4.1. Prevalent Application TypesCurrently, some of the most prominent RFID applications are as follows:
The application types listed here do not appear in any particular order. The order in which an application appears in this list does not reflect, for example, its importance or the degree of its applicability in the RFID context. In addition, these listed applications are not mutually exclusive in terms of characteristics and benefits. Item tracking and tracing applications can have inventory monitoring and control, anti-theft, and asset management characteristics and benefits. The following sections discuss each of these application types in detail. For each type, at least one concrete member application is examined. For each such example, the benefits and caveats are discussed. An implementation note accompanying each such member application provides a brief implementation-specific detail. Finally, some real-world deployments of these solutions are also provided optionally. 4.1.1. Item Tracking and TracingThe item tracking and tracing application class type is characterized by the following:
The tag identifier, when associated with the reading time and the location information, can provide near real-time information about the whereabouts of this item at a particular point in time. You can use a list of such location information to track the object's movement during its life cycle. You can also capture additional information, such as which personnel moved the object from one location to another. This information can prove useful, for example, to determine the personnel responsible for shrinkage, if any. You can also associate various actions with this tracking activity, such as triggering an alarm if an object is not spotted at a location at a certain time. Two technical solutions currently apply to item tracking:
If a customer chooses the second option and there are an insufficient number of choke points, the solution might not provide the needed performance. In contrast, the solution might not be economically feasible if there are too many choke points. Member Applications Some of the most important applications that belong to this class type are as follows:
The following subsections discuss the first two examples of this application type. 4.1.1.1. Supply-Chain ManagementAn item can be tracked in the supply chain from where it is produced to the point where it is consumed or recycled. A plastic container of motor oil, for example, can be tagged at the point of production with a tag that contains a unique identification number. NOTE The popular "can of cola" example is deliberately avoided here. UHF is generally the most preferred RFID frequency used in supply-chain operations today. A can of cola is made of metal, which is RF-opaque and contains a potable liquid, which is RF-absorbent in the UHF frequency range of operation. This combination makes it very difficult, if not impossible, to tag a can of cola so that it can be properly read every time in the various stages of its life cycle (assuming UHF is used). A container of motor oil, on the other hand, is made of plastic, which is RF-lucent, and contains motor oil, which (again) is RF-lucent in UHF. Therefore, a container of motor oil can be realistically tagged with good read results. That container can then be tracked by reading the tag data at the following points in the supply chain:
Figure 4-2 shows these example read points. Figure 4-2. Example read points of a tag in a supply-chain operation.The tag data could also be read at other points in the supply chain. For example, the tag data could be read when storing this container at a particular location inside the warehouse in the distribution center, or at a particular storage area inside the retailer. Such a reading enables personnel of the particular location to locate this container inside its four walls. A retail shelf reader can also detect the physical presence of an item placed on the shelf. A back-end system can use this information to determine whether this shelf needs to be replenished with new containers of motor oil. A reader cannot make this decision by itself; it can only report its tag list to the host application. The host application can then look for a specific item type (that should be on the shelf) based on its tag ID. If a matching item type is not found or if the tag list is empty, the application might determine that the shelf needs to be restocked. Figure 4-3 shows the simple logic involved in determining an out-of-stock situation. Figure 4-3. A simple example of determining an out-of-stock situation.It is widely believed that if the tag price drops below 5¢, unit-level tagging applications become viable. However, several obstacles currently block the realization of this goal, such as the right business models, manufacturing issues, privacy concerns, and implementation complexity. Benefits As you can understand from the preceding discussion, RFID offers item-level visibility in supply-chain management. RFID can supply businesses with accurate and real-time information, which can result in the following benefits:
Caveats
Implementation Notes A passive tag is almost always used for this type of application. The passive tags in the UHF frequency range (868870 MHz and 902928 MHz) offer the best tradeoff between reading distance and price and, therefore, are extensively used for this purpose. Tracking a large number of items presents some of its own unique challenges, such as the generation of a tremendous amount of raw data that must be processed and moved through the enterprise network. The most widely accepted solution for this type of application is provided by the EPCglobal specification (see Chapter 10, "Standards"). This specification provides a cheap, open, and interoperable standard for readers and tags. It also provides an architecture that tackles the challenges presented by this application type. In short, EPCglobal is a powerful and flexible solution that has the potential to be accepted as a worldwide standard. Installed Base Large manufacturers, retailers, and government entities around the world are employing this type of application to track items at case and pallet levels. Individual item-level tagging seems to be taking a back seat because its cost and privacy impacts remain unclear. (Unsettled is probably a better word.) The current trend is clearly in favor of case- and pallet-level tagging, because privacy issues are fewer, the cost of implementation and implementation complexity are low (as compared to item-level tagging), and the return on investment is quick. Note, however, that in some stores, customers tend to buy cases of items (besides individual items). In these situations, case-level tagging might also pose a privacy concern for some customers. 4.1.1.2. Hazardous Materials TrackingChemical processing plants handle many different kinds of chemicals on a daily basis. Chemicals arrive from different suppliers and are then consumed or processed in the plant. The plant ships the products manufactured from these chemicals to distributors and customers. The used chemicals are recycled. Some of the chemicals can be hazardous and, therefore, special care must be taken when handling these. With regard to a hazardous chemical container received from a supplier, it is very desirable that some of the following critical information always be available:
Benefits
Caveats
Implementation Notes Generally, passive tags in the 13.56 MHz and 915 MHz ranges are used. At the moment, there is no pressing need to require the exchange of item tracking information beyond the four walls of the plant. Therefore, these types of solutions tend to be closed-loop systems, although this might change in the future. Generally, the most important information about the chemical is also stored on the tag so that it can be read locally together with its ID so that this crucial information about the chemical is always available even if the network connection to the back end (which contains data about this chemical) goes down. Specialized metal tags are available that can tag a metal container. Privacy issues are less of a concern here, even though the items are being tracked individually because of the very nature of these items. Installed Base IBM has rolled out a unified RFID chemical container tracking system in its manufacturing facilities in Burlington, Vermont; Fishkill, New York; and Bromont, Quebec, Canada. Chemicals in plastic drums and metal cylinders are tracked from the time they are received until the associated container is either decontaminated or sent back to the supplier. The system also helps to determine whether the right chemical is being used in the processing equipment. In November 2004, NASA Dryden Flight Research Center successfully completed a 90-day test of a real-time hazardous chemical tracking network called ChemSecure that uses passive RFID tags. ChemSecure is being developed to provide hazardous chemical tracking at five NASA facilities in Southern California at Edwards Air Force Base. 4.1.2. Inventory Monitoring and ControlThe inventory monitoring and control application class type is characterized by the following:
When an item is placed in inventory, the tag data is read by a stationary reader, which then transmits the tag data and its location (based on this reader's location) to the back-end inventory system. The back-end inventory system registers the item in the inventory database. While physically in inventory, the reader (which has this tag in its read zone) periodically transmits all read tags in its read zone to the inventory system. If the back end does not receive a registered item's tag data corresponding to this reader, the back end assumes that the item is absent from the inventory. If this item's absence results in an out-of-stock situation for this item type, the inventory system can take the following actions:
Refer to Figure 4-3 to see an example of the logic involved in determining out-of-stock situations. Member Applications This application class type can be considered a variation of the track and trace. However, a distinguishing feature of this application type is that it is always tracked in the context of an inventory. That is, an item is either in the inventory or is not. Some example member applications belonging to this type are as follows:
The following subsection examines smart shelves, an interesting application. 4.1.2.1. Smart ShelvesToday, stocking shelves is generally a manual process, one that is often less than optimal. In a smart-shelf application, a tagged item is placed on a store shelf. A single reader or multiple stationary readers mounted on or near the shelf monitor the presence of the tag (and hence the item). When a consumer removes this item from the shelf, the reader(s) can no longer read the tag. Therefore, the tag lists reported by the reader(s) to the inventory system no longer contain this tag. The inventory system then assumes that the item has been removed from the shelf. The inventory system can automatically perform several actions, such as notifying the store personnel to replace more items of the same type to avoid an out-of-stock situation. Refer to Figure 4-3 to see a simple example implementation. Benefits
Caveats
Implementation Notes Generally, passive tags in the 13.56 MHz range are used to tag individual items on a shelf. Configuring the readers and antennas on the shelves can prove tricky. The number of items that can be read needs to be maximized independent of the items' orientations on a shelf, which generally requires several antennas per shelf, which in turn can introduce overlapping read zones and can cause interference. This situation is not desirable because the antennas must read items on the shelf on which they are installed and should not have overlapping read zones with other antennas on a different shelf. If the items are packed too densely on a shelf, the stationary readers might not be able to read all the items on the shelf, which might lead to inventory issues. In addition, customers might pick up an item and put it back on the same shelf but with the tag attached to the item oriented suboptimally to the reader antenna(s). Such misplacement might also occur when store personnel load up the shelf in such a way that some of the items are misaligned with the reader antenna(s). If the reader(s) cannot properly read a tag, the inventory system will incorrectly assume that the item has been removed. A customer might also pick up an item and then place it on another shelf, from which the reader associated with the original shelf cannot read this tag. In such a scenario, if the inventory system is not intelligent enough to look at the misplaced items on other shelves, it will incorrectly assume that this item has been removed. Shelves are generally made of metal, which detrimentally affects tag reads. Short-range readers operating at 13.56 MHz are used to alleviate this problem, which introduces two other problems: First, multiple readers might be necessary to cover a long shelf, which increases the hardware cost; second, duplicate reading of the same item by different readers might occur. Therefore, if the RFID middleware is not intelligent enough to correctly filter out the duplicate readings, the inventory system might experience inconsistencies. In short, the implementation of smart shelf is not straightforward, and such implementation can prove expensive. Therefore, currently, it might not make business sense for a retailer to implement this application on a large scale. Even though the smart-shelf applications might not be rolled out in the near future, this does not mean that vendors and businesses should avoid investigating the potential for such applications in their relative environments. 4.1.3. Asset Monitoring and ManagementThe asset monitoring and management application class type is characterized by the following:
The basis of this class of application is the determination of the location of an item in real-time using RFID tags. The entire frequency range of RFID has asset-related products. You can use both passive and active tags for asset monitoring. In this context, note that an ANSI standard already exists. The ANS INCITS 371 standard developed by the International Committee for Information Technology Standards enables users to locate, manage, and optimize mobile assets throughout the supply chain (see Chapter 10). Generally, stationary readers read the asset tags when they pass through a certain facility. This data and the readers' location information are then transferred to the back end and fed into an asset-monitoring system. Both local and global/wide-area monitoring is possible. You can use satellite communication networks to link RFID systems for global asset monitoring; the major vendors that offer asset-monitoring solutions have either bought or partnered with at least one satellite communications company. Note that today, no such (active) tag exists that can perform satellite communication directly. However, a reader or a network of readers can be connected to a base station that, in turn, can use satellite communication. You can also use wireless 802.11x networks for local monitoring. Member Applications This application class type has a large overlap with item tracking and tracing. Indeed, an item to be tracked can be viewed as an asset that can be monitored. However, one distinguishing aspect of this type of application is collection of asset properties in real time, together with its unique ID, to aid in management of this asset. One example is collection of vehicle diagnostic data together with the vehicle's unique ID to manage the life cycle of a fleet better. Some important examples of this application type are as follows:
4.1.3.1. Fleet Monitoring and ManagementIn this type of application, RFID tags are mounted on transportation items such as power units, trailers, containers, dollies, and vehicles. These tags contain pertinent data about the item by which it can be identified and managed. Readers, both stationary and mobile, are placed at locations through which these tagged items move (for example, access controlled gates, fuel pumps, dock doors, and maintenance areas). These readers automatically read the data from the tags and transmit it to distributed or centralized data centers as well as an asset-management system. This system can then allow or deny a vehicle access to a gate, fuel, maintenance facilities, and so on. Thus, using the data from the tagged items and vehicles, an asset-management system can locate, control, and manage resources to optimize utilization on a continuous, real-time basis. The data captured from the tagged items is fast and accurate, resulting in elimination of manual entry methods, which, in turn, reduces wait times in lanes and dwell times for drivers and equipment. Benefits
Caveats
Implementation Notes Semi-active read-only, and read-write tags with specialized on-board electronics (for example, to indicate the status of a data transaction), are generally used. Most importantly, such a tag can be integrated with a vehicle's on-board sensors to relay critical vehicle information such as fuel level, oil pressure, and temperature to a reader. The fleet-management system uses this data to determine proactive maintenance on vehicles, resulting in a longer fleet life. Installed Base Fleet-management systems using RFID have been deployed by the Maryland Transit Administration (Automatic Vehicle Location System). 4.1.4. Anti-TheftRFID can provide an effective deterrent against theft. A solution of this type is characterized by the following:
You can use both passive and active tags for this purpose. For a high-value item such as a laptop, an active tag with an built-in motion detector can be attached to the item. Whenever this laptop is moved, the built-in motion detector in the tag can sense the motion and transmit this information to its surroundings. An appropriate reader can receive and relay this information to a back-end system. The back end can then initiate various actions. For example, it can either lock the exit(s) through which the item can be taken out of the building, it can trigger an alarm, or it can initiate a video recording of the place where the item is currently located. If a passive tag is used, its tag ID can be read at an exit point, or the absence of this tag can be detected by the back-end system using stationary readers (attached to the ceilings in the storage area, for instance). This, in turn, can trigger multiple actions by a back-end system. Note that RFID anti-theft solutions are currently not cheap. Therefore, the cost of implementing an anti-theft RFID solution needs to be carefully weighed against the benefits. Retail is a very important area for anti-theft applications. According to the University of Florida National Retail Security Survey (2002), U.S. retailers lose an estimated $31.3 billion from inventory shrinkage.[1] Consumer theft accounts for 31.7 percent of this loss. In addition, the Center For Retail Research (based in the United Kingdom), estimates that shrinkage costs Western European retailers about 30 billion annually.[2] About 48 percent of these losses result from customer theft. These losses directly translate into lost revenue and a thinner profit margin for retailers already in a fiercely competitive marketplace. The use of RFID is presently gaining momentum in retail anti-theft applications. The application class type called EAS (electronic article surveillance), described in the following section, deserves a special mention in this context because its use is so widespread and well established today. EAS widely uses RF tags that cannot be called RFID tags per se. However, RFID tags can be used in conjunction with EAS tags to enhance the anti-theft capabilities of an EAS system.
Member Applications The following are some example RFID anti-theft applications in use today:
Now a brief discussion of EAS is in order. 4.1.4.1. Electronic Article Surveillance (EAS)The application uses what are called 1-bit RF tags, or EAS tags, consisting of only 1 bit of storage. Thus, no unique item identification data is stored on the tag, and hence these tags cannot be used to identify an item uniquely. Therefore, these tags can be called RF tags, but not RFID tags. Initially, when a tag of this type is attached to an item to be monitored for theft, its bit value is set to 1. The bit value of this tag is set to 0 at the checkout counter when the customer pays for this item. When this tag is presented to a reader (generally, located at the exit points of a store), the tag notifies its presence by transmitting its bit value. A bit value of 1 signifies its presence, and a bit value of 0 signifies absence. When a reader determines the presence of such a tag in its read zone, it assumes that the associated item is being stolen. It then triggers visual and audible alarms to warn of a possible theft attempt. You can integrate EAS tags into item labels and price tags with no visible difference to the labels or price tags. Benefits
Caveats
Implementation Notes EAS tags are generally unaffected by pressure or magnets and are available in various and custom sizes to fit a particular product needs. The tags can generally be deactivated at a distance of 15 inches (38 centimeters approximately) and can be read as far away as 6 feet (about 1.8 meter). A reusable tag has a hard-to-defeat locking mechanism that is used to keep it attached to an item. With a detacher device, store personnel can easily detach these tags the POS. Disposable and reusable tags can be used together. Installed Base Almost every type of retail store, ranging from general merchandise stores to high-end electronics, use this solution to protect its merchandise from being stolen by shoplifters. 4.1.5. Electronic PaymentThis electronic payment application class type is characterized by the following:
At the time of transaction, the customer identification data on the tag is associated with the actual customer account number at the back end. This level of indirection protects customer account numbers in case the tag is missing or stolen. When a reader at the POS reads the customer identification data from the tag and the associated customer account number is located, the transaction then proceeds normally like any other regular transaction. Member Applications This application class type is gaining wide user acceptance, as indicated by the size of user bases of some of the applications belonging to this class (for example, Speedpass from ExxonMobil). This application class represents one of the massive-scale rollouts of an RFID solution, which is not so common even today. Some of the most important applications belonging to this class type are as follows:
These two applications are probably the most well-known RFID electronic payment applications in use today and are discussed in the next subsections. 4.1.5.1. SpeedpassSpeedpass, a very popular application from ExxonMobil, uses a "wand," which is a small cylinder shaped device that contains a tag, for electronic payment at participating Exxon and Mobil gas stations. A customer just points or waves this tag near a specially marked area on a pump or register. The application automatically initiates and completes the transaction without any need for the customer to punch in a PIN or sign a receipt. Benefits
Caveats
Implementation Notes A "wand" is a passive, LF 134.2 KHz key-ring tag from Texas Instruments, Inc. It contains a 23 millimeter glass-encapsulated tag packaged inside plastic housing to withstand rough handling. It weighs about 4.5 grams. This tag is available in three versions, offering various levels of security. Figure 4-4 shows a Speedpass tag. Figure 4-4. Speedpass tag.Reprinted with permission from Texas Instruments Installed Base Started in 1997 by Mobil Oil Corporation, Speedpass is currently used at more than 8,900 locations in the United States and 1,600 locations in Canada, Singapore, and Japan. There are more than 6 million devices in the United States. There is no fee to enroll in the Speedpass program or to use Speedpass for purchases. 4.1.5.2. Electronic Toll PaymentToll agencies in the United States and other countries use RFID to allow drivers to pay for tolls electronically at toll booths. A customer opens an account with a predefined amount of money with an agency that is responsible for toll collection. The customer then receives a tag with a unique ID. This tag is mounted, generally on the vehicle's windshield (see Figure 4-5), so that it can be read properly by readers at toll booths. When this customer drives through a toll booth that accepts electronic payment, the tag ID is read, the associated prepaid account is accessed, and the toll amount is subtracted from the account balanceautomatically. The tag can display the account status by turning on its different-colored indicators. For example, green means toll paid, yellow means toll paid but account balance is low, and so on. A customer can fund his prepaid account with a credit card that automatically gets charged when the account balance is insufficient. Alternatively, a customer can also replenish his account online, via phone, or can mail a check. Figure 4-5. Electronic toll payment.Benefits
Caveats
Implementation Notes Generally, a semi-active tag is used, which besides containing the unique customer ID also contains specialized electronics for displaying account status, battery level, and so forth. Installed Base Some of the well-known electronic toll payment systems are SunPass in Florida; E-Z Pass in New Jersey, New York, New Hampshire, Maine, and Delaware; I-Pass in Illinois; Smart Tag in Virginia; CruiseCard in Georgia; FAST LANE system in Massachusetts; PIKEPASS in Oklahoma; and a combined electronic toll and traffic-management system in Houston. 4.1.6. Access ControlRFID has been successfully used in providing access control solutions. A solution of this type is characterized by the following:
This application type is relatively mature compared to some other prevalent application types in terms of the RFID technology and systems that go with it. One of the characteristics of a mature technology is the existence of standards. The ISO 15693 (ISO SC17/WG8) vicinity cards standard is widely accepted by 13.56 MHz access control products. Member Applications Some well-known examples of applications belonging to this type are as follows:
The first member application mentioned here is one of the most widely deployed. This is discussed in the next subsection. 4.1.6.1. Perimeter and Building Security SystemThis RFID application member is used for securing access to specific areas of a location (for example, a loading dock of a warehouse or a building). An example of the latter is the entry gate of a highly secured building (for example, an army headquarters), access to which, if compromised, could lead to danger of the personnel working in the building (besides the negative publicity that might result from such an incident). In July 2004, the Mexican government announced that it was implanting RFID tags under the skin of the employees of its $30 million anti-crime computer center in Mexico City to ensure secure access to this facility and to track an employee if he or she is kidnapped.[3]
Benefits
Caveats
Implementation Notes Generally, passive tags in the 128 KHz and 13.56 MHz frequency ranges compliant with the ISO 15693 standard are used for access control. The storage capacities of the tags can vary from 64 bits to 2 K bits, with read range of up to approximately 4.5 feet (1.5 meters). Note that passive tags in the UHF frequency ranges can also be used for this application member. Installed Base The 75th Academy Awards in Los Angeles used a passive 13.56 MHz RFID security system to provide access control to about 11,000 attendees. The U.S. Army prototyped this application in 2003. 4.1.7. Anti-TamperingThe anti-tampering application class type is characterized by the following:
An RFID tag used for this application type acts as a tamperproof seal. This seal, besides identifying the sealed item uniquely, can also provide the evidence of tampering, if any. Moreover, this application type, when integrated with other application types such as access control, can also provide identification of the person(s) who might be involved in tampering with the seal. Although it might seem that this system could be defeated easily by carefully opening the seal and resealing it again, this is very difficult, and close to impossible in most cases. Both passive and active tags are used for members of this application type. This area is one of the busiest areas of research, and it is expected that sophisticated anti-tamper RFID tags will be available commercially in the future. Member Applications This application class type has gained the interest of the government, especially in the wake of heightened national security. The potential of this application type has also caught the attention of drug manufacturers. Currently, some of the application members belonging to this type are as follows:
The first application member is currently experiencing strong backing from the government, and is discussed in the next subsection. 4.1.7.1. Smart Shipping ContainersThis application member is used to secure containers shipped internationally. About 90 percent of the world's cargo moves by container. About 7 million cargo containers arrive and are offloaded at U.S. seaports each year. Less than 2 percent of these containers are opened by U.S. customs officials, which means this represents a potential area of concern for national security. In January 2002, U.S. Customs (now U.S. Customs and Border Protection) announced an initiative called the Container Security Initiative (CSI) to secure containers that could be a potential threat to global trade. The four basic elements of this initiative are as follows:[4]
The fourth element of the CSI is where RFID can play a major role. At present, 19 of the world's largest 20 ports have committed to join the CSI. These ports handle about two thirds of containers that enter the U.S. annually. CSI is also operational in Sweden and South Africa, with Malaysia and Sri Lanka having agreed to join the CSI effort. Currently, CSI signing discussions are underway for ports in South and Central America, Southeast Asia, Europe, and the Middle East.[5]
Closely related to CSI is the Smart and Secure Tradelanes (SST) initiative targeted at improving container security through a combination of technologies, including RFID, sensors, GPS, and so forth, integrated using the Universal Data Appliance Protocol (UDAP). The U.S. military has deployed the world's largest active RFID tag application, called Total Asset Visibility (TAV), which tracks and manages 270,000 military supply containers in 400 locations in 40 countries. This application type can provide a good measure of security in an automatic manner over a wide geographical area. An RFID active tag is attached to the container and in some cases, besides having tamper-detection capabilities, can detect certain other conditions (biological weapons, narcotics, and explosives, for instance). Benefits
Caveats
Implementation Notes Generally, active tags in the 433 MHz frequency range are used with a read range between 100 and 300 feet. This band is available for unlicensed operation in several countries. Various sensors can be embedded inside such a tag to provide specific functionality (for example, detecting explosives or radioactive emission). In April 2004, the Federal Communications Commission (FCC) announced two changes to affirm its support for the security of commercial shipping containers and homeland security:
The following three ISO standards are pertinent to this application member. All of these standards fall under ISO Technical Committee (TC) 104, Freight Containers, Subcommittee 4, Working Group 2:
Installed Base Several ports around the world have installed RFID technology to provide port security and security of shipped containers. Some example ports in the United States are Los Angeles/Long Beach, New York/New Jersey, Seattle/Tacoma, and Houston. In the international arena, ports that use RFID-related port security applications (SST) include Antwerp and Rotterdam in the Netherlands, and Felixstowe in the United Kingdom. In 2002, three of the world's largest seaport operatorsHutchinson Whampoa, PSA Corp, and P&O Portsagreed to use RFID in an effort to enhance seaport security. |