RFID-Ready for Incredible Developments?

By Michael Harris, CEO, Innovative Equipment and
Dennis McGarry, CDC, DMIA

RFID-an abbreviation for Radio Frequency Identification, allows intelligent communication between tags and labels via radio waves. RFID is a hot product that is having a direct impact on packaging, labeling, logistics, consumer products and retail industries. When you think RFID—don’t just think of face stock and adhesive with some print—in this case you need to think bar codes with a Ph.D.!

RFID label, showing antenna and chip in center (courtesy of Texas Instruments)

Although available in many different formats, the most common RFID systems use an inlay consisting of a silicon chip bonded to a thin, flexible antenna which is integrated with a label, tag, card, or ticket. This chip is a microprocessor capable of storing data and communicating to a reader, and does not require a direct line of sight between the chip and reader. Information may be re-written to the chip, which can process algorithms to verify the authenticity of the inquiry. Today, many RFID systems are used in business or manufacturing environments. However, RFID is trickling downward with popular applications such as Mobil’s SpeedPass and toll road collection tags. RFID is also widely used for access control.

What Are Common Applications for RFID Tags and Labels?
• Airline baggage tracking
• Express parcels ID and tracking
• Product inventory
• Access control
• Product ID and tracking
• Brand authentication
• Document tracking
• Library material handling

Can DMIA manufacturers and distributors play in this high tech field? Without a doubt! The key is not get too wrapped up at this point with technicalities about whose chip does what and how it was made. For those who are interested, there is an incredible amount of information available on the Web. Any search of "RFID" will give you pages of links with great information. Many RFID suppliers work outside our industry, so it is important to check references when working with a new vendor.

Like any good sales professional, first, learn what problem RFID implementation will solve and find hidden bottlenecks in your customer’s processes. For example, some airlines’ bag handling process is performed by a "facer," which is a person that watches every bag on the conveyor. The facer’s job is to orient each bag so the bar codes "face" the readers. Using RFID would eliminate this process as RFID needs no such orientation.

How about paper inventory? If roll inventory arrived with an RFID tag embedded, readers positioned at the dock doors would enter the new inventory with information about the type, weight, footage, manufacture date and location. RFID readers positioned at the press could read the roll and then rewrite the inlay with MIS information regarding what was removed and for what job, how many revolutions came off the roll, and how much paper remains. Inventories could be as easy as a warehouse manager walking the aisles with a reader and taking inventory automatically.

In the specification process, RFID applications are frequently compared to bar code data collection systems. While bar codes are a great tool for many applications, there are some things that RFID does better. The major advantages to use RFID over barcodes are:

• Line of sight required between the carrier and the reader are not required.
  
• The ability to re-write information to the tag without physically seeing it, even when the label/tag/ticket is mixed amongst many others.
  
• Virtually 100% readability. RFID does not have the print readability concerns that bar code has.
  
• The ability to add "real time" observations to the inlay. Shipments of blood for example may be tagged with an RFID label mated to a temperature monitor. When the blood arrives at its destination at the ideal temperature, a scan of the label may indicate a high temperature was reached at some time in transit, rendering it useless.

The possibilities are endless, but if you need convincing that this is a growth market, visit the website of the MIT Auto ID Center to help you along. Formed in 1999, some of the world’s biggest players in consumer goods have sponsored this initiative with the aim of creating an ePC (electronic product code) to replace the UPC. The ePC will identify each and every product as an individual (not "a" can of Coke, but "this" can of Coke) with associated information such as where and when manufactured, how and when shipped etc.

Where Do You Start?
There are dozens of highly qualified VARS or integrators who understand how to implement an RFID system. They know products from Texas Instruments, Philips, Rafsec, Alien, Matrics, etc, and how they will perform given a particular environment or demand. Partner with a VAR to use their expertise in designing turnkey systems.

Avoid getting into the mindset of expense comparisons. Comparing RFID to barcodes on a price basis is an instant loser, as barcodes are essentially free. Instead the sales focus of RFID should be the benefits and savings it brings to the process. One of the stated goals of the RFID industry is to bring the tags down to five cents. However, the price per piece is not the real issue—it is the labor. According to the RFID Journal, Walmart stores saved an average 20% in labor during a recent RFID pilot in their distribution centers and gathered 40% more tracking information. This was at current tag pricing of $0.35-$0.50 each!

In the manufacturing process, the integration of inlays into labels, tags, or tickets is similar to affixing or integrating products already offered by many converters. Most inlays are provided in a continuous roll format integrated into some sort of synthetic carrier—just like a roll of labels with no adhesive. To manufacture RFID labels, preprinted or blank label stock is separated from its liner and RFID inlays are applied to the adhesive side of the label. Adhesive can be reapplied over the RFID inlay (so that the label is fully coated again) and the liner is remarried to the RFID/label combination.

Infrastructure Issues and Channels to Market
The primary leaders in this field are Avery Dennison, Brady, Checkpoint Systems, Moore, Philips, and Texas Instruments. Most of these companies sell in a few different channels. In addition, leading suppliers of bar code printers and scanners have integrated the ability to read and program RFID labels into their equipment. Some of these include Zebra, Genicom, and Intermec.

The elements needed to make smart labels a success are labels, printers, stationary readers, scanners, conveyor reader arrays, and system integration—so in many cases much is already in place to support a smooth transition to this technology.

What makes a suitable application for RFID tags and labels?
• Can tolerate a label price of greater than 25 cents.
• Can’t be done with another less expensive technology.
• Needs R/W, simultaneous scanning, etc.
• Results in a big enough payoff to cover investment.
• Labor/processing savings can be demonstrated

Manufacturers have a great opportunity to become RFID converters. Companies such as Bielomatic, Hunkeler, Innovative Equipment, and Tamarack offer RFID converting machinery and each brings something different to the process.

Few manufacturers have opted to become serious RFID converters. Many manufacturers that are considering this market have contracted with RFID converters to job out work while getting familiar with the business before they make big capital investments in equipment. Whatever route you choose, RFID is a growth industry that distributors and manufacturers should tune in to.

Michael Harris is CEO of Innovative Equipment Inc. You can visit his company at www.innovativeequipment.com or reach him by email at mikeh@innovativeequipment.com.

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