THE DATA FRONT

Labels&Labeling |83
to pharmaceutical products.
Two-dimensional codes are also still going strong. Each 2-D
code can store far more characters than linear barcodes in a
smaller space, but require optically-based scanners for reading
and decoding. Commonly used 2-D codes for logistical labeling
include PDF417, a stacked linear symbol; and the Data Matrix
code comprising cells arranged in a square or rectangular
pattern. GS1 is currently developing Data Matrix encoding
standards specifically for the pharmaceutical and healthcare
industries. Other 2-D developments include the use of portable
technologies to extend barcode capabilities, including data
storage/retrieval, track and trace applications, or point-of-sale
applications. These emerging technologies owe much to the
Quick Response (QR) encrypted matrix barcode developed in
Japan by Denso Wave in 1994. Today, many Japanese people
use the camera in their mobile (cell) phones to scan QR codes
for hyperlinks with websites. With suitable marketing support,
extensions of this practice could eventually take off outside
Japan, although not necessarily with QR codes alone.
For many, RFID technology (see boxout) is a logical
progression to take logistics labeling to an even higher level.
RFID tags are commonly used to automatically identify larger
items, such as pallets and cartons, beyond the line of sight of
the reader. Besides providing a valuable real-time record of
inventories, pallet scans allow retailers to quickly check goods
received at distribution centers or stores. Applied to cases or
cartons, a basic single-use tag allows users to visibly trace
product movements. For example, in retail clothing chain
applications, they can validate tagged garments or boxes at
high speeds and label them for shipping to the destination store
with a minimum need for warehousing. RFID tags also ensure
that returnable transit items (RTIs), such as plastic crates
for fresh foods, remain visible within the supply chain as aid
towards better asset management.
Item-level tagging will supply further impetus for RFID
technology. Its potential includes closed-loop applications
involving promotional tracking, in-store inventory management,
and brand authentication. Retail-specific software packages
from companies like Microsoft, Intel, IBM and Oracle are
already available. Current developments have evolved by
combining the latest UHF tags with the Gen 2 protocol.
Designs based on single-loop antenna, or integrated circuits,
have allowed inlay manufacturers to produce powerful, but
relatively small tags. Some allow near-field operation based on
a magnetic coupling, as well as far-field read/write sensitivities
over a range of 12 feet or so (3.5m) using magnetic/electric
couplings. The latest near-field Gen 2 UHF tags are claimed
to give highly accurate data transference, while overcoming
previous problems with radio frequency interference when
tagging either liquid-based or metallic products. These benefits
are already widening pharmaceutical and healthcare item-level
applications.
Despite the hype, HF tags will still remain in wide use for
a variety of applications. In fact, this area is undergoing its
own metamorphosis in respect of unit costs and technical
developments, including the possibility of inlays based on
printed electronics. As far as label converters are concerned,
both UHF and HF tags come in two forms. The adhesive-free
'dry inlays' are supplied in a continuous web, while
adhesive-backed 'wet inlays' have conventional release liners
to facilitate die cutting. The latter are inserted into pre-printed
pressure-sensitive labelstock and delaminated in-line on the
same machine. Because reading and verifying finished tagged
labels takes longer than the printing operation, it is usual to
print the label first and insert the inlays separately as a roll-fed,
off-line
operation.
With swing
ticket production,
wet tags allow the
tag to adhere to one
of the two webs of paper/
board which pass through the
press. During the past five years many
types of narrow web inlay inserters have
appeared, equipped with sophisticated devices
to read, verify and reject faulty tags before delivery.
Pricing trends
While price is not the only issue for implementing RFID
systems, many potential users have an acute interest in
lower-priced tags to facilitate item-level tagging. Earlier this year
the Chinese manufacturer Invengo Technology stirred things
up by reducing the price of its Gen 2 passive UHF inlays from
7.7 cents to 5.8 cents, although buyers must order a minimum
of five million units. Invengo is also opening a manufacturing
operation in Virginia to serve the North American market.
Interestingly, Avery Dennison RFID introduced Gen 2 inlays
for 7.9 cents in late 2005 and prompted a pricing war at the
time. One of its latest products is the AD-805 tag inlay. Maggie
Bidlingmaier, global director of sales and marketing, says the
postage stamp-sized product is ideal for tagging small items
within the retail and healthcare environments. This includes
plastic or cardboard blister packs, which are not always
oriented uniformly. 'The new tag provides an incredible read
range in difficult-use cases with an edge-on orientation. A wide
variety of industries are showing an interest in it.' Toronto-based
GAO RFID offers a similar edge-on UHF tags for retail
applications, this time based on Avery Dennison's 96-bit inlay.
End-users can use it with their desktop printers to add linear
barcodes and sequential numbering.
"The unknown issue is whether
the latest techniques for printed
electronics pose a challenge to
conventional inlay manufacturing
methods"
Unit costs may be important, but the key driver for RFID
adoption is return on investment, says Samuli Strőmberg,
vice-president marketing RFID at UPM Raflatac: 'Through
climbing the learning curve the industry has learnt one key
thing: identifying and communicating the possibilities of
ROI. Talking solely of costs rarely helps with that. The recent
success we have experienced in all retail-related projects,
including the huge pull for item-level tagging, relates to
identifying the ROI and forgetting the stories that costs should
be lower than they currently are.' He also feels that it is highly
unlikely that the markets for the various types of passive
UHF, HF and NFC tags will mix: 'The applications are mostly
separate at the moment. Also, if the technology is used in
may 2009 | L&L