Efficient Supply Chain Management with SAP Solutions ... - SAP-Hefte

Effi cient Supply Chain Management with 

SAP Solutions for RFID 

Tobias Götz, Sasan Safai, Philipp Beer 

Contents 

1 Introduction ................................................ 

Structure of this SAP PRESS Essentials 

3 

Guide .................................................... 3 

Target Audience .................................... 4 

2 Introduction to RFID Technology ...... 5 

2.1 System Components ............................. 5 

RFID Tag (Transponder) ........................ 5 

Gen 2 Tags ............................................ 6 

Reader ................................................... 7 

Writer ................................................... 8 

EPC Repository ..................................... 9 

Product Description Language ............. 9 

Device Controller ................................. 10 

Electronic Product Code ....................... 11 

2.2 Physical Principles ................................. 12 

2.3 Data Transfer ......................................... 13 

2.4 Frequencies ........................................... 15 

Overview of Frequency Ranges ............ 15 

Preferred Frequency Ranges for 

Smart Labels ......................................... 16 

3 Processes and Application Areas ........ 17 

3.1 Challenges ............................................. 17 

3.2 Reasons to Use RFID ............................ 18 

3.3 Slap-and-Ship Scenario (Standalone 

Scenario) ............................................... 21 

Scenario with Stationary Readers and 

Desktops ............................................... 22 

Scenario with Mobile Readers .............. 23 

3.4 Returnable Items Scenario ................... 24 

3.5 RFID-Enabled Integrated Scenarios ..... 26 

RFID-Enabled Integrated Outbound 

Scenario ................................................ 26 

RFID-Enabled Inbound Processing ....... 27 

3.6 Other Application Areas of 

RFID Technology .................................. 29 

Military Uses ......................................... 29 

Production ............................................ 29 

Access and Ticketing Systems ............... 29 

Plant Maintenance ................................ 29 

Livestock Identifi cation ......................... 29 

4 Architecture of SAP AII 4.0 ................... 31 

4.1 SAP AII 4.0—Technical Overview ........ 31 

Device Integration ................................ 32 

SAP Auto-ID Infrastructure .................. 34 

Integration in the Slap-and-Ship 

Scenario ................................................ 36 

4.2 Integrating SAP AII ............................... 37 

Installation ............................................ 37 

Customizing SAP AII ............................. 39 

Hardware .............................................. 41 

5 SAP AII Functions in the Standalone 

Scenario ........................................................ 43 

5.1 Properties of the Standalone 

Scenario ................................................ 43 

5.2 Requirements for Using the Standalone 

Scenario ................................................ 43 

5.3 User Interfaces ...................................... 45 

Desktop UI ............................................ 45 

Mobile UI .............................................. 46 

SAP GUI ................................................ 46 

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Contents 

5.4 Outbound Processing in the Standalone 

Scenario ................................................ 47 

5.5 Slap-and-Ship Outbound Process Using 

the Desktop UI/SAP GUI ...................... 48 


the Mobile UI ....................................... 50 

5.7 Returnable Items Scenario .................. 51 

Detailed Process ................................... 53 

5.8 Monitoring and Reporting .................... 56 

6 Functionality of SAP AII in the 

Integrated Scenario ................................. 59 

6.1 Business Processes in the Integrated 

Scenario ................................................ 59 

Potential Ways to Optimize the 

Supply Chain ......................................... 59 

Innovations in an Integrated 

RFID-Enabled Supply Chain ................. 60 

Prerequisites for Using the Integrated 

Scenario ................................................ 61 

System Prerequisites ............................. 61 

Customizing Settings ............................ 61 

6.2 Process of the Integrated Scenario ....... 62 

Outbound Process ................................ 62 

Inbound Process ................................... 70 

BAPIs in SAP AII .................................... 72 

7 Real-Life Examples and Customer 

Projects ......................................................... 73 

7.1 World Kitchen ...................................... 73 

Company Profi le ................................... 73 

Reasons and Motivation for the 

RFID Project ......................................... 73 

Implementation Method ...................... 73 

Process Implementation ....................... 74 

7.2 Purdue Pharma—Customer from the 

Pharmaceuticals Industry ...................... 75 

2 © Galileo Press 2006. All rights reserved. 


Reasons and Motivation for 

the RFID Project ................................... 75 

Conditions ............................................ 75 

Project Setup and Success Factors ....... 75 


7.3 Healthcare Supplier .............................. 77 





7.4 Postal Company .................................... 79 





7.5 University Hospital in Jena, 

Germany ............................................... 81 





8 The Next Release and Beyond ............. 83 

8.1 SAP Object Information Service ........... 83 

8.2 KANBAN Process .................................. 86 

8.3 SAP AII Studio ...................................... 86 

8.4 IUID Marking ........................................ 87 

A Glossary ........................................................ 91 

B Literature ...................................................... 97 

C List of Abbreviations ............................... 99 

Index .............................................................. 101

1 Introduction 

The term Radio Frequency Identifi cation (RFID) describes 

a real-time procedure that facilitates both the fl ow of 

information and the fl ow of goods. RFID tags—often also 

referred to as RFID labels, RFID chips and transponders— 

are attached to goods, boxes, or pallets and enable you 

to constantly monitor the movement of goods. The RFID 

solution SAP Auto-ID Infrastructure (SAP AII) bridges the 

gap between the entry of such information and its integration 

into the business processes. It thus functions as a 

middleware. 

SAP AII receives and processes data that is provided 

by RFID readers. The data that is acquired in this way can 

be fi ltered in real time and then be made available for 

further use in downstream supply-chain processes in an 

ERP system. Especially with regard to the fl ow of goods, 

the use of this data optimizes predominantly the speed, 

transparency, and ease of integration in the company. 

This SAP PRESS Essentials Guide describes how you 

can optimally implement SAP AII in the supply chain. It 

introduces the basic principles related to the subject of 

RFID. The Guide describes in a clearly understandable 

way the basic principles and use of RFID tags, readers, 

and frequencies. It further describes the basic physical 

principles and interdependencies of RFID tags, readers, 

and key factors such as frequencies and materials. Standardizations 

commonly used today are also dealt with. 

Particularly in the supply chain, you can handle many 

processes more effi ciently and simply by using RFID. RFID 

also helps you to avoid delivery problems. On the basis 

of daily goods receipt and goods issue processes, this SAP 

PRESS Essentials Guide describes the functionality of the 

SAP Auto-ID infrastructure. It also treats the enhanced 

functionalities of Release 4.0 such as the traceability of 

containers and reusable transport packaging, as well as 

other enhancements in the reporting. 

Structure of this SAP PRESS Essentials Guide 

Chapter 2 provides an introduction to the RFID technology. 

You'll learn about the required system components: 

from the tag architecture, to RFID readers and writers, 

to the back-end information system, and the electronic 

product code. You'll also get an introduction to the major 

physical principles of data transfers via electromagnetic 

waves and frequencies. 

Chapter 3 contains an overview of the business processes 

that are enabled by the RFID technology. This 

chapter introduces the different areas of usage and the 

business processes and scenarios supported in the supply 

chain. 

Chapter 4 introduces the architecture of SAP AII. The 

chapter describes the structure of SAP AII and how it is 

integrated into SAP NetWeaver . It also provides information 

on the technical prerequisites as well as interfaces 

and integration requirements. 

Chapter 5 and Chapter 6 focus on the two central 

scenarios: First you'll learn about the functionality of 

SAP AII in a standalone scenario, including the necessary 

requirements. Chapter 6 then describes the process steps 

involved in using an integrated SAP ERP/SAP R/3 system 

in great detail. The descriptions are illustrated with many 

screenshots from the system. Aspects such as master data 

maintenance and monitoring are also briefl y discussed. 

Chapter 7 contains fi rst-hand information from pilot 

projects that have been carried out in companies from 

several different industries. 

Chapter 8 provides fi rst insights into the release planning 

for the next release of SAP AII and future strategic 

plans of the development of SAP solutions for RFID. 

The Appendix provides a glossary of the most important 

RFID terms, a bibliography, and a list of abbreviations 

used in this book. 

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1 Introduction 

Target Audience 

For those who are new to the RFID concept, this SAP 

PRESS Essentials Guide provides solid basic information 

on the technical principles and the business processes 

that can be mapped using SAP AII. RFID experts, 

for their part, can use this book for reference purposes 


in order to quickly obtain the relevant information on 

technical details and enhancement options when implementing 

SAP AII. In general, readers should have a basic 

understanding of supply-chain processes as well as basic 

knowledge of SAP business software.

5 SAP AII Functions in the Standalone Scenario 

This chapter describes the functionality of the standalone 

scenario of SAP Auto-ID Infrastructure (SAP AII). Before 

going into the details of the processes involved in that 

scenario, the chapter describes the properties of the scenario 

and discusses the differences between the standalone 

and the integrated scenarios. 

5.1 Properties of the Standalone Scenario 

As mentioned in Chapter 3, the standalone scenario is 

intended to provide a simple RFID solution that can be 

implemented quickly and cost-effi ciently. Customers who 

decide on this solution often want to fi nd out the benefi 

ts of using RFID in their business processes before they 

implement the technology in a larger environment. 

The subdivision of SAP AII for different scenarios provides 

a high degree of scalability. Starting from a pilot 

project, customers can move step by step toward an endto-end 

business solution in the integrated scenario that 

maps to standard business processes. The technology 

required for this is provided by SAP NetWeaver , which 

was described in detail in Chapter 4. 

The requirements of the standalone scenario of SAP AII 

have been implemented in all usage cycles of the solution, 

which began with the general implementation. The implementation 

effort is drastically reduced, thanks to the use 

of preconfi gured slap-and-ship processes and preconfi gured 

reporting functionality via the optional SAP Business 

Information Warehouse (BW) . The reporting functions are 

described in greater detail in Section 5.6. 

As the standalone deployment option does not require 

any back-end integration, the effort for setup and installation 

is low. In addition to the standard business processes 

already contained in the solution, you can quickly 

and easily implement new requirements using the rule 

processor described in Chapter 6. Because the SAP solution 

can be used out of the box, there is no additional 

confi guration work to be done. The architecture of SAP 

AII allows you to implement the RFID middleware without 

having to replace or modify the existing landscape. 

The architecture has been designed in such a way that 

it can be extended gradually. Moreover, system updates 

are made available as support packages in order to ensure 

the compliance with standards, eliminate potential program 

errors, and close important security gaps. 

5.2 Requirements for Using the Standalone 

Scenario 

To successfully use the standalone scenario, you must 

enter a few settings in the system prior to the fi rst start. 

First, the electronic product code (EPC) version to be 

used must be entered after the installation. 

This way, you can decide which EPC version meets 

your specifi c requirements. Note that this decision cannot 

be undone once the EPC version has been used for 

the fi rst time. SAP AII supports several of the EPC versions 

mentioned in Chapter 2. Figure 5.1 shows how to 

select an EPC variant in SAP AII. 

Furthermore, you must choose the device communication 

settings (see Figure 5.2). 

In this context, Customizing controls the services that 

are responsible for the connection to other devices linked 

to the RFID middleware . The actual connections to the 

devices are then created in the integration settings using 

the previously enabled services (see Figure 5.3). In this 

context, you must distinguish between HTTP and RFC 

connections. 

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Figure 5.1 Setting the EPC Version to be Used 

Figure 5.2 Overview of Internal and External System Connections Figure 5.3 Sample RFC Connection to a Device Controller 


You also must set the data profi les and print settings. For 

instance, you can select the fi elds to be printed and position 

them in the tag layout.

Figure 5.4 Assigning Label Formats to Profi le and Printer Device Group 

These settings, which are shown in Figure 5.4, are relevant 

to the format of the printed tags and—along with 

the values in the profi le—represent the print output. A 

process for operational exception handling must be set up 

to deal with unexpected events such as a printer failure. 

The standard version does not contain any reason keys 

for unexpected events, but you can defi ne them to meet 

your requirements. The reason keys provide a predefi ned 

explanation for an unforeseen incident that occurs at 

runtime. Product and device settings must be maintained 

in the master data. These settings are required in order to 

be able to defi ne product hierarchies. The product hierarchies 

specify the types of units and the quantities in 

which the items are to be packed. The most powerful 

settings in the solution include the defi nable conditions 

and rules. 

5.3 User Interfaces 

The SAP Auto ID Infrastructure provides several user 

Interfaces for different purposes (see Table 5.1). 

UI Area of Use Technology 

Desktop UI Designed for daily operations 

and execution 

Mobile UI Built for running on mobile 

devices to perform mobile 

transactions 

SAP GUI To be used for setup, customizing, 

and confi guration 

Table 5.1 Overview of Available User Interfaces 

Web Dynpro 

Web Dynpro 

SAP GUI/Dynpro 

Desktop UI 

The desktop user interface (UI) can be used in specifi c scenarios. 

The relevant categories are: 

Execution 

Monitoring 

Exception handling 

The execution supports the picking of tags, packing, 

loading, and the assignment of documents. Monitoring 

focuses on the statuses of documents, object queries, 

and unexpected events. Exception handling enables you 

to either correct the latest step performed (for instance, 

to un-assign EPCs from a document) or to perform the 

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5.3 User Interfaces


Figure 5.5 Exception Handling Using the Desktop UI 

next expected step manually (without scanning). If tags 

have been misread, this can be easily corrected (see Figure 

5.5). In summary, the desktop UI is suited for the 

daily operation and exception handling to be performed 

by the warehouse operator. 

Mobile UI 

In case the process requires a mobile device at a certain 

process step, SAP AII provides a browser-based mobile UI 

that runs on such devices as mobile readers and printers. 

Figure 5.6 Menu Structure of the Mobile UI 


The user interface for mobile devices enables you to perform 

the following tasks (see Figure 5.6). 

Pack, move, and load items, crates, and pallets 

Assign and close documents or undo a document 

assignment 

SAP GUI 

In addition to the desktop UI and the mobile UI, you can 

also use the classical SAP GUI , which is an established 

SAP technology. The application server sends data to SAP 

GUI and receives data from it whenever R/3 application 

screens are displayed. In this context, the SAP GUI process 

interacts with one or several front-end processes. 

The classical SAP GUI is predominantly used for the 

setup, customizing, and confi guration of SAP AII. However, 

you can also use it as a user interface for business 

scenarios in the standalone scenario. An example of this 

use is the transaction used for writing RFID tags, shown 

in Figure 5.7.

Figure 5.7 SAP GUI Transaction for Writing and Verifying RFID Tags 

5.4 Outbound Processing in the Standalone 

Scenario 

The outbound process can be supported in the standalone 

mode of the SAP AII in order to dispatch goods. 

This process does not require the integration of an external 

system such as SAP R/3 or mySAP ERP. It enables the 

execution of simple slap-and-ship goods issue, while at 

the same time providing a platform for migrating to the 

integrated scenario. This way, you can roll out the RFID 

solution on a broader basis at a later stage. 

The standalone scenario supports the following process 

steps: 

Tag encoding 

You can print tags using either the mobile UI or 

the desktop UI. 

You can use the mobile UI or the desktop UI to 

write EPCs to new tags. 

Packing with or without document assignment (see 

Figure 5.8) 

The packing itself can be carried out using stationary 

readers for packing and the desktop UI. 

In addition, packing can be done using the mobile 

UI. 

Automatic packing is possible, for instance by 

using a conveyor belt process without the need 

for a UI. 

When using tags that already have been encoded, 

the crates and pallets can be automatically 

scanned once the pallets have been physically 

packed. 

Loading 

The loading process can be carried out using 

stationary readers for loading along with the 

desktop UI. 

5.4 Outbound Processing in the Standalone Scenario 

Loading also can be carried out using a mobile 

device and the mobile UI. 



Figure 5.8 Assigning a Document ID to a Device Group 


the Desktop UI /SAP GUI 

This section describes the process fl ow of the standalone 

scenario (see Figure 5.9) using SAP GUI. The fl ow of the 

goods-issue process in the standalone scenario begins 

with the completion of production. The crates to which 

no tags have been affi xed yet arrive in a specifi c sequence 

on a conveyor belt. In the fi rst step, you must assign the 

document ID and key fi elds including the Global Trade 

Item Number (GTIN) from a production order to a device 

group on the conveyor belt. 

Then a stationary reader registers a crate on the conveyor 

belt. The device controller sends an observation 

message to the SAP AII rule processor via the messaging 

mechanism. The rule processor performs the following 

activities: 

1. Create EPC to write 

Here, a unique EPC is created based on the GTIN of 

the product. 


2. Print tag 

The rule processor sends a message to the RFID 

printer or device controller, which in turn writes the 

EPC to the tag and prints it out. The tag is written 

by a stationary RFID device and affi xed to the crate 

along with the label. 

After that, an RFID device on the conveyor belt reads the 

new EPC on the crate. This, in turn, causes the device 

controller to send an observation message to the rule 

processor, which carries out the activity Verify Written 

Tag. This way, the system makes sure that the EPC has 

been written successfully. In order to check the quality of 

this process, the system measures the percentage of tags 

that have been read successfully. 

Once the picking process has completed, packing can 

begin. When the crates arrive at the packing station, they 

are read by a stationary RFID device. The device controller 

once again sends an observation message to the 

rule processor that verifi es and registers the crate EPCs as 

objects of the same pallet. In addition, the system registers 

each crate in the stock inventory. Once a pallet has

Tag Picking 

Pack 

Load 

been completely packed, the printout of a pallet EPC can 

be triggered from the UI (see Figure 5.10). The printed 

pallet EPC then can be manually affi xed to the pallet 

Figure 5.10 Creating a Pallet EPC 

User SAP AII 4.0 Preconfigured BW 

Tag is affixed 

to crate 

Heat-seal 

pallets 

Affix pallet 

tags to 

plastic film 

Move/ 

scan pallets 

using 

loading reader 

Generate EPC 

for crates 

Generate 

pallet EPC 

Scan 

packed 

pallets to 

associate 

crates with 

pallets 

Figure 5.9 Process Flow in the Standalone Scenario of SAP AII 

Optional check of EPC, 

place, and time for this 

process step 

Optional check of EPC, 

place, and time for this 

process step 

5.5 Slap-and-Ship Outbound Process Using the Desktop UI /SAP GUI 

RFID 

Device 

Tag picking 

(RFID printer) 

Tag picking 

(RFID printer) 

Stationary 

reader at 

packing station 

Stationary 

reader at 

packing station 

This EC is stored in the system, and all crate EPCs that 

are located on this pallet are associated with it. The last 

step in the goods-issue process of the standalone scenario 

involves the loading of the pallets. In this step, the 

document IDs are assigned to a reader at the loading station. 

The reader reads the pallet EPCs and most of the 

crate EPCs. A notifi cation message then is sent to the 

rule processor. This message can defi ne how many of the 

crate EPCs must be read so that the read process can be 

regarded as successful. For example, a read process can 

be considered successful if 80% of the crate EPCs that are 

assigned to the pallet are read. In the standard version, 

the rule processor carries out the following actions once 

it receives the notifi cation message. 

1. Validate 

Validate EPCs 

2. Register 

Write information to the database 

3. Remove stock 

Delete information on all objects that have been 

loaded from the stock table 



If a corresponding Web service is loaded, shipping notifi 

cations can be sent now. A reliability check is also performed 

at the end of this process step. This check consists 

of a comparison between the number of crates that have 

been actually read and the number of expected crates. 

The expected number is derived from the number of 

crates that have been associated with the pallet EPC during 

the packing process. 


the Mobile UI 

When you use the mobile UI instead of the desktop UI, 

the process fl ow in the standalone scenario is different. 

The reason for the different structure of this process can 

be found in the different options that are available for 

executing the RFID process in a mobile environment. 

In a fi rst step, the EPC for a crate is created using a 

mobile device and a corresponding UI. 

The warehouse operator must select the required 

printer, set the relevant EPC fi lter for writing crate EPCs , 

and choose the appropriate EPC type. After that, the 

employee either can enter a product for which he or 

she wants to create the RFID tag or read a product bar 

code . The bar code including its data is then forwarded 

to the mobile station. Once all crates have been assigned 

an EPC, the pallet EPC must be created. For this purpose, 

the EPC fi lter must be set to Pallet. The employee 

picks the tag in the SAP AII Mobile UI and selects the EPC 

writer. After that, the picking process is completed, and 

packing can begin. 

In packing, the pallet EPC must be scanned fi rst. In 

order to assign the crate EPCs to the pallet EPC, the crate 

EPCs must be scanned as well. In this context the system 

creates a hierarchy (see Figure 5.12). The user can 

optionally assign a document to a mobile RFID reader. 

The document would have the function of a logical data 

container. It could, for instance, be a delivery reference 

ID or a freely selectable ID code. Logical data containers 

aggregate actions that refer to a specifi c goods-issue 

process. 

Once the pallet has been completely packed and prepared 

for storage, the RFID tag is affi xed to its outer packaging. 

Monitoring functions enable the user to analyze 

performed actions. Among other things, it is possible 


to evaluate actions for a specifi c delivery. Object information, 

such as the assignment of crates to a pallet, is 

recorded during the packing process. 

Figure 5.11 Scanning a Pallet Using the Mobile UI with Reference 

to a Delivery, Packing Process 

A mobile RFID reader allows you to move a pallet that 

has been packed to the stock inventory. When the corresponding 

demand arises, the pallet is taken from the 

assigned storage location and provided for delivery. Note 

that the current version does not provide for integration 

into SAP Warehouse Management (see also Chapter 8 

and upcoming product-release plans). 

At the loading station, a delivery reference ID can be 

assigned to the mobile RFID reader (see Figure 5.11). At 

this stage it is no longer necessary to read all the EPCs 

that have already been registered. The assignment of 

crate EPCs to pallet EPCs was defi ned during the packing 

process and then used for the creation of the hierarchy. 

These assignments have been stored in the SAP 

AII system. It is therefore suffi cient to scan the pallet 

EPC during the loading process (see Figure 5.11) as the 

crate EPCs assigned to it are automatically confi rmed. The 

same holds true for the goods-movement process (see 

Figure 5.13).

A Glossary 

isting IT environments that are able to smoothly implement 

end-to-end scenarios by using different IT systems. 

European Article Number (EAN ) 

EAN stands for International Article Number (formerly 

European Article Number) and serves as a product identifi 

cation number for trade items. The EAN is a number 

that consists of 13 or 8 digits, is centrally managed, and 

is assigned to manufacturers on request. Usually, the 

EAN is printed onto the product packing as a machinereadable 

bar code and is decoded by a laser scanner at 

scanner-driven cash registers. 

Ferroelectric Random Access Memory (FRAM ) 

A FRAM is an electronic memory based on crystals with 

ferroelectric properties. Similar to ferromagnetic materials, 

ferroelectric materials can contain a permanent 

polarization without an external fi eld. An external fi eld 

can “switch” this polarization to a different direction, 

and this switching capability provides the basis for the 

memory mechanism. These types of memories are not 

suited for RFID systems because of the magneto-electrical 

properties of the RF fi eld. 

Global Returnable Asset Identifi er (GRAI) 

The GRAI format is an EPC code that was developed in 

order to monitor and track reusable packing and shipping 

containers. 

Global Trade Item Number (GTIN ) 

The Global Trade Item Number (GTIN) is an identifi cation 

number from the EAN-UCC system. It is used to 

uniquely identify items worldwide. The data fi eld of the 

item number consists of 14 digits. The EAN numbers 

that were originally developed for Europe now either 

consist of 13 digits or have been extended to 14 digits. 

For this reason, it is useful to install new systems for 

the use of 14 digits. These allow for the identifi cation 

of logistical containers and trade units whose quantities 

are subject to change. The fi rst digit from the left 

indicates an attribute of the delivery. Here, the number 

0 indicates standardized delivery units, the numbers 

1 through 8 describe different delivery and packing 

units, and the number 9 stands for delivery units whose 

weights can vary. The second through the 13th digits of 


the GTIN stand for an EAN-UCC-13 item number without 

an EAN check digit. The 14th digit is a check digit 

that is calculated by digits 1 through 13. 

Handling Unit (HU) 

A handling unit (HU) is a physical unit that consists of 

packaging materials and the material they contain (for 

instance, load carriers and packaging materials). An HU 

has a unique, scannable identifi cation number that can 

be used to call up the associated data. 

Hypertext Transfer Protocol (HTTP ) 

The hypertext transfer protocol (HTTP) is a stateless protocol 

that is used for the transfer of data. It is part of the 

application layer. In the ISO/OSI model, this layer represents 

Layer 7. In the TCP/IP reference model, which is 

usually used on the Internet, it corresponds to Layer 5. 

The protocol is primarily used for transferring Web sites 

on the World Wide Web. Web browsers almost exclusively 

use this protocol to access Web servers. However, 

due to extensions to its request methods, header information, 

and error codes, the protocol is not limited to 

the use of hypertext and is increasingly used for data exchange 

purposes. For communication purposes, HTTP 

must use an additional transport protocol. This is—in 

nearly all instances—TCP. Along with URL and HTML, 

HTTP was invented in 1989 by Tim Berners-Lee at the 

CERN. On that date, the World Wide Web (WWW) was 

born. 

Inductance 

Inductance is a physical unit that describes the electromagnetic 

effectiveness or self-inductance of a coil or an 

electrical conductor in general. Moreover, inductance 

also describes an electromagnetic component such as 

a transformer, a coil, or a throttle, in particular when 

discussing the quantitative or qualitative effects of that 

component. In terms of its construction an inductance 

or induction coil consists of an electrical conductor such 

as a wire that is coiled in spirals of one or several layers. 

This coil either can have no core or a ferromagnetic 

core. In borderline cases, a straight conductor can also 

be regarded as a very small inductance. (Source: Wikipedia)

Industrial, Scientifi c and Medical Band (ISM Band) 

This band is a frequency range for high-frequency sending 

devices used in industry, science, and medicine. It is 

not subject to government regulations and can be used 

without a license. The only limitations are conditions regarding 

the transmission power and the interference of 

neighboring frequency ranges. Because of this situation, 

manufacturers are able to produce relatively cheap wireless 

devices. The disadvantage of the ISM band is that 

several frequency ranges such as the 433 MHz and the 

2400 MHz bands are used extensively, which can lead 

to interference among the devices. 

Kanban 

This is a concept related to lean or just-in-time (JIT) production. 

Note, however, that these concepts are not 

the same thing. The Japanese word “kanban” is a common 

everyday term meaning “sign” or “card” and utterly 

lacks the specialized meaning which this loanword has 

acquired in English. According to Taiichi Ohno, the person 

credited with developing JIT, Kanban is the means 

through which JIT is managed. Kanban is a signaling 

system. As its name suggests, Kanban uses cards to signal 

the need for an item. Other devices such as plastic 

markers (Kanban squares) or balls (often golf balls) can 

also be used to trigger the movement, production, or 

supply of a unit in a factory. For example, for the production 

of an item, the operator has two shelves, one 

on either side of the workplace. The raw materials arrive 

on one shelf and the fi nished item goes on the other. 

These shelves act as Kanbans. The outgoing Kanban signals 

the customer's need so that when it is empty, the 

operator must produce one more item. The Kanban is 

sized so that it can only hold the number of items the 

customer needs (usually one). When the operator begins 

work, he takes the raw material from the incoming 

Kanban, thus signaling to the supplier that he needs 

more. Kanban is frequently known as a “pull” system, 

as everything is pulled in response to past demand. Demand 

forecasts are not used in Kanban systems. This 

is the opposite of the traditional “push” manufacturing 

philosophy, in which everything is made according to 

forecasted future needs. (Source: Wikipedia) 

Mass Customization 

Mass customization describes the production of goods 

and services for one (relatively) big sales market that 

meet the different needs of every individual buyer of 

these products, while costs approximately correspond 

to those of mass production of comparable standard 

products. The information that is collected during the 

customization process is used to build up a permanent 

individual relationship with each buyer. (Source: http:// 

www.mass-customization.de) 

Master-Slave Principle 

This principle describes a situation in which a central device 

(the master) controls several subordinate devices 

(the slaves). 

Middleware 

Numerous defi nitions are available in IT for the term 

middleware: One of them is that middleware is an application-independent 

technology that provides services 

to support the communication between applications so 

that the complexity of the underlying applications and 

infrastructure does not become obvious. In other words, 

middleware is software that connects heterogeneous 

systems with each other. 

mySAP Business Suite 

The mySAP Business Suite, which is based on SAP 

NetWeaver, is a software package that consists of open 

enterprise solutions that enable fl exible business processes, 

a complete integration, and a smooth collaboration 

over the Internet. mySAP Business Suite consists 

of mySAP ERP, mySAP SCM, mySAP CRM, and 

mySAP SRM. 

mySAP Supply Chain Management (mySAP SCM) 

mySAP SCM provides functions that support planning, 

execution, coordination, and collaboration tasks in the 

supply chain. It consists of the following modules SAP 

APO (Advanced Planning and Optimization), SAP ICH 

(Inventory Collaboration Hub), and SAP EM (Event 

Management). mySAP SCM is part of mySAP Business 

Suite. 


A Glossary

A Glossary 

Object Name Service (ONS) 

This is a mechanism that leverages the Domain Name 

System (DNS) to obtain information about a product 

and related services from the Electronic Product Code 

(EPC). It is a component of the EPCglobal Network. 

ONS is published by the EPCglobal board. Version 1.0 

of the specifi cation was ratifi ed by the board in October, 

2005. (Source: Wikipedia) 

Physical Markup Language (PML) 

PML is a fi le format (similar to XML) that is used to describe 

physical objects. The ONS servers and services are 

supposed to be operated by the regional organizations 

of EPCglobal, Inc. The fi nal decision on this is still pending. 

Remote Function Call (RFC) 

In an SAP software, RFC describes a remote call that is 

used to call function modules in SAP R/3. This enables 

external subsystems to transport data into or out of an 

SAP system and thus to make SAP data available in almost 

any programming language. 

Resonance 

In physics, resonance describes the resonating of an oscillable 

system when it is excited by an excitation frequency 

that is close to its own frequency. 

SAP Auto-ID Infrastructure (SAP AII) 

When mapping a logistical process in the IT system, the 

SAP AII is supposed to track and control the actual physical 

process in real time. To do that, SAP AII harmonizes 

information on expected processes such as the processing 

of a delivery in the ERP system with events that have 

actually occurred and been determined by the sensor 

technology. The processes that have actually been determined 

and the involved objects are then reported. The 

RFID solution is available as an ERP-integrated variant 

and as a standalone system. 

SAP Business Information Warehouse (SAP BW) 

SAP BW is SAP's data-warehousing and reporting interface. 

It provides data warehousing functions, a businessintelligence 

platform, and business intelligence tools. 


These tools enable you to integrate, transform, and consolidate 

relevant business information in SAP BW. SAP 

BW provides simple options for reporting and analyzing 

information, and it enables the distribution of that information. 

SAP Event Management (SAP EM) 

This mySAP SCM module is used to monitor all process 

steps within the logistics network along the supply 

chain. Thus, it is possible to process information from 

heterogeneous systems and different suppliers at all levels 

of the supply chain. 

SAP Exchange Infrastructure (SAP XI) 

SAP XI provides open integration technologies that support 

a process-oriented collaboration between heterogeneous 

SAP and non-SAP components within and 

across companies. The knowledge required for accessing 

functions as well as for systems integration and process 

support is merged in a shared knowledge base. 

SAP NetWeaver 

SAP NetWeaver is SAP's integration and application 

platform that enables the integration of users, information, 

and business processes. Information and applications 

from different sources can be integrated here. The 

SAP platform is compatible with the widely used Microsoft 

.NET and IBM WebSphere technologies. It is extensible 

and supports the Java 2 platform, Enterprise Edition 

(J2EE). SAP NetWeaver is the technical basis of the 

mySAP Business Suite and SAP xApps. 

SAP Solutions for RFID 

SAP solutions for RFID collect and process RFID data, 

streamline, and automate logistical processes, and integrate 

RFID fi les in company systems. SAP solutions for 

RFID is based on SAP NetWeaver, which enables its integration 

in existing IT landscapes. This way, RFID data 

can be processed by SAP applications and third-party 

software systems. A comprehensive Auto-ID infrastructure 

(SAP AII) integrates the different Auto-ID technologies 

such as RFID, bar codes, speech recognition, magnetic 

stripes, and biometrical recognition.

SAP Web Application Server (WAS) 

SAP Web Application Server is the proven open application 

platform of SAP NetWeaver. 

Serial Shipping Container Code (SSCC) 

The number of the shipping unit is a globally unique 

ID for a shipping unit such as a pallet. It is a component 

of the EAN128 bar code symbology. The data descriptor 

that identifi es the number according to the 

EAN128 standard is “00.” The number itself consists 

of 18 digits including the check digit. Example SSCC: 

340456789012345678. Encoded in bar code, it is: 

00340456789012345678. As a plain text line (under 

the bar code): (00)340456789012345678. 

Stock Keeping Unit (SKU ) 

A stock keeping unit (SKU) is an identifi cation number 

used in warehouse management. Each product in the 

warehouse is assigned a SKU by the trader (in contrast 

to an EAN which is assigned by the manufacturer). The 

SKU is then used to order a product from stock, to determine 

the current location, and to manage the inventory. 

Each product and product variant has a separate 

SKU, in order to refer to such attributes as different colors 

or models of the same product. 

Total Cost of Ownership (TCO) 

TCO is a calculation method that was developed in the 

1980s. The approach is used to help consumers and 

companies to estimate the costs to be expected for investment 

in goods such as IT software and hardware. 

The idea behind it is to obtain a calculation that contains 

the acquisition costs and all aspects related to the future 

use of the relevant components, such as energy costs, 

maintenance, and repair. This way, you may be able to 

identify known cost drivers or even hidden costs prior to 

making an investment decision. The most important basis 

for understanding the TCO concept is the differentiation 

between direct and indirect costs. 

Unique Identifi er (UID) 

A Globally Unique Identifi er (GUID) or a Universally 

Unique Identifi er (UUID) is a globally unique number 

that is used in distributed computer systems. 

Universal Product Code (UPC ) 

The Universal Product Code, UPC, was introduced in 

1973 in the US. Products are assigned number codes 

that can be read by scanners without a physical contact. 

Three years later, the UPC was followed by the (European) 

Article Number Code, EAN. The EAN is compatible 

with the UPC, but it encodes one additional character, 

which is why it will replace the UPC. 

Write Once Read Many (WORM ) 

The acronym WORM describes non-volatile storage media 

that can be written to only once, but be read as often 

as required. 

XML-Schema 

The Extensible Markup Language—XML—is a meta-language 

used to create documents in the form of a tree 

structure. XML is used to defi ne the rules for structuring 

such documents. It is thus a standard for defi ning all 

markup languages whose basic structures are all closely 

related to each other. The physical markup language 

(PML) is one example. 


A Glossary

B Literature 

B.1 Literature 

Finkenzeller, Klaus: RFID-Handbook, Wiley Publishing 

2003 

Heinrich, Claus: RFID and Beyond: Growing Your 

Business through Real World Awareness, Wiley Publishing 

2005 

Heinrich, Claus: Adapt or Die, Wiley Publishing 2003 

ITU: Internet Report “The Internet of Things”, 

November 2005 (http://www.itu.int/osg/spu/ 

publications/internetofthings/index.html) 

Simchi-Levi, David; Kaminsky, Philip; Simchi-Levi, 

Edith: Designing & Managing the Supply Chain, 

McGraw-Hill Education 2002 

B.2 Information on SAP Software 

Installation of SAP AII: 

http://service.sap.com/instguides– 

SAP Components RFID-Enabled Supply Chain 

Execution · Using SAP Auto-ID Infrastructure 4.0 

http://service.sap.com/notes 

SAP Auto-ID Infrastructure in general: 

http://help.sap.com/saphelp_autoid40/helpdata/en/ 

index.htm 

http://sdn.sap.com (search for the term “RFID” or 

post questions in the RFID forum) 

http://service.sap.com/sizing 

SAP ERP, SAP EM, SAP BW: 

http://help.sap.com 

http://service.sap.com 

http://sdn.sap.com 

B.3 Web Sites 

http://www.epcglobalinc.org–International Web site 

of EPCglobal (global EPC standards) 

http://www.gs1.org–International Web site of GS1 

(global EAN standards) 

http://www.autoidlabs.com/researcharchive/ 

MIT White Papers 


Index 

Mobile UI 46, 50 

Modem 5 

Monitoring 35, 45, 56 

mySAP ERP 38 

N 

Notification messages 35 

O 

Object hierarchy 51 

Object Name Service (ONS) 9, 84 

Outbound delivery processing 78 

Outbound process Goods issue 

process 

P 

Packing 41, 47 

Packing lines 74 

Pallet EPC 49, 50 

Pedigree document 83 

Personal digital assistant 8 

Picking 45 

PML 9 

Printer 45 

Product bar code 50 

Product description language 9 

Product Tracking and Authentication 

(PTA) 83 

Proxy 36 

R 

Radio frequency field 5 

RAM 6 

Reader 5, 7, 10, 31 

Recall campaigns 75 

Register 49 


Remote Function Call (RFC) 87 

Remove stock 49 

Reporting 56 

Returnable Transport Item (RTI) scenario 

51 

Return on Investment (ROI) 61 

RFC 43 

RFC connection 39, 44 

RFID device 32 

RFID middleware 43 

RFID printer 63 

RFID project 33, 73, 75, 78, 79 

RFID system 13, 32 

RFID tag 5, 6, 12, 31 

ROM 5 

Rule processor 43, 48 

Rules 40 

S 

SAINT 38 

SAP AII Studio 86 

SAP APO 80 

SAP Auto-ID Infrastructure 6.0 3 

SAP Business Information Warehouse 

(BW) 41, 43 

SAP ECC 5.00 38 

SAP Event Management (EM) 35, 38, 

56, 61 

SAP GUI 46, 47, 48 

SAP NetWeaver 3, 31, 43 

SAP SCM Event Management 38 

SAP Web Application Server 34 

SAP XI 26, 32, 36, 37, 61 

Savant Device controller 

Scanning 51 

SCM application 32 

Serial Shipping Container Code (SSCC) 53 

SGTIN 12 

SKU (Stock keeping unit) 73 

Slap & Ship scenario Standalone 

scenario 

Smart labels 6, 9, 16 

Standalone scenario 36, 37, 43, 47, 48, 

49, 50, 51 

State machine 5 

Status 35 

T 

Tag 5, 6, 7 

Tag picking 47 

Total Cost of Ownership (TCO) 31, 61 

Trace 35 

Tracing 75 

Transceiver Reader 

Transformer coupling 14 

Transponder RFID tag 

U 

User interface 45 

US Food and Drug Administration (FDA) 

83 

V 

Validate 49 

W 

Web service 50 

WORM 5, 6, 9 

Writer 8 

X 

XML 9

ISBN 1-59229-081-7 

ISBN 13 978-1-59229-081-9 

1st edition 2006 

© 2006 by Galileo Press GmbH 

SAP PRESS is an imprint of Galileo Press, 

Boston (MA), USA 

Bonn, Germany 

Translation Lemoine International, Inc., Salt Lake City, UT 

Copy Editor John Parker, UCG, Inc., Boston, MA 

Cover Design Vera Brauner 

Printed in Germany 

All rights reserved. Neither this publication nor any part of it 

may be copied or reproduced in any form or by any means or 

translated into another language, without the prior consent of 

Galileo Press, Rheinwerkallee 4, 53227 Bonn, Germany. 

Galileo Press makes no warranties or representations with respect 

to the content hereof and specifi cally disclaims any 

implied warranties of merchantability or fi tness for any 

particular purpose. Galileo Press assumes no reponsibility for 

any errors that may appear in this publication. 

All of the screenshots and graphics reproduced in this book are 

subject to copyright © SAP AG, Dietmar-Hopp-Allee 16, 

69190 Walldorf, Germany. 

SAP, the SAP-Logo, mySAP, SAP NetWeaver, mySAP Business 

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SAPmail, SAPaccess, SAP-EDI, R/3 Retail, Ac celerated HR, Accelerated 

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