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Understanding the Smart Label Supply Chain

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Understanding the Smart Label Supply Chain Understanding the smart label supply chain by Sheri Phillips, IBM; Peter Bloch, NCR and Tammy Stewart, Texas Instruments, USA Radio frequency identification (RFID) technology promises to usher in major efficiencies and enable a truly demand-driven retail supply chain based on electronic product code (EPC). Not only can inventory be managed in an The semiconductor manufacturing process automated fashion without line-of-sight using Managing the semiconductor manufacturing wireless RFID readers, but “just in case” inventory process has a significant effect on smart label is possible with individual items being managed availability. With Gen 2, the entire processing at the carton, case, or pallet level. flow for the integrated circuit (IC) consists of 20 The EPC supply chain that delivers consumer to 30 steps to define the semi-conductor elements, goods to retailers is similar in many ways to the interconnects, and overall modules. These enable supply chain that delivers Gen 2 smart labels for the highest degree of scalability in the design application to their cases and pallets. Demand- and processing of the analogue, digital, and driven supply chains such as these can only be memory components that make up the IC. The efficiently managed through cooperation among Gen 2-compliant IC is manufactured in Texas all parties in the process. While the “age of the bar Instruments’ state-of-art clean room facilities using Fig.1: Layers of a Gen 2 smart label. code” required close partnerships among retailers, leading-edge 130 nm process node technologies consumer product goods (CPG) manufacturers • A label face stock which covers the inlay and which means TI can produce high volumes faster and their label suppliers, the “age of EPC Gen provides a readable print area, than with older process node technologies. The 2” requires an even greater level of collaboration finished IC is tested to ensure reliable functionality and coordination with Gen 2 technology suppliers • A release liner that serves as the bottom in the field. “sandwich” layer for the inlay. This layer to reap the rewards from EPC deployments. It is Once the ICs are ready, the next step is the allows the pressure sensitive face and inlay to becoming increasingly important for CPGs and manufacture of inlays. The inlay assembly process retailers to understand the amount of lead time be made into rolls for easy distribution, and begins with alignment of the chip bumps, typically required to fulfill their Gen 2 smart label orders is removed when the smart label is placed on 60 - 100 µm in diameter, with the landing pads and how changes in forecasts that occur in the the carton or pallet, printed as part of the inlay configuration. Each production phase can impact label delivery. This bump provides a physical electrical connection • An adhesive that attaches the inlay to the face article details the Gen 2 smart label manufacturing to the analogue and digital circuitry that make stock, as well as the release liner to the inlay processes to make retail supply chain professionals up the Gen 2-compliant IC. The bump is pressed and face stock. aware of the lead time requirements and how onto the landing pads and mechanically secured important their initial input is in keeping the The first three components make up the inlay with a high-strength epoxy to ensure a good supply chain demand-driven. By leveraging the which can require 10 - 14 weeks to produce and conductive electrical connection. The inlays are insight and experience of major RFID players, deliver in reel form to the label converter. The processed in a web-format using a fast-curing CPGs and retailers can achieve greater efficiencies label converter receives the reel of inlays and adds epoxy to minimise processing time. The inlays are in their own supply-chain management. also tested in web-format to ensure that electrical components four through six which can require testing does not bottleneck the assembly flow. Gen 2 smart label components an additional one to three weeks. The smart labels Maximum test coverage minimises the likelihood are ready for distribution and use when these A Gen 2 smart label consists of several key of failures in the field. Inlays that do not meet components: components are combined to make a label. This the electrical test requirement are marked so the means the production process can require 15 to label converter can easily remove them from the • A semiconductor wafer processed into chips 17 weeks lead time for production and delivery. production process. that have the ability to store EPC data. These Put in terms of the supply chain, modifications to chips are small in size with enough data While high volume demands are projected for this a label order could require months to implement storage capacity to satisfy EPC requirements, industry, it remains important to provide a highly and could potentially delay delivery of the labels. reliable electronic product that can withstand • An antenna made of a conductive material that In addition, adjusting production to respond to the label manufacturing process and the harsh enables the chip to receive and send data to large increases in demand could take months and environment of a retail supply chain. Optimal and from an RFID reader, lead to unplanned smart label stock-outs. In short, process conditions must exist to overcome • A substrate on which the antenna can be unfamiliarity with the Gen 2 chip, inlay, and label potential “crosstalk” or interference issues while printed, and to which the chip can be manufacturing process can lead to an undesirable maximising throughput, electrical test coverage adhered, extension of lead time. and yield. Elektron February 2006 27 semiconductor manufacturers the various pressure points. One reel per like TI, and label converters like protective box is recommended. NCR, have about the market If the labels are going to be run through an EPC- and end-user’s forecasted enabled variable thermal printer, placement requirements, the better their of the inlays are critical and are defined by the ability to plan according to specification set by the printer manufacturer. market demand and to roll Tolerances for inlay placement are in millimeters, out a more efficient supply of so even a slight deviation in the placement of the smart labels. To minimise the inlay can cause a thermal printer to “miss” the changes in forecasted smart label inlay during encoding and mark a fully functional requirements, forward-looking label as void or failed. There are generally two companies should prove their ways to convert an inlay into a carton or pallet processes in advance to know smart label. The first is pre-conversion editing which labels will work on their which tests and edits (i.e. replaces) defective products and how products will inlays before they are inserted into final label flow through their facilities. constructions. The pre-conversion method Fig. 2: Timeline of Gen 2 smart label production. That is where supply chain typically cuts a stream of continuous inlays into management companies like individual units. In this method a parametric IBM can add significant value. Working with test is done on the inlays before they are placed The effects of antenna design on the supply companies to incorporate RFID requirements, into label construction in order to measure the chain IBM helps design, build, and test RFID systems quality and viability of the inlay and determine The inlay’s antenna design is a key component to identify optimal smart label configurations. the reflective strength of the inlay. The second of a Gen 2 smart label. Products shipped to Armed with this information, customers can approach is post-conversion editing which retailers with an EPC RFID mandate are diverse forecast demand more accurately and share employs many of the same steps except it does in size, shape, material, and density. These this information with the label converter and not test the inlays before they are converted into product variations result in corresponding semiconductor manufacturer. labels. Inlays can be aligned with the face sheet variations in radio frequency properties which in an “on pitch” or one-to-one ratio. After the liner Label conversion can adversely affect the performance of is reunited with the face sheet and die cut, labels Gen 2 smart labels meant for products or To create a Gen 2 smart label, a label converter are processed onto finished rolls. These labels cartons. Designing, building, and testing a like NCR takes a flexible inlay containing an IC are then tested off-line via a separate test station Gen 2 antenna is an involved process that and an etched metal or printed antenna, and where nonworking labels are manually edited requires a significant amount of time to create an inserts these components between the face sheet and can be replaced with working labels. There optimal implementation. RF engineers use the and liner of a label. During inlay testing the face are limitations associated with the post-converting most comprehensive antenna design software, sheet of a pressure-sensitive material is split away testing method. Because post-conversion uses modelling software, and testing procedures from the liner or laminate to a transfer adhesive. manual placement of labels and is not exact, this available today to design efficient Gen 2 inlay Inlays that meet the appropriate testing criteria may result in printing/encoding failures further antennas. A Gen 2 antenna can be custom- are then attached to the adhesive that covers the in the process. The release value of the label designed for any consumer product, but the time back side of the pressure sensitive face sheet. adhesive is also altered with label replacements, it would take to accomplish this is impractical and After insertion of the inlay, the liner is reunited potentially leading to pre-dispensing issues prohibitive, given the great variety of potential with the face sheet and die-cut to the desired label and equipment jams.
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