site, noti - For a project this size, Bechtel faced Quantifying Benefits fication is transferred into Jovix via the just a few small challenges. The firm software’s integration with the procure - needed a reliable local communications While the system has only been in ment system. Pick lists can be created infrastructure. Existing connectivity be - operation for a relatively short time, and assigned to users, who then handle tween Australia and the United States, Bechtel is convinced it is generating the picking using their tablets, which where the Atlas servers are located, was considerable efficiencies. Koch points significantly decreases the time spent poor during the trial phase. To rectify to a Six Sigma process study that, for searching for materials. the problem, Bechtel and Atlas engi - pipe spools alone, showed a time sav - Since all materials require transport neers collaborated and concluded that ings of one man-hour per MWR, with to the Curtis Island project locations moving the servers to an Australian data 300 MWRs generated weekly over mul - through a complex sequence of events center would greatly improve data tiple project years. “Total man-hour sav - involving trucks and cross-harbor fer - synchronization between the servers ings for the MWR work process is ries, documentation is required for any and end-user tablets. “This solution im - expected to be significant,” Koch says. item loaded onto a transfer unit (trailer, The system offers other benefits, too, flat rack, pallet or any type of ground such as the ability to track transfer units transport platform). Field workers use via gate- and vehicle-mounted readers their tablets to combine different mate - While the system has and GPS. Previously, personnel had to rials onto an RFID-tagged transfer unit, only been in operation manually track transfer unit locations and the software associates the items and materials, Koch notes. “Now,” he with the transfer unit. Desktop com - for a relatively short says, “the system provides a real-time puter users can then generate packing time, Bechtel is snapshot of precise transfer-unit loca - lists for each transfer unit. tions and loads on project sites.” As transfer units move through the convinced it is Several other Six Sigma studies are various gate readers, materials location generating considerable under way, with initial estimates show - and status information is updated auto - efficiencies. ing a significant positive impact on in - matically in Jovix to create full trace - direct labor. “We believe digitizing these ability. This process previously would processes could potentially reduce our have required vast amounts of manual indirect labor costs by an estimated 5 data collection, system input and man - percent on multiple billions of total agement via conventional clipboard proved synchronization efficiency from project costs,” Koch says. “The construc - and paper methods, Koch says. approximately one hour to only min - tion is ongoing, so final investment Once the materials arrive on Curtis utes,” Koch says. returns are still unknown, but we antic - Island, a procurement team uses tablets The only read-rate problems en - ipate a large return on investment.” to complete an issuing process similar countered were caused by improper tag With the last Curtis Island facility not to that used by a parcel courier. This placements on the materials transfer scheduled for completion for many passes the information back to the units, Koch says. “Atlas helped us deter - months, Bechtel plans to keep making procurement system, which officially mine proper RFID tag placement on the refinements to its RFID installation issues the materials to construction, transfer units, and the read-rate issues with an eye toward equipping upcoming depletes the quantity and closes the dissipated and performance issues were capital projects with similar systems. MWR, simultaneously recording what immediately improved,” he says. Bechtel is working hard to increase materials were issued, when and to Koch also credits continuing em - partner involvement. Koch notes that whom. phasis on end-user training for the sys - some fabricators are now tagging items The RFID tags remain attached to the tem’s successful deployment. Training, before shipping. “They’re also begin - materials until installation, ensuring conducted with the help of an Atlas ning to generate advance data that will locating and traceability, Koch says. All representative, initially focused on get - help us improve the management of data for the movement and transactions ting workers up to speed on individual downstream work processes,” he says. of the materials are recorded and saved work processes. “There are now also “RFID keeps revealing new and inno - in a historical location that can be used ongoing refresher courses and on-site vative uses,” Koch says, “and we’re really for reporting. support,” Koch says. pleased with that.”

RFID J 1320./ • May/June ,*+- +1 Learn How Companies Across Brasil Are Improving How They Do Business With RFID

SEPT. 24-25, 2014 | SÃO PAULO

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The world’s leading companies are using RFID in » Hear end users discuss where they are large-scale deployments to improve efficiencies, achieving real benefits. enhance visibility, reduce shrinkage and achieve » Simultaneous translation of all sessions other significant business benefits. LIVE! Brasil in Portuguese and English. is designed to help Brasilian companies considering using RFID technology to address » See the latest solutions from the leading real business challenges , determine the best technology firms. RFID technology for their needs, learn best » Attend the RFID Basics Workshop and learn practices from early adopters, find the right the basics to get started with RFID. technology partners and move forward. » The IEEE Brasil RFID 2014 conference FEATURED SPEAKERS will feature the latest scientific and technological research results.

Carlos Teixeira SPONSORS Senior Analyst, Vale

Francisco Pereira Logistics, CORNERSTONE SPONSOR SILVER SPONSOR Veiling Holambra

EXHIBITORS Renata Rampim Ph.D. Student, State University of Campinas - UNICAMP

Mark Roberti Founder and Editor, RFID Journal

REGISTER EARLY AND SAVE! To register, visit www.rfidjournalevents.com/brasil . For maximum savings, use promo code BRYL . 2014 RFID JOURNAL AWARD MARKS & BEST RFID SPENCER IMPLEMENTATION

Marks & Spencer Embraces Change Based on the benefits achieved from RFID-tracking all apparel—and recognizing the importance of omnichannel shopping—the U.K. retailer plans to tag all general merchandise in stores.

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n 2012, Marks & Spencer (M&S) (U.S. $16.8 billion) in revenues for 2013, based on the benefits the company has made a bold but calculated deci - now operates 766 stores in the United achieved from tracking all apparel at sion. The London-based clothing Kingdom and 418 stores internationally, all its stores and the recognition that Iand merchandise retailer, which selling a variety of merchandise and mobility and more sophisticated digital has been using RFID to track and man - food products. More than 21 million tools are changing things, says Kim age apparel items since 2003, decided to customers visit its stores every week. Its Phillips, M&S’s head of packaging. extend its RFID-tagging initiative to all website attracts 3.6 million visitors per RFID has enabled the company to general merchandise. M&S is rolling week. “We are implementing large-scale meet its goal of serving as “the store in out the solution and plans to have it revolutionary change that spans our which you can always find your size.” implemented by spring 2015. When supply chain, stores, Web platform and That’s no small task, given M&S stocks a M&S completes the project, all mer - IT infrastructure, creating a sound base complex mix of sizes and styles. M&S R E chandise at 750 of the company’s U.K. for sustainable future growth,” says flagship stores, for example, stock as C N E P S

stores will be identified with RFID tags. M&S Chairman Robert Swannell. many as 25,000 bras, in roughly 60 &

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In addition, M&S will employ RFID at The move to RFID-tagging home combinations of back widths and cup A M

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200 factories in 20 countries. goods (such as bedding and kitchen - sizes, in a variety of colors and styles. O T O H

M&S, which earned £10.0 billion ware), jewelry, cosmetics and gifts is Similarly, the company sells jackets and P

33 RFID J 798645 • May/June 3125 2014 RFID JOURNAL AWARD | BEST RFID IMPLEMENTATION

The tags had to meet the aesthetic requirements of cosmetic and other manufacturers. pants in 20 different size combinations technology to replace manual methods A crossfunctional steering committee and various color combinations. To im - of stock counting and stock checking is with members from corporate, IT and prove real-time inventory tracking, op - just another step in the ongoing digital store operations guided the initiative. timize stock levels and ensure the revolution.” The team also tapped retail and store correct product mix is always on display representatives for feedback on the Building on the Benefits in stores, M&S will use more than 400 status and hiccups associated with million RFID tags this year. To be sure, the move to tagging every deploying systems in the stores, on the The other motivating factor to tag all piece of merchandise required extensive floor and in the back room. Finance merchandise was the recognition that planning—despite the firm’s previous ex - executives helped build the business the company is “operating in an om - perience with RFID (see Marks & Spencer case and determine the return on invest - nichannel world that transcends tradi - Rolls Out RFID to All Its Stores ). M&S had ment for specific deployments. At vari - tional marketing boundaries,” Phillips to thoroughly understand workflow, ous times, the retailer also relied on says. Customers now want a seamless product flow and customer behavior. “In external auditors and the executive experience, whether they are shopping different categories, the causes of an out- board to provide input, Phillips says. in a store, on a mobile device or at a of-stock item may be different from In addition, the retailer worked home computer. Within this environ - those related to clothing, but the prob - closely with its longtime partner, Avery ment, he says, “There is an absolute lems of identifying it and managing it Dennison Retail Branding and Informa - need for stock accuracy. The use of RFID re main the same,” Phillips says. tion Solutions (RBIS), to develop all the

RFID J 798645 • May/June 3125 34 2014 RFID JOURNAL AWARD | BEST RFID IMPLEMENTATION

use handheld RFID readers to take inventory of merchandise in different departments on a rotating basis, once every two or three weeks. Employees use a drop-down menu on the handheld reader to select the appropriate depart - ment, then scan the sales floor and the stockroom, reading up to 15,000 items per hour. The mobile reader automati - cally removes duplicate reads. When the process is completed, the device transmits the data over the store’s wire - less network to the company’s central RFID database. The system filters out stray reads from other departments and, once all the data has been verified, over writes the store’s stock database. It automatically updates the daily delivery list, so missing store items can be replenished. The EPC Gen 2 tags come in different sizes and shapes for a wide range of merchandise, In addition, M&S developed an including items that contain metal or liquids. extensive system of checks and balances to flag unusual results. This required systems and tags. The rela - allows store personnel to instantly tionship paid dividends by helping confirm the accuracy of any count in M&S steer clear of many hurdles often To ensure the RFID question and, if a discrepancy exists, associated with a new implementation. system would work check for missing items. An in-store “The knowledge M&S possesses in RFID correctly for all apparel user feedback system aids in continual development, coupled with its under - evaluation, refinement and upgrading standing of internal processes and and home goods items, of the RFID system while helping M&S objectives, supported and guided total M&S conducted tests boost overall performance. RFID implementation horizontally The most recent field trial, which took across all categories and vertically at a mock store at place at 200 stores in 2012, confirmed throughout the supply chain,” says the company’s that the business benefits associated Karen Whittingham, communications headquarters. with RFID tracking were consistent director at Avery Dennison RBIS. across a variety of store sizes and de - M&S had already taken steps to signs. Streamlining and speeding inven - replace its early RFID technology with tory tracking and stock replenishment Gen 2 read-write tags and readers. The retailer uses different color codes, 70 tag means store associates spend less time retailer also opted to bring RFID soft - variations. looking for particular items, so they have ware development back in-house. Avery To ensure the RFID system would more time to focus on customer service, Dennison and M&S worked together to work correctly for all apparel and home which has increased sales. design EPC Gen 2 tags in different sizes goods items, M&S conducted tests In 2013, M&S began to roll out the and shapes for a wide range of mer - at a mock store at the company’s head - RFID initiative to some homeware de - chandise, including items that contain quarters. Once the team had ensured partments. This is significant, Phillips metal or liquids. The tags also had to consistent, accurate tag reads on the says, because it fundamentally changes meet the aesthetic requirements of cos - different materials, the retailer began the business. When customers pur - metic and other manufacturers. All told, testing the tags at the store level. chase bedding, for example, they fre - there are 10 tag formats and, because the Within the stores, sales associates quently buy complete sets of sheets,

35 RFID J 798645 • May/June 3125 2014 RFID JOURNAL AWARD | BEST RFID IMPLEMENTATION

supports new and emerging digital tools and technologies. Because the is tied into stan - dards-based hardware, Phillips says, there’s full integration with M&S core IT systems, including touch-screen kiosks. A customer, for example, can place a shoe, belt or other item in front of an in-store touch screen. The camera can identify the item and present similar and associated accessories or garments onscreen. Customers can browse products, obtain information about merchandise, step through inter - active guides and order products that aren’t available in stores. M&S can also send information and documents to the shopper’s iPad or other device. In the coming months, item-level tagging will also pave the way for lead - RFID has already improved inventory accuracy by up to 50 percent and decreased out-of- ing-edge features, including a “click stock situations by approximately 30 percent to 40 percent. and reserve” function that allows cus - tomers to go online and hold items in duvets, pillowcases and blankets. If a stores for later pickup and e-payment single item is not available, M&S could capabilities via a digital wallet or lose part of the sale or all of it. RFID in - To execute smartphone app. ventory tracking greatly reduces the risk ominichannel shopping Phillips says several factors were of out-of-stock items, he says, and helps required new thinking crucial to the RFID project’s success, in - drive total sales. cluding executive support, ongoing and greater integration communication and training. Over the The Omnichannel Approach of RFID with existing years, he adds, the company has relied Phillips says companywide RFID will on classroom training, videos, manuals deliver several key benefits, including systems. and other learning aids—including labor savings, improvements in pro - “train-the-trainer” programs—to push duction efficiency, increased IT effi - knowledge deep into the company and ciency and enhanced visibility across gration of RFID with existing systems. the stores. It also relies on support staff the supply chain. He estimates that M&S developed proprietary software to troubleshoot technology issues at the RFID has already improved inventory that could analyze the ongoing stream store level. accuracy by up to 50 percent and de - of RFID activity and track the generated The retailer’s ongoing commitment creased out-of-stock situations by ap - benefits. Executives and store managers to RFID and its focus on building a proximately 30 percent to 40 percent. now have access to weekly reports that robust IT infrastructure have paid off RFID also supports the omnichannel display inventory and other data at both bigtime. “We have won the hearts and experience for customers, Phillips says. the store and departmental levels. In minds of our store colleagues an man - Whether M&S customers are shopping the end, Phillips says, it’s a more seam - agement teams,” Phillips says. “The at a brick-and-mortar store or online, less and flexible framework for both the project is part of the ongoing evolution they expect the items they want to buy company and its customers. of Marks & Spencer. By tagging all the will be available. Moreover, the improvements result - merchandise, we are opening a door to To execute ominichannel shopping ing from deploying RFID have helped a wide range of further enhancements required new thinking and greater inte - build an IT infrastructure that better and additional RFID applications.”

RFID J 798645 • May/June 3125 36 2014 RFID JOURNAL AWARD HY-VEE BEST USE OF RFID IN A PRODUCT OR SERVICE

Hy-Vee Supermarkets Track Perishables to Ensure Freshness Suppliers include RFID temperature tags in shipments to the retailer’s distribution centers, and the DCs reuse the tags to monitor goods en route to the stores.

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ost consumers have had which can impair product shelf life and the warehouse office and download the the frustrating and costly quality. data from it. PDI developed algorithms experience of finding It’s a problem grocery retailers and based on exposure percentages to auto - Mtheir milk spoiled or their their distribution arms have been trying matically determine from the data lettuce wilted before the “use by” date to tackle for years. Hy-Vee, a chain of 236 whether a shipment passed or failed. printed on the packaging. That’s be - supermarkets in the Midwest, and Per - The system would alert employees if a cause the freshness dates of dairy, ishable Distributors of Iowa (PDI), a supervisor needed to be called to inves - A W O produce and other perishable groceries wholly owned subsidiary of Hy-Vee, tigate whether the shipment should be I

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are calculated on the assumption that began cold-chain monitoring roughly a accepted or refused. S R O T U

the item has stayed within appropriate decade ago. Some suppliers would at - But the hike from any one of PDI’s B I R T S temperature boundaries during its jour - tach a single-use digital temperature 54 dock doors to the office to download I D

E L ney from supplier to distribution center recorder to each shipment. When the the shipment’s information could tack B A H S I to retailer. But it’s not uncommon for shipment arrived at a PDI distribution five minutes or more onto the receiving R E P

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perishables to be exposed to significant center dock door, an employee would process, says Kyle Oberender, PDI’s O T O H temperature variations during transit, take the temperature-tracking device to director of safety. Oberender wanted to P

.0 RFID J 576423 • May/June .,-/ 2014 RFID JOURNAL AWARD | BEST USE OF RFID IN A PRODUCT OR SERVICE

Employees automatically download tag data at a PDI distribution dock door, and then run algorithms to determine product freshness on the spot. streamline the receiving process and take TempTrip ultrahigh-frequency RFID data at the dock door and run the algo - cold-chain monitoring to the next level: tags with each shipment. “Basically, we rithms on the spot. Then, PDI could re - tracking the temperature of perishables are running at full speed at the Hy-Vee configure the devices and use them to from PDI DCs to Hy-Vee retail stores. DC for all fresh items,” Oberender says. monitor shipments to the retail stores. To accomplish 100 percent cold- PDI recently RFID-enabled a second, “We had been keeping our eye out for a chain monitoring using a closed-loop larger DC, in Chariton, Iowa, which is reusable recorder, because we knew the model, Oberender wanted to be able to beginning to receive tagged produce, value it would bring,” Oberender says. clear and reset the temperature tags. frozen foods, ice cream and other per - PDI first conducted an outbound TempTrip’s RFID solution met this re - ishables. Hy-Vee in now in the process closed-loop trial in which employees quirement. “For me,” he says, “RFID is of RFID-enabling its retail stores. placed TempTrip tags within shipments the only solution to be able to do 100 heading to a retail location. Company Getting a Read on the Solution percent monitoring, because the tag can drivers retrieved the tags at the point of be reused and it can be efficient as well.” Oberender had been looking for a delivery and returned them to PDI, so In July 2013, PDI began receiving reusable temperature recorder. When the temperature recordings could be RFID-tagged perishables at its Hy-Vee he learned about TempTrip’s RFID solu - uploaded and reviewed. Following this, DC, in Ankeny, Iowa. Today, roughly tion, he knew it would accelerate the in May 2013, PDI formed a crossfunc - 97 percent of dairy, fresh meat and receiving process, because it would tional team to evaluate the solution, seafood suppliers include one or more allow employees to download the tag with representatives from TempTrip,

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evaluate the loads. “Lunchables items may not have as much exposure al - lowance as the pickles on the same load, so maybe the pickles pass and can be received but the Lunchables fail and need to be isolated,” Oberender explains. There have been some challenges in getting suppliers onboard, he notes. Some suppliers already manage a variety of tem - perature recorders to accommodate different customers, he says, and PDI’s mandate for them to use TempTrip devices adds to their inventory-tracking load. In other cases, suppliers hadn’t been doing any temperature tracking, and this is a completely new expense for them. “We get questions as to why we are doing this or what they will gain from this,” Oberender Hy-Vee suppliers order the tags online at TempTrip’s website. PDI instructs suppliers on says. “We explain to our suppliers that tag placement. TempTrip also sends an instructional flyer with every tag order. their name is associated with the product, and if their shipment has been jeopard - the DC, and the IT, warehouse, trans - ment of Transportation number of the ized by temperature-control issues that portation, food safety, purchasing and carrier that brought the product into the hurt the product’s quality, theirs is the sales departments. facility, the name of the PDI employee name consumers will remember.” With the help of a supplier that vol - handling the load, and a separate tem - “Hy-Vee and PDI are investing in the unteered to RFID-tag a shipment, PDI perature reading taken by thermometer outbound piece,” equipping retail stores tested the receiving and data-integra - at the point of receipt. with RFID technology to tie the knot on tion processes. This trial still used the Once the data is uploaded, the algo - end-to-end cold-chain monitoring, process of downloading the data at the rithms run through an IBM System i Oberender says. That is the finishing warehouse office. server, which reports the pass/fail in - piece that adds visibility and increases TempTrip then tested at its own fa - formation back to a Motorola handheld control to ensure each supplier’s prod - cilities the setup PDI would use at its computer. It takes only eight seconds uct consistency, quality and food safety. site to download the data right at the for the data to be uploaded and the tag “So we are asking for them to invest in dock doors. “It worked, so we moved to be automatically cleared and recon - the in-bound temperature data to the forward on install,” Oberender says. The figured for use. distribution center,” he explains. When install included two Impinj Speedway Hy-Vee suppliers order the tags necessary, he adds, PDI works out fund - Revolution R420 readers, one at each online at TempTrip’s website. PDI in - ing issues with its suppliers. shipping/receiving dock, and 22 Impinj structs suppliers on tag placement. PDI receives more tags than it needs antennas, approximately one at every TempTrip also sends an instructional for outbound deliveries to stores, so it other dock door. flyer with every tag order. PDI tracks any has worked out a return-refund arrange - Now, when a shipment is received, a “unstarted” tags, so it can follow up ment with TempTrip. “TempTrip wants to dockworker retrieves the TempTrip tag individually with any suppliers that resell the recorders to suppliers quickly, and holds it up to an antenna. The tag may need to retrain their employees. and there’s no need for us to keep more data—including ID, temperatures, dates Typically, each shipment requires than we need,” Oberender says. and times—is automatically uploaded one tag. If a shipment includes various End-to-End Monitoring to TempTrip’s and Hy- items—frozen goods and fresh produce, Vee’s server. Each record is associated for instance—each item requires its own The TempTrip solution has more than with other information, including an tag, to separately track temperatures and met Oberender’s two goals—it speeds assigned vendor number, the Depart - enable PDI’s algorithms to appropriately receiving processes and allows the

.2 RFID J 576423 • May/June .,-/ 2014 RFID JOURNAL AWARD | BEST USE OF RFID IN A PRODUCT OR SERVICE temperature tags to be reused to mon - perature appeared perfectly fine at as another tool in our current receiving itor shipments from the DCs to the point of receipt, but the data showed process to evaluate the product upon retail stores. The RFID solution lets that for approximately one day of the delivery,” Oberender says. “It’s not as PDI decide quickly whether to accept seven-day transport process, the ship - much about accepting or refusing as it or refuse a shipment. “On the dock at ment had significant exposure to unac - is about the green light to continue with the point of unloading, we can get ceptable temperatures. At some point, confidence. The exceptions of a red that data evaluation down from five it appeared, the carrier had recognized light that need to have further attention minutes to eight seconds for the an - the problem and gotten the refrigera - will now be recognized and investi - swer of the temp exposure associated tion back under control for the last gated, and the product disposition can with those items we are receiving,” couple of days of travel. PDI shared the be made on a case-by-case basis. The Oberender says. data with the supplier, which agreed the biggest benefit to the retailer is that we The RFID data also can be used to will be evaluating and managing any improve transport performance. Having and all exposure on both our inbound access to the data via the TempTrip web - and our outbound shipments with a site is a convenient way to analyze “We explain to our goal of zero exposure on both sides. operations, Oberender says. “We can suppliers that… if their Even the very minor exposures that will narrow the data by carrier to see the not necessarily cause an immediate total percentage of exposure to our shipment has been product issue will be managed unlike products in the last six months, for jeopardized by any other grocery retailer.” example, and compare which carrier ex - temperature-control Hy-Vee RFID-enabled its first two hibits less temperature abuse,” he says. stores in May. Hy-Vee and PDI predict In many cases, Hy-Vee uses its own issues that hurt the the trial will be successful, and they trucks and drivers or contracts with product’s quality, theirs plan to equip all retail stores before third parties to move products from is the name consumers year-end. suppliers to the DCs. PDI can analyze Once stores are up and running with temperature-tracking information to will remember.” the RFID infrastructure, they can lever - provide insight into the carriers’ per - ______age their ability to use the RFID readers formance. “We also are looking forward to assess the temperature exposures of to managing exposure on the outbound 67A, shipments from other sources. “Milk side to let us discover information such @7A:B945=7 6:BCA:5DC?AB suppliers typically do direct store as who is the Number 1 driver with the ?8 :?E4 delivery” rather than going through a least amount of exposure over a certain PDI distribution center, Oberender says. period of time,” Oberender says. “And we “Now all the retailer has to do is require can set performance measures and pos - the TempTrip tag to be used for milk sible incentives around managing tem - shipments to get real-time data evalua - perature exposure. I don’t think anyone tion at the retail level.” else has the capability to do that.” product should not be accepted. PDI is also taking steps to monitor Similarly, if a supplier manages its PDI distribution center workers attach more food categories. It’s considering own transport to a DC and its shipments the reconfigured TempTrip tags to ship - including products that aren’t perish - are refused, particularly if the supplier’s ments they’re trucking to a Hy-Vee store. able but are temperature-sensitive— temperature exposure records are unac - After delivery, the drivers return the tags chocolate, for instance. The company is ceptable over time, PDI can provide the to the DC, where the data is uploaded for expanding its algorithms to support the vendor with those records. The supplier after-the-fact analysis should a store new food categories. can then opt to change its carrier part - report a problem with a shipment. Ultimately, a big part of this work ner or take other steps to remedy the That process is changing, though, as is about improving the customer problem. Hy-Vee retailers begin to install RFID experience, Oberender says: “We want Oberender recalls a case in which PDI infrastructures on site, so they can do Hy-Vee customers to be able to buy the received a shipment, from a supplier real-time evaluations of temperature most stable, consistent, high-quality managing its own transport. The tem - data at the stores. “We plan to use this products.”

RFID J 576423 • May/June .,-/ .3 2014 RFID JOURNAL AWARD SKYVIEW MOST HIGH SCHOOL INNOVATIVE USE OF RFID

RFID Protects Students and Teachers Skyview High School deployed a safety solution that can summon help in a disciplinary, medical or violent emergency.

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student at Skyview High “Absolutely!” Ford told him. and tell them what’s going on,” he says. School in Nampa, Idaho, was A year ago, Skyview High School, “It’s too much, I think.” acting unruly. His teacher which has roughly 1,300 students, de - Thinking Outside the Box Asuspected he might have ployed an RFID safety solution from st been drinking. Faced with such a disci - Ekahau. All 130 teachers and school ad - The project began when Ford was dis - plinary problem in the past, she would ministrators wear Ekahau B4 tags on lan - cussing school safety with the school’s have had to leave the classroom to call yards, which they can use to signal for guidance counselor, Mandy Petty, and for assistance from another teacher or help not only with a disciplinary problem her husband. In the wake of the 2012 security. Instead, she pressed a button but a medical emergency, or to issue a se - shootings at Sandy Hook Elementary on a tag worn around her neck. curity alert and implement a lockdown. school in Connecticut, they wondered In minutes, four administrators, “Violence in schools is not going if there were measures they could take, two security officers and Brad Ford, away,” Ford says. “We need to change beyond the usual lockdown drills, to L

Skyview’s school resource officer (a our tactics and empower teachers.” One keep students safe. O O H C S police officer charged with protecting concern with standard lockdown proce - That conversation led to a lot of re - H G I H the school) converged on the class - dures is that teachers are expected to search. Many schools were putting W E I V room. “Seven people showed up here take many steps in rapid succession. panic buttons on walls or desks, but Y K S

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just because the teacher needed help?” “You need to get the kids in lockdown, that didn’t seem to be an ideal solution. O T O H the astonished student asked. shut the door, turn the lights off, call 911 What if, in an emergency, a teacher P

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“Violence in schools is not going away,” says Brad Ford, Skyview High School’s resource officer. “We need to change our tactics and empower teachers.” were unable to reach the button? “Let’s ify its health-care solution for the edu - mately $32,000, which covered the cost allow [teachers] an item that gives them cation sector. of the tags, beacons and software. Norris better access,” Ford says. Ekahau’s safety solution turned out says that, in general, a price of $30 to $40 When the guidance counselor’s hus - to be a perfect—and affordable—fit for per student is typical for a school. (Prices band read about RFID tags used for per - Skyview High School. The company’s are per student, in keeping with usual sonnel safety at a psychiatric hospital battery-powered B4 tags are designed to pricing practices for schools, though the in California, she knew he was on to work on any Wi-Fi network. Skyview, tags are issued to the teachers.) something. It stood to reason that a like many schools, has a robust Wi-Fi Deploying the system at Skyview similar system could work in a school. network, so there was no need to install took only three days, beginning on April In January 2013, they contacted Eka - a system of fixed readers or antennas. 12, 2013. Ekahau reps spent the first day hau, provider of the hospital’s tags, to The company placed several of its wire- doing a site survey and distributing the find out. The timing was fortuitous. free infrared location beacons in the tags. They also set up the Vision soft - “We looked at the large deployment in school’s classrooms to help ensure the ware, which lets Ford and the school California and asked ourselves where system’s accuracy at locating tags. administrators send messages to the else it could be used,” says Mark Nor - At a community meeting, Ford advo - tags’ LED screens. In addition, Vision ris, Ekahau’s president and CEO. cated for the solution, and an anony - displays a map of the school by floor, “Skyview reached out to us at roughly mous donor funded the Skyview showing the location of each tag in real the same time.” Ekahau agreed to mod - deployment with a grant of approxi - time, so administrators can watch as tag

RFID J 465312 • May/June -+,/ ., 2014 RFID JOURNAL AWARD | MOST INNOVATIVE USE OF RFID

says. Ekahau’s technology specializes in determining location from a radio-fre - quency signal using probabilistic finger - printing (which pinpoints location based on signal strength and other factors). In a school setting, Norris adds, that level of accuracy is sufficient. “One hun - dred percent room-level accuracy isn’t a requirement,” he says. “It’s more about the location of the event in the of what it is. If you’re a nurse headed to a medical event and you arrive at the room next door, you’ll be able to figure out, based on noise and activity, that the event is 12 feet to the left.” Initially, the school chose to identify the wearer only by job function, such as teacher or nurse. “We didn’t want Skyview gave the local police department, as well as the fire department and emergency teachers to feel that Big Brother was services, access to the software, which displays a map of the school. watching them,” Ford says. But then teachers started requesting to have their wearers move through the school. The conditions—and summons the school pictures incorporated in the software school has also given the local police, nurses, Ford and the administrators. A when they sent a signal. “Now when fire department, emergency medical pull on the tag signals an emergency they call for help, their picture pops up service and emergency dispatch access requiring lockdown and sends an alarm and I know who called,” he adds. to the software via Web browser. to the entire school. High-school teachers, it turns out, are On the second day, Ekahau pros Each tag also has a small LED screen more prone than medical personnel to taught Skyview teachers how to use in which brief text messages can be dis - accidentally set off a tag, perhaps be - the tags, and trained Ford and adminis - played. Ford or the administrators can cause health-care professionals are more trators to use the software. On day three, send a message to individual teachers accustomed to wearing delicate equip - the Ekahau team stayed onsite to an - or the whole teaching staff, letting them ment around their necks. “We had 11 swer lingering questions and make sure know about an urgent situation and lockdown pulls the first week,” Ford says. things were going as planned. They providing instructions, such as “Gather Accidental alarms were a big con - completed testing by April 30, and got at the West Entrance.” The LED screens cern, as they were likely to desensitize needed adjustments under way. also automatically inform those alerted teachers and staff members who might to the nature and location of the emer - stop taking them seriously. Even worse, Managing the Messages st gency. If, for example, a physical educa - employees might become reluctant to The Ekahau tags function as two-way tion teacher pushes the blue button wear the tags at all. communication devices. A wearer can during class, Ford’s tag will chime and After some discussion, Ekahau and use a tag by pressing a red or blue but - alert him with a message on the LED the school arrived at a solution. Now, ton, or pulling down on the tag, which screen that medical assistance is when a teacher pulls the tag, which sig - releases a tab at the top. Ekahau cus - needed in the gymnasium. nals a lockdown, the alert reaches Ford tomized the functions for Skyview. A The Wi-Fi tags, especially with the in 3.5 seconds, but the rest of the school press of the red button signals a disci - added beacons, are generally accurate at is not alerted for 10 seconds. During plinary problem and summons Ford, providing location information—so those 10 seconds, the teacher can press the school administrators and the secu - much so that many teachers assume they a button on the tag to confirm the alert rity team. A press of the blue button contain GPS technology. “Tags have full and have it go out immediately. Or, if signals a medical emergency—200 Wi-Fi radio two-way communication, the pull was accidental, the teacher can Skyview students have known medical just as a phone or laptop does,” Norris push the tab back in, canceling the alert.

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The red and blue discipline and medical much in their minds,” she says. “When emergency buttons must now be held we’re out in the hallways, I’ve noticed down for 3 seconds before an alarm far less behavior that would be ques - goes out. Since these adjustments, the tionable because we have a way to get number of accidental alarms has de - other support staff there quickly if creased significantly. something were to happen. It’s one Ford has discovered the tags’ mes - more thing for them to think through saging feature can be useful even in before they take action.” non-emergencies. As teachers were get - Students feel safer as well, Hannum ting used to the program, Ford sent a adds. “I deal with the older kids and, nightly reminder to the tags’ LED much as they may have a tough exterior, screens reminding the wearers to they see things in the news and they charge the devices. The tags are charged worry about their own safety,” she says. in rack chargers at the school, and each “It has done wonders for them, know - wearer’s name is written on his or her ing that at the push of a button or a pull tag to avoid mix-ups. of the device I can get help, and let other Another time, Ford needed to talk to people know there are things going on a teacher but his calls went unanswered that shouldn’t be.” because the teacher was in a noisy area “Not everybody wants Another huge advantage is that when and couldn’t hear his phone. So Ford guns [in school], and emergency personnel show up at the sent a message to the teacher’s tag and school in response to a call, they don’t knew it had been received when he saw not everybody can have to wonder where to go. Dispatch that tag, via the software, moving carry a gun. But personnel have access to the same Vi - through the school toward his office. everybody can carry sion interface Ford has, so they can see who called for help, and the location Calculating ROI st a tag around his or and nature of the emergency. Skyview is pleased with the safety solu - her neck.” “Multiple times, the fire department tion and hopes other schools consider ______would arrive and ask me, ‘What have we it. “Not everybody wants guns [in got?’” Ford says. “I would have no idea school], and not everybody can carry a 1;02 4:;2, <6@>53? because a teacher called the nurse and gun,” Ford says. “But everybody can the nurse called 911 directly.” With the carry a tag around his or her neck.” Ekahau system in place, Ford is alerted Since the Skyview High School roll - to the location and nature of an emer - out, nine more U.S. school districts have been many drills but fortunately no gency before assistance arrives, and dis - begun using the tags, Norris reports, in real-life lockdowns, although the tags patchers also have access to the Vision some cases at multiple schools. Further have been used many times for discipli - interface so they can see for themselves. improvements for school use are under nary and medical emergencies. For Kel - Giving emergency responders a bet - consideration, he adds. Some teachers lie Hannum, a language arts teacher, ter view into what’s going on can make have suggested that the blue (medical having the tags means feeling safer. all the difference, Ford adds. “Unfortu - emergency) button carry a cross symbol, “I’ve been teaching for 16 years and have nately, we take our research from things and the red (discipline emergency) but - always felt isolated,” she says. “Com - that have happened. In Columbine, it ton sport some sort of security symbol. munication has been our biggest hur - took responders three hours to move Ekahau may also make cosmetic dle. We’re using Wi-Fi technology to through the building, and we lost a changes to the tag. “The buttons and reduce that isolation.” teacher [he bled to death awaiting help colors are laminated, and we’re consid - Just knowing that teachers can sum - while responders made sure the build - ering laminated fronts as well,” Norris mon security at any moment seems to ing was secure]. If we can stop an inci - says. That way, the tags could sport the act as a deterrent, Hannum adds. “The dent, and get people where they need to school colors or mascot. kids know it’s location-enabled, and the be faster, and so save more , the Meantime, at Skyview, there have fact that we’re all connected is very system pays for itself.”

RFID J 465312 • May/June -+,/ .. 2014 RFID JOURNAL AWARD TAIWAN FISCAL GREEN INFORMATION AWARD AGENCY

Electronic Invoices Reduce Paper Consumption The Taiwan Fiscal Information Agency uses RFID and NFC technologies to enable shoppers to receive e-receipts.

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n 2006, Taiwan set out to improve that radio frequency identification tech - and credit cards, EasyCards are anony - environmental conditions on the nologies could provide a convenient and mous, so the FIA chose EasyCards as the East Asia island. The state was secure way for consumers to receive and carrier for e-invoicing, to reduce privacy Iissuing more than 8 billion paper access e-invoices, according to Su Chun- concerns, Chun-Jung says. The agency invoices annually—the equivalent of Jung, director-general of the FIA and the determined that smartphones equipped 80,000 trees and 3,200 tons of CO2 project leader. To enable electronic with Near-Field Communication tech - emissions, according to the Taiwan Fis - invoicing, the organization needed a nology could also serve as carriers. cal Information Agency (FIA), a division mechanism to link an e-invoice to its re - The FIA hired consulting firm Price - of the Ministry of Finance. cipient. The FIA introduced the concept waterhouseCoopers (PwC) to design the The FIA launched an electronic in - of a “carrier”—in essence, an identifier e-invoicing process in physical retail voicing system for business-to-busi - that is used to “collect” e-invoices. channels and to help the agency estab - ness transactions. The effort helped Many consumers were already using lish strategies to promote the solution. reduce paper consumption, but not RFID-enabled EasyCards to pay for rides The organization also brought in Trade- nearly enough. So in May 2010, the FIA on the island’s Mass Rapid Transporta - Van Information Service as the systems established a three-year project to en - tion system and to purchase items in integrator, to implement the back-end

courage the use of electronic invoices in retail stores. (The EasyCard is based on system that would support e-invoicing. A I F

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the consumer sector. NXP Seminconductors’ Mifare contact - Today, more than 25,000 conven - O T O H

From the outset, the FIA determined less smart card technology.) Unlike ATM ience and retail stores have adopted the P

,- RFID J /10.,- • May/June +)*- 2014 RFID JOURNAL AWARDS | GREEN AWARD

Consumers can use their EasyCards to provide identification and associate their purchases with their e-invoices. e-invoice solution, and the FIA expects Trade-Van, as well as lawyers, re - E-Invoice Platform. The customer can that number will grow to more than searchers, system testers and marketing check an invoice at a kiosk by entering 30,000 by the end of the year. Con - specialists. The team recognized that the number, so the process remains sumers that shop at brick-and-mortar the success of the project rested on anonymous. stores can use their EasyCards to pro - making the solution simple for both Trade-Van performed a security risk vide identification and associate their retailers and consumers. analysis for the whole system. The plat - purchases with their e-invoices. They Trade-Van developed an E-Invoice In - form has an ISO 27001 certification for can also use their EasyCards to review tegrated Service Platform that retailers information security management. their e-invoices at kiosks in conven - could access through the Internet when The team estimated that roughly ience stores. (Taiwan has the highest processing e-invoices for customers. 20,000 merchants would need to density of convenience stores in the The cloud infrastructure includes three connect to the E-Invoice Platform and world, according to the FIA.) In addi - levels: Infrastructure as a Service (IaaS), upload approximately 12 million e-in - tion, consumers can use their smart - Platform as a Service (PaaS) and Soft - voices daily, so team members tested phones to receive e-invoices. ware as a Service (SaaS). the solution to ensure the collected data Each EasyCard is embedded with a was accurate and the system could han - Making E-Invoicing Easy unique number. During a transaction, dle all the data. Then they adapted the The FIA set up a crossfunctional team the retailer simultaneously transmits E-Invoice Platform to distribute loads with representatives from PwC and the card number and e-invoice to the among dozens of systems. Finally, they

RFID J /10.,- • May/June +)*- ,. 2014 RFID JOURNAL AWARD | GREEN AWARD

e-invoice data into specified folders and uploads it into the E-Invoice Platform automatically. The FIA gives the turnkey software to businesses for free. Because some retailers want to en - hance existing POS applications or build mobile applications, the FIA also defined application programming in - terfaces (APIs) for developers to create customized systems. Growing Acceptance The e-invoicing project took two years to complete. When the FIA launched the system, it organized a promotion team that included marketing and IT special - ists, as well as business consultants. As part of its efforts to build momentum for e-invoicing, this team developed programs to educate retail employees To make it easier for retailers to communicate with the E-Invoice Platform, the FIA about e-invoicing. developed a “turnkey” program that it gives to businesses for free. “Transforming paper invoices to e-invoices is a change of consumer evaluated the usability of the solution. behavior,” Chun-Jung says. “We provide The FIA selected several major retail both face-to-face and online courses to chain stores to field-test the solution. It Today, roughly +* employees of merchants adopting installed an RFID reader that operates percent of Taiwan’s e-invoicing, to introduce the concept of with a point-of sale (POS) terminal at consumers opt for e-invoice and [the] benefit of it.” The each store’s checkout counter, to record agency also prepared frequently asked information from a carrier (either an paperless invoices . questions and responses and provided EasyCard or NFC smartphone) and con - this to merchants so their employees nect it with transaction data. The POS could troubleshoot any problems that was equipped with a printer to print out might arise. Now, the FIA says, the sys - paper-based invoices for customers always able to connect to the Internet. tem promotes itself. who did not pay with a carrier. The The FIA decided to allow retailers 48 The e-invoicing solution is meeting pilots revealed several issues that the hours to upload e-invoices to the E- the FIA’s goals. Today, roughly 10 per - team addressed. Invoice Platform. To accommodate cus - cent of Taiwan’s consumers opt for First, retail chain stores used differ - tomers that might not want to wait that paperless invoices. Many stores have ent rules to represent the identity of long to access their invoices, the FIA more than one kiosk where customers RFID cards. That would mean people defined the E-Invoice Delivery Specifi - can use their EasyCards or smartphones could not review all their e-invoices cations in Physical Channels, to enable to review their e-invoices. from different retailers at one kiosk. To retailers to deliver e-invoices to cus - The agency is now expanding the solve this problem, the FIA defined rules tomers’ smartphones via NFC. e-invoicing system to department to represent the identity of RFID cards. To make it easier for retailers to com - stores, restaurants, transportation facil - Another issue involved the timing of municate with the E-Invoice Platform, ities and other retail venues. “In the uploading data to the E-Invoice Plat - the FIA developed a “turnkey” program near future,” Chun-Jung says, “we will form. Chain stores typically executed that merchants can install on their en - work on implementing this system into batch jobs to collect e-invoices from terprise resource planning (ERP) or other virtual channels, such as online shop - each register, but some retailers weren’t back-end system. The program puts all ping websites.”

,/ RFID J /10.,- • May/June +)*- RFID End-User Case-Study DVDs RFID Journal has created a series of DVDs containing presentations by end users, recorded at various live and online events.

Updated with new case studies from RFID Journal LIVE! 2014

RFID Journal holds several face-to-face conferences Hear presentations from RFID every year, as well as a number of online virtual events Journal events, including: and webinars. These events feature end users speaking • RFID in Health Care objectively about the business reasons that they • RFID in Energy deployed an RFID system, the technical hurdles they overcame in doing so and the benefits they now • RFID in Defense and Security achieve as a result, as well as presentations by • RFID in Aerospace academics, vendors and other experts. Many of the • RFID in Manufacturing sessions were recorded, and we have compiled these • RFID in Retail and Apparel recordings into seven DVDs that are available for purchase for only $99 or free with a one-year premium • RFID in Supply Chain and membership to RFID Journal . Logistics

TO LEARN MORE , VISIT www.rfidjournal.com/dvds 2014 RFID JOURNAL AWARD POST FOODS BEST NFC DEPLOYMENT

Post Foods Adds NFC to Cereal Marketing Mix Concertgoers accessed custom songs and video with their smartphones.

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he breakfast cereal business senior brand manager. “You have to try It provided concertgoers with NFC- is highly competitive, with to break through the .” enabled cards that allowed them to annual U.S. sales topping Last year, Post Foods decided to try access unique content, including down - T$10 billion. Each year, food using Near-Field Communication tech - loadable songs, videos and a customer companies spend hundreds of millions nology to connect with consumers and survey, using their own NFC-enabled of dollars on advertising. Post Foods, encourage them to interact with cus - smartphones. “We wanted to see what which makes GrapeNuts, Honey tom-developed, branded digital con - consumer acceptance would be,” Foley Bunches of Oats and 13 other brands, tent. The company also wanted to see says. “And we wanted to get out ahead of is always on the lookout for ways to whether the data from the customer in - the curve.” engage directly with consumers, to teractions would provide insight into More concertgoers than expected boost awareness of its cereal products consumer behavior and a way to meas - activated the cards and used their NFC and cultivate customer loyalty. As part ure the effectiveness of the campaign. phones to access the digital content. S D of its digital marketing strategy, the old- Post Foods tested the NFC solution at “NFC is truly an affordable and effective O O F

T line company has embraced emerging a concert in Miami, which the company way to engage our consumers,” Foley S O P

: S

technologies. “It’s a very competitive was sponsoring under the banner of its says. “It is now definitely part of our O T O H space,” says Michael Foley, Post Foods’ popular Honey Bunches of Oats brand. marketing toolkit.” P

$& RFID J )+*(&' • May/June #!"% 2014 RFID JOURNAL AWARD | BEST NFC DEPLOYMENT

At the El Tour Positivo event, in Miami, more concertgoers than expected activated the NFC cards and used their smartphones to access the digital content.

A Controlled Environment works with Post Foods on digital and phin Mall, with the Venezuelan pop- social-media campaigns, developed the duo Chino y Nacho, Latin Grammy win - In 2013, Post Foods hired Camintel content, which was hosted on Camitel’s ners, as headliners. Univision Radio, Group, a New York City-based startup servers and could be updated or refined the leading Spanish radio network in that develops mobile applications for as needed. the country, was a partner in the event. engagement marketing campaigns, to Post Foods wanted to test the NFC At the El Tour Positivo event, help develop the NFC solution. In a twist marketing solution in a controlled “Bunchecitas”—brand ambassadors on traditional consumer advertising and environment, where attendance was hired to interact with audience mem - outreach, engagement marketing seeks limited and company representatives bers—handed out boxes of Honey to actively involve individuals with a could be on hand to assist concertgoers Bunches of Oats cereal to concertgoers, brand or product through social media who weren’t familiar with their along with roughly 300 cards that bore or other means. It took just three weeks phones’ NFC capabilities. The trial was the words “¡Descubre Más!” (Discover to design the solution. integrated with another company mar - More!). Each card was embedded with a Camintel provided the customized keting campaign—a Honey Bunches of Smartrac BullsEye 13.56 MHz NFC tag printed NFC tags and the cloud-based Oats-branded national summer concert made with an NXP Semiconductors digital marketing platform, known as series known as El Tour Positivo (The NT203 chip. Instructions were printed Touch2Like, which was optimized for Positive Tour), which targets Hispanic on the card, in both English and Spanish, mobile devices. XL Alliance, a cross-cul - customers. The solution was intro - explaining the four-step process needed tural marketing and strategy firm that duced during a concert at Miami’s Dol - to access specially developed content,

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Celerity Insight. With those reports, Post gained visibility into the NFC project, seeing what types of devices consumers used to access the online content and how much time was spent viewing the different types of content. In addition, Post was able to collect zip codes and IP addresses for targeted advertising. “It was an efficient way of collecting [consumer] data,” Foley says. Based on these results, Post Foods is incorporating NFC applications into its marketing efforts at as many as eight events this year. The company plans to distribute roughly 3,000 NFC cards to consumers and bloggers at concerts and other events, Foley says. Post Foods also plans to expand its use of NFC technology for marketing. Foley expects NFC will be used to de - Bunchecitas—brand ambassadors hired to interact with audience members—demon - liver tailored, consumer messaging, in - strated how to tap the phones on the NFC cards to access the custom content. cluding updates on products or events, news about artists affiliated with the including music, videos and a survey. As they were distributed, and there were cereal brands, targeted coupons and concertgoers entered the venue, the no performance problems. The only more. The company says it will target Bunchecitas demonstrated how to tap challenge was the audience members’ both Hispanic and non-Hispanic audi - the phones on the NFC cards to access unfamiliarity with activating or using ences and different age groups. “This is the custom content. The phone’s NFC NFC features in their phones. But with a great way to go about brand manage - reader captured the card’s unique iden - assistance from the Bunchecitas, most ment surgically,” Foley says. tification number and accessed a web - people quickly learned how to activate A benefit of using Camintel’s cloud- page associated with the Tour Positivo the NFC features, he says. based platform is that the content re - concert. Attendees also could access the Post Foods reports that 22 percent of siding on the servers can be tweaked or material by typing in a QR code or URL. the cards were activated—the majority updated for different events, Foley says, via NFC devices, which exceeded Foley’s while the same version of the NFC card An Engaged Audience expectations. Four percent of concert - can be used at multiple events. Each The Chino y Nacho audience, which was goers used a QR code to access the cus - card costs $1, and by eliminating the predominantly Spanish-speaking, was tom content, and 4 percent typed a URL expense of reprinting, he says, it’s an well-suited for the NFC project, Foley into their phone’s browser. To his sur - “extremely effective” solution. He envi - says, since Hispanic consumers are prise, some people went back days or sions using the cards for tap-and-pay more likely to use Android and other even weeks after the concert to access scenarios, to purchase Post brands on - smartphones with NFC capabilities the content via the NFC card. line or at a local grocery store. than other groups. Apple iPhones do What kind of content was of most Foley believes using emerging tech - not come with NFC capability, although interest to consumers? The performing nology to market an established prod - there is widespread industry specula - artists’ music and videos, rather than uct is a recipe for success. “It is really tion that will change with the next Post’s branded content and survey. refreshing for consumers,” he says. “We version of the phone. After the event, Camintel provided believe this is an excellent example of Introducing the NFC project was a Post Foods with reports on how the an established brand working with an relatively simple process, Foley says. campaign’s content was accessed and emerging technology to provide a re - Camintel tested all the NFC cards before viewed via its measurement software, warding customer experience.”

RFID J )+*(&' • May/June #!"% %" 2014 RFID JOURNAL AWARD NXP Best New Semiconductors RFID Product

Smarter Things NXP’s NTAG I²C NFC chip enables consumers and businesspeople to use smartphones to communicate with myriad electronic devices, cars and buildings.

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f only the walls—and other “Thirty years or so ago, when we remote interface and get a lot more.” things—could talk! Now they were Philips Semiconductors, we in - For businesses, the NTAG I²C chip can—and you can talk to them— vented the I²C serial interface,” says could solve the problem of getting con - Ithanks to NXP Semiconductors’ Victor Vega, NXP’s director of NFC and sumers to register new appliances with new NTAG I²C NFC chip, which adds RFID solutions. “For our NTAG I²C chip, manufacturers, Vega says. Tapping a smart functionality to household appli - what we did was add a front-end NFC smartphone against a washing machine ances, thermostats, automobiles, office RFID, and connect it with I²C on the when it is turned on for the first time equipment, health-care devices and back end, so you dynamically make enables the phone’s NFC reader to re - building infrastructure . changes to a device whether there is ceive the machine’s serial and model The chip combines passive high- power on or not.” numbers. “My phone has my personal frequency Near-Field Communication An appliance manufacturer, for ex - information,” Vega explains, “so for my technology with a built-in I²C interface, ample, could install an NTAG I²C chip registration process, I can say ‘autofill enabling users to communicate di - inside a basic washing machine and and submit.’ I am now registered in the rectly with any tagged item via an NFC transform that appliance into a high- cloud. Only 35 percent of the population reader. What’s smart about this solu - end product with more features, for fills out the warranty card, and when S R

tion is that it does not require con - little additional cost, Vega says. they do it costs the product manufac - O T C U sumers or businesses to purchase “Washing machines come in two turer $2 apiece. So we just saved the D N O C dedicated RFID readers. Instead, you flavors,” he says. “One might be the low company big bucks and got the popula - I M E S

can use the NFC reader that’s standard end of the spectrum, where you have tion to register.” P X N

: S

on most mobile phones today to con - your basic settings, such as tempera - Consumers could access a range of O T O H nect with the tagged products or things. ture. But we can use an NFC phone as a options when they’re ready to do a load P

31 RFID J !#"  • May/June 1/03 2014 RFID JOURNAL AWARD | BEST NEW RFID PRODUCT

What’s smart about this solution is that you can use the NFC reader that’s standard on most mobile phones today to connect with the tagged products or things. of wash. Most basic machines offer lim - If an appliance is completely out of ergy-harvesting feature, for instance, ited settings: cold, warm, hot; small, commission and requires a service call, could power LEDs and sensors via an medium, large. But when a consumer a consumer could tap the phone against NFC phone. In California, for example, taps a smartphone against a washing the machine to schedule an appoint - buildings could have stress indicators machine, the handset’s screen could ment via the Internet, Vega says. When installed on the supporting beams display an expanded range of choices. the repair worker arrives, he or she behind walls to detect damage caused “Instead of 140 degrees, maybe I want could tap a smartphone against the ap - by earthquakes, Vega says. “You don’t 115,” Vega says. “Maybe I want some - pliance to put the machine in service- want to open up the Sheetrock, and you thing in between small and medium for diagnostics mode and retrieve all the don’t want to put batteries in there,” he my load size. I can pick soil type and error codes stored in the NTAG I²C tag, says. “So what do you do?” extend my spin cycle. If my child is nap - as well as the machine’s repair history. His suggestion: Install passive strain ping, I can turn off the machine’s alert If the problem were related to the appli - gauges powered by an NTAG I²C chip. function. And I can put the child-pro - ance’s firmware, Vega says, the worker Once a year, an employee could visit the tection feature on, so he can’t put the could have the phone retrieve new building and tap an NFC phone against cat in the machine and turn it on.” firmware via the Internet and use the the walls; the sensors would indicate If the washing machine LED screen handset’s NFC reader to load that soft - whether the beams were intact. displays an error code, instead of ware into the machine. There is a multitude of other ways hunting for the owner’s manual, the user The appliance manufacturer could the NTAG I²C chip could help end users could tap the phone against the machine provide all this additional functionality solve business problems or improve and the phone would retrieve the infor - merely by installing an NTAG I²C chip, business operations, Vega says. A mation from the Internet, Vega says. at a cost of less than 50 cents, Vega says. worker at a car-rental company, for “Error 3, the phone tells the consumer, To build comparable features into the example, could use a smartphone to indicates we have a foreign object in the appliance, he notes, might require a $20 quickly retrieve mileage, fuel, fluid gasket,” he says. “Then, the phone pro - touch screen and $10 Wi-Fi unit. levels and other information. “Your vides an instructional video. Now, I The NTAG I²C chip also could be used mind can go nuts with what you can do eliminated the need for a service call.” for other applications. The chip’s RF en - with this chip,” he says.

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Item-level Idealist Joseph Andraski saw the value of RFID in retail and worked energetically to promote its adoption.

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he Special Achievement Award out-of-stocks and increase supply- existing clothing labels or added in was conceived to honor those chain efficiencies. separate labels, and what data would who have made a significant In 2008, VICS and GS1 funded re - be on the tags. T contribution to the radio fre - search at the University of Arkansas’ These efforts encouraged more re - quency identification industry, through RFID Research Center to determine the tailers to begin using RFID technology the development of standards or educa - value of RFID for managing inventory of in their operations and speeded the tion of businesspeople about the tech - clothing items in stores. A study at pace of adoption. In October 2012, VICS nology’s value or in some other way. Dillard’s stores found that RFID could merged with GS1 US. Andraski left the Joseph Andraski, this year’s recipient, boost inventory accuracy from roughly organization and the initiative was put has probably done more to promote the 65 percent to better than 95 percent. under the purview of GS1 US. use of RFID at the item level—in retail, Another study, at Bloomingdale’s, sup - In a statement announcing Andraski’s specifically—than anyone else. ported the earlier findings. departure, Peter Longo, co-chairman of Andraski was president and CEO of In 2010, Andraski led the formation VICS and president of logistics and oper - the Voluntary Interindustry Commerce of the VICS Item-Level RFID Initiative ations at Macy’s, said Andraski had Solutions Association, known simply (VILRI), supported by Dillard’s, Macy’s, “guided VICS through a series of signifi - as VICS, from 2004 to 2012. VICS was Walmart and other retailers, as well as cant developments in key business areas founded in 1986, and he was elected to some of their leading suppliers. The like RFID, data synchronization, retail run the organization after a 25-year VILRI worked to promote adoption of out-of-stocks, floor-ready merchandise, career with Nabisco as VP of supply- RFID in retail and provide guidelines logistics and Collaborative Planning, chain management. Andraski under - for the way the EPC Gen 2 standard Forecasting & Replenishment.” stood supply-chain issues, and he used should be used, so practices would be Andraski continues to write articles that knowledge at VICS, where he compatible among supply-chain mem - for magazines and speak at events, pro - led an effort called Collaborative Plan - bers. It addressed questions that needed moting the value of RFID in retail. There ning, Forecasting and Replenishment. to be answered for RFID to gain wide - is no doubt his leadership, energy and Its goal was to foster cooperation be - spread acceptance in retail, such as enthusiasm has helped advance the tween retailers and suppliers to reduce whether tags would be embedded in adoption of item-level RFID in retail.

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The State of Reader Interfaces UHF RFID companies can do more to ease the job of application developers. By Ken Traub

While i Was at RFID single tag when a user presses a button. The Journal LIVE! in April, I wedge interface delivers the tag contents to a visited most exhibitors host computer in a way that simulates key - of passive ultrahigh-fre - board input. quency RFID to assess how All three of these interface types share a big their products support disadvantage: The application gets just the software development. I binary contents of the tag’s Electronic Product focused especially on the Code memory. But an application needs to have ease with which applica - the data decoded as an application-level identi - tion software can get the data it needs fier—for example, a Serialized Global Trade from RFID readers. This is crucial to allow Item Number (SGTIN). An developers to focus on the business side of interface giving an application their applications. the binary contents is like a GlobeRanger, InSync, OATSystems and bar-code reader providing only RFID Global Solution each offered mature the pattern of black and white middleware—software that interfaces with bars without decoding it. readers and provides a sophisticated environ - The fourth kind of interface Application ment for creating RFID-based applications. is based on another GS1 stan - Level Events Each vendor markets to specific industries, dard called Application Level which promotes adoption in those verticals. Events (ALE). Using ALE, the But application developers in other sectors application just states what may not realize they could use one of these data it wants. ALE delivers middleware products as well. the data fully decoded, in a Developers can also interface directly with format most application pro - readers to build applications, but three of the gramming languages are four options available have disadvantages. designed to understand. Most readers have a proprietary interface, Only a few vendors I spoke with—notably application toolkit or application programming Harting and Mojix—said their readers support interface (API). These are relatively easy to use, ALE; Intermec and Motorola (now Zebra) offer but change your reader vendor and you have to limited support on some models. Many rewrite all the code that “talks” to the reader. vendors had not heard of ALE or did not For this reason, many readers also support understand its benefit to application authors. the GS1 Low Level Reader Protocol (LLRP), a I think this is a shame, because readers with standard interface that is the same regardless the ALE standard could help foster RFID of vendor. But as the name suggests, this is a adoption and the development of innovative low-level interface, which means managing applications. even a simple tag read is complex. Many of O T O

H the vendors I spoke with reported that few Ken Traub is the founder of Ken Traub Consulting, P K C O

T customers use LLRP. a Mass.-based firm providing services to com- S I

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O Another type of low-level interface sup - panies that rely on advanced software technology I T A R

T ported by some readers is called a “wedge,” to run their businesses. Send your software questions S U L L I which is good for an application that reads a to [email protected].

RFID J  • May/June .,-/ 47 tuned in

A Monumental Shift at LIVE! 2014 Retailers are no longer asking, “Should I?” They now ask, “How?” By Bill Hardgrave

“I can remember the first adoption that requires their participation. RFID Journal LIVE! event, RFID Journal and GS1 also hosted a in 2003 ,” I recently told a retailer-supplier luncheon, which provided group of students. “Wow!” an opportunity for folks from Macy’s, VF and they said. “What was it like other companies who have been using RFID in the old days?” for several years to interact with those who “Well, way back then,” I were just getting started. The open-discus - said, “people came to the sion format lasted well past the allotted two conference to learn how to hours. To suggest attendees were thirsty for spell RFID.” OK, so maybe that’s an exaggera - knowledge would be an understatement. tion, I admitted, but not by much. I recall the In addition to the workshop and luncheon, I conference buzzed with excitement about the met individually with many retailers and sup - new technology. Walmart had asked its top pliers. In fact, I had so many meetings during suppliers to begin tagging pallets and cases, and the talk was about the “mandate” and how to satisfy it. Let’s be honest, in 2003 the technology was good, but it wasn’t great. At Walmart’s request, I began assisting suppliers in their tagging efforts, and soon after, I founded the RFID Research Center to further this mission. At RFID Journal LIVE! 2014, the mood was unlike any I have seen. Attendance—by both end users and exhibitors—was up. End users were well-informed and asked intelligent the event that I was able to attend only a few questions during conference sessions and at conference sessions; luckily, I was able to vendor booths, to learn how to best use RFID watch the rest of them online (they are posted to improve their own operations. Among the in RFID Journal ’s video library ). retailers, in particular, there was a palpable “Since you’ve witnessed the ancient RFID,” sense of urgency. Those who had not begun my students asked, “do you have any prognos - using RFID were feeling anxious about how tications about the future?” late they were to the game, and those who “Hard to say,” I replied. “I’m fairly certain were using the technology to improve inven - RFID in retail will be commonplace. And I’ll tory accuracy wanted to add applications probably travel to LIVE! 2024 in an auton- (more on those use cases in my next column). omous vehicle.” As at past events, I assisted RFID Journal and GS1 with a preconference workshop for Bill Hardgrave is the dean of Auburn University’s O T O retailers and suppliers. Attendance has always Harbert College of Business and the founder of the H P K C O been strong, but this year, the room was packed RFID Research Center. He will address other RFID T S I

: N

with many new retailers and many more sup - adoption and business case issues in this column. O I T A R

pliers. The supplier interest is particularly Send your questions to [email protected]. T S U L L noteworthy, since we have reached the point in Follow him on twitter at @bhardgrave. I

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POWERED BY supply chain links

An Impartial Observer RFID takes the guesswork out of shipping and receiving. By Ian Robertson

One Of industry’s most receiving errors—genuine errors will still contentious issues is a cus - occur. But it does eliminate the need to chase tomer claim that goods down false errors and provide good data for shipped by a supplier were resolving genuine errors. not received or were The concept and value of EPOD was demon - received only in part, or that strated 10 years ago, yet I don’t know of any the wrong parts or items supply-chain partners that are using it. were sent. The supplier is There are several issues, including the fact not at the customer’s receiv - that few folks are aware of or understand ing dock, so it cannot verify the claim. the process. EPOD also requires cooperation— The process of reconciling what was and trust—between received against what was shipped incurs two companies. While additional work, cost and time for both supply-chain partners supplier and customer, and it can generate ill often share data to feelings between the supply-chain partners. execute demand plan - Large customers may impose fines if they ning, it is far less com - believe an order was not delivered correctly, mon to share data on and suppliers are likely to pay rather than risk actual operations. The losing the customer. Yet a 2004 study con - concern is that this ducted at HP, when I was the company’s information could be worldwide program director of RFID, showed used to measure con - that in 82 percent of cases, the correct goods tractual performance were delivered and most errors occurred on or raise questions the receiving dock. regarding a partner’s RFID can play a vital role in receiving rec - suitability. Still, the onciliation by enabling electronic proof of benefits outweigh the delivery (EPOD). Here’s how it works: The risks. supplier RFID-tags shipments and reads them If order reconcilia - automatically as they pass through a fixed tion is a concern at your company, I recom - portal at the warehouse exit. The data is mend sitting down with your partners and dis - uploaded to an Electronic Product Code cussing the mutual benefits of employing Information Services (EPCIS) repository, so it EPOD. It is relatively easy and inexpensive to can be shared with the customer. The tags are deploy. Keep in mind that EPOD data can also read as the goods move through a fixed portal support auto-replenishment, which I’ll explore at the customer’s receiving dock, and the data in my next column. is then shared with the supplier. Once all items in an order have been “seen” by the Ian Robertson is CEO and president of Supply O T O

H customer and confirmed to be accurate, the Chain RFID Consulting, a Texas-based firm P K C

O customer can pay the invoice. (If the goods are providing services to companies that want to T S I

:

N subsequently mislaid, the responsibility falls understand how to use and implement RFID O T A R

T squarely on the receiver, not the shipper.) internally and with partners. Send your supply- S U L L I Note that EPOD does not eliminate all chain questions to [email protected].

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