Section 4.1. Prevalent Application Types


4.1. Prevalent Application Types

Currently, some of the most prominent RFID applications are as follows:

  • Item tracking and tracing

  • Inventory monitoring and control

  • Asset monitoring and management

  • Anti-theft

  • Electronic payment

  • Access control

  • Anti-tampering

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 Tracing

The item tracking and tracing application class type is characterized by the following:

  • Attaching a tag containing a unique identifier on an item to be tracked

  • Reading this tag identifier at specific locations while the item moves

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:

  • Satellite tracking. Satellite tracking can identify the location of the tag whenever queried.

    However, an RFID tag that can communicate directly via satellite communication has yet to appear on the market. In addition, this is quite distinct from the capabilities offered by RFID. It is possible for an RFID tag to indirectly "communicate" to the base station via a reader via satellite communication or some type of wired/wireless network. Note that in this context, commercially available products today can perform two-way communication directly via satellite communication. For example, the T2000 from TransCore Corporation is a rugged, ultra-compact satellite communication device that has a built-in antenna (see Figure 4-1). This device can perform secure two-way communication using geosynchronous L-band satellites. To reiterate, however, this is not an (active) RFID tag.

    Figure 4-1. GlobalWave T2000 Data Communication Terminal.

    Reprinted with permission from TransCore


  • Limited-range active/passive tagging. Limited-range active/passive tagging requires the tag to move through a choke point to be scanned.

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:

  • Supply-chain management. This is discussed in the next subsection.

  • Tracking of hazardous materials. This is discussed in the next subsection.

  • Airline baggage tracking. RFID tags embedded in airline baggage tags can be used to provide an effective tracking solution. Such an RFID tag has sufficient storage to carry baggage handling and routing data so that this data is available locally, bypassing any need to access a baggage database. RFID tags can be read, unlike barcodes, in virtually any orientation (irrespective of overlaps with other baggage), resulting in faster and more accurate scanning as compared to bar codes. The International Air Transport Association (IATA) has yet to adopt an industry standard to replace bar coded luggage tags with RFID and automatic handling of passenger baggage. In industry testing (British Airways in 1999 and Delta Airlines in 2003) of the technology, RFID tag labels resulted in accuracy rates in the 95 percent to 99 percent range, whereas bar codes could only offer accuracy rates in the range of 80 percent to 85 percent (approximately). This application has not yet been widely deployed commercially. Airline baggage tracking is an example of an emerging application member belonging to this prevalent application type (that is, item tracking and tracing).

The following subsections discuss the first two examples of this application type.

4.1.1.1. Supply-Chain Management

An 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:

  1. At the manufacturer's shipping dock, the container is loaded onto a truck that will leave the manufacturing plant.

  2. The container arrives at the receiving dock of the distribution center.

  3. At the distribution center's shipping dock, the container is loaded onto a truck that will leave the distribution center.

  4. The container arrives at the retailer.

  5. The customer buys this container at the sales counter of the retailer.

  6. The empty container arrives at a recycling center.

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:

  • Reduce shrinkage for the manufacturer. Because an item can be tracked through the entire supply chain, and the information gathered can include the personnel moving the item, the responsible parties and the point(s) of occurrence can easily be traced in case of shrinkage.

  • Enable the retailer to better understand a product's sale potential. Customers who buy a certain item can be tracked, and businesses can use this data to target buyers for special promotions. (Note that a bar code solution can also offer similar benefits.)

  • Enable better inventory management for the retailer. The retailer, better able to understand a product's sale potential, can stock up or stock down a particular item, thus maximizing the sales potential with optimum inventory.

  • Enable better asset monitoring and utilization. The ability to accurately locate an item and its associated information (which can be both static and dynamic), enables businesses to better monitor and utilize this item.

  • Reduce out-of-stocks for the retailer. When a customer removes an item from the shelf, the back-end system(s) detects the absence of the item. Businesses can use this information to determine whether the shelf is empty and needs to be replenished.

Caveats

  • Tagging and tracking, down to an individual item level, generally represents the most challenging task in the RFID context because of virtually infinite variations in the tagged object material type, packaging, environmental conditions, and so on. Generally, a pallet is the easiest item to tag, followed by a case, because a pallet has limited variations in shape, size, and composition material as compared to that of an item. These factors vary more for a case, but are still limited as compared to that of an item. However, depending on the read requirements and environmental conditions, the degree of complexity involved in reading pallet, case, and item tags can vary (see Chapter 9, "Designing and Implementing an RFID Solution").

  • A significant privacy concern is raised by the tagging of individual items that a consumer can buy or use. The concern is that a consumer may be tracked via the tags on the items he or she buys (see Chapter 5, "Privacy Concerns"). Businesses are currently wary of adopting item-level tagging before the privacy issues are settled.

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 Tracking

Chemical 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:

  • What is the chemical type, its constituents, and other properties such as concentration and so forth (that is, the Material Safety Data Sheet [MSDS] information)?

  • When did the container arrive at the shipping dock?

  • Who ordered it?

  • When and where was it last spotted inside the plant?

  • Is it in transit inside the plant? If so, what is the source and what is the destination? Has it arrived at the destination within the estimated time?

  • Has it exited the plant (for example, been shipped to the original supplier for recycling, or been shipped to a distributor or a customer)?

Benefits

  • Public safety. Proper tracking can prevent hazardous materials from being handled inappropriately. A small quantity of a hazardous material, if mishandled or having fallen into the wrong hands, can cause substantial financial and emotional damage, both for a plant and those exposed. At this time of heightened national security, every chemical plant that handles hazardous materials should implement strict access and handling controls over their chemicals.

  • Less environmental pollution. Proper recycling and decontamination of hazardous materials and their containers can help prevent environmental pollution.

Caveats

  • It is very desirable to track a hazardous material at the item level, in addition to the pallet and case levels.

  • Tagging and tracking hazardous materials in metal cylinders and plastic containers in liquid form might prove difficult (see Chapter 9).

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 Control

The inventory monitoring and control application class type is characterized by the following:

  • Attaching a tag containing a unique identifier on an inventory item to be monitored

  • Detecting the presence or absence of this item in the inventory by attempting to read the tag data on a periodic basis

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:

  • Automatically notify personnel and other associated systems

  • Post an order for this item to its supplier(s)

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:

  • Smart shelves. This is described in the next subsection.

  • Parts inventory management for airline and automobile manufacturing plants. Large airlines can track about half a million parts, for example, and might have as much as $1 billion worth of parts in inventory. The current inventory process is overwhelmingly manual, resulting in a high degree of error (and hence a high cost of maintaining inventory). An RFID tag used for such a purpose needs to have a large amount of memory. (For example, it is not unusual to have tags with 10 K of memory.) This extra memory is needed to store custom data of a part, such as repair history and part identification. RFID tags that operate in the 13.56 MHz frequency range prove most suitable for this purpose because they can be used in metal environments and this frequency has worldwide approval. However, these types of tags have a low read/write range (less than 1 meter). This is an example of an emerging application member belonging to this prevalent application type.

The following subsection examines smart shelves, an interesting application.

4.1.2.1. Smart Shelves

Today, 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

  • Reduce out-of-stocks for the retailer.

  • Enable the retailer to better understand a product's sale potential.

  • Enable better inventory management for the retailer.

  • If an item is misplaced, the back-end system(s) can notify store personnel where this (misplaced) item is and where to place it correctly.

  • Some level of support for anti-theft. If an unusual number of items are suddenly missing from a shelf, it might be possible that a theft has occurred.

Caveats

  • A smart-shelf application tracks inventory at an individual item level; pallets and cases do not count. As a result, this type of application represents the most challenging task in the RFID context (see Chapter 9).

  • The tags are still too expensive to be used for tagging individual items that are not high-valued not to mention the cost of other hardware like the readers and antennas. The cost of the tag has to fall to less than one penny for its widespread use to tag low-value items. The current goal and challenge for manufacturers is to produce a 5¢ tag, which may take another 10 to 15 years or more.

  • The implementation is far from simple, as discussed next.

  • Substantial privacy concerns abound regarding the tagging of individual items that a consumer can buy or use. What is the guarantee that retailers and manufacturers will not monitor their products after they have been sold to customers (see Chapter 5)?

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 Management

The asset monitoring and management application class type is characterized by the following:

  • Attaching a tag that contains a unique identifier on an asset item to be monitored

  • Detecting the location and other properties and states of this item in real time by attempting to read the tag data on a periodic as well as on an on-demand basis

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:

  • Fleet monitoring and management. This is discussed in detail in the next subsection.

  • Animal tracking. Today, use of RFID is becoming common to track livestock. A tag attached to an animal can be used to monitor its health, movement, and so on. Animal tracking can also be used to track wildlife and fish to monitor their characteristics (such as migration and breeding patterns). ISO 11784 /11785, the international standard for radio frequency identification of animals based on 134.2 KHz technology, is the prominent standard for animal tracking. Some criticize this standard being susceptible to duplicate identification numbers that can be introduced by different manufacturers due to lack of proper enforcement of the identification numbers by the standard bodies. The International Committee for Animal Recording (ICAR) is a Paris-based international body that is responsible for worldwide standardization of animal recording and productivity evaluation. ICAR, in agreement with the ISO, has been developing compliance procedures for testing and validation of RFID systems with this ISO standard.

4.1.3.1. Fleet Monitoring and Management

In 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

  • Better use of assets. The ability to locate, control, and use an asset when needed allows optimum use of an asset in a fleet.

  • Improved operations. Accurate and automatic data capture coupled with intelligent control leads to better security of controlled areas, provides proactive vehicle maintenance, and enhances fleet life.

  • Improved communication. Real-time, accurate fleet data provides better communication to customers, management, and operation personnel.

Caveats

  • High initial investment might be needed in hardware and infrastructure. Cost increases with the fleet size and the number of data capture points. In addition, for geographically dispersed operations, wide-area wireless communications such as satellite communication might be needed, thus increasing the infrastructure cost. Vendors generally supply a fleet-management system. Otherwise, the cost of custom implementation of such a system can be expensive.

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-Theft

RFID can provide an effective deterrent against theft. A solution of this type is characterized by the following:

  • Attaching a tag to an item to be monitored for theft

  • Reading the tag ID at the vulnerable points (for example, at exit points, during starting of the ignition of an automobile, and so on)

  • Alternative or additional features such as the ability to remove an attached tag from the item only after the correct payment has been made, the ability to detect movement of the attached item and reporting it to a nearby reader, and so on

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.

[1] National Retail Security Survey, Final Report. University of Florida, 2002. Richard C. Hollinger, Ph.D., director, and Jason L. Davis, graduate research associate.

[2] Key results of the European Retail Theft Barometer, 2004. J. Bamfield, Centre for Retail Research (Nottingham, UK).

Member Applications

The following are some example RFID anti-theft applications in use today:

  • Automotive anti-theft immobilization. In this commercially deployed solution, an embedded reader located inside the car (for example, in the steering wheel) becomes activated when a driver turns the ignition key. This reader then attempts to read the valid unique code from a tag in its vicinity. Generally, the tags are small and can be embedded in an ignition key (for example, in the key head). If the reader detects a valid tag, the ignition starts. In general, passive 134.2 KHz LF tags are used. However, today's car thieves can breach these systems in various ways (for instance, by locating and overriding the embedded RFID unit, or by using a device that can imitate the code transmitted by such a key). To counter these methods, new-generation RFID anti-theft applications use a combination of active and passive tags that involve multiple authentication steps. The automobile cannot be started until all authentication steps have succeeded. Therefore, even if a potential car thief overrides one or a few of these steps, the other steps will prohibit the thief from starting the car and driving it away.

  • Retail anti-theft in combination with EAS. This solution has also been commercially deployed. In this application type, a specialized RFID tag is attached to the item that already has an EAS RF tag. Generally, passive 13.56 MHz HF tags are used. Although this is an example of item-level tagging, the tags are removed at the point of sale (POS) and reused, thus bypassing any privacy concerns. Such an RFID tag, unlike the attached RF EAS tag, can report exactly what item has been shoplifted in case of a theft. Therefore, this application can also help the retailer in inventory management. The specialized features of the tag might include mechanisms to foil what is termed as sweethearting. In a sweethearting scenario, checkout personnel remove the tag without accepting any payment or accepting a sum that is less than the item's sale price. To prevent this, the attached RFID tag can be removed only when the correct payment has been received. The tag memory is also erased at the time of detachment so that it can be reused.

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

  • Affordable solution. The 1-bit tags are very cheap to produce and cost less than a penny.

  • Simple solution. It involves minimum complexity as far as an RF solution is concerned.

  • Effective solution. You can blend an EAS tag into merchandise physical characteristics in such a manner that it can be very difficult to detect it.

  • No privacy issues. Because these tags do not contain any unique item identification, they cannot be used to track purchases bought by a customer.

  • Widely deployed solution. The simplicity and cost of the solution are major drivers for its wide acceptance.

Caveats

  • Simple solution. This solution can be easily defeated. A tag is generally hidden inside an item so that it cannot be easily detected. If a would-be thief can locate the tag, however, he can just strip the tag off the item and discard it, after which he can take the item out of the store without raising any alarms.

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 Payment

This electronic payment application class type is characterized by the following:

  • A tag that contains a unique customer number

  • Reading this customer tag data at the POS

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:

  • Speedpass

  • Electronic toll payment

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. Speedpass

Speedpass, 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

  • Fast, easy, and convenient. All the customer has to do is point the tag appropriately; the rest is automatic. The tag can be carried in a key chain and is sturdy.

  • Cashless. This small device obviates the need to carry cash because it is tied to the customer's account number, much like a debit card.

  • Secure. Unlike a debit card, a customer's actual account number is never stored on the tag. In addition, the transaction type and the amount of money that can be spent per transaction are generally limited. Therefore, if this device is stolen, the maximum amount of money that can be lost is limited. The issuer can invalidate a lost tag's data instantly, thus making the stolen tag useless, without changing the customer's actual account number.

  • High customer satisfaction. More than 90 percent of customers report they are highly satisfied using the application.

Caveats

  • Limited acceptance. The type of transactions that can be made using a tag are specialized and limited to participating Exxon and Mobil gas stations.

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 Payment

Toll 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

  • Fast, easy, and convenient. All the customer has to do is drive through the toll booth; the rest is automaticno need to stop, carry exact change, or wait at a booth to get change from the operator.

  • Cashless. This small device obviates the need to carry cash because it is loaded with a predefined amount of money. The device can be reloaded when the money it contains is used up.

  • Secure. The tag contains a limited amount of cash. Therefore, if this device is stolen, the maximum amount of money that can be lost is limited. The issuer can invalidate a lost tag's data instantly, thus making the stolen tag useless. The overall system is also considerably secure, although the system back end was breached at least once (but was fixed very quickly). Personal "studies" on the Web advise how to bypass this system. However, you should not follow these schemes; other means are typically used to make sure this system is close to foolproof (for example, video recording of a vehicle's license plate even if the toll is paid, and police officers at standby to catch toll evaders).

Caveats

  • Limited acceptance. Transaction types are limited to a specific toll agency's toll booths.

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 Control

RFID has been successfully used in providing access control solutions. A solution of this type is characterized by the following:

  • A tag that contains unique identification data and that is carried by the object or the person to gain access (for example, a tag placed on a vehicle windshield, embedded in an person's ID badge or under his skin)

  • Reading the tag ID data at the access control points (with the ID then being forwarded to a security system that decides the actual access permission)

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:

  • Perimeter and building security systems. This is discussed in the next subsection.

  • Parking access systems. In this application, a passive RFID tag is attached to a vehicle (for example, on the windshield) that needs access to the parking system. When the driver pulls this vehicle up to the parking entrance, a reader reads the unique tag data on the tag and forwards it to an access system. This system, depending on the access permission associated with the tag data, either grants or denies access to the parking area. If access is granted, the entrance gates are opened to let the vehicle inside the parking area. Generally, 13.56 MHz passive tags are used for this application. Active and semi-active RFID tags are also used when long range and enhanced security are needed.

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 System

This 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]

[3] The tracking benefit is misconceived because it confuses passive RFID tags with active RFID tags having GPS capability. Such tags do not currently exist, and these will most likely be too large to implant under the skin of a human.

Benefits

  • Flexible security control. The permissions associated with a particular ID for a particular facility can be granted or revoked dynamically based on a central control system. Such an ID is first forwarded (via an RFID reader connected to a network) to this central security system. This system then uses a variety of factors, such as the number of access times to this facility by this ID and so forth, to decide whether permission should be granted. In addition, you can integrate this type of application with other RFID application types, such as anti-theft, to provide monitoring and tracking of persons who have accessed assets. For example, if the access control system determines that a person does not have the necessary permission, it can send a trigger to the anti-theft system to take action (for example, starting a video recording of this person and sending alerts to appropriate personnel and so on).

  • Fairly economical. A new generation of cheaper ISO 15693 RFID tags have arrived on the market.

  • Relatively mature. This application is well understood and has a wide variety of tag hardware available from vendors and systems from integrators.

  • Standard-based solution. ISO 15693 is the de facto standard used for these types of tags.

Caveats

  • Can be bypassed. An individual can tailgate an authorized person through an access point to bypass security.

  • Can be defeated. The tag can be stolen and used to gain access provided the original tag owner is unaware of this theft (which would mean that the application has not been notified to deactivate this tag ID).

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-Tampering

The anti-tampering application class type is characterized by the following:

  • Attaching a tag that contains a unique identifier on an item to be monitored for anti-tampering. This tag is placed around the cap or lid of the container of this item, essentially forming an electronic seal.

  • Detecting the occurrence of breaching the seal. Various methods can be used to determine the breach (for example, comparing the original position of the label with very high accuracy or using optical characteristics of the seal).

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:

  • Smart shipping containers and port security. This is discussed in the next subsection.

  • Drug anti-tampering. This is still in the prototyping stage and is considered an emerging application member. The tags used for this application member are passive tags in the 13.56 MHz frequency range. The tags are generally not impacted by x-rays or electronic methods of defeat. After a drug container is sealed, the tag can detect tampering if the tag position is altered, even by a very small amount. If the tag is carefully removed, it has to be put back extremely accurately in its original position to avoid detection by the tag. This accuracy is very difficult, if not impossible, to achieve in practice.

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 Containers

This 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]

[4] "Extending the Nation's Zone of Security." Maggie Myers, Public Affairs Specialist. Office of Public Affairs, March 2004.

  1. Using intelligence and automated information to identify and target containers that pose a potential terrorism risk

  2. Prescreening containers as high-risk at the port of departure, before they arrive at U.S. ports

  3. Using detection technology to quickly prescreen containers that pose a risk

  4. Using "smarter," tamper-evident containers

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]

[5] "Extending the Nation's Zone of Security." Maggie Myers, Public Affairs Specialist. Office of Public Affairs, March 2004.

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

  • Flexible security control. These active RFID tags can function as sensors to detect the presence of explosives or radioactive emissions, among other things. In addition, this application member can be integrated with other application types, such as access control, to provide information about persons who have accessed this container.

  • Real-time notification of tampering. If a shipping container has been tampered with, it might be of little use to discover this at a port. The tampered-with container might now contain extremely dangerous material, such as a biological or nuclear weapon, that can cause widespread destruction even when detected at this point in time. Potentially, RFID tags can be made to transmit via readers to a central station as soon as a tag detects tampering. The base station can then forward this information to a remote center using a wireless wide area network. This scheme does not need a costly setup (as compared to setting up a network of RFID readers over a very large area to track an item) and can send tamper alerts almost anywhere in the world.

  • Privacy concerns are not an issue. Although it might seem that tagging an item for tamper detection might intrude upon the privacy of the shipper(s), it is not applicable in this situation. According to international import and export regulations, authorities in charge may open any shipped container for inspection.

  • Real-time inventory. This is one of the chief benefits, besides providing tamperproof capabilities. The readers inside a dock can receive data from these tags when the containers are in station, which results in automatic inventory.

  • Real-time location. Readers in a dock, ship, or a rail yard can use the transmissions from the tags to approximately determine the position of the associated containers. Accurate location information can be obtained if the tag has a built-in GPS receiver.

  • Standards based. Multiple standards exist for RFID-related applications for freight containers.

Caveats

  • Expensive. The active tags used for this application member are priced at several dollars per unit. The costs are higher depending on the functionality provided by the tag. For example, a tag might have in-built sensor for explosive chemicals detection and/or the capability to communicate through satellite and function as a GPS receiver to transmit its position in real time. Although such cost can be justified when used in defense and military contexts, the cost of such tags might not be justified when used for commercial freight.

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:

  1. The maximum permissible signal level was increased for RFID systems working in the 433.5 to 434.5 MHz frequency range.

  2. The transmission duration limit was increased from 1 to 60 seconds.

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:

  • ISO 10374. This is an existing standard for automatic identification of freight containers using RFID. This standard deals with read-only tags operating in the 850 to 950 MHz and 2,400 to 2,500 MHz frequency ranges. Because these frequencies do not work very well for this application type, however, this standard has not been widely accepted or implemented.

  • ISO 18185. This draft international standard is directed at electronic container seals. This standard involves both passive and active RFID tags.

  • ISO 23359. This standard includes read/write RFID tags for freight containers.

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.



    RFID Sourcebook
    RFID Sourcebook (paperback)
    ISBN: 0132762021
    EAN: 2147483647
    Year: 2006
    Pages: 100
    Authors: Sandip Lahiri

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