Gene Fedors Vice President, Education Programs RFID Technical ...

your guide to RFID & GDS solutions

CONTENTS FOREWORD 

OMRON . . . . . . . . . . . . . . . . . . . . . . . . . IFC 

EILT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 

INTRODUCTION 

PRINTRONIX . . . . . . . . . . . . . . . . . . . . . . . 2 

RFID-LEADERSHIP BY DESIGN 

IATA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 

AVIATION-SIMPLIFYING THE BUSINESS 

SYMBOL. . . . . . . . . . . . . . . . . . . . . . . . . . . 8 

SYNCHRONISING RFID ACROSS THE SUPPLY CHAIN 

ODETTE INTL. . . . . . . . . . . . . . . . . . . . . . . 12 

RFID IN THE AUTOMOTIVE INDUSTRY-STATUS QUO AND BEYOND 

SUN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 

ACCELERATING BUSINESS DECISIONS WITH ENTERPRISE 

INTEGRATION 

AEGATE . . . . . . . . . . . . . . . . . . . . . . . . . . 18 

PHARMACEUTICALS-BEATING THE THREAT OF FRAUDULENT 

MEDICINES 

ODIN . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 

AMERICAN EXPERIENCE IN EUROPEAN WAY 

METRO. . . . . . . . . . . . . . . . . . . . . . . . . . . 22 

RFID IN RETAIL 

DATAMAX . . . . . . . . . . . . . . . . . . . . . . . . 26 

RFID- A JOURNEY INTO "AUTOMATIC" AUTO ID 

PHILIPS. . . . . . . . . . . . . . . . . . . . . . . . . . . 30 

LEADING RFID TECHNOLOGY 

TNT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 

RFID-BUILDING ON EXPERIENCE 

SOKYMAT . . . . . . . . . . . . . . . . . . . . . . . . 36 

JEWELLERY TRACKING-A GOLDEN OPPORTUNITY FOR RFID 

RTI TECH . . . . . . . . . . . . . . . . . . . . . . . . . 38 

QUALITY, RELEVANCE AND PROFICIENCY IN RFID EDUCATION 

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contents © euroRFID 2006. The views expressed in this issue are those of the contributors and are not necessarily shared by euroRFID. 

WELCOME 

As you are aware from our work in the 

programme RFID has passed through it’s “trial 

phase” and is now providing a quantifiable 

return on investment for diverse organisations. 

This is particularly noticeable in their supply chain 

operations as applications continue to grow in 

complexity and cost effectiveness. In this edition 

of your euroRFID report a number of topics and 

applications are being addressed including 

Aviation and Automotive. These are in addition 

to our regular updates on Retail and 

Pharmaceutical applications. As always we 

have comment from some of the leading 

industry bodies and in this edition we welcome 

contributions from IATA and Odette International. 

Much of the information within this report will be 

followed up on again later in the year as we 

continue to liaise with the leading RFID vendors 

and industry bodies to ensure that you have up 

to date information on the solutions available to 

you now. 

On your request one of the key areas we 

will begin to focus on in the programme is the 

issue of training. As the number of 

implementations continues to increase so will the 

gap between supply and demand of individuals 

with the required skills. We will be in a position 

later this year to organise through our partners, 

vendor neutral training for your staff and address 

your stated shortage of skills in this field. 

We would like to thank all the contributors 

for their assistance in putting this information 

together and trust that you the end user 

continue to find it a useful information source. 

The next guide will be available in December. 

John Connors, Director, EILT 

john.connors@eilogistics.org 

+33 683 799 293 

euroRFID – your guide to RFID & GDS solutions 

1

PRINTRONIX : RFID-LEADERSHIP BY DESIGN 

www.printronix.com 

2 euroRFID – your guide to RFID & GDS solutions 

euroRFID – your guide to RFID & GDS solutions 3

PRINTRONIX : RFID-LEADERSHIP BY DESIGN 

www.printronix.com 



While today’s consumers expect 

convenience, they are not willing to pay for 

the complexity that makes it possible. The 

answer lies in simplifying processes and 

making the most effective use of existing 

technology to lower industry costs. That’s 

why IATA is examining the use of RFID in 

aviation as part of its Simplifying the 

Business programme. 

Simplifying the business aims to find US$ 6.5 

billion in annual cost reductions in the industry’s 

complex processes. As RFID seems to be just the 

type of technology that offers insight into 

processes, it was adopted as one of the five key 

streams of the programme. The other four 

projects include 100% electronic ticketing by end 

2007, common use self service kiosks (CUSS) for 

check-in, bar coded boarding passes and IATA 

e-freight. 

The RFID initiative is not new. IATA actually 

started examining RFID back in the 1990s for use 

in baggage handling. In truth, the technology 

was not ready then. It pre-dated UHF readers 

and tags and there were problems using the 

existing frequencies globally and attaining the 

read ranges needed for baggage handling. 

There was still considerable interest and some 

RFID installations were undertaken, but only in 

niches where there was a closed loop business 

case to be made. 

In 2004 IATA launched its RFID initiative for 

global application and in 2005 it updated its 

recommended practice for RFID - RP 1740C - to 

recommend only one frequency and one 

method for encoding the information on the RFID 

tag. IATA also specified the data items that could 

be stored on the tag. The new recommended 

practice was approved by all the IATA member 

airlines in November 2005 and has been released 

6 

IATA : AVIATION-SIMPLIFYING THE BUSINESS 

BUILDING 

THE CASE 

FOR RFID 


to a large number of airlines and IATA technology 

partners. 

IATA has provided a standard for use in 

interline baggage operations, but this is just the 

start of a long road for RFID. Today airports and 

airlines are able to ask their suppliers if a planned 

system complies with IATA RP1740C. Compliance 

will guarantee interoperability between sortation 

systems at different airports around the globe, 

but one question the recommended practice 

does not answer is: Does RFID actually improve 

baggage handling? 

To answer this question we need to 

understand the reasons for baggage delay. 

There are two processes that need to be 

examined – departing baggage and transferring 

baggage. Departing baggage is that which 

originates at one airport and goes to another 

without any intermediate steps. This type of 

baggage rarely experiences problems. The worst 

that can happen is that the bag is stored and 

then not loaded, the passenger checked in too 

late and the bag could not be loaded in time, or 

that some failure in the baggage system caused 

it not to be loaded. One last cause of direct 

baggage failure is that the bag can be sorted to 

the wrong flight. It should be noted that if this 

happens then the baggage reconciliation 

system will prevent loadin 

Transfer baggage has a much higher rate 

of mishandling and 60% of all the mishandled 

baggage reports concern transfer bags. The 

reason for this higher transfer bag mishandled 

rate is that these bags face additional 

challenges. First there is the problem of 

connecting flights and minimum connecting 

times. Inbound arrivals are not always on time, 

and being a few minutes late can make a big 

difference. 

Consider an airport where the actual 

processing time between flights is 53 minutes. If 

the passenger has a tight connection, perhaps 

70 minutes, then there is only room for a delay of 

17 minutes before the bag is at risk of being 

mishandled. Remember also that process time 

covers everything from when the inbound 

aircraft is parked to loading the bag on the next 

flight. It assumes that all the ground handling 

equipment is in place, and that everything is 

operating smoothly. At peak times in busy 

months this may not be the case. 

On top of this problem there is then the 

issue of baggage tag readability. This is reduced 

for transfer bags, simply due to the fact that the 

barcode baggage label has been handled. It 

can be crumpled up somewhat; smeared by 

friction; or can be obscured by another transfer 

tag. This was the first port of call for RFID use, and 

it is still a strong area as the line of sight problems 

associated with barcodes are removed by the 

technology. However, RFID is not a cure-all. It will 

not help bags sitting in an aircraft waiting to be 

unloaded. 

Prior to promoting industry-wide adoption 

IATA, along with participating airlines and 

airports, is testing the use of RFID in a baggage 

environment. The trials are being undertaken to 

prove the read rate of RFID, to prove the 

applicability to baggage handling and finally to 

determine the processes for maximum impact. 

Implementing RFID involves much more 

than simply installing tags and readers. 

An RFID baggage handling system must 

be integrated into the existing baggage 

handling systems and then extended to new 

information systems designed to improve 

operational visibility. To do this there must be a 

thorough analysis of where the baggage 

problems exist and which ones can be tackled 

with RFID. 

Here is an example. If an analysis of 

baggage operations shows that transfer bags 

are being sent to arrivals instead of onto their 

connecting flight then the airline will typically 

notify the station causing the problem. The 

situation will improve until it is no longer 

monitored and then things slip back to where 

they started. 

Now consider an RFID-enabled system 

where the baggage tag reader monitoring the 

baggage loaded onto the arrivals carousel 

knows, from the arrival baggage sortation 

message , which bags it is expecting to see. 

When an unexpected bag is seen the reader 

requests further information before flagging an 

exception so that the bag can be dealt with 

quickly. If the reader sees 20 bags it is not 

expecting then the problem is most likely at the 

destination airport – a transfer baggage 

container has been delivered to the arrivals 

area. If only a few bags are seen then this is most 

likely a problem at the originating airport. In 

either case the RFID system is using visibility and 

rules to determine the cause of a problem and 

flag an action to management. And the 

monitoring is available at all times. This is a long 

way beyond the current situation for baggage and 

relies upon other system developments. But the 

technique is fundamentally enabled through RFID. 

IATA, at the request of its Board of 

Governors, is also looking at RFID in a number of 

other areas. 

Cargo, specifically the management of 

ULD assets seems to be the next key area for 

investigation. IATA is conducting research to 

understand the needs of the airlines by sending 

its country managers to talk to every airline. 

Freight is of high importance as this is an 

area where RFID and IATA e-freight – a project 

designed to free cargo processes of paper - 

come together. It is believed that the use of RFID 

in manufacturing will lead to a high number of 

shipments being pre-tagged by the 

manufacturer. As a result, we are working to 

understand the requirements of packet shippers 

with regard to the airline industry, and also with 

www.iata.org 

airports to understand the handling of freight. 

Parts are a complex area where the 

physics of the part dictate the extent to which 

RFID may be employed. Due to this complexity, 

IATA has partnered with the Auto-ID labs to 

develop this area. We are also working with 

Boeing and Airbus through their Global RFID 

forum and surveying airlines. 

In-Flight is another area of potential. 

Specifically we are investigating the tagging of 

catering trolleys to improve asset tracking as well 

as ensuring the trolleys are correctly loaded. The 

Passenger Services Group at IATA is leading this 

activity. 

IATA’s work to date indicates that RFID is a 

usable technology for aviation when used in the 

context of process improvement. IATA will 

continue to investigate and test this technology 

and apply it where it makes both operational 

and business sense. 


7

Media coverage of RFID has arguably 

driven ‘hype’ over what the 

technology could deliver, but 

overlooked the importance of 

adopting a ‘hybrid’ strategy. 

Incorporating RFID into an enterprise 

mobility strategy, automating the 

supply chain and taking the best from 

both RFID and barcoding systems is 

now delivering much of the early 

promise. 

In the December issue of this Journal, 

Symbol Technologies focused on RFID for 

aviation baggage management. Since then, 

Virgin Atlantic Airways have also used Symbol 

equipment to conduct an RFID trial across their 

supply chain management processes. This 

article takes Symbol’s thought leadership further 

to discuss the next generation of data collection: 

• Synchronising RFID across the supply 

chain. 

• Exploiting the operational benefits offered 

by the second generation (Gen 2) of RFID. 

• A brief overview of the Virgin Atlantic 

Airways trial. 

RFID is i quickly moving through a rapid 

adoption phase and gaining momentum across 

the 4 modes of logistics (air, road, rail and sea), 

as: 

• Global companies and organizations are 

investing in trials to develop and deploy 

RFID applications and solutions. 

• A powerful, single global standard – Gen 2 

– has emerged that offers significant 

performance benefits, enables scalability 

and offers a clear deployment path. 

The benefits and return-on-investment are 

becoming increasingly proven, significant and 

8 

SYMBOL : SYNCHRONISING RFID ACROSS THE SUPPLY CHAIN 


SYNCHRONISING RFID 

ACROSS THE SUPPLY CHAIN 

measurable – based on extensive piloting and 

early adopter deployments. 

RFID is impacting organizations throughout 

the supply chain, especially in the aviation 

sector. The International Air Transport Association 

(IATA) is driving forward RFID baggage 

management as part of its Simplifying the 

Business programme, but the most forward- 

thinking companies are now probing other 

applications of this technology to synchronise 

their supply chains and deliver true 

competitive advantage. 

RFID is a technology with the promise for 

dramatically increasing operational efficiencies, 

but it isn’t new. It has been in use for years, 

bringing unique identification benefits (road toll 

collection, large container tracking and access 

control) for some time. Leveraging RFID 

technology as a ‘hybrid’ complement to bar 

codes in the supply chain is a natural evolution of 

technology, driving efficiency and productivity 

through highly automated data capture. 

RFID, THE ‘TALKING BAR CODE’, 

SHRINKS THE SUPPLY CHAIN 

Collapsing the supply chain – shrinking the 

time it takes for finished products to get from the 

front end of manufacturing, through distribution 

and transportation, to where it is used or 

consumed – impacts the bottom line for all 

businesses. That supply chain has been affected 

by various technologies over the years, but RFID 

can significantly increase the speed of 

information and maximize supply chain 

efficiencies. RFID allows users to automate 

knowledge of the location and status of RFID- 

tagged containers, pallets, cartons, or individual 

assets. Unlike a bar code, which must be visually 

located and scanned for on-demand operation, 

an ‘always-on’ RFID tag simply awaits the reader 

signal to access real-time critical business 

information. 

RFID allows companies to: 

• Increase visibility and accuracy of the supply 

chain by providing real-time visibility to 

product flow. 

• Speed up supply chain decision-making by 

providing access to real-time information. 

• Respond more quickly to customer 

demands through better information 

management. 

• Improve error correction ratios by increasing 

automation. 

WHAT MAKES RFID DIFFERENT FROM 

BAR CODING ? 

RFID technology is a natural fit for some 

applications offering incremental benefits and 

complements bar codes in others. Although RFID 

tags and bar codes provide similar data capture 

functionality, there are a number of differences: 

• Bar codes require line-of-sight reading 

and have limited read ranges, while an 

RFID reader can detect a tag that is not 

visible at distances considerably greater 

than bar codes. 

• Multiple RFID tags can be read 

simultaneously, while bar codes must be 

read individually. 

• RFID tags have memory which can be 

updated, while bar code data remains static. 

• RFID tags can identify a specific item as 

well as other pertinent information, while a 

bar code identifies the type or class of 

item as a category. 

• RFID systems automate data collection, 

while the bulk of bar code applications 

require manual intervention, introducing 

the potential for human error. 

• RFID significantly reduces asset location 

time, operating similarly to a Geiger 

counter, automatically seeking the 

location of specific tagged items. 

RFID AND RAPID ADOPTION 

RFID has generated excitement across 

industries primarily because of the promise of 

dramatic business and operational benefits. The 

rapid adoption of RFID is being driven by 

companies that are facing both external and 

internal pressures as well as: 

• Industry mandates and direct guidelines 

outlining specific labelling requirements: 

• IATA’s Recommended Practice (RP) 

1740c specifies the requirement for RFID 

associated with baggage identification 

in order to ensure compatibility across 

airline data systems. 

• Wal-Mart and other global retailers 

such as Target and Best Buy have 

mandated suppliers to apply RFID tags 

to all pallets and cases. 

• The US Department of Defense, with 

an extended supply chain exceeding 

60,000 suppliers, has mandated them 

to adopt a phased-in approach for 

RFID labelling. 

• The US FDA (Food and Drug 

Administration) expects RFID to ensure 

pharmaceutical quality and reduce 

counterfeiting. 

• Standards adoption, once considered a 

barrier to RFID adoption, is a diminishing 

issue. In particular, the convergence 

around Gen 2 promises a single, clear 

development path. 

• Tag pricing continues to drop as demand 

increases and the benefits of volume 

production are phased in. 

• Comprehensive RFID systems and solutions 

are available today, varying from starter 

RFID kits to full system implementations 

that include advanced fixed and mobile 

RFID readers. 

• The proliferation of a true, “global” 

economy, increasing competition and 

complex trading networks, are driving 

interest in a technology that can 

dramatically improve efficiency, cut costs 

and deliver competitive advantage. 

• Clear real-world business benefits have 

been documented by independent 

studies and early pilot programs by some 

of the world’s leading companies and 

organizations. 

Companies that focus on improving the 

efficiency of their supply chain are improving 

their ability to meet their customers’ demands 

and driving increased customer satisfaction and 

loyalty. RFID can help make it happen by 

synchronizing the supply chain –from raw 

materials entering a manufacturing plant to 

incoming shipments of finished product at the 

back door of a retail operation, or critical 

aviation parts ready for fitting to a hard-pressed 

aircraft with a schedule to keep. 

OPERATIONAL AND BUSINESS BENEFITS 

To get the best from RFID, it must work in 

tandem with other technologies as part of a 

larger enterprise mobility strategy. Such a hybrid 

approach can vastly enhance supply chain 

efficiency and profitability by providing greater 

visibility, increasing automation, reducing 

shrinkage, enhancing inventory visibility and 

lowering stock shortfalls. 

www.symbol.com 

After the lessons and ‘learning curves’ of 

early trials, the technology has the speed, range, 

and reliability needed to track products better 

than existing systems and with proven ROI to 

track products at the pallet and case level. RFID 

allows more frequent data collection and 

greater information capture, thus providing 

metrics for improved supply chain 

synchronisation. Every dock door, conveyor and 

work-station becomes a ‘data collection oasis’ 

with vital real-time information that can precisely 

measure the supply chain. 

RFID’s tangible benefits can be 

categorized as follows: 

• Automation: reducing staff interactions 

and manual processes, reducing costs 

and error rates. 

• Speed: dramatically increasing product 

flow and handling speeds. 

• Visibility: increasing material visibility, 

handling flow and reducing inventory 

levels. 

• Business Intelligence: accelerating 

decision making by providing access to 

real-time information. 

As noted in the Alinean Report, “The 

competitive advantage and bottom-line 

business benefits of RFID are significant, despite 

the typical risks associated with adopting any 

early-stage technology. Early estimates indicate 

that a comprehensive RFID solution can 

generate a two to three percent increase in 

revenue, reduce days in inventory by one to two 

percent and reduce operating expenses by two 

to five percent. Companies that achieve this ROI 

early will have significant financial advantages 

over the competition.” 1 

PROVEN RETURN ON INVESTMENT: 

ECHOES ACROSS INDUSTRIES 

An independent University of Arkansas 

study, commissioned by Wal-Mart, offered 

documented evidence that RFID dramatically 

improves supply chain efficiency by streamlining 

and improving operational performance. 

The 29-week study2 examined 24 Wal-Mart 

distribution centres – 12 of which were receiving 

RFID-tagged products and 12 which were not. The 

study provided conclusive evidence that an RFID 

solution put products in the hands of end consumers 

more often than one which did not include RFID. 

The study also found that: 

• RFID decreased out-of-stock items by 16%. 

• Out-of-stock items were replenished three 


9

SYMBOL : SYNCHRONISING RFID ACROSS THE SUPPLY CHAIN 

times faster on tagged items than on items 

with only bar codes. 

• A 10% reduction in manual orders placed 

by stores with RFID tagged items. 

The Wal-Mart study was not only of interest 

to retailers, but also echoed across other 

industries, where the end-consumer could be an 

aircraft engineer waiting for a critical aviation 

part, or a consignee waiting for an express 

parcel delivery. Higher stock cadence across 

synchronised supply chains could dramatically 

cut repair times, ‘dwell’ times and raise asset 

productivity quotients. 

The promise of RFID has 

been touted as delivering benefits 

on such a wide scale that it is hard 

to know what to expect when 

implementing various 

applications: 

VERTICAL MARKET RFID 

Just as bar code 

technology passed through a 

standards alignment phase, RFID 

has faced similar challenges. 

EPCGlobal, a not-for-profit 

organization established to 

promote and support the 

Electronic Product Code (EPC) 

network, led the drive to create 

global RFID standards for air 

interface protocol, data content, 

testing methodology and 

performance. 

GENERATION 2 RFID – 

STANDARD FOR THE FUTURE 

…. TODAY 

Today, RFID has evolved 

into a viable technology which 

allows a company’s technology 

investment to grow stronger by withstanding and 

anticipating new specifications as they are 

introduced. Much of that stability and viability 

has emerged from the EPC Gen 2 standard, 

which offers a global, single-standard protocol. 

Delivering significant operational efficiency and 

security improvements, Gen 2 enables hardware 

manufacturers and system providers to develop 

equipment that is interoperable, performs more 

effectively and provides greater flexibility. 

Symbol Technologies has actively 

supported global standards and has a structured 

RFID upgrade strategy and migration path, 

believing that Gen 2 will allow RFID to reach its 

full potential. Unlike Gen 1, which offered two 

different protocols for tags and readers, (class 0 

and class 1), Gen 2 provides a single standard. 

This also sets minimum performance standards 

on read ranges and read rates to ensure vendor 

product compatibility. A single protocol brings 

global technology developers and solution 

providers together to hasten the development of 

the technology and drive costs down as volume 

demand increases. 

Gen 2 improves on performance, 

throughput, accuracy and operational reliability, 

VERTICAL MARKET RFID BENEFIT IMPROVES/ENHANCES 

Manufacturing Work in Progress Monitoring 

in diverse regulatory environments – including 

North America, Europe and Asia. Gen 2 readers 

can read more classes of tags – from an active 

tag with a sensor to a simple tag with a unique ID 

– and was developed to allow for RFID products 

with expanded functions. Gen 2 tags provide 

greater versatility and performance, and use 

advanced filtering techniques which eliminate 

multi-reader and noise issues. 

Inventory Management 

Supply-Line Replenishment 

Inbound / Outbound Control 

Customer Mandates and Compliance 

Product Flow Visibility 

(Receiving, WIP, Inspections Shipping) 

Enhanced Traceability 

Mobile Track and Trace 

The standard allows readers to operate in 

single reader, multi-reader or dense-reader 

mode. Dense-reader mode provides optimum 

performance for supply chain environments such 

as a warehouse, distribution centre or 

manufacturing facility where readers may be 

operating in close proximity to one another. Gen 

2 defines the specification for the spectral 

bandwidth, cutting through noise and 

preventing readers from interfering with each 

other. EPCglobal has certified only a limited set 

of readers meeting the dense reader 

specification. 

(prevent product diversion, counterfeiting) 

Distribution Returns Processing 

Warehouse Management 

Receiving, Put Away and Shipping 

Travel and Transportation Delivery Confirmation 

Warehouse Management 

Enhance Asset Tracking 

Tracking Trailers and Containers 

Package Identification 

Baggage Tracking 

Security and Access 

Parts Tracking 

TECHNOLOGY LEADERSHIP FOR AN 

ENTERPRISE MOBILITY STRATEGY 

Symbol Technologies, a founding member 

of the EPCglobal standards 

body, is also a founding member 

of the RFID Industry Licensing 

Program Consortium. This 20- 

member patent-licensing 

consortium, comprised of the 

world’s leading RFID technology 

development companies, brings 

advanced solutions to market 

faster by providing access to 

pooled intellectual property and 

to essential RFID patents via a 

single license. The consortium will 

also drive down the cost and 

complexity of managing IP, 

promoting broad and rapid RFID 

adoption across the 

marketplace. Having led the bar 

code revolution and with 30 

years of proven experience and 

technology leadership, Symbol is 

now actively developing and 

deploying the next generation of 

automated data capture – 

standards-based RFID 

technology solutions. 

Symbol’s RFID expertise 

goes beyond products to 

understand the supply chain and 

grow the deep vertical market 

expertise to ensure proper system 

design. Alongside our partners, we’ve focused 

on helping companies to implement solutions 

that enhance the efficiency of their supply 

chain, rather than simply adopt technology point 

projects. 

Over 900 patents to date span all areas 

from advanced data capture, mobile 

computing, wireless LAN infrastructure, mobility 

software platform and RFID: 

• Bar code data capture (Symbol invented 

and brought to market handheld laser 

scanning, which ushered in the age of the 

mobile worker). 

• Ruggedized mobile computing (allowing 

information to be captured and 

managed at the point of decision and not 

behind a desk). 

• Wireless local area networks. 

• Two dimensional symbologies (Symbol 

invented and put PDF417 in the 

mainstream – arguably the most prolific 2d 

symbology). 

VIRGIN ATLANTIC AIRWAYS RFID TRIAL 

Virgin Atlantic Airways recently undertook 

a pilot project to track critical, high value 

aviation assets moving through its 

logistics supply chain at Heathrow 

International Airport. Deploying 

Symbol’s MC9000-G RFID 

handheld mobile computers with 

RFID readers and Symbol wireless 

LAN switches and ports, the aim 

of the pilot was to track and trace 

high value repairable aircraft 

parts. 

The installation was based 

at Virgin Atlantic’s central 

distribution logistics facilities at 

Heathrow Airport with additional 

facilities at Gatwick Airport. Three 

AP300 access ports with external 

antennas supported onsite data 

exchange at each location and 

the MC9000-G mobile computer 

enabled precise real-time 

scanning, data entry and 

inventory control. The MC9000-G 

mobile computer is a high- 

performance RFID mobile reader, 

supporting Microsoft® Windows 

Mobile operating system, for both 

RFID and bar code applications. 

This dual-mode ‘hybrid’ operation 

was considered an ‘essential 

capability’ by Virgin Atlantic, when selecting the 

technology for their investment. 

The project, called TRIM (Tracked by Radio 

Identification Method), utilized RFID tagging and 

was deployed at Virgin Atlantic with the specific 

aim of tracking serialized aircraft parts and tools 

at their main supply facilities and throughout their 

supply chain. Aircraft parts were given a full 

inspection upon entry to the warehouse and 

logged into the inventory system computer, 

before being associated with an RFID tag. 

Oracle was integral to the TRIM project 

due to its experience and proven technology, as 

well as its existing relationship with both Virgin 

Atlantic and Symbol. Oracle®’s Fusion 

Middleware and Database 10g and other RFID- 

enabled applications, captured and managed 

Virgin Atlantic’s supply data via the MC9000-G 

RFID mobile computer. Additionally, Tata 

Consultancy Services provided consulting and 

system integration expertise, while PEAK 

Technologies was responsible for the hardware 

commissioning, installation of the Symbol wireless 

network and the MC9000-G mobile computers. 

“In such a competitive market there is a 

constant need to find efficiencies, control costs 

and expand business. As Britain’s second largest 

carrier, Virgin Atlantic was keen to investigate the 

efficiency of the RFID-enabled warehouse,” said 

Graham Holford, senior systems analyst, Virgin 

Atlantic. “Symbol’s RFID technology was seen as 

a way to improve efficiency by tracking and 

tracing items instantly and in real-time.” 

“Virgin Atlantic did precisely what we 

advise our most progressive clients to do – 

evaluate the application of this emerging 

technology in their own environment, and 

measure the effectiveness of the RFID solution 

based on the return on investment (ROI) and a 

clear business case,” said David Picton, Logistics 

Solutions Director, Symbol Technologies. 

www.symbol.com 

THE TAKEAWAY – ENTERPRISE MOBILITY 

AS A STRATEGY 

RFID is a critical technology that impacts 

the entire supply chain, but its benefits are best 

delivered as an integral part of a larger 

enterprise mobility strategy. That systems 

strategy encompasses bar code data capture, 

wireless networks, mobile computers, mobility 

software and services to manage and maintain 

the system. This end-to-end systems approach to 

streamlining business from the start of the supply 

chain all the way to the consumer ensures 

forward looking design as well as expanding 

vertical knowledge and expertise. 

Symbol’s RFID technology 

has demonstrated high- 

performance capabilities such as 

data capture and data 

accuracy, while also improving 

the accuracy and frequency of 

inventory management through 

stores and warehouses. Symbol 

RFID solutions have also increased 

the visibility of parts and materials 

within maintenance environments 

and offered more accurate 

inventory control at the point of 

entry to the aircraft stores. The 

Virgin Atlantic trial also 

demonstrated the continuing 

need to monitor industry initiatives 

and mid-points. Virgin now has a 

greater ability to comply with 

anticipated guidelines from EASA 

(European Aviation Safety 

Agency) concerning traceability 

and the authenticity of aircraft 

components. Virgin Atlantic will 

also be able to integrate with RFID 

specifications proposed by 

Boeing and Airbus for use within 

the aircraft supply chain. 

Coupled with an array of applications 

that target specific industries and functions, RFID 

providers of choice should offer technology 

leadership, standards-based solutions, vertical 

market expertise, optimal TCO (total cost of 

ownership) and the overall RFID solution 

experience. At Symbol we believe that we have 

a proven track record of doing just that and can 

ensure the success of your RFID solution. 

1 “The Alinean ROI Report” April, 2004, 

www.alinean.com/Newsletters. 

2 “Wal-Mart Improves On-Shelf Availability 

Through the Use of Electronic Product Codes” 

October 2005 www.walmart.com 



ODETTE : RFID IN THE AUTOMOTIVE INDUSTRY 

STATUS QUO 

AND BEYOND 

ABSTRACT 

Radio Frequency Identification (RFID) is 

becoming an increasingly recognized 

technology in many industries. The automotive 

industry has been using RFID for a long time for in- 

house or closed-loop systems. Advances in 

technology and the dynamics of the market are 

driving the expansion of RFID in new deployment 

fields in the entire automotive supply chain. 

Therefore, the need for global standards with 

open-loop systems that communicate with the 

wider supply network will be absolutely essential 

if we are to achieve the business benefits that 

are needed. 

RFID is often in the news since Wal-Mart 

announced its initiative to use tags with its 100 

top suppliers in 2005. But RFID technology is not 

new and the automotive industry in particular 

has been using RFID for many years. Besides in- 

house applications like local supply chain 

process control or asset management, RFID is 

already in use by the end customer today - 

nearly every modern vehicle immobilizer (e.g. 

Mercedes-Benz’ Keyless-Go) is powered by RFID. 

Although the automotive industry has 

been using RFID for many years in production 

control, the view about the capabilities of the 

technology has changed in recent years. The 

focus is still on process efficiency, but it is being 

extended to supply chain processes. Closed- 

loop applications with a focus on local processes 

and high value assets, like work-in-progress 

tracking or container management, are the 

starting point for RFID adoption. DaimlerChrysler, 

one of the pioneers in deployment of the 

technology in legacy assembly processes and 

paint shops, sees the main impact of RFID not 

only in its core processes, but also in the longer 

term throughout the whole automotive supply 

chain. 

12 


Patrick Schmitt 

ETH Zurich 

Auto-ID Lab St.Gallen/Zurich 

pschmitt@ethz.ch 

The automotive industry, more than any 

other industry, has a comprehensive supply 

chain. For example, at DaimlerChrysler’s 

Sindelfingen passenger car production plant in 

Germany, five different vehicle model ranges 

are produced and each car contains of at least 

1500 individual parts. The plant also has to deal 

with 1100 suppliers. On top of this, the industry 

has to deal with RFID technology issues caused 

by environmental conditions. Metals and liquids 

interfere with RFID technology, and solutions for 

these conditions are not properly developed yet. 

The Auto-ID Labs 1 St.Gallen/Zurich at the 

ETH Zurich and the University of St.Gallen (part of 

the worldwide Auto-ID Labs network of the 

former Auto-ID Center at MIT), have been 

conducting research in this field in co-operation 

with industry and governmental partners for 

many years. Today, the Auto-ID Labs are 

participating in a RFID-Work Group at the 

Dr. Roya Ulrich 

DaimlerChrysler AG 

Information Technology Management 

roya.ulrich@daimlerchrysler.com 

Figure 1: RFID implementation in Mercedes Car Group’s paint shop (Source: DaimlerChrysler) 

German Association of the Automotive Industry 

(VDA). 2 

Most of the RFID applications which are in 

use, or at the testing stage, are so called ‘closed- 

loop’ systems. Prominent examples are RFID 

applications for the management of valuable re- 

usable containers in production processes. It is 

undeniable that closed-loop applications 

generate a positive return on investment and is 

therefore the first RFID approach often taken by 

industry. But recent trends in the automotive 

value chain show that RFID could provide 

opportunities in ‘open-loop’ systems as well, 

especially when working externally with different 

suppliers and partners. 

John Canvin 

Odette International 

Managing Director 

jcanvin@odette.org 

The automotive industry operates in an 

environment with strong global competition and 

vehicle manufacturers and suppliers have to 

save costs and improve efficiency. They are 

Figure 2: Strategic Trends in Supply Chain Management (Source: Fleisch et al. (2004), p.5) 

facing regularly changing market conditions and 

new regulations (e.g. End-of-Life Vehicle 

Directive, EU Block Exemption Regulation). 

Fleisch et al. (2004) summarise the main strategic 

challenges for the automotive industry as follows 

(see Figure 1): 

• Customer Focus: To maximize value 

creation, manufacturers in the 

automotive industry have to look for new 

ways to offer more improved services to 

their customers. 

• Demand Chain (shift from push to pull): To 

be able to react rapidly to customer 

orders, manufacturers are shifting their 

production planning from long-term to 

flexible short term planning. 

• Mass Customization: More and more 

customers order their new cars equipped 

to their own specific requirements. The 

number of different variants and the 

related complexity of in-house 

logistics and assembly processes are 

increasing with every new model. 

The challenge is to achieve high 

process flexibility and additionally 

maintain an efficient supply chain 

that supports just-in-time (JIT) and 

just-in-sequence (JIS) manufacturing. 

• Outsourcing: Vehicle manufacturers 

are still outsourcing upstream 

activities to suppliers and logistics 

service providers. The result is a 

downward shift along the 

automotive value chain. To maintain 

visibility and control over the supply 

chain, the requirements for 

information exchange are 

increasing. 

• Lifecycle Compression: The lifecycle 

of vehicle models is still decreasing. 

That means that there is less time to 

set up or change production layout and 

logistics processes. 

• Total Quality Management: High quality is 

demanded by customers and increasingly 

enforced by consumer legislation. To 

ensure the safety of cars, new laws require 

the documentation of certain assembly 

processes and component traceability. 3 

Consequently, there is a demand for more 

real-time information about processes and 

products, accurate data, handling efficiency, 

unique identification and the elimination of 

manual handling in the supply chain. 

RFID technology helps with the collection 

of accurate and trusted data and as a result, 

manufacturers will have a supply chain with a 

much higher transparency. One outstanding 

result will be the elimination of the bullwhip effect 

Figure 3: Average age of vehicles in the German market 

(Source: VDA (2005), p. 76) 

www.odette.org 

(build up of inventory because of uncertainty in 

demand). Possible additional opportunities for 

RFID in the automotive supply chain are: 

• Local supply chain process control, 

• asset management, 

• vehicle traceability, 

• fleet management, 

• reduction of counterfeiting, 

• improved re-call management, 

• reduced spare part delivery times, 

• improved end-of-life vehicle 

management (recycling) and aftersales 

and service information. 4 

The automotive aftermarket could offer 

significant opportunities for RFID applications 

which improve services and customer loyalty, 

aimed at increasing market share and revenues. 

In addition to easier and much faster 

identification of different materials during 

the recycling process at the end of a 

vehicle’s life, plus anti-counterfeiting and 

antitheft measures, value added services 

based on RFID could also be envisaged 

(e.g. service history to support 

maintenance programmes, spare parts 

supply etc.). 

The automotive aftermarket is 

becoming more and more important for 

the vehicle manufacturers. While new car 

sales remained static in the triad markets 

(Europe, USA, Asia) for ten years, the 

average age of cars in use is increasing 

(see Figure 2). 5 Consequently, the volume of 

this market is growing, too. The International 

Federation of Automotive Aftermarket 

Distributors (FIGIEFA) estimates the 

European spare parts market to be worth 44 

billion Euros based on consumer prices. 6 An 

MIT study estimates that for every car 


13

ODETTE : RFID IN THE AUTOMOTIVE INDUSTRY 

produced there will be an average of 8,000 Euros 

worth of revenue in parts sales. 7 With this in mind, 

a positive return on investment in open-loop RFID 

applications in the automotive aftermarket 

should be possible in almost the same manner as 

for closed-loop systems. 

There are open questions which have to 

be answered before going much further. For 

example, the performance of the technology in 

different environments, the influence of the 

presence of different materials, supply chain 

partner co-operation, as well as global initiatives 

and standards for the automotive industry. We 

will highlight some of these issues below. 

However, to gain experience with the 

technology, to define process specification and 

to justify future investments, comprehensive 

proof of concepts (PoC) are inevitable. 

DaimlerChrysler, jointly with Fraunhofer Research 

Institute for Material Flow and Logistics (IML) and 

IBM, is evaluating RFID in a PoC for the 

application of “empty box management” in its 

Sindelfingen plant. Several objectives have been 

set: 

• Improvement of data quality without 

increasing labour costs (process 

objective), 

• Evaluation of current products (EPC Gen2) 

with three configuration handheld, gate 

and forklift interrogators (technology 

objective), and 

Evaluation of IT infrastructure (IT objective). 

Lessons learned up to now show that RFID 

projects should be approached not only just from 

the technology perspective, but also from the 

process perspective. Adding RFID tags to the 

existing processes will inevitably mean pure on- 

cost. The real cost savings come from process re- 

design. Along with a description of how the 

company will deploy the technology, it is 

important to understand that RFID is only an 

enabler, not a solution by itself. Data captured 

from RFID tags are used to enhance the 

efficiency of associated legacy or new business 

processes. 

RFID has good potential especially in 

complex business processes. Nevertheless, 

massive amounts of process engineering are 

necessary to define the right dimension of the 

technology to be implemented: For example: 

• Identification of the implementation areas 

and application scenarios with most 

potential, 

• Definition of objectives, 

• Definition of critical success factors and 

measurement metrics, as well as 

• Specification of technical requirements. 

In order to handle RFID data generated 

by different applications in various locations over 

the long-term, highly scalable RFID enabled 

middleware has to be integrated into the existing 

IT infrastructure. 

To broaden the implementation to the 

entire supply chain requires industry standards for 

a common understanding of processes and the 

clear specification of data structures on the RFID 

tags. A lack of standards seems to be the major 

aspect the industry has to deal with. With the 

continuous adaptation of RFID, DaimlerChrysler is 

actively helping to drive the global 

standardization process to achieve more 

cohesive and collaborative implementations. 

Over the past 22 years Odette has built an 

international reputation for its work on the 

standardisation of containers, barcoded labels, 

the Odette file transfer protocol and EDI 

messages to name but a few. Now it is helping to 

drive the industry towards global RFID and Auto- 

ID standards. 

Today Odette International is widely 

respected throughout the global motor industry, 

not only for its work in standardising the way in 

which vehicle makers and their suppliers 

communicate electronically, but also for the 

standards and recommendations it has 

developed in the field of supply logistics. This is 

where Auto-ID fits into the picture. 

Automotive industry players are 

becoming more and more global in their 

outlook. They are looking for common solutions 

around the world and Odette has forged strong 

links with both AIAG in North America and 

JAMA/JAPIA in Japan to enable truly worldwide 

solutions to be developed for the benefit of its 

members. 

The result of this alliance is known as the 

JAI (Joint Automotive Industry) which has already 

been responsible for eight global industry 

standards and recommendations. The JAI is now 

about to embrace the needs of automotive RFID 

as Odette shares the vision with their global 

counterparts. 

One specific challenge which we face 

comes from the consumer retail sector where 

RFID initiatives have already been established by 

large retailers such as Wal-Mart, Tesco, Metro etc. 

They have adopted their own standard for 

electronic product codes known as EPC, but this 

standard is not sufficient for the automotive 

industry needs. 

The automotive industry is mainly ISO 

oriented and already has its own logistics 

standards. As a result a dialogue has been 

started between EPCglobal and Odette, AIAG 

and JAPIA. 

Odette recently released a statement on 

behalf of the global automotive community, 

which highlighted the fact that the Joint 

Automotive Industry and EPC have a strong 

common interest in promoting implementation of 

RFID, but we also need to be aware of the 

differences between the business sectors. 

Automotive RFID data should build on the data 

structures currently in place, not require new 

structures to be created. 

The intention is to work on guidelines for 

open RFID applications within the automotive 

industry, with the possibility of handling multi- 

sector requirements. 

Odette is about to start on a European 

project which it is hoped will be shared with AIAG 

and JAMA/JAPIA under the JAI. The main 

deliverables will be : 

• Definition of common formats for data 

content and syntax in order to facilitate 

exchanges between manufacturers and 

suppliers, 

• Definition of a unique identifier by studying 

alternative schemes (e.g. automotive 

application of ISO or EPCglobal), 

• Proposal for the standardisation of a data 

structure covering: 

• Use with logistics handling units, including 

returnable containers, 

• Unique component identification (e.g. 

tyres and safety critical items), 

• Vehicle identification through the 

product’s life cycle (location, after-sales, 

recycling etc). 

The European Commission is additionally 

initiating a broad public debate on all aspects of 

RFID technology and its applications, to pave the 

way for their smooth introduction and ensure 

that Europe derives the maximum possible 

economic and social benefits. 

The European Commission’s role is to help 

build a cross-society consensus on technical, 

legal and ethical issues associated with RFID and 

to intervene, where required, with regulatory 

instruments. The issues which need to be 

Figure 4: Container Management at DaimlerChrysler’s Sindelfingen Plant (Proof of Concept) 

(Source: DaimlerChrysler) 

addressed include privacy, radio spectrum 

allocation, and the interoperability of systems, 

not least across EU borders. 

The main issue for radio spectrum applies 

to regulations in Europe for using RFID technology 

operating at Ultra High Frequency (UHF) in the 

band of 860 to 960 MHz. A recent regulation is 

recognised as a significant improvement over 

previous UHF regulations. However, in order to 

provide for a consistent RFID environment 

throughout the European Union, the Commission 

is considering the need to apply its regulatory 

powers to ensure that all 25 countries implement 

this regulation without further delay. 

Odette will be representing the 

automotive industry’s interests with the European 

Commission. 

RFID is a great opportunity for the world 

motor industry in its path towards globalisation. 

We can see that its benefits go beyond the 

logistics aspects, but not all of the benefits have 

been evaluated or considered yet. One of the 

main problems we face if we are not careful is a 

lack of global harmonization in standards and 

regulations and we all have a responsibility to 

ensure that this will not be the case. 

If any reader is interested to know more 

about these issues please contact 

information@odette.org or one of the authors 

directly. 

REFERENCES 

Fleisch, E. et al. (2004): From operations to strategy: The 

potential of RFID for the automotive industry. Study of the 

M-Lab St. Gallen/Zurich with Booz Allen Hamilton, April 

2004. 

www.odette.org 

Schmitt, P.; Michahelles, F.; Fleisch, E. (2006): An Adoption 

Strategy for an Open RFID Standard – Potentials for RFID in 

the Automotive Aftermarket. Auto-ID Labs Whitepaper, 

January 2006. 

Veloso, F. (2000): The Automotive Supply Chain 

Organization: Global Trends and Perspectives. MIT Working 

Paper, September 2000. 

Verband der Automobilindustrie (VDA) (2005): 

Autojahresbericht 2005. Frankfurt a.M., 2005. 

1 www.autoidlabs.ch 

2 www.vda.de 

3 See Fleisch et al. (2004), p. 5 

4 See Schmitt/Michahelles/Fleisch (2006), p. 24 

5 See VDA (2005), p. 76 

6 www.figiefa,org 

7 See Veloso (2005), p. 27 



SUN : ACCELERATING BUSINESS DECISIONS WITH ENTERPRISE INTEGRATION 

A singular vision “The Network Is The 

Computer” guides Sun in the 

development of technologies that 

power the world’s most important 

markets. Sun’s philosophy of sharing 

innovation and building communities 

is at the forefront of the next wave of 

computing: the Participation Age. For 

years, customers have turned to Sun 

Microsystems to help them expand 

their business, lower their costs, and 

gain competitive advantage. Sun is a 

leading provider of industrial strength 

hardware, software, services and 

technologies that make the net work. 

Sun Microsystems became an early 

sponsor of the Auto-ID Center in June 2000, and 

presently chairs the center’s Technology Board 

as well the Software Action Group. In this role- 

with its long history of successful involvement and 

expertise in driving industry standards, Sun is 

actively leading the efforts to drive Auto-ID 

technology standards in general and help define 

the Auto-ID software standards in particular. Sun 

Microsystems can be found in more than 100 

countries and on the web at www.sun.com. 

The Sun Java System RFID Software 

processes and filters data from smart devices such 

as readers, handhelds and appliances, and 

delivers only the useful identity and event 

information. This shields both the network and 

enterprise applications from information overload, 

often an issue in large- scale deployments. Java 

System RFID Software 3.0 also supports EPCglobal 

Application Level Events (ALE) specifications for 

intelligent data processing and filtering. In 

addition, the solution provides centralized 

monitoring and management of distributed 

devices and delivers reliable technology-based 

dynamic networking capabilities. 

16 

ACCELERATING 

BUSINESS DECISIONS 

WITH ENTERPRISE 

INTEGRATION 


It is designed on a Service-Oriented 

Architecture (SOA) and provides network 

services to applications through a number of 

standard protocols and interfaces. Support for 

multiple data protocols — HTTP, XML, Sockets, 

JMS, SOAP — also facilitates integration. The 

Software is designed with Java and Jini 

technology for high availability and built-in 

automatic failover, providing a reliable platform 

for critical data and information. 

Therefore, it can be integrated with 

virtually- any enterprise application, including 

out-of-the-box connectivity with the SAP (R) 

Auto-ID Infrastructure component of the SAP 

NetWeaver (R) platform. This integration allows 

RFID data network communication between Sun 

and SAP RFID technology for seamless data flow 

from any RFID-enabled device to the mySAP 

Business Suite solutions. 

The solution allows RFID data to continue to 

transmit to SAP applications even in demanding 

production environments by using Jini 

technology-based dynamic networking 

capabilities. Sun has eased RFID data integration 

by providing a robust set of APIs, Java 

technology libraries, Java Composite 

Application Platform Suite support, Information 

Server API extensions, toolkits and example 

source code. Java Platform, Enterprise Edition 

(Java EE) support enables integration with 

corporate IT and applications. 

Additionally, the Sun Java System RFID 

Software offers a dramatically reduced footprint 

that allows it to easily be embedded in smart 

devices such as controllers, readers, handhelds 

and appliances that can process RFID data at 

“the edge” of the enterprise, speeding data 

delivery and giving customers access to real- 

time RFID data. Sun Java System RFID Software 

3.0 has been optimized for the Sun Solaris 10 

Operating System and also runs on other leading 

operating systems such as Linux and Microsoft 

Windows. 

Unique from prior releases, the Sun Java 

System RFID Software 3.0 features: 

• Integration with SAP Auto-ID Infrastructure 

• Integration with Java Composite 

Application Platform Suite 

• Support for Java ME Devices 

• Improved Management Console — 

support for groups 

• Extended Developer Kit — additional 

application and customization APIs 

Today, companies are looking to move 

away from isolated RFID deployments in 

warehouses and storefronts toward a holistic RFID 

solution that encompasses every distribution 

point along the supply chain and integrates with 

their existing enterprise software. Moreover, 

companies are recognizing that RFID data can 

be processed by “smart” devices directly at the 

warehouse or dock, speeding the entire process 

and reducing data processing inefficiencies. Sun 

Java System RFID Software 3.0 enables 

companies to do just that. 

For more information, please go to 

http://www.sun.com/rfid. 

Sun Microsystems Inc. offers an Advanced 

Product Testing (APT) laboratory in Longmont, 

Colorado, which can expose your RFID tagged 

products to extreme temperature and humidity, 

simulated vehicle transportation and pallet 

stacking compression. The APT laboratory is in 

fact equipped to simulate almost any 

conceivable climatic or dynamic environmental 

condition. For more information visit 

http://www.aptesting.com. 

SUN RFID ARCHITECTURE 

SUN’S END-TO-END RFID SOLUTION 

www.sun.com 


17

AEGATE – APPLYING THE CURE 

BEATING THE 

DEADLY 

THREAT OF 

FRAUDULENT 

MEDICINES 

Aegate is applying the 

cure. 

THE THREAT 

Counterfeit and fraudulently supplied 

medicines, stolen or illegally imported 

items, are a significant and growing 

global problem. Governments, the 

pharmaceutical industry and 

regulators are increasingly seeing the 

issue as a clear priority, which needs 

urgent resolution. 

The scale of the problem facing the 

industry is significant. Analysts report that sales of 

counterfeit prescription medicines are forecast 

to reach $75 billion by the end of the decade. 

This nearly doubles current levels and outstrips 

the annual growth of legitimate pharmaceutical 

sales. In some countries more than 50% of the 

drug supply is made up of counterfeit drugs. 

The World Health Organisation states that 

the trade in fake and illegally diverted medicines 

kills a significant but unknown number of people. 

This is mostly in developing countries, but the 

volume of cases in Europe is escalating, as 

reported by the Council of Europe in January of 

this year. Increases in the USA also confirm the 

industrialised world is beginning to suffer. 

Detection is difficult and we believe the number 

of cases seen today in Europe is just the tip of the 

iceberg. 

Current security devices intended to 

protect the patient, such as holograms or colour 

change inks, are easy and quick to copy. They 

are also hard for pharmacists to manually and 

reliably check, partly because some devices 

need to be covert and therefore cannot be 

subject to a visual check. These techniques are 

useful for confirming a counterfeit product has 

been identified, but do not prevent them from 

reaching patients in the first place. 

The pharmaceutical supply chain is 

complex and provides numerous opportunities 

for the unscrupulous to interfere with drugs. In 

Europe today, with EU legislation that 

encourages the free movement of goods, and 

fuelled by price differentials between countries, 

trading in pharmaceuticals is widespread and 

lucrative. In some markets, such as the UK, it is not 

uncommon to see as much as 80% of a product 

sold has been imported from across Europe. 

Not all importers of pharmaceuticals 

should be criticised. However, it cannot be 

denied that whenever products change hands, 

risk is introduced. Recently, as EU Accession has 

opened borders to countries where there are 

known and significant volumes of counterfeit 

product on sale, we have seen the number of 

cases in Europe increase. Notably, within the last 

eighteen months in the UK, three different 

counterfeit products were received by patients 

through the regulated supply chain. 

POSSIBLE SOLUTIONS 

Companies and regulators have common 

goals: to ensure the integrity of the supply chain, 

prevent counterfeiting, and respond rapidly if a 

problem occurs (in other words, withdrawing a 

product from the market should a recall be 

necessary.) However, at the moment, there is no 

common approach to these goals. There is 

growing complexity, confusion and 

fragmentation within the industry. 

Companies are choosing between a wide 

array of technology solutions. These include 

adding tamper-proof sealants to packaging, 

new colour change inks, or the new benefits that 

RFID (Radio Frequency Identification) potentially 

brings. The Food and Drug Administration (FDA) 

in the USA has shown some support for RFID, 

believing it to offer significantly increased 

security benefits. However, the technology is still 

costly and not yet fully reliable. 

As well as the complexities of selecting the 

right technology ‘solution’, legislation can prove 

problematic. In the USA in 2003, a bill was 

proposed to create what is known as a ‘drug 

pedigree’ for products considered to be at risk. It 

works by stipulating that a document — a ‘paper 

pedigree’ — must accompany products as they 

move through the supply chain. So far only two 

states, Florida and California, have attempted to 

implement this. Moreover, in those two states, the 

legislation only applies to thirty-two “at risk” 

products. This law, due to take effect from July 

2006 in Florida has been met with dogged 

resistance from the wholesale and distribution 

industry. 

Pedigrees in themselves are not foolproof. 

Like drugs, pedigrees may be falsified, 

particularly when paper-based. The FDA would 

like to see electronic – or ‘e.pedigrees’ 

implemented — but this is many years away yet. 

Today, software solutions providers are 

supplying “track and trace” products that 

connect between two points in the supply chain. 

In time, by connecting these individual points 

together, an e. pedigree requirement may be 

met. However, issues of whom should own and 

be entitled to have visibility of the entire supply 

chain is a significant problem that will first need 

to be resolved. 

THE CURE – SERIALISATION 

An emerging solution, which is also 

possibly the most promising, is known as mass (or 

unique) serialisation. It is supported by regulators 

and industry bodies, such as the European 

Federation of Pharmaceutical Industries & 

Associations and the FDA. This is a method of 

adding machine-readable codes containing a 

serial number, rather like a domestic appliance, 

to pallets or cases of medicines. 

There is much debate about how to 

implement serialisation. The industry wants to 

understand which technologies to use (which 

type of RFID or which barcodes). It wants to 

understand how to apply these technologies. 

Should it be at pallet level or item level? Some 

argue that the benefits of RFID are probably 

more in supply chain efficiency due to the 

technology’s cost and lack of reliability, whereas 

barcodes are proven, lower cost and easier to 

implement. Standardisation is being called for. 

A multi-faceted approach is realistic and 

achievable. At pallet level, RFID tagging and 

readers will improve the efficiency of the supply 

chain. Together with tamper evidence and 

coding deployed at item level, product 

authentication is then possible in the pharmacy. 

This will supplement the manual and visual 

checks that take place today, and will 

proactively protect patients. Item level coding 

can be achieved using simple low cost bar- 

coding as demonstrated already in some 

European markets. 

Whilst many countries across the globe 

are considering their approach, Italy and 

Belgium last year introduced mandatory 

serialisation of all prescription medicines for sale 

in their markets. Portugal, Spain, Greece and 

France are not far behind. Currently 

pharmaceutical companies are incurring the 

cost of complying with the regulations for 

serialisation in these countries but are gaining no 

value back. However a new system about to be 

implemented in Europe this summer offers the 

potential to achieve a return on investment. 

AUTHENTICATION AT THE POINT OF 

DISPENSING‘ 

This distinct on-line communications 

channel, managed centrally by Aegate, 

communicates confirmation messages from the 

manufacturer directly to the pharmacist’s 

workstation that the individual item they are 

about to hand to a patient is within date, not 

subject to recall, not stolen, fake or in other ways 

illegal, reassuring and bringing confidence to the 

dispensing process. Should a suspicious item be 

identified both the manufacturer and the 

www.aegate.com 

pharmacist are alerted immediately, enabling 

rapid targeted investigation and protection of 

the patient. 

This approach makes use of mass 

serialisation technologies at the unit of use level 

and reports back via an electronic feedback 

loop to manufacturers that the item was 

authenticated in the pharmacy. The choice of 

technologies that can be applied are broad, 

from a simple printed barcode to a more 

expensive RFID tag. The manufacturer’s selection 

of technology is likely to be made on a product 

basis, evaluated on cost vs benefit vs level of 

security required. 

Importantly the pharmacist requires only a 

single reader that can read and receive 

messages about every product they dispense, 

regardless of the technology applied. Aegate, in 

conjunction with its parent company, PA 

Consulting, has designed and developed a 

purpose built RFID and barcode reader 

specifically for pharmacists that will support 

multiple technologies. 

Tested in the UK in 2005 and repeated in 

the USA during 2006, Aegate’s authentication at 

the point of dispensing service has delivered 

promising results, demonstrating the system to be 

robust, reliable and globally applicable. 

Commercialisation of the system this summer is 

being welcomed by pharmacists and the 

industry. Pharmacists and Pharmaceutical 

Manufacturers are commencing on-line 

authentication using Aegate’s system this 

summer, initially in Belgium. For more information 

visit www.aegate.com. 



ODIN : AMERICAN EXPERIENCE IN EUROPEAN WAY 

20 

After the U. S. market Europe represents 

the second largest market for RFID. IDTechEX 

estimates the RFID market in Europe will exceed 

$1 billion U.S. dollars in 2007. This is why ODIN 

technologies, the company that has already 

established the leading brand for RFID 

implementation services in the United States by 

focusing on the physics of RFID and ensuring 

systems perform consistently at 100% read rates, 

has decided to form a joint venture in Hungary, 

represented by ODIN Budapest. The growth in the 

European market requires a local presence to 

meet demand and provide high service. 

WHY HUNGARY? 

Hungary has really been the winner of a 

competition amongst the Central European 

nations. Looking at the FDI influx, it exceeds $60 

billion through the last 15 years.i Hungary is by far 

the No. 1 Central European nation in terms of FDI 

absorption per-capita. An Ernst and Young report 

came out that was on 40 countries around the 

world, including China, the U.S. and other 

Central European countries. In that report, 

Hungary was the fifth most popular investment 

location. In addition, Hungary was ranked in 

fourth place as the country with the best 

investment perspective for the future. 

The decisive factors in attracting FDI are 

the followings: first is the preparedness in 

infrastructure. Hungary is by far the best among 

the Central European countries, which enables 

to leverage on the fact that we are located very 

centrally, in between Western Europe and the 

Balkans, between the Adriatic Coast and 

Ukraine. The second factor is the quality of 

human infrastructure. This is the efficiency and 

productivity of manpower. Hungary has quality 

manpower, with substantial output from highly 

qualified individuals. Hungary also has the 


RFID – AMERICAN 

EXPERIENCE IN 

EUROPEAN WAY 

multilingual environment— not only English- and 

German-speaking individuals, but also all those 

who are speaking languages of neighboring 

countries. This is of paramount importance 

whenever you not only think about Hungary’s 10 

million people, but all the other people in the 

region, because typically investors are coming to 

Hungary to set up regional operations, rather 

than ones that are focused on Hungary only. The 

third factor is Hungary’s regulatory environment, 

including taxation, including less bureaucracy 

than any other nation in the region, including 

subsidy packages that are focusing on high 

value-added investments. 

Traditionally, Hungary has had very good 

relations with the U.S American companies 

including ODIN technologies select Hungary for 

research, development and also for service 

centers, that are not only for serving Hungary but 

also for serving the European market. 

ODIN TECHNOLOGIES 

ODIN technologies makes deploying RFID 

/ EPC easy by providing a complete hardware- 

agnostic solution. The company has vast 

experience in both the physics aspects and the 

data integration component. ODIN’s goal is 

complete client satisfaction by choosing the 

optimal system architecture and hardware. 

ODIN’s experience working with both 

commercial and federal clients has helped the 

company design several key software products 

(patent pending) which make the setting up and 

administration of an EPC system simple and 

straight forward. Including the soon-to-be- 

announced FAS-D, a major industry innovation. 

ODIN technologies laboratory in Reston, Virginia 

is one of the most extensive and highly regarded 

in the industry, conforming to ISO standards for 

process and procedures. The lab is available for 

Wal-Mart compliance product testing, reader, 

antenna and tag analysis and system design. 

From a 600 f.p.m. conveyor to the latest signal 

testing gear to readers and tags, there is 

everything a company needs. ODIN’s lab is run 

by a 20-year RFID veteran and augmented with 

several experts, including one of the founders of 

the EPC protocol. 

ODIN technologies’ world-class RFID and 

physics expertise combined with its commitment 

to hassle free deployments has generated a 

loyal customer base of dozens of Supremely 

Satisifed Clients and solutions including: 

• The U.S. Department of Defense Hired 

ODIN to deploy 19 facilites in under six 

months 

• 25% of the Wal-Mart initial pilot 

participants have hired ODIN 

• The first suppliers to be Gen 2 compliant 

and ship to Wal-Mart hired ODIN 

• The first US Federal government RFID pilot 

using multi-protocol, multi-frequency and 

multi-vendor passive RFID 

• Data center asset management solutions 

specifically designed for dense server 

environments 

• Custom Training programs to help 

companies learn RFID 

• Product development and private 

benchmarking for the leading hardware 

vendors 

• Healthcare and Lifescience systems using 

both UHF and HF 

ODIN technologies are bringing that same 

proven scientific approach to ODIN Budapest 

which they expect to set the standard for the 

highest quality and most efficient RFID deployments 

in Europe. The company’s goal of creating 

Supremely Satisfied Clients is extending world-wide. 

ODIN BUDAPEST IN THE EUROPEAN 

MARKET 

The task of ODIN Budapest is slightly different in 

the European market. The major difficulty is the 

number of regulations that limit the range of 

frequencies available to the readers and the US 

centric RFID vendors. In the US, there are 60 channels 

that can be used for deploying RFID readers, 

however in Europe there are only 10 channels. This is 

because a 26 MHz spectrum is available in the US but 

only 2 MHz is available in Europe. 

One issue for European RFID users is the 

inability of readers to use spread spectrum 

technology to maximize spectrum usage. 

Instead, European readers use a listen-before- 

talk function that can limit the time that a reader 

can actually operate if there is too much activity 

or noise in the same spectrum. 

These needs have been building for some 

time, but two new factors can serve as a new 

solution: reduction in cost and size of tags and 

systems. 

According to a study conducted by IDC, 

23 % of the logistics companies, 16.9 % of process 

manufacturers, 19.3 % of discrete manufacturers 

and 14.2 % of retailers in Western Europe are 

planning to pilot RFIDii. Currently, logistics 

companies in Europe face a hard choice when it 

comes to RFID. As a matter of fact, LSPs are often 

torn between making a ‘safe’ choice for their 

organisation and one that can potentially propel 

them to the front of the innovation line. Investing 

in RFID is a classic example of a case in point, 

where the risk of a win is equal to the high risk of 

loss. 

As most companies are unable to justify 

RFID systems, they resort to using these systems 

merely to comply with mandates. Mandates like 

the one issued by the American retail giant, Wal- 

Mart are meant to accelerate the adoption of 

superior technology, but the “slap & ship” 

attitude of existing providers in the market is 

doing more damage than good. The holistic 

integration of RFID into a company’s systems 

would involve a heavy capital investment and 

time. There would also inevitably be additional 

costs to train employees to deploy these systems. 

So, for companies that cannot really see the 

value of RFID, all this seems like a waste of time 

and resources. 

However, despite cost being the most 

obvious deterrent to growth, the fact remains that 

RFID also faces several other challenges. The lack of 

proper knowledge of these systems has led to the 

existence of ambiguous distribution channels, 

stunting the growth of the RFID market. In essence, 

the fewer the companies that push this technology, 

the fewer will be the companies that adopt it. 

Without trial, this industry’s growth will continue to be 

slow. Over thirty percent of European retailers that 

are considering adopting RFID are unsure of which 

solutions providers to approach. 

As tag prices fall and return on investment 

begins an upward climb, more and more 

companies will adopt. Industry-driven growth will 

support the market for various such applications. 

RFID will continue to reduce product loss, thefts 

and the costs associated with moving and 

monitoring inventories. With systems integrators 

and value added resellers dominating the 

market, certain industry segments like the 

consumer goods industry and the automotive 

industry are likely to be faster at adopting these 

systems. 

Companies need to assess their 

requirements, examine budgets, and then 

choose the RFID solution most applicable to 

them. It is only then that the current “wait and 

see” approach can give way to actual 

adoption. But it is not necessary to wait and see 

more: ODIN Budapest will bring proven RFID 

deployment expertise to European clients. 

European companies now have a local choice 

for accessing high quality, objective, physics- 

driven RFID services to their projects. ODIN 

technologies has established the most 

sophisticated scientific testing, software and 

implementation techniques in the RFID industry. 

ODIN Budapest will leverage on ODIN’s 

benchmark research, installation optimization 

software and proven implementation 

methodologies to bring a physics-based 

approach to RFID testing and deployments in 

Europe. ODIN has emerged as the first RFID 

services company with global delivery 

capabilities and deep scientific knowledge of 

RFID implementations. ODIN Budapest is looking 

forward to replicating the client success that 

www.odintechnologies.com 

ODIN technologies enjoy today in the United 

States. ODIN Budapest has opened recently an 

8,000 square foot testing lab and deployment 

facility. 

In a market whose growth is hampered 

simply by the lack of knowledge amongst 

logistics providers, awareness of the benefits of 

RFID is key. It becomes necessary, therefore, to 

closely examine any aspects that could increase 

awareness, aid understanding, and calm fears 

among potential adopters. ODIN Budapest 

believes that companies would do well to 

integrate this solution into their practices. Market 

demands are set to drive prices down, and the 

future looks generally bright for RFID. 

ODIN’S COMPETETIVE ADVANTAGE 

PROVEN METHOD 

In early 2003 ODIN technologies blue- 

printed a process for deploying RFID networks 

called the 4P’s. This process centered around a 

substantial upfront *Planning * session, followed 

by in depth *Physics, *leading to a *Pilot* 

deployment to prove out the concept and test 

the physics results, and eventual drive the 

*Production * phase where RFID becomes a 

critical component in a manufacturing or 

distribution process. The 4Ps is represented 

graphically below with the 12 critical 

workstreams. It should be noted that each one of 

these workstreams is an opportunity to automate 

ad scale the process by building dedicated 

software tools. As the industry evolves and 

problems are well defined, ODIN technologies 

will define critical process teps and work to 

create automated and simple tools to complete 

each workstream. This is how Trifecta was 

originally developed, how the deployment 

process has been refined and how other tools 

have been identified and put into the ODIN 

technologies development timeline. 

i János Kóka, Minister of Economy, Hungary 

ii Status of RFID in Western European Vertcals, March-April 

2005 


21

METRO : RFID IN RETAIL 

In 2005, the METRO Group introduced 

RFID in the areas of logistics and 

warehouse management. A look 

back at the past few months shows 

impressive progress and also sets the 

tone for the new year of RFID: in 2006, 

the focus of the METRO Group and its 

partners will once again be on this 

key technology. 

The start signal was given in November 

2004: about 14 months ago, the METRO Group 

began introducing RFID technology step by step 

along the entire supply chain at Metro Cash & 

Carry, Real and Galeria Kaufhof. By now, 35 

partners from the consumer goods industry are 

on board, including international manufacturers 

such as Procter & Gamble, Johnson & Johnson 

and Esprit. The first phase of the roll-out focused 

on warehouse management and logistics: the 

participating industrial companies affixed RFID 

transponders to the pallets intended for the 

METRO Group. 

THE FIRST SUCCESS 

Shortly after the introduction of RFID, the 

METRO Group recorded process success rates of 

more than 90 percent. The fall 2005 verification of 

an RFID case study conducted in 2003 by the 

METRO Group, Procter & Gamble and IBM 

demonstrated impressive results: the time savings 

when reconciling the order with the electronic 

dispatch note can lead to cost savings of up to 

2.84 euros for each dispatch note. In addition, 

there are reduced transportation costs – trucks 

incur shorter waiting times due to quicker 

processing. This results in additional savings of up 

to 5.70 euros for each dispatch note.* Further- 

more, inventory gaps can be decreased, 

because the staff maintains an overview of 

warehouse inventories at all times. And, last but 

22 


A FRESH 

NEW YEAR 


not least, employees can order goods at the 

most suitable time – this allows a reduction in 

warehousing costs. 

RFID AT THE PARTNERS’ PLACES OF 

BUSINESS 

Sending out electronic dispatch notes, 

writing transponders, printing labels and affixing 

them to the pallets – the RFID partners handle all 

these core processes before shipping the goods 

to the METRO Group. Many manufacturers such 

as Heinrich Nölke GmbH also develop and test 

their own RFID solutions. The medium-size 

company produces and sells high-quality meat 

and cold cuts, including the Gutfried brand 

products. RFID is used to optimize the control of 

outgoing goods: after order picking, the pallets 

are tagged with reusable RFID transponders, 

which include an unmistakable Serial Shipping 

Container Code based on which the IT system 

can categorize data on the content and the 

name of the distributor. On the way to the 

loading yard, the pallets pass by an RFID reading 

device that registers the data stored on the 

transponder. Before the trucks of the shipping 

company arrive at the loading dock of the 

warehouse, an employee logs the vehicles into 

the system and assigns a gate. Via the customer 

name, each pallet can be assigned to a truck 

and a portal for outgoing goods. Monitors show 

the forklift drivers to which gate they need to 

transport the pallets in question. In addition, the 

monitors display information on the number of 

logistic units included, the sum of pallets for each 

truck and the list of customers for multiple pallets. 

This way, the forklift drivers can load the goods 

more quickly without repeated dismounting and 

reading of the pallet note. Errors in loading the 

merchandise can be reduced as well. 

JOINTLY OVERCOMING INITIAL 

DIFFICULTIES 

Packaging specialist SCA Packaging 

pursues entirely different ideas. In collaboration 

with Nestlé, the company is testing the 

automated tagging of transponders to 

secondary packaging during carton production. 

The management expects the integration of this 

work step into the running production to result in 

greater efficiency and time savings. SCA has 

started a pilot project at its Fulda 

(Germany) based factory. However, Philip 

Barnes, Supply Chain Development Director at 

SCA Packaging, still sees a few challenges that 

must be mastered. At seven percent, the error 

rate in affixing RFID labels is still too high and he is 

not yet fully satisfied with the precision in 

positioning the transponders: some of them still 

deviate up to ten millimeters from the 

predetermined placement location. The partners 

are working at top speed to master these start- 

up difficulties and to further advance the 

practicability and efficiency of RFID technology. 

A FRESH START IN 2006 FOR RFID 

In 2006, RFID will once again be one of the 

top items on the agenda for the METRO Group 

and its partners. The new RFID year will kick off 

with the appearance of the METRO Group Future 

Store Initiative at NRF Retail’s Big Show 2006 in 

New York. It will be the third time that the METRO 

Group presents itself at this international industry 

meeting. Together with partners IBM, Intermec, 

Procter & Gamble and DHL, the company will 

reproduce an RFID-supported process chain 

from manufacturer to front store. As part of the 

convention program, Dr. Gerd Wolfram, 

Managing Director of MGI METRO Group 

Information Technology, will summarize and 

assess the experiences gained to date by the 

METRO Group during the RFID roll-out. 

www.innovation-center.metrogroup.de 


23

METRO : A FRESH NEW YEAR FOR RFID 

This highlight is followed by the 

participation of the METRO Group in the 2006 

CeBIT. In an area of about 2,800 square meters, 

the Future Store Initiative and its partners will 

present possible applications of RFID technology 

in various areas of everyday life. Impressive 

exhibits will show how RFID can support 

consumers during shopping, at home and in their 

leisure activities. In addition, a look behind the 

scenes will provide insight on how the retail 

sector uses the technology in the fields of 

warehouse management and logistics. “The 

participation in CeBIT underscores our position as 

the industry’s innovation leader. We are the first 

retailer to present RFID in this form at the world’s 

largest IT fair,” said Zygmunt Mierdorf, Member of 

the Management Board of METRO Group. 

FACING THE DYNAMICS OF GLOBAL 

COMMERCE 

Hamburg (Germany) is home to the 

world’s most modern container terminal 

Containers are the common 

denominator. They hold goods that are 

transported across thousands of miles and 

multiple oceans to their destination – by ship, rail 

or truck. Global commerce has grown fast over 

the past few years. The company Hamburger 

Hafen und Logistik Aktiengesellschaft (HHLA) has 

adjusted to this rapid growth. One of the leading 

maritime shipping companies, HHLA opened the 

world’s most modern container terminal in the 

south of Hamburg in June 2002. 

The Container Terminal Altenwerder (CTA) 

achieves top figures in area and employee 

productivity as well as cargo handling. The use of 

RFID plays a key role in this respect. “There are 

three main areas of application: access control, 

generation of the pick-up order and automatic 

transport management from or to the container 

site,” says Jörg Sabellek, Head of Distribution of 

the subsidiary HHLA Rhenus Logistics Altenwerder 

GmbH & Co. KG. Each truck driver regularly 

returning to the terminal receives a so-called 

Trucker Card, which is linked to important data 

such as the driver’s name, his company and the 

license plate of the vehicle. This personal card 

grants access privileges to the container yard. 

The driver’s order is registered by a CTA 

employee. The IT system automatically links the 

order with the data on the Trucker Card. As a 

result, the cardholder is authorized to drive into 

the corresponding container storage area. Once 

the driver has reached the container stack in 

question, he holds the card up to a delivery gate. 

The system recognizes the order data; 

subsequently, an automated crane transports 

the desired container to the truck. 

There is another important area in which 

RFID is used: unmanned transport vehicles carry 

the containers from the ship to the storage area 

and vice versa. The so-called automatic guided 

vehicles (AGV) are equipped with antennae, 

which communicate with about 12,000 

transponders integrated into the asphalt. “A fleet 

management system determines the optimal 

route and the transponders show the way,” says 

Gerlinde John, Head of Terminal Development at 

the Container Terminal Altenwerder. 

But where does the system obtain the 

information into which spot of the approximately 

140,000 square meter yard the AGV must place 

the container? Each container has a history, 

which lists where it comes from and to where it 

will continue – by rail, truck, feeder ship or barge. 

These data are supplied by the shipping line via 

remote data transmission (RDT) or updated by a 

CTA employee as soon as a container is 

www.innovation-center.metrogroup.de 

delivered e.g. by ship. At the same time, the 

information is also entered into the database: 

the system automatically sends a transport order 

to the automatic guided vehicle, which basically 

ensures that the container gets an ideal storage 

place in view of its continued transport. 

Currently, the containers themselves are 

not yet equipped with RFID transponders, which 

would guarantee automatic data transfer. 

“There is no international standard yet that would 

ensure data quality and therefore reliability,” 

Gerlinde John said. 

During the next few years, HHLA will invest 

more than 800 million euros in the expansion of its 

Hamburg container terminal. Additional funds 

will also be spent on the development of 

warehouse and contract logistics. In direct 

proximity to the 

Container Terminal Altenwerder, HHLA Rhenus 

Logistics GmbH & Co. KG is currently constructing 

a new logistics center with an overall storage 

area of 42,000 square meters. “As far as the RFID 

standard is concerned, we will be prepared for 

it,” Jörg Sabellek said. 



DATAMAX : AUTO ID 

The global evolution of the Auto-ID 

industry has led many companies to 

search for even faster and more 

efficient tools for automatic 

identification processes. RFID is 

emerging as one of these tools as 

supported by the many sets of 

standards being developed by 

EPCglobal and ISO for tagging goods 

through the supply chain. As a 

leading automatic identification 

equipment manufacturer, including 

printers, labels and integration tools, 

Datamax understands customers’ 

needs for flexible products that are 

scalable and robust for today’s needs 

and future requirements. 

THE NEED FOR RFID 

Current RFID 

mandates from major 

retailers and the Department 

of Defense have created a 

demand for RFID products. 

Because it is a mandate, 

discovering the business 

case for RFID is sometimes 

challenging. The reality of 

the situation is quite simple … 

comply or lose the customer. 

“Slap and ship”, “tag and 

ship” and “RFID in a box” are 

all phrases used to describe 

methods of compliance. For 

this type of deployment the 

tool kit consists of an RFID 

enabled printer, RFID smart 

labels, label creation 

software and a reader for 

quality assurance. 

26 

RFID: 

A JOURNEY INTO 

“AUTOMATIC” AUTO ID 


THE H-CLASS RFID PRINTER 

To support RFID requirements, 

Datamax offers the H-Class family of printers and 

RFID smart labels as the SAFE CHOICE for RFID 

labeling. Datamax understands the additional 

costs of RFID labeling and will leverage the H- 

Class “RFID Designed In” philosophy to minimize 

the impact of added costs. 

H-CLASS RFID FEATURES INCLUDE: 

• Integrated Antenna 

• No label back feed needed 

• HF and UHF support 

The Datamax H-Class high performance 

printer provides leading edge technology 

designed to encode labels quickly. The true RFID 

integrated design increases the encoding 

accuracy and overall reliability as a result of the 

strategic location of the antenna. The antenna 

is placed near the Datamax IntelliSEAQ 

printhead eliminating label back feed and 

maximizing label throughput. 

The H-Class is powered with one of the 

industries fastest processors, the high-speed 

32bit/200 MHz multi-tasking processor increases 

data throughput and processes labels at 

amazing speeds. This robust processor combined 

with an integration tool such as MCL, can virtually 

eliminate the need for a separate computer. This 

tool kit gives users the components needed to 

support the RFID compliances while decreasing 

some of the costs associated with these 

requirements. 

MCL RFID 

APPLICATION 

As companies 

struggle to reorganize 

their technical assets to 

accommodate various 

RFID mandates and 

initiatives, they find that 

their specific types of RFID 

application scenarios 

may vary. For example, a 

given production line may 

be required to 

accommodate a variety 

of products, some 

requiring an RFID label 

while others only require a 

standard barcode label. 

Utilizing an intelligent MCL 

enabled H-Class RFID 

printer, the company’s 

labeling application 

could be designed to 

send all label data, both RFID and non-RFID, to 

the H-Class running an internal MCL application. 

The H-Class can receive host data via any 

available communications port whether it is 

Ethernet LAN, serial, parallel, or USB. If an RFID 

label is needed the MCL application encodes 

the tag in the H-Class printer and prints the label. 

If an RFID label is not required, the MCL 

application can redirect the label data to a 

secondary Datamax printer, such as an M-Class 

(or your existing barcode label printer) 

connected to the H-Class via serial port. 

In this scenario, the H-Class is loaded with 

RFID media while the M-Class (or other printer) is 

loaded with standard non-RFID label media. The 

www.datamaxcorp.com 

MCL application running in the H-Class printer 

can determine which printer needs to print 

and/or encode the necessary label. Valuable 

RFID labels are not wasted on product or 

packages that do not require an RFID label and 

printer operators are not switching out various 

label media types in the printers. 


27

DATAMAX : AUTO ID 

SMART LABELS 

Datamax Pioneer can assist with your 

RFID labeling needs with the same high quality 

manufacturing and superior service that you’ve 

come to expect from our traditional barcode 

labeling products. Our mission is to be your SAFE 

CHOICE for RFID smart labels. Nothing works 

better in a Datamax H-Class RFID printer than a 

Datamax RFID smart label - Guaranteed. We 

offer a wide selection of HF and UHF inlay options 

in the stock label program and can provide 

28 


hundreds of face sheet, inlay and adhesive 

combinations for your RFID custom label needs. 

WHERE TO GO FROM HERE 

After compliance is achieved the 

journey can end with an RFID program that 

resulted in added cost with no return, or you can 

continue the journey towards ROI. The journey 

most likely began in the compliance phase with 

education on RFID and it’s components, testing 

inlays on products, deploying pilot systems, 

developing infrastructure and setting technical 

goals. With the main goal of keeping the 

customer accomplished, the reward after 

compliance is discovering uses for data 

generated by RFID and using it to improve 

production planning and streamline business 

processes. One major manufacturer found 

another use for RFID tags besides compliance. 

Tags are used to write test data as products pass 

through quality control points in the 

manufacturing process. If a product is returned 

for warranty repair the technicians can see how 

it performed at each step in the manufacturing 

process. This statistical data can be compiled 

and used to improve manufacturing controls or 

to detect potential design flaws. 

Manufacturers have to look at more than 

just the cost of the label itself. Label costs are 

perpetual, but the key is to reduce the “applied 

tag cost” to create an acceptable ROI. 

Datamax can help you control the “applied tag 

cost” or how much in additional labor and 

opportunity cost is involved in labeling products 

with RFID labels. By adding automation, the 

applied tag cost decreases and the benefits of 

RFID become visible. For more information on 

RFID printers, labels or print engines for automatic 

applicators please contact us at 800-816-9649 or 

visit us on the web at www.datamaxcorp.com. 

www.datamaxcorp.com 


29

PHILIPS : LEADING RFID TECHNOLOGY 

Philips has been the leading provider 

of RFID ICs for over twenty years, 

selling more than one 1.5 billion Radio 

Frequency Identification (RFID)-based 

chips to date. The company’s 

identification business delivers a wide 

range of contactless and contact 

identification technologies that 

enable customers around the globe 

to reduce costs, streamline business 

processes, improve service, enhance 

security and create new business 

value. Philips’ RFID-based technology 

is used across a diverse set of 

applications – such as supply chain 

management and logistics functions, 

including pharmaceutical and 

livestock tracking, as well as in 

various transportation applications – 

to provide consumers with greater 

convenience and safety. 

Philips is an advocate of open standards 

and is working closely with industry partners such 

as EPCglobal to stimulate market adoption. With 

new applications in the consumer retail market 

on the horizon, Philips has already built a 

complete catalog of RFID-based chip solutions 

that spans the application range of smart tags 

and labels, contactless smart cards, car 

immobilizers and the corresponding reader 

components. 

GEN2 STANDARD BOOSTS GLOBAL 

MARKET ADOPTION 

In November last year Philips was the first 

major supplier to have its RFID chips certified by 

EPCGlobal as Gen2 compliant and started 

volume production of Gen2 chips. 

30 

EPC Gen 2 is widely supported by end- 


LEADING RFID 

TECHNOLOGY 

users and manufacturers within the RFID industry 

and will facilitate the widespread deployment of 

RFID technology - especially in logistic 

applications and the retail supply chain. With 

broad deployment of the EPC standard, different 

RFID labels and readers are fully interoperable in 

different global regulatory environments. As a 

result, suppliers and manufacturers throughout 

the supply chain can realize significant 

improvements in performance, cost and 

reliability as well as easy migration to future EPC 

classes. 

Retailers such as METRO Group have 

already committed to implementing Gen 2 RFID 

technology in their supply chain management 

systems. “RFID has already increased 

transparency of our processes and traceability of 

objects within our supply chain. Philips UCODE 

EPC G2 compliance will enable the METRO 

Group to enlarge our existing RFID rollout,” said 

Dr. Gerd Wolfram, Managing Director of MGI 

METRO Group Information Technology GmbH. 

“Retailers and suppliers want – and need – a 

single, globally-accepted standard that will 

deliver cost-effectiveness and full interoperability 

which is supported by large technology providers 

such as Philips.” 

“We want to ensure that adopters of RFID 

achieve a seamless migration from the previous 

infrastructure while capitalizing on the global 

interoperability and increased performance that 

Gen 2 offers,” said Christophe Duverne, Vice 

President, Marketing and Sales, Identification, 

Philips Semiconductors. “Philips and its Gen 2 

RFID solutions are answering the demand of the 

fast moving consumer goods (FMCG), 

pharmaceutical, apparel and many other 

industries”. 

Philips UCODE EPC G2 chips feature a 

one-time programmable memory for the 96-bit 

EPC, covers all mandatory commands and 

provides a selection of optional commands as 

specified in the EPCglobal Class 1 Gen 2 

standard. The chip uses an anti-collision 

algorithm that enables the reading of up to 1,600 

labels per second under current US regulations, 

and up to 600 labels per second under current 

European regulations. The EPC Gen 2 standard 

also allows for read/write field programmability, 

faster tag read/write rates and operation in 

dense reader environments. 

HOW MUCH CAN RFID DELIVER 

TODAY? 

The RFID Innovation Center of the German 

retailer, the METRO Group, invites suppliers and 

partners to learn more about the business 

benefits, while shoppers in its Future Store can 

experience the advantages of a real-world 

‘supermarket of tomorrow’. 

Zygmunt Mierdorf, METRO Group’s Chief 

Information Officer, explains the company’s 

innovative approach. “We recognized the 

potential of RFID early. Indeed, we were one of 

the first trading and retailing companies in the 

world to begin the gradual introduction of RFID 

along our supply chain. But nowadays, no 

company can hope to establish a technology 

like this on its own, so we are delighted to have 

around 45 renowned partners who have joined 

us in pushing ahead with innovations in the 

trading and retailing sector.” 

Shoppers can experience these 

innovations in METRO’s unique Future Store. A 

fully functional supermarket, the store allows 

METRO and its partners to try out new 

technologies in a live retail environment, 

identifying those that offer genuine advantages 

for retailers and consumers. 

Closely involved since the start in 2002 / 

2003, Philips is still helping develop concepts for 

the store. Today, as one of the most active 

members of the METRO RFID solution team, Philips 

provides vital RFID hardware and systems know- 

how as well as technology. 

Currently, METRO uses Philips’ UCODE EPC 

1.19 ICs for pallet and box-level tagging. Given 

the success of these smart label products, METRO 

expects even better results once the ongoing 

transition to UCODE EPC Gen2 is complete. 

Moreover, METRO is testing the benefits of item- 

level tagging using the company’s ICODE chips 

which offer important features for this 

application. ICODE-based labels are the only 

commercially-available HF tags to support a kill- 

command that permanently destroys the IC – an 

essential feature to reassure consumers that data 

on their purchases will not be kept against their 

wishes. Second, ICODE offers a reading speed of 

200 tags per second, so inventories can be 

established quickly and ‘smart gates’ can 

handle a large throughput of tagged items. 

ADDRESSING SUPPLIER CONCERNS 

In contrast to the consumer-oriented 

Future Store, the RFID Innovation Center focuses 

on the needs of METRO’s suppliers. Since 

November 2004, the company has been rolling 

out RFID throughout its supply chain, starting with 

pallets and moving on to carton-level tagging. 

Today this involves key suppliers, but ultimately 

medium and small suppliers will also be asked to 

adopt the technology. 

www.philips.com 

“The aim is to help our suppliers – 

particularly medium and small-enterprises – to 

test RFID systems, such as readers and smart tags, 

with their own products and packaging units 

under real-life conditions,” explains METRO 

Group’s spokesman Albrecht von Truchsess. 

SIMULATIONS SHOW BENEFITS OF RFID 

The RFID Innovation Center is open to any 

of the Group’s partners. Its five simulation areas 

allow visitors to see applications in action and 

understand why RFID deserves a place all the 

way through the supply chain from production to 

consumption. 

The simulations start with order picking, 

one of the central tasks of any distribution center. 

“Visitors can discover how RFID leads to 


31

PHILIPS : LEADING RFID TECHNOLOGY 

improved accuracy and efficiency,” continues 

von Truchsess. “For instance, they can see how 

automatic sorters can handle up to 6,000 items 

per hour, and how they can use RFID to sort and 

mark items for shipment to the next link in the 

supply chain.” 

In warehouse management, there’s an 

array of applications from RFID-enabled forklifts 

to handheld readers. For many visitors, however, 

a key point of interest is the use of EPCglobal 

technology. The EPC Network can pinpoint an 

item’s location in the supply chain – downstream 

or upstream – from anywhere in the world, which 

makes it a very powerful business tool. 

The RFID Innovation Center is even an 

accredited EPCglobal performance test center, 

where partners can have their merchandise 

tagged with RFID transponders and tested. The 

lab is also developing solutions for technical 

problems such as tagging metals or liquids that 

interfere with the RFID signals. 

32 


BEYOND SUPPLY CHAIN 

MANAGEMENT 

Besides SCM, the simulations reveal RFID’s 

potential to enhance the shopping experience 

and boost sales. In the department store, for 

example, a reader in the Smart Dressing Room 

recognizes items by their smart labels and 

provides further information. It can even 

encourage additional purchases by suggesting 

products and accessories that would work well 

with that item. 

Meanwhile, in the supermarket section, 

visitors can discover many of the revolutionary 

technologies from the Future Store, such as 

displays, scales, smart shelves (to reduce out-of- 

stock situations), anti-theft and checkout 

systems. 

Finally, there’s a look to RFID at home, with 

a view of the future through Smart Fridges and 

Freezers that can automatically compile 

shopping lists (and one day even send them 

directly to the store via the appropriate 

infrastructure). 

Gen 2 RFID solutions are answering the demand of the fast 

moving consumer goods (FMCG) pharmaceutical, apparel 

and many other industries. 

A VISION MADE REAL THROUGH 

PARTNERSHIP 

METRO’s RFID Innovation Center is a 

space for training, guided tours, communication 

and education, as well for testing solutions. Like 

the Future Store, it emphasizes the METRO 

Group’s vision and belief in RFID, and its 

understanding that partnership and cooperation 

are key to its successful implementation. 

Shoppers can experience the advantages of a real-world 

‘supermarket of tomorrow’ in the Metro Future Store in 

Rheinberg/Germany. 

www.philips.com 


33

TNT : RFID – BUILDING ON EXPERIENCE 

In 2003, TNT identified passive RFID as 

a potential technology to improve the 

Express processes and provide 

improved visibility to our Customers. 

To determine the real ‘potential’, TNT 

decided to go for hands-on 

knowledge and experience adding to 

the already existing deployment of 

the active RFID technology as a part 

of the TNT Mail organization since 

1999. 

This resulted in TNT’s corporate RFID 

program consisting of a wide range of trials 

covering all supply chain segments in several 

vertical markets such as Automotive, Telecom, 

Hi-tech and Life Science. 

The program was designed to explore all 

aspects of RFID including consultancy, 

hardware, middleware, technology (active, 

passive), frequency, piece tracking, pallet 

34 


RFID – 

BUILDING ON 

EXPERIENCE 

tracking, asset tracking, etc, etc to determine 

short and long term benefits for TNT. Depending 

on project scope, a wide range of Suppliers, and 

Customers were approached. 

TNT’s automotive trial in the US has moved 

into deployment phase. Racks containing high 

value production line material get RFID tagged 

and monitored until loading into the trucks. 

The RFID tagged TNT trucks, moving the 

material to the production facility, are tracked 

and guided to the correct docking location for 

offloading. Once offloaded in the Customers 

facility, the racks are again monitored all the 

way to the production line and back to the TNT 

facility when empty. In this solution both active 

RFID , passive RFID and existing wireless LAN 

technology provide the benefits of increased 

improved efficiency and increased visibility and 

control. 

www.tnt.com 


35

TNT : RFID – BUILDING ON EXPERIENCE 

Visibility and control is key for TNT’s Hi-tech 

and Telecom customers, due to the value of their 

products. Tighter security and improved 

inventory management will drive supply chain 

requirements going forward. 

TNT has conducted several trials in this 

area. The telecom trials concentrated on the 

warehouse picking, packing and kitting 

processes. RFID readers were positioned 

underneath the packing table and at the in- and 

outbound areas. One of the clear benefits in the 

packing process was in the content verification 

of over 250 mobile phones which would take 3 

minutes using manual barcode scanning. This 

could be reduced to 40 seconds having 

significant impact on both cost and capacity. 

Building on the experience from phase I 

with the use of GEN II technology and extended 

from the warehouse environment to the retailer 

phase two results are expected in July-August of 

this year. 

The active RFID technology opportunities 

were explored in the Life Science industry in 

Europe. Temperature monitoring and control in 

combination with remote tracking appears to 

become more an more important also beyond 

this industry. This in combination with the remote 

tracking feature of RFID was tested. The many 

years of active technology development 

showed in the ease of use. Currently this trial is 

further expanded in Asia and the deployment 

opportunities are being explored , together with 

our Customer. 

With the focus on the security features of 

RFID, TNT initiated the trial with one of the worlds 

leading laptop manufacturers. Together with 

their main distributor in Europe, the full supply 

chain of finished product was RFID enabled from 

Asia to Europe. 

The shipments were tagged on item level 

and pallet level and monitored moving from the 

origin manufacturing facility in China, through 

TNT’s transit points, to the final distribution center 

in Germany. In this pre- GEN II era, prototypes of 

the earliest European certified RFID readers were 

used. 

This use of RFID opens the doors to a 

variety of, again, visibility and control 

improvements in the supply chain, with benefits 

for all parties involved. 

It will provide both manufacturer and 

distributor the control over their inventory. It 

allows to further enhance internal processes and 

for a company like TNT to re-think product 

offerings. 

Through the its corporate RFID program 

TNT has gathered a wealth of knowledge on all 

mentioned subjects. The technology is 

developing at lightning speed and is ready for 

deployment. It is now time to define the how, 

where and when. 

We can now not only see and feel the 

parcels move in front of us…..we can also hear 

them behind us. RFID increases visibility and 

through sound. 

www.tnt.com 



SOKYMAT : JEWELLERY TRACKING – A GOLDEN OPPORTUNITY FOR RFID 

Radio frequency identification (RFID) 

technology marks a new first, with its 

entry into the jewellery sector. At the 

end of last year, The Jewellery Store 

dmcc (TJS), a Dubai-based service 

provider to jewellery wholesalers and 

retailers, announced it was offering its 

clients a solution, based on RFID tags, 

to identify and track individual articles 

of jewellery through the supply chain, 

and up to the point of sale. Using this 

system, retailers will be able to quickly 

and easily carry out inventory control 

twice a day using desktop scanners. 

With greater accountability of stock, 

TJS and its wholesale customers will 

also be able to offer enhanced 

finance and more cost effective 

insurance solutions to their retail 

partners. 

DEVELOPING THE RFID TAG 

In 2004, TJS entrusted Swiss-based Sokymat 

SA, the world’s leading supplier of RFID 

transponders, with developing and supplying a 

customised RFID product for their needs as 

service providers to the jewellery industry. It was a 

challenging project. The main obstacle lay in 

meeting the technical specifications required of 

the tag: a tamper evident feature, small 

dimensions, good reading performance, and 

ability to withstand all handling and cleaning 

processes to which jewellery is subjected. The 

underlying challenge was in meeting the 

customer’s tight time to market needs, caused 

by the unsuccessful attempts of previous vendors 

to meet the stringent technical requirements. 

The result of these efforts was a patented 

RFID transponder design. The new 13.56 MHz RFID 

tag developed by Sokymat has a diameter of 

38 

JEWELLERY TRACKING: A 

GOLDEN OPPORTUNITY 



By Egon Konopitzky, Sokymat 

just 16mm and a thickness of 2.6mm, and has a 

specific patent-pending feature for tamper 

evidence. When the tag is attached to the item 

it cannot be removed without deactivating it. It is 

therefore impossible to remove the tag and 

place it on a different item without leaving 

electronic or physical evidence of tampering. 

The development of this tag and the successful 

real world pilot tests led to a subsequent full-scale 

roll out, with TJS ordering over one million of these 

RFID tags. 

HOW THE SYSTEM WORKS 

TJS is offering the system in different 

packages. For the retailer, the solution can be 

deployed in-store and used purely to track 

inventory. Jewellery items are tagged with 

discrete, tamper-evident RFID tags with unique 

identification numbers that link to the full details 

of the item. The retailer then only needs to scan 

the items with a small reader, and the details will 

be transmitted to the management application, 

which runs on a standard PC in the retail outlet. 

Compared to physically handled stock checks 

that take hours to complete and can only be 

performed infrequently, a stock check with TJS’ 

application takes minutes. The system enables 

the reduction of inventory errors, improved stock 

visibility and gives the retailer a clearer view of 

turnover. By automating these processes the 

retailer can focus on his core business, selling 

jewellery. 

For the complete service, TJS acts as a 

central hub between the retailer’s system and 

the wholesaler, giving the wholesaler real-time 

reports of the stock held by each of its retailers. 

Today, typical jewellery retailers in Dubai source 

products on an unfixed basis with the contract 

price only set when the jewellery is sold, creating 

“paper” exposure to the international price of 

gold. TJS, with its innovative supply methodology, 

will eliminate this risk and the need to meet cash 

margin calls. 

The unique tag developed by Sokymat 

makes it possible for TJS to guarantee traceability 

and accurate inventory across the supply chain. 

The greater accountability of stock also enables 

retail and wholesale jewellers to take advantage 

of more cost effective insurance solutions. 

Jewellery tracking is just the latest 

example of an application based on the intrinsic 

capability of RFID to automate processes and 

simplify inventory control, especially when 

dealing with leased goods. Other leasing based 

examples of successful RFID implementations 

carried out by Sokymat include industrial laundry 

and beer keg management applications. 

RFID TECHNOLOGY FOR ALL 

APPLICATIONS 

Sokymat is present in all major market 

segments that express a strong interest in the 

benefits of RFID technology, namely access 

control and security, industrial automation and 

supply chain management, and animal 

identification. Thanks to more than 15 years of 

experience in transponder manufacturing 

technology and its know-how in packaging 

technology, Sokymat can design and 

manufacture virtually any type of custom-made 

transponder suited to the specific operating 

environment and packaging material requested 

by the customer – including metal. 

Along with its expertise in 125/134.2 kHz 

and UHF RFID technology, Sokymat boasts the 

most complete know-how in 13.56 MHz 

technology and serves fast growing industry 

segments such as the emerging market for 

government-issued electronic passports and 

travel documents. 

The group employs more than 500 people 

worldwide, has both research and development 

centres and manufacturing plants in Switzerland, 

Sweden, Germany and Malaysia. 

www.sokymat.com 


39

RTI : QUALITY, RELEVANCE AND PROFICIENCY IN RFID EDUCATION 

The task of efficiently learning a new 

technology and effectively 

incorporating that knowledge into 

one’s job can be a time consuming 

and cumbersome process if 

undertaken in a traditional, ad hoc 

manner. Too often the common 

approach to developing technology 

mastery involves an informal process 

of reading articles, reviewing white 

papers, sitting through vendor 

presentations and attending a series 

of seminars that aim to “pull all the 

pieces together”. In the end we 

inevitably ask ourselves, “do I have 

everything I need, is there any critical 

piece I’m missing?” No matter what 

the answer, there invariably lingers in 

the back of the mind some doubt 

about knowing it all! 

THE RFID EDUCATION CHALLENGE 

Each successive generation of 

information technology has challenged us as 

users, integrators, vendors, educators, etc., to 

get smarter faster and accelerate the 

progression from learning, to seeing, to doing. 

RFID technology has posed a particularly 

arduous education hurdle as it involves mastery 

of several disciplines and architectural 

components to understand the whole solution 

picture. While RFID may be a single term implying 

a type of application or “point” solution, it is 

much better characterized from a learning 

perspective as a technology infrastructure (like 

the internet) that gives rise to an endless array of 

potential process improvements that lower cost, 

improve productivity and/or create competitive 

advantage. The extensive potential of RFID as an 

enabling infrastructure that gives rise to all 

manner of new organizational solutions, 

40 

QUALITY, RELEVANCE 

AND PROFICIENCY IN 

RFID EDUCATION 


Gene Fedors 

Vice President, 

Education Programs 

RFID Technical 

Institute (RTI) 

however, comes at a cost due to the 

considerable need for comprehensive and 

extensive worker education to develop sound 

skill set proficiency. 

ONE SIZE DOES NOT FIT ALL 

The complex, but manageable, nature of 

RFID requires mastery of several foundation skill 

sets – not only technology focused, but also 

business and organizational centric. These 

requirements for a variety of foundation skills are 

further complicated by the need for different 

training profiles for each type of worker role in an 

organization that is undertaking a unique RFID 

initiative. 

Training a systems engineer to install RFID 

readers, antennas and network devices requires 

a distinctly different education curriculum from a 

software developer integrating RFID middleware 

between network edge devices and enterprise 

applications. The difference in education 

program content for each job varies even more 

as the project role shifts from a technical to a 

business focus. Consider the work tasks of an 

RFID business solutions planner. In this role an 

emphasis on detailed systems content shifts to a 

need for conceptual, functional and financial 

content with training geared toward work 

process improvement and project justification 

skills development. 

THE INDUSTRY VARIABLE IN RFID 

EDUCATION 

Past generations of technology-centric 

education programs have taught us that 

generic profiles of worker role and related skill 

sets are, by themselves, not sufficient to develop 

and deliver ideal training programs. A closer look 

at how RFID solutions are being deployed across 

various industries clearly 

points to the need for a 

training curriculum that 

incorporates specializations 

and application-specific 

modules that have a unique, 

industry-specific focus. For 

example, required skills and 

knowledge of RFID and 

logistics in the cold supply 

chain are distinct from those 

in the typical warehouse- 

distribution center-retailer 

supply chain.. Therefore, to 

facilitate the rapid bridging 

from “learning” to “seeing” to 

“doing”, an RFID training 

curriculum must also offer 

advanced courseware that 

places fundamental 

principles and practices in the context of industry 

specific challenges, opportunities and solutions. 

DRIVERS FOR AN RFID EDUCATION 

REFERENCE MODEL 

The scope and complexity of today’s RFID 

education challenge requires a structured, 

analytical approach to training programs 

development. To meet this challenge for quality 

training across worker roles and industry 

specialties, the RFID Technical Institute (RTI) has 

standardized its RFID training program design 

and delivery based on a curriculum framework 

first published by the International RFID Business 

Association in the Spring of 2005. Known as the 

RFIDba Educational Reference Model this 

hierarchical curriculum map defines a framework 

for a comprehensive, yet specialized, RFID 

education program to ensure that unique worker 

roles and industry-specific requirements for RFID 

solutions are effectively addressed during the 

RFID training process. The figure below illustrates 

this framework for a selection of vertical 

industries. At the RFID Technical Institute, we’ve 

adopted this framework in our development of 

industry-specific RFID education and training 

programs for business and technology 

professionals. 

COMPREHENSIVE CURRICULUM FOR A 

COMPLETE EDUCATION 

The RFIDba Education Reference Model 

shown below incorporates a layered approach 

to learning and RFID knowledge development, 

progressing from broad based essential 

concepts and components to specialized skills 

mastery in several required disciplines. This first 

phase of learning modules, focused on acquiring 

“basic RFID knowledge”, leads to advanced 

courseware dedicated to building “functional 

proficiency”. Training modules in this second 

phase emphasize demos, labs and projects that 

exercise understanding and develop “hands on” 

execution competency. 

THE RFIDBA EDUCATION 

REFERENCE MODEL 

Phase three training is dedicated to 

“industry specialization”. The broader knowledge 

skills from previous training sessions are put in 

context of specific industry needs, challenges, 

approaches and solutions. This program phase 

equips the student to shift from participation in 

RFID initiatives to driving or managing specific 

project charters. 

RTI collectively defines its approach and 

layered curriculum structure for RFID education 

as the “Quality, Relevance & Proficiency 

Knowledge Transfer System”. The QRP System 

is driven by RTI’s mission of producing education 

programs of the highest quality, which are 

directly relevant to the skills and knowledge 

required in the workplace, in order for workers to 

gain RFID proficiency in their industry. 

MEASURING AND PROMOTING RFID 

COMPETENCY 

A training program designed according 

to the RFIDba Education Reference Model, and 

developed using the RFID Technical Institute’s 

QRP System, provides a valuable roadmap for 

individuals and organizations to navigate the 

twisting and turning education highway. Primarily 

focused on assuring quality of the RFID learning 

experience, RTI’s education programs 

www.rfidbusiness.org 

increasingly incorporate 

elements of proficiency testing 

and mastery certification as 

defined by the RFIDba 

Education Reference Model. 

The International RFID 

Business Association (see 

related article in this issue) 

continues to conduct field 

research under its mission of 

developing guidelines and 

standards for RFID education, 

training and certification. Much 

important work still needs to be 

done in this area, not just for 

“ e d g e - o f - t h e - n e t w o r k ” 

technical worker skills and roles, 

but across the whole RFID 

component solution stack and 

for all project “end-to-end” job types. 

Pending the official release by the RFID 

Business Association later this year of its 

certification and testing program, RTI currently 

incorporates proficiency testing within its classes 

based on quality advisory guidelines established 

by working committees of the RFIDba. In 

addition, RTI courses are approved and adopted 

by DeVry University’s Center for Corporate 

Education (CCE). Under this relationship, not only 

are RTI courses approved for quality and content 

by a well-known, international university, but 

students of RTI are eligible to receive Continuing 

Education Units (CEUs) from DeVry University 

CCE. In many corporate circles, CEUs are an 

important distinction of quality and reliability for a 

commercial training program. 

THE NEXT WAVE IN RFID EDUCATION 

RTI sees the full evolution of 

comprehensive RFID open-standards based 

testing and certification across all major job roles 

and industry types unfolding over the next two 

years. To accomplish this goal – with the end 

point being universal testing and certification 

programs – the industry must resolve the best 

approach for defining comprehensive 

education, training and certification standards. 

A key factor in this undertaking will be the 

research findings and published guidelines of the 

RFID Business Association that provide broad, 

end user requirements to define these standards 

to best serve the education needs of the 

individuals and organizations that will ultimately 

make RFID a useful, practical and successful part 

of our every day lives. 


41

Gene Fedors Vice President, Education Programs RFID Technical ...

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