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Business Printing Technologies Report
September 2004
<http://www.dmia.org/sol_center/bptr/04sep30_bptr.html>
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TABLE OF CONTENTS
RFID in a Nutshell
The Source
Hotline Online
RFID IN A NUTSHELL
RFID tags in a nutshell? Is
that really possible? Not now, but maybe next year! RFID tags are going in and
on everything from pharmaceuticals, to toys, keychains, season tickets, clothes,
and even on kids. This growth represents a tenfold increase of where we are in
2004. One of the primary drivers of RFID this year is the push from Wal-Mart
that requires its top suppliers to include RFID tagging on shipments by January
2005. The real question is Everyone is talking about RFID, an industry
poised
to grow from infancy to a $1.3 billion market by 2008. how distributors and
manufacturers can embrace this technology and turn it into profits.
What is RFID?
RFID stands for radio frequency
identification, a technology that has been used for many years in inventory
tracking and secure access applications. More recently, RFID technology has been
a major thrust in the tag and label industry, as small labels and tags include
RFID transponder inlays that, unlike bar codes, allow users to read without line
of sight. This membrane-thin inlay can also identify multiple articles
simultaneously. In addition, it offers read/write capabilities so users can
update information.
A typical RFID label construction is shown in Figure 1. (Open this issue in
your browser to view the image: http://www.dmia.org/sol_center/bptr/04sep30_bptr.html)
The inlay is one additional layer in a typical pressure sensitive label
construction. In the label or tag manufacturing process, the inlay is laminated
between layers to become part of the label or tag. Inlays can be incorporated
into existing stickers, labels, tickets or badges. Anywhere a pressure sensitive
label can be placed, an inlay can be placed. Whether it is part of the packaging
or part of the product, an RFID label can be embedded and hidden from sight.
Are you Using RFID?
RFID applications are all around
us. MobilExxon Speedpass™ users carry an RFID transponder inside a key tag. Some
high-end vehicles like Cadillac and Infiniti use an RFID transponder embedded in
the ignition key that knows when the key is near the car, unlocking or locking
the doors based on the proximity of the actual ignition key. Many big city
marathon races use RFID tags to track the progress of each runner. In this
application, the runner wears an RFID tag on their shoelaces that can be read at
specific points in a race.
How RFID Works
At its most basic level, RFID is a
wireless link used to uniquely identify objects. RFID systems use electronic
devices called transponders or tags, and readers to communicate. These systems
communicate via radio signals that carry data either unidirectionally or
bidirectionally. When a transponder enters a read zone, data is captured by the
reader and then transferred through standard interfaces to a host computer for
storage or action. Once a link is established with a unique ID on an item, the
automation process begins.
For example, consider the application of sorting boxes on a conveyor. At
specific read points in the system, boxes are identified by location. A central
monitor can immediately display this information. It is real-time information
that can be shared with the manufacturer, with forwarders, and with the customer
waiting for the shipment. The shipment can be automatically directed to the
appropriate dock door, truck, carrier, etc. The shipment can be redirected while
in transit if plans change—all without human intervention. This puts
real time decision-making power into the hands of many functional areas up and
down the supply chain. Having this vital information readily available enables
management to respond rapidly to changing patterns of demand, and allows a
company to provide superior service to customers.
What's on the Inside?
At the core of an RFID tag or label
is a transponder inlay that is inserted between layers, usually in a pressure
sensitive construction. The inlays, which are batteryless, are specifically
designed to be converted into tag and label applications by a label
manufacturer. As shown in Figure 2, (Open this issue in your browser to view the
image: http://www.dmia.org/sol_center/bptr/04sep30_bptr.html)
the inlay consists of two primary parts, the RFID silicon chip, and an antenna
that circles the perimeter of the inlay. Inlays can be placed on a polymer tape
substrate and delivered in reels to the manufacturer, who in turn converts the
inlays into usable RFID labels. Another technology is being used that prints the
circuit and antennae, and does not use a pre-made inlay. With this technology,
the label converter prints the antennae portion with special ink, and then
attaches the RFID silicon wafer to the printed antenna. By printing the
integrated circuit and antennae, the cost of the actual label drops
significantly.
The premade inlays are more costly and require the added step of
inserting them into the label. Obviously, printing the inlay in one production
pass is quicker and more efficient, but the printed antennae do not have the
high read rates enjoyed by the premade inlays. High read rates are critical for
applications that require a 100% read rate.
Writing Data
Many applications of RFID labels include
thermal direct or thermal transfer human-readable printing and bar codes on the
face of the label. Therefore, the logical place for data to be written to RFID
labels is at the bar code printer. Printer vendors such as Zebra technologies,
Datamax, and Intermec have developed RFID writers that are built into their
printers. Shown in Figure 3 (Open this issue in your browser to view the image:
http://www.dmia.org/sol_center/bptr/04sep30_bptr.html)
is a Zebra printer imaging and writing data to RFID labels. As the human
readable data gets placed on the label, so does the electronic data. This
"programming" of the label is based on the input at the user level.
The Wal-Mart Mandate
The RFID environment changed
dramatically in June 2003 when Wal-Mart announced that it would require its top
100 suppliers to place RFID tags on shipping cartons and pallets by January 1,
2005. More recently, Wal-Mart announced that it is expanding its RFID efforts to
200 of its next-largest suppliers. This second group of suppliers must have
their RFID tagging in place by January 1, 2006. In Wal-Mart's case, each RFID
tag will store the electronic product code (EPC) for the items in the carton,
automatically updating inventory in Wal-Mart's database. The RFID tag will be
used to track products as they enter Wal-Mart's primary distribution centers and
then as they are shipped to individual stores.
Keep in mind that the Wal-Mart mandate applies to shipping cartons of items,
not the individual items going into the stores. The push is a big one for the
automatic data capture industry, and only time will tell if the suppliers are up
to the challenge of keeping Wal-Mart's inventory system happy in 2005.
Primary Issues Facing the Industry
The primary issue
barring widespread adoption of RFID is the actual cost of the disposable tags.
In 2003, the range of prices for tags was still as high as 50 to 90 cents. The
RFID industry has long claimed that the critical price for widespread adoption
is the five-cent tag. But a recent study from RFID research firm Arc Advisory
Group predicts the price of RFID tags will only drop to a low of 16 cents by
2008, despite other industry estimates that the cost will reach the five cent
mark in the next four years.
The manufacturing process and cost of materials continue to be the culprits
driving prices so high. The ARC report specifically points to tag creation as
the barrier to massive implementation and the illusive five-cent tag. There is
no doubt that this technology will advance significantly over the next few
years, however, its implementation depends on who can manufacture tags most
efficiently and effectively. The challenge for label and tag converters is to
make huge strides in production. The effectiveness must improve significantly
over the next five years for companies to remain in this market.
Some experts
believe that in order to get to the five-cent label, the printed antenna is a
must. Today, premade inlays typically can cost 50 cents per piece, so an order
for a million tags can quickly add up to major dollars. Costs are on a downward
trend, but production and quality issues must be resolved to force prices down
even further. Whatever the case, look for ongoing developments and advances with
RFID inlay printing in the near future.
Applications for RFID
Applications for RFID continue
to evolve and new ones are being created every day. The following is a summary
of some interesting ones that are now being used.
Do any of these applications apply to your clients? Go to <http://www.printsolutionsshow.com>
Print Solutions Expo to find out how label vendors can help you.
Whose shirt is that?
Grantex Inc., Grand Rapids Michigan,
is a large uniform supply company that uses RFID by sewing tags into rental
uniforms. These RFID tags help Grantex track and sort thousands of uniforms. Not
only can the RFID tag help sort clients' laundry, but it can also keep track of
the number of times the garment has been laundered, or repaired, and when it
should be pulled and replaced. For Grantex, RFID has helped them reduce sorting
time, improve efficiency and capacity, and decrease their labor costs.
Despite concerns that the chips could be used to track the person wearing the
uniform, the garments cannot be tracked outside of the Grantex laundry
facility.
What happened to my tickets?
Season ticket holders in
Europe are witnessing the evolution of their paper ticket into a plastic card
with a contactless RFID chip embedded. In Holland, over a dozen
professional teams have signed up to use a contactless smart card system. The
cards are used for ticketing, concessions, and access control.
Smart Documents
The best examples of Smart Documents are
identification documents such as passports, drivers' licenses, and employee
badges for secure access.
In the case of a passport, embedding an RFID transponder into the passport as
it is being assembled creates the smart document. The RFID inlay would be
laminated inside the cover, causing the transponder to become an integral part
of the document. The transponder contains all the specific information about the
owner of the document, including photo, vital statistics, passport number,
nationality, and last departure. The reading device for the smart document would
be positioned at each passport control desk in every international airport. As
the passport is passed to an agent in passport control, the RFID comes in
proximity of the reader, and supplies data to the agent on their computer
screen. The RFID automatically populates data fields so the agent has to key
nothing. The data is stored to create a record of each person coming through
passport control that day. The smart document's added protection is that the
data on the transponder is encrypted and cannot be changed.
Other smart documents include drivers' licenses and employee badges. Both can
be used in applications that require automatic fill-in of information.
On the Bus
Every weekday in the U.S., 440,000 school
buses transport 24 million school children to and from school. Companies are
using RFID to track students as they get on and off buses, allowing parents and
administrators to track the whereabouts of children via the Internet. The system
combines the use of RFID with GPS, which is already built into most school
buses.
Finding a Lost Child
To alleviate the problem of lost
children, some theme parks are adopting RFID tags that can be used to quickly
locate a family member. Paramount theme parks have a “Star
Watch” program that allows each member of the family or group to wear
RFID tags. The users can track whereabouts of the other group members at kiosks
located throughout the park. In the event of a lost child, park security can
assist in quickly finding the lost child. In the Star Watch system, antennae are
located around the park to help locate others in your party. Legoland has a
similar system.
Finding your Ball
Called Radar Golf, one California
company is marketing a system where special RFID embedded golf balls are used in
conjunction with a device that tells the proximity of the ball as the golfer
approaches it. The RFID embedded golf balls are approved by the United States
Golf Association, but the proximity device is not allowed in tournament play as
it could be used to calculate accurate distances.
Where's My Car?
Car dealers across the US are looking at
RFID systems to track inventory. A simple RFID chip can be used to track an
entire fleet of cars, telling administrators where their entire inventory is
located in real time. Car manufacturers are also implementing RFID to assist in
tracking the vehicles as they leave the manufacturing plant and arrive at
distribution centers.
Tracking Cattle
The South Dakota Animal Industry Board is
developing a cattle-tracking system that includes ear tags for cattle. The tags
will track the complete cattle cycle from birth to packing plant. The tags will
tell when and where each animal was born and raised, transfers to other owners,
and packing plant information.
The Rubber Meets the Road
The tire industry is looking at
embedding RFID tags in car tires. Wanting to comply with The Transportation,
Recall Enhancement, Accountability and Documentation Act, known as TREAD, many
tire manufacturers are looking at RFID to assist in complying with the law. The
Act requires manufacturers to report defects in motor vehicles, tires or other
motor vehicle equipment. In this application, RFID tags will allow a tire
to be tracked from manufacturing to disposal, and prevent rejected tires from
being sold as new. After the tire industry witnessed the Ford Explorer/Firestone
Tire problems, tire makers see RFID as a turnkey solution to tracking inventory
after it leaves the manufacturing plant.
Where does the Manufacturer and Distributor Fit in?
Most
of the drivers of this technology like Texas Instruments, Philips, Zebra, Rafsec
and others are determined to make RFID a reality. The drivers have created the
technology, but they cannot support all the sales and manufacturing on their
own. As this market grows and evolves, there will be increasing opportunities
for manufacturers and distributors to capture part of the market. Distributors
should keep informed of the technologies offered. They should look to the
leaders in RFID manufacturing to help them develop or support applications for
their clients. Stay in touch with manufacturers who can help you provide turnkey
solutions to your clients. Also keep in mind that these technology sales will
take a different approach than the traditional tag or label sale, and a
partnering agreement with your supplier is likely. The market is calling for
RFID. Are you ready?
You can start your RFID journey at the <http://www.printsolutionsshow.com>
2004 Print Solutions Expo, October 6 & 7 in Chicago.
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