RFID (Radio Frequency Identification) is a varied collection of technical approaches for many applications across a wide range of industries. Like bar codes, RFID technology is used primarily for automatic data capture. However, this technology has the potential to significantly alter how companies operate and how processes occur. Because the cost of an RFID system is justified by the benefits of the new workflow, any RFID application needs to produce positive results. The last few years have witnessed two major developments that have sped up the adoption of this technology: 1) the emergence of major consumer applications that bring RFID from an experimental technology into the mainstream. As RFID gains understanding and credibility through highly-visible consumer applications that prove its effectiveness, its place as a solution in supply chain automation also grows; 2) the development of "smart labels"-a low cost, version of RFID tags that is beginning to take off on paths where bar codes can't go.

What are Smart Labels?
Smart labels include RFID transponder inlays that, unlike bar codes, users can read without line of sight and in any orientation. This membrane-thin inlay can also identify multiple articles simultaneously. In addition, it offers read/write capabilities so users can update information. Smart labels are low cost electronic devices, and consumable. Smart labels can also include magnetic strips, bar codes or other printed information. A typical Smart label construction is shown in Figure 1. As shown in the figure, the inlay is one additional layer in a typical pressure sensitive label construction. In the manufacturing process, the inlay is laminated between the face stock and liner to become part of the label itself. 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, a smart label can be embedded and hidden from sight.

You May Already Be Using RFID
There are many uses of this technology all around us today, although they are often invisible to users. You may find that you are already carrying and using one or more RFID tags. For instance, MobilExxon Speedpass™ users carry an RFID transponder inside a key tag. Some new cars incorporate an RFID transponder into the ignition key. Marathon runners sometimes wear 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 or people. It is sometimes called dedicated short-range communication (DSRC). RFID systems use electronic devices called transponders or tags, and readers to communicate (Figure 2). These systems communicate via radio signals that carry data either uni-directionally or bi-directionally. As the following graphic shows, when a transponder enters a read zone, its data is captured by the reader and can then be transferred through standard interfaces to a host computer, printer, or programmable logic controller for storage or action.

Once a link is established with a unique ID on an item, then automation of an assortment of processes becomes possible.

One example is the sortation of boxes moving along a conveyor system. At specific read points in a distribution system, the boxes can be ID'd as to their location while enroute. 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 a smart label is an RFID transponder. Today, three primary technologies exist: Texas Instruments with the Tag-it product, Phillips with the I-CODE product, and Motorola with the BiStatix product. Each of these companies is making competitive products. The Tag-It and I-CODE products both use inlays, which are batteryless, ultra-thin inlay transponders designed to be easily converted into tag and label applications by a label manufacturer. The inlay consists of two primary parts, the RFID silicon chip, and an antenna that circles the perimeter of the inlay. The inlays are placed on a polymer tape substrate and delivered in reels to the manufacturer, who in turn converts the inlays into usable smart labels. The Tag-it product from Texas Instruments can store up to 256 bits of programmable user memory. The Tag-it product is available in two standard inlay sizes: a square 1.8" x 1.8" and a rectangle 1.8" x 3". The I-Code product employs a 384-bit user memory. The I-Code label is approximately 2" x 2" square. The BiStatix product is especially different because it does not use a pre-made inlay. With BiStatix, the label converter prints the antennae portion with special ink, and then attaches the RFID silicon wafer to the printed antenna. Motorola's claim is that the manufacturing process is simpler and the materials to manufacture the product are easier to use.

Writing Data
Many applications for smart 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 a smart label is at the printer itself. Bar code printer vendors such as Zebra technologies, Genicom, and Intermec have developed RFID writers that are built into their printers-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 from the terminal user.

RFID Compared to Bar Codes
Bar codes and RFID act as support tools to automate processes and improve operations management. Each reduces labor, and minimizes human entry errors. Both data collection systems put a wealth of information at your fingertips. However, RFID excels in that labels and tags can be embedded and hidden with no need for line-of-sight reading. They can be read through wood, plastic, cardboard, and any material except metal. RFID labels and tags can also be reprogrammed on the fly-in process, new instructions can be written to any tag in the system. Furthermore, RFID labels and tags are well suited for harsh environments, such as outdoors, around chemicals, moisture, and high temperatures. The very popularity of bar code in many areas of the supply chain has clarified its limitations. Conventional bar codes can only hold a small amount of information, typically around 20 characters, and can't be reprogrammed. They are susceptible to damage, and always require line-of-sight to be scanned successfully. These are limitations that RFID tags have overcome.

RFID Tags, Readers, Antennas
RFID tags come in a wide variety of sizes, shapes, and forms. Readers can be bare circuit boards, electronic modules, or fully enclosed boxes, like the kind you see at a store exit. RFID Tags come with and without batteries, they can be read-only or read/write. One example of a tag that uses a battery is an express lane toll card reader that you may use on the dashboard of your car. Smart labels come without batteries and are smaller and lighter than battery-powered tags. Smart labels are also less expensive. They are maintenance free and will last almost indefinitely. There are more than 100 suppliers of RFID systems ranging from large semiconductor companies like TI, Motorola, and Philips down to 1-man entrepreneurial businesses. Today, all systems are proprietary, but standards are beginning to emerge. Prices of tags range from 50 cents to $150.00 depending upon features and functionality.

RFID and Information Management Systems
RFID data collection is only the front-end to an automation solution. It provides the ability to collect large amounts of accurate data to build good databases.

To get the most from RFID, there is a need for an advanced enterprise-wide information management infrastructure. An application may be designed around a centralized database using the tag as a license plate. Or, the application can use a decentralized approach, maintaining and updating the data directly on the tag. In some cases, a combination is required. In any event, the information management system needs to be prepared to handle real time data quickly, and to pass it to other systems up and down the chain that can also benefit from the information. Without this backbone in place, the wealth of information can go unused.

The Evolution to Smart Labels
Although the technology is still considered young and emerging, it is based on electronics, and therefore, major breakthroughs are not only natural, but are expected. During the last several years, "smart labels" have been the "buzz" in RFID. This newer version of the technology was fueled primarily by the need for lower cost tags. When bulky RFID tags first were introduced, the plea from the user community was "if only these tags could be smaller and lower in cost (now that we are used to the low cost of bar codes), then we could attach them to many more things". "Smart labels" represent the next generation in RFID for industries who want to uniquely identify and track millions of items at a low cost.

Features of "smart labels" include:

• Cost of tags in tens of cents range
• Produced in very high volumes
• Thin, flexible construction
• Read/Write-programmable at point of issue
• Simultaneous ID (SID--the ability to read multiple items in one click)
• Easy to integrate into the bar code infrastructure

Smart Labels compared to EAS EAS (Electronic Article Surveillance) used to protect merchandise from theft is based on electronic devices, also called "tags" but do not carry a unique ID. They are simply active or non-active. If active, when placed in the surveillance area, they create a disturbance in the electronic field that initiates an alarm.

Smart labels, on the other hand, carry a unique code that can be associated with all the information about an item. There are smart labels available that also perform the EAS function.

Benefits of RFID Smart Labels
The benefits of smart labels over other data-capture technologies make smart labels an attractive choice for a system with diverse needs. Because RFID labels do not require a line of sight read, smart labels can be embedded into products as they are being manufactured or packaged. Smart labels can be embedded in synthetic tags that withstand harsh environments. For applications that require a level of security, smart labels can be used to meet compliance packaging requirements. Embedded smart labels can prevent theft and provide verification of genuine product. Because smart labels can't be duplicated easily, the bar is raised considerably for forgers and counterfeiters.

The Frequency Bands Used for RFID
Frequency band allocation for the use of radio devices is regulated by federal agencies such as the FCC in the US, PTT in Germany, and so on. There are limitations to the bands available within which RFID systems can function. However, several bands have evolved throughout the spectrum where you find these systems in use. There are definite tradeoffs to consider for each band. Therefore, it is important to understand the application requirements before selecting a particular type of RFID system.

Benefits of 13.56 systems

• Mature market with millions of devices in use
• Many players, thus wider selection of suppliers, better chance for interoperability
• Most favorable worldwide regulatory acceptance
• Ability to penetrate most materials
• Robust local read fields

Source Tagging
The term "source tagging" refers to the process of attaching or hiding smart labels in the manufacturing or packaging process. The tag can be a permanent part of the product, or as part of the package. Source tagging is becoming increasingly popular, and is a natural evolution for high-tech packaging applications-especially those that need to be tracked to the nth degree. Many EAS applications call for source tagging in the manufacturer's retail packages. The US Postal Service incorporates an EAS label inside stamp packs that are sold in self-service postal stores. Hoping to curb shoplifting, drug stores often specify over-the-counter medications that are commonly stolen to have an EAS tag placed inside the box. These hidden EAS labels act as a major theft deterrent, and retail stores see this as a huge benefit.

Supply Chain Tagging Levels
RFID experts are now talking about an infrastructure that includes levels of tagging in the supply chain, such as:

• Consumer Units - products and individual items
• Traded Units - boxes/ packaging/product carriers
• Distribution Units - pallets/trucks

Infrastructure Issues and Channels to Market
Smart Labels are easily integrated into traditional bar code labels. Many leading label producing companies already produce smart labels products such as Avery Dennison, Moore, METO, and Brady. Leading suppliers of bar code printers and scanners have integrated the ability to read and program smart labels into their equipment. Some of these include Zebra, Genicom, Intermec, and PSC. The elements needed to make smart labels a success are labels, printers, stationary readers, scanners, conveyor reader arrays, and system integration - much is already in place in an existing bar code application to support a smooth transition to RFID.

Parcel ID and Tracking
Smart labels incorporated into express parcel labels have several advantages over bar code labels. Multiple packages can be read simultaneously without worrying about their orientation. Scanning is more accurate. They can be programmed as a data carrier on the package with pertinent information such as tracking number, sender/receiver, and final destination, and re-programmed with an update if instructions change while the package is in transit.

Picking and Sortation System Within a Warehouse
Sanacorp is a German pharmaceutical wholesaler with 15 regional distribution centers serving 6000 retail drugstores. Each warehouse stocks an average of 80,000 products. The company has a service standard "to pick and prepare for delivery every customer order within one hour from receiving a phone call/fax from an individual drugstore." Since pharmaceutical product prices are set by government regulations in Germany, this company has chosen service as a competitive differentiator. Each warehouse contains a conveyor system from the start of the pickline to dispatch; upon which 6000 tote bins are traveling in the process of putting together orders. A central database coordinates all processes. Each plastic tote bin represents a unique order.

The company tried bar code, but experienced a 1% error rate, which meant that tote bins were ID'd incorrectly; leading to delays and incorrect orders being delivered. With the new system, an RFID tag is welded to the bottom of each tote bin. It is a read-only tag with 64 bits of data that represent unique ID numbers. Antennae are located under the conveyor belt at pick locations. When an order is initiated, the unique ID of the tote bin is associated with that specific order in the database, and the bin is sent on its fulfillment route. The ID code directs the "stop" or "go" travel, tracks orders, and detects bottlenecks.

The benefits that Sanacorp received included:

• Routine maintenance decreased dramatically
• Errors dropped to .01%
• Marketshare increased during last 3 years

Smart Labels for Material Tracking in Libraries The 3M Digital Identification System, based on RFID smart labels, streamlines the flow of library materials in many ways. Books and other materials are identified with smart labels that carry a unique, tamperproof ID code. Librarians at the circulation desk and patrons using the 3M SelfCheckTM System read the tags with RFID readers to check items in and out. The process is faster and more accurate than with traditional bar codes.

Some economic facts that help justify installing this system are:

• A lost book typically costs the library around $45.00.
• An average library can have as many as 22 million items circulating each year.
• With RFID smart labels on items, check in and check out saves 1 1/2 minutes per transaction.
• Libraries are seeing 60-75% reduction in material processing time.

Besides the unique identification number, these labels can be programmed with additional information such as type of media and storage location. In addition, the tag is "re-writeable" so libraries don't have to replace a book's digital identification tag when updating a book's status or flagging a book for reservation. Libraries are finding new ways to take advantage of tagged items, such as gathering statistics on what items are most often used. The main goal of libraries is to improve service to their patrons particularly by having circulating items available when they are needed. RFID tracking greatly improves inventory management and optimizes resources.

Document Tracking
RFID can be used to improve the management of important document files in industries like insurance and legal where the loss of such files can cause severe problems. Each file is tagged with a smart label that contains a unique ID and human readable information. The file description is entered into a database along with its tracking number. The file can be assigned certain parameters like expiration date, permitted movement, persons authorized to see it, etc. Over time the database can build up an audit trail of the handling and workflow history of each document file.

Desktop readers record when an RFID-tagged file passes by, and can include time/date stamping. The first read can indicate that a file has entered an office or desk. The second read can assume that a file has left the office or desk. This will allow any PC on the office network to click onto an entered file ID and have the system indicate the last known office or desk where the file was located, along with the specific date and time the file was last read at that location. By also tagging employees with an RFID card, the system can record exactly who last handled a document file.

Tickets and Passes
Ski resorts are using smart labels in lift tickets. In this application, the ticket is authenticated as being genuine and valid for that date and time, and they act to increase the traffic flow rate at the gates. Skiers pass quickly through the gates without having to remove their gloves to swipe a card, thus making their experience more troublefree.

Product Authentication
The expansion of worldwide trade, the web marketplace explosion, and growing business-to-business e-commerce only means that criminals have growing opportunities for counterfeiting and fraud. Combating these problems effectively requires identification technology that is cost-effective to use, yet prohibitively expensive to copy. Smart labels are used in the manufacturing of expensive branded merchandise, where they are embedded directly into products such as clothing and designer goods to provide authentication through the supply chain. Another authenticating application places smart labels onto printer ink cartridges to ensure that only the correct consumable replacements are used in equipment.

Finding Candidates for Conversion
The market and growth potential for smart labels is tremendous. Applications that are best suited for conversion to a smart label system must be able to tolerate a label price of greater than 25 cents. The application will call for simultaneous reading, writing, and scanning ability. I deal applications will not be replaced when there is a less expensive way to accomplish the task. Another factor in making a successful application sale is that the ROI shows fast and positive results. For more information on smart labels, visit the following companies:

Since the publication of the August 1999 BPTR cover story "Handling Printing over the Internet" a stampede of sorts has been underway to recruit printers, designers, end-user print buyers, and distributors to some type of Internet-based service. These services range from auction sites--to print-buying--to printing supplies-to job placement services. Reactions to these services, especially the ones offering e-print buying are mixed in all sectors of the printing industry. Some printers such as Moore, Wallace Computer Services, R.R. Donnelley & Sons Company, and Consolidated Graphics have publicly announced their e-partnerships, while many others are still in a "wait and see" mode, trying to learn more about how electronic print-buying will impact their customers.

A number of these Internet services are targeted towards the end-user print buyer, which has many printers and distributors uneasy about a third party wedge that now exists between them and their print-buying customer. While most of these services focus on the commercial printing side of the industry, a few are gearing up for entry into the business forms world-and most of these services have proven to be moving targets. Distributors and manufacturers alike are unsure how to best proceed into the Internet jungle of services.

The Tip of the Iceberg
From the pulse of the printers out there, it is likely that the information superhighway will get a little rougher before it gets smoother. A number of issues surrounding the actual implementation of these services have come up and are making printers and distributors question how effective these services will be. Primary concerns voiced by print providers surround two issues: 1) that buyer-centric services have created a third party between the print provider and print-buying customer and 2) that web-based services offering bidding functions will commoditize printing to a level that the channels have no experience in.

Both concerns are real. The Internet services being offered face a challenge to bring printers into this service relationship with a high level of comfort. The buyer-centric offerings, such as PrintCafe, Noosh and Impresse are growing, but some printers are increasingly uneasy, believing that this service is being forced on them.

On the buyer side, these services allow print buyers to track work in progress, job histories, and send out new RFQs with a few mouse clicks. The service offerings are very attractive for many print buyers who are often wooed over by the promised savings. While there may be savings in time for the print buyer, additional burden falls on the participating printer. This activity has many printers chasing the .com of the day as customers align with various .com companies and then pass the request on to their print vendor to sign up too.

An often-overlooked fact is that most print suppliers have a sizable number of customer accounts. The print supplier is left to take a hit in productivity as different customers ask for participation in their .com service. The printer is then left with the task of training their sales and customer support staff in the nuances of a number of services so they can effectively manage the customer's print jobs. Yet another challenge is that the popular sales representative/customer service representative team approach is now sent in multiple directions-a typical sales rep could conceivably have four clients with one .com and four clients with another. The question of who in customer support is trained on which .com service becomes critical for the printer as they strive to economize and streamline staff. Confused? Here is an example: ABC Bank currently uses 17 different print vendors. The print buyer signs up with a .com company, and proceeds to tell her 17 print providers that they need to be signed up as well if they want to continue receiving RFQs. The print supplier has worked very hard for this relationship and now they are told they need to "sign up" in order to be considered for bidding on jobs? Herein lies the wedge.

The .coms are providing a critical amount of support for their fee (usually a small percentage of the overall job). Using a .com to procure printing may indeed save time and money for print buyers. The big question for all is "Where will all of these new services be in a year, or even in six months?" The bottom-line question should be "what really fits best with the needs of the customer?" Is the printer/buyer relationship based on mouse clicks, email and file transfers, or is it based on one-to-one problem-solving and hard work? The truth is likely to be "it depends" on the complexity of the order, the skills of the buyer, and the flexibility of all partners to execute successful print buying transactions.

We know that this is a moving target, but the BPTR editors have compiled a summary of a few of the .coms that you may be hearing about. A special Thanks to Mills Davis of the Digital Roadmaps Project for his assistance in creating this summary.

A listing of .com companies follows.