Advantages of RFID in Transportation & Logistics - Motorola Solutions

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WHITE PAPERRFID: DRIVING THE VISIBLE SUPPLY CHAINfrom one end of the supply chain to the other. This trend willonly increase as RFID technology continues to evolve,improving performance and lowering price points. Inaddition, RFID technology is increasingly being used in avariety of other transportation and logistics applications.Sensing Food SafetyOne good example of RFID evolution is the increasinginterest in using RFID tags as sensors, for example, tomonitor food safety on refrigerated trailers. “Let’s say afruit supplier is sending pallets of pineapples and bananason the same refrigerated trailer, with each requiring adifferent temperature to ensure safety,” says Mike MarisSenior Director of Transportation & Logistics Solutions at,Motorola Solutions. “RFID tags on each pallet can containsensors that monitor temperatures in various vehicle areas.”When one area starts to warm up beyond spec, the RFIDtags automatically notify master control and the driverthrough an on-board vehicle nerve center. In some cases,the tags can automatically cue the compressor to restorethe correct temperatures. In other cases, the driver can pullover and check the trailer to make certain the entireshipment maintains safe temperatures and the load won’tbe lost. In the event of a food recall, RFID sensors also helpensure all-important traceability.Quality Control and More“Another trend we’re seeing is the use of RFID to ensuresupply chain quality control,” continues Maris. “Similar tothe ‘mystery shopper’ concept, organizations are using RFIDto track certain shipments and monitor quality controlacross the supply chain. You might call them ‘mysteryshippers.’” One organization using RFID for quality control isCorreos, the Spanish National Postal Service, which placesRFID tags in sample letters sent to various areas of thecountry. They then follow the RFID with readers throughoutthe whole process from pickup to delivery, then documentwhere they’ve been successful and where they haven’t.“There are many other ways, besides tracking assets, thatRFID helps instill quality control in transportation andlogistics processes and procedures,” Maris adds. “Forexample, for transportation companies, RFID can helptrucking companies reduce fuel costs with tags placedinside gas tanks automatically recording the amount of fueland charging the transaction to the system. This eliminatesthe need for drivers to carry credit cards or cash, andreduces opportunity for robbery and theft.” Other examplesinclude using RFID to provide “dead reckoning” location ofassets or people within one meter inside a warehouse ordistribution center, and RFID is helping to drive greeninitiatives such as reusable containers and other returnabletransport items (RTIs) and recycling programs.Third-party carrier Deutsche Post DHL is currently using aSmart Truck pilot project in Berlin to test innovative routeplanning to deliver better customer service and lower CO2emissions. RFID tags and readers first ensure that the rightpackages are on the right truck, then dispatch sends anoptimum route based on real-time traffic conditions. Built-inGPS guides the driver to the first delivery, and RFID checksto ensure the right package has been delivered. Turn-by-turn“OVERALL, (RFID) SENSOR DATA HAS MANY USES FORTHE FOOD INDUSTRY. CHEMICAL-BIOLOGICAL ANDTEMPERATURE SENSORS ARE USED TO MONITORFOOD SUPPLY AND FOOD RECALLS —FROM TRACKINGWHETHER A BUILDING THAT HOUSES FOOD HASVIBRATED TO KNOWING EXACTLY WHEN A CONTAINEROF LETTUCES WILL GO BAD.”– RICHARD MACMANUS,EDITOR-IN-CHIEF, READWRITEWEB“SENSOR & RFID APPS FOR THE FUTURE” MAY, 2010PAGE 6
WHITE PAPERRFID: DRIVING THE VISIBLE SUPPLY CHAIN“AS RFID TECHNOLOGY HAS IMPROVED, AND PRICEPOINTS FOR TAGS AND EQUIPMENT DECLINE,THE OPPORTUNITY TO USE RFID PROFITABLY INMANUFACTURING, ASSET TRACKING OR OTHERAPPLICATIONS VERSUS OTHER AUTO ID TECHNOLOGIESINCREASES.”– SUPPLY CHAIN DIGEST ARTICLE, APRIL 2010directions are then sent to guide the truck to its seconddelivery and so on. The enhanced visibility provided by theRFID system confirms the status of each package at anygiven time, and ensures that packages are all deliveredcorrectly, lowering fuel costs and emissions throughoptimized routing and reduction in the number ofre-deliveries.Standards-Driven GrowthKey to global RFID growth is the establishment ofinternational standards. The industry is already workingtowards refining a number of standards across the supplychain. Standards that have been established includingElectronic Data Interchange (EDI) standards, the Global DataSynchronization Network (GDSM), the Produce TraceabilityInitiative, Generation 2 Electronic Product Code (EPC)systems, and GRAI standards for identifying containers.Says Maris, “There are many standards focused towardsbeing able to share information across the global supplychain and to enable product traceability every moment ofthe day.”RFID on a Fast TrackToday, RFID is proven technology providing far-reachingbenefits for transportation and logistics organizations.While many of these businesses are successfully usingsystems for asset management, warehouse and yardmanagement, the future of RFID goes far beyond internalclosed loop solutions. Transportation and logisticscompanies are moving inexorably toward deploying openloop solutions in which every link in the supply chain isable to utilize the same RFID tags. The industry is alreadyworking to fast track the solutions that will get us there,including developing innovative new RFID tagging andreading technologies such as active and semi-active tags,initiatives to enable environmentally friendly green solutionsand solutions to lower supply chain management costs.Equally important, RFID technology costs are steadilydecreasing as adoption continues to grow, thereby allowingfaster return on investment for projects while at the sametime allowing profitable RFID deployments across a widerset of materials and goods..In the not-so-distant future, open loop RFID systemswill play an ever-increasing role in lifting the curtain ofinvisibility from the global supply chain, delivering a broadrange of system management benefits, reducing costs andspurring the global economy to new heights of efficiency,control and ROI.PAGE 7
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Advantages of RFID in Transportation & Logistics - Motorola Solutions

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