FOCUS

— July 12, 2006

RFID

Computerworld Honors RFID Leaders
TNT Logistics North America, a leading provider of supply chain logistics services, has been recognized for its work in RFID technology by the Computerworld Honors Program. This year's winners were honored during an awards ceremony last month in Washington, D.C.
TNT's automotive RFID initiative was launched in 2005 in support of Ford Motor Co.'s Dearborn, Mich. truck assembly plant. The logistics provider operates a Material Sequencing Center (MSC) that delivers parts in small, metered lots to the manufacturing line. As part of the initiative, RFID tags and a network of wireless locating sensors provide real-time location and status information for thousands of mobile racks shared between the plant and TNT's facility.
Devices located at dock doors at the MSC trigger the RFID tag to emit a signal when a rack full of parts is loaded onto a truck bound for the plant. Through this automatic data collection process, the system confirms that the load has been built and validates that it is ready to ship. The system also triggers an advanced shipping notice so that the factory knows what material is en route. Additional steps include automated gate arrival, load and unload rack validation, rack traceability and real-time alerts to improve communications between the MSC and the assembly plant.
Computerworld honored Linda M. Dillman, executive vice president at Wal-Mart Stores and a major force behind Wal-Mart's RFID initiatives, with a Leadership Award. Leadership Awards are presented annually to individuals who have been instrumental in revolutionizing the use of information technology.
http://cwhonors.org
http://www.tntlogistics.us

Challenges Just Beginning, Says Aberdeen
The challenges of implementing RFID are only just starting to be recognized, according to a new RFID Benchmark Report from the Aberdeen Group, “Scaling RFID Implementations from Pilot to Production.” Companies are beginning to look at implementing RFID on a broad scale, says Aberdeen's John Fontanella, and with this comes the inevitable question of how to integrate technology and information at the "edge" with the rest of the enterprise.
Through a survey of companies across multiple industries, Aberdeen examines how organizations will meet the difficult challenges that will arise when RFID moves out of pilot stage and is deployed across the enterprise. While the report focuses on wide-scale RFID deployment, its findings are just as relevant to the adoption of other "edge" technologies ranging from mobile devices to sensor technologies. Capturing their true value is dependent not only on how widely they are used, but how well the enterprise can incorporate and operationalize the data they capture, Fontanella says.
The Aberdeen report, which recommends a number of actions to help companies succeed, can be downloaded free on Aberdeen's website, www.aberdeen.com.
http://www.rfidupdate.com

Ryder and Partners Introduce New Wireless Solution for Fleets
Ryder System Inc., Teletrac and Cingular Wireless have partnered to launch a an advanced onboard telematics technology designed to improve vehicle uptime, driver efficiency, highway safety and cargo security as well as real-time tracking of customer fleet operations. Named RydeSmart®, the solution currently is being tested in a limited geographic area, after which it is expected to be expanded to Ryder's customers across North America. The pilot includes more than 5,000 vehicles in a range of industries.
In addition to Ryder's 73 years of transportation management experience, the alliance leverages Teletrac's integrated global positioning system (GPS), wireless data and micro-chip technologies, and Cingular's extensive, wireless data coverage area. The result delivers a practical, affordable solution to improve the business performance of fleet operators of all sizes, says Tony Tegnelia, president of Ryder's U.S. Fleet Management Solutions.
RydeSmart® is a compact hardware and software unit that is installed into a truck and connected to the vehicle's existing computer and diagnostics systems. The unit continuously monitors the vehicle's location, mileage and speed, as well as other performance and diagnostic data. That information is communicated every 15 minutes and on-demand, as necessary, via a dedicated and secure connection with the Cingular network to fleet operators' desktops. With this depth of real-time fleet information and visibility, Ryder says fleet operators will be able to make a quantum leap in saving labor, time and money, while improving productivity and customer satisfaction.
http://www.ryder.com

RFID Use in Chemical Industry Analyzed
The Chemical Industry Data Exchange (CIDX), a 20-year-old trade association that serves as a chemical industry forum for emerging e-commerce technologies, has published its 'RFID Framing' white paper, a 46-page document detailing the impact of RFID technology on the chemical industry. The authors, a CIDX team of technology experts, including representatives from chemical producers, anticipate that the use of RFID in the chemical sector will be high, and they argue that the real question is not if it will be used, but rather how and when.
In the paper, the CIDX team examines a range of RFID challenges and opportunities in operations, security and standardization. Each topic is outlined and key findings explored.
The white paper also examines advantages and disadvantages of various frequency options and previews tag security issues, environmental factors and reader capability issues.
The same team also intends to represent the chemical industry's requirements to EPCGlobal, draft an RFID requirements document for the industry based on EPC practices, and draft another white paper featuring recommendations for how CIDX might integrate with EPCGlobal and EPC Information Service.
The Executive Summary is available online, free to existing CIDX members. (Non-members can buy the full paper for US$2,500).
http://www.usingrfid.com

International Paper Closes RFID Unit
ASURYS, the RFID division of paper and packaging giant International Paper, has closed down after being shopped around the industry for purchase, according to sources. The company employed about 25 people which International Paper will attempt to place in other positions at the company.
The decision to close ASURYS, according to International Paper's manager of media relations Amy Sawyer, was that its capabilities were better allocated supplementing the company's primary packaging business than they were building an entirely new RFID firm. Sawyer said the company meant to "turn the capabilities inward ... to enhance service to existing packaging customers." She emphasized that the unit was in fact quite small. "The value it can have as a very small entity," she explained, "could have a bigger impact used [internally] versus as a niche business." When asked if the decision also related to the wider transformation initiative within International Paper to refocus the entire company on core competencies, Sawyer said no. "The decision related to ASURYS is aligned to that, but I wouldn't say because of that."
ASURYS had an RFID testing center in Memphis, Tenn., and an undisclosed number of clients, for whom the company has almost completed its work. "We are in the process of meeting our commitments to our existing customers, and that's pretty much on track to be wrapped up by the end of this month," said Sawyer.
http://www.rfidupdate.com

Intermec and Alien Headed Back to Court
RFID hardware provider Intermec has filed suit against Alien Technology in the U.S. District Court for the District of Delaware for patent infringement. In the suit, Intermec alleges that Alien's UHF RFID readers and tags, which are based on the second-generation EPCglobal air-interface protocol standard, infringe 10 Intermec patents. Intermec is seeking an injunction that would prohibit Alien from selling the infringing RFID products. Intermec is also seeking monetary damages from the sale of Alien's Gen 2 readers. Earlier this month, Alien filed a lawsuit against Intermec in Federal District Court in the District of North Dakota, in which it sought a declaratory judgment to prove none of its RFID tags and readers infringe on 10 Intermec patents for RFID products and processes, and to prove that the 10 Intermec patents are invalid. In its action, Intermec also filed a motion to dismiss this request for declaratory judgment, on the basis that the North Dakota Federal Court does not have jurisdiction to hear the case.
Intermec, which holds more than 150 RFID patents, has been involved in litigation over those patents since June 2004, when it sued Matrics (later purchased by Symbol Technologies), claiming the company violated four of its patents. This was the first of a spate of suits and countersuits between Intermec and Symbol. In September of last year, the two firms agreed to settle the first of these matters and they have since agreed to resolve the other suits.
http://www.RFIDJournal.com

Solution Aimed at Chargeback Elimination
Software vendor Seeburger says an improvement in its RFID Gateway/SCM Portal middleware platform will enable CPG companies to recover their RFID system investments by preventing inaccurate shipments that trigger retailer chargebacks. The new application reconciles product codes contained on RFID labels with the original purchase order before the shipment leaves the supplier's warehouse, potentially saving millions of dollars in compliance penalties that erode CPG profit margins, says said Philip Calderbank, Seeburger vice president of RFID.
"Chargebacks can cut 2 percent to 10 percent from a manufacturer's overall revenues. A large percentage of these charges can be eliminated by detecting short lots and other packing errors before the shipment goes out the door," Calderbank says. "By making it possible to detect those errors - and thereby reduce chargebacks - the RFID Gateway can equip CPG manufacturers with a true economic return on the RFID technology investments they are being asked to make to do business with retail giants such as Wal-Mart."
The new functionality is part of an enhancement to the Seeburger RFID Gateway's Event Manager that is available as an add-on to the existing Gateway software.
http://www.usingrfid.com

New Tags Designed for Use on Metal
Two new products aimed at reducing the impact of metal on radio frequency identification systems have hit the market. ADASA, a Eugene, Ore.-based start-up that makes reusable RFID tags, has announced a new tag designed to be used on metal parts and products with liquids. In addition, SAVR Communications, an Irving, Tex.-based provider of RFID systems, has introduced a new RFID reader designed to be mounted under metal conveyor systems.
ADASA's new "Foam Attached Tag" (FAT tag) is based on EPCglobal's second-generation Electronic Product Code (EPC) air-interface protocol. It features a passive UHF 4-inch-by-1/2-inch tag attached to a layer of foam, which creates distance between the transponder and the metal or liquid products. Metal and liquids can detune an RFID transponder's antenna, greatly reducing the distance from which it can be read, while liquid absorbs RF signals.
Foam solutions have been available for some time, but Clarke McAllister, ADASA's CEO, says current solutions require companies to print a smart label, peel the backing off to expose the tape and reattach it to foam, then apply the foam to the products. The FAT tags are designed to work with ADASA's PAD3500, a Gen 2 mobile RFID encoder announced in March. The PAD3500 uses what ADASA calls a SmartCartridge that holds RFID inlays. The cartridge can hold about 40-50 FAT tags or up to 500 1-by-4-inch non-foam tags, according to McAllister.
SAVR Communications' new Under Conveyor RFID Reader is designed to be fastened underneath conveyor systems without the need to modify, remove or replace any metal components in the conveyor. Metal can interfere with RF waves, so companies often have to rebuild conveyor systems using plastics rollers when installing RFID readers underneath.
http://www.RFIDJournal.com

Efforts to Secure Container Inadequate, says ABI
Governments and port authorities acknowledge that the 17 million cargo containers in use around the world are a weak link in national security arrangements. Import/exporters and manufacturers understand that poor container security poses a risk to the goods they contain. Yet because there are so many players in the global freight ecosystem, and the problem is distributed in thousands of ports and transport hubs around the world, attempts to improve it have been inadequate.
"Efforts underway in the ISO to create a uniform standard for electronic container security should bear fruit within the next 12 months," says ABI Research analyst Robert Foppiani. "But getting shippers and port operators to comply and to invest in costly systems that provide little or no ROI is another matter. Everyone wants to improve security, but all the maritime industry players are looking to each other to be the first to invest. An organization such as the World Customs Organization needs to mandate electronic seal standards. Until some of these stakeholders make hard decisions, the situation will remain unsatisfactory."
ABI's new study, Cargo Container Security Tracking, examines and evaluates evolving solutions and technologies for global electronic container security tracking. It forms part of the RFID and Commercial Telematics Research Services. Several manufacturers--General Electric, Savi Technology and IBM--are designing electronic container security systems. "Because the container electronic security market is still quite immature, it is difficult for government to specify a single technology as a cure-all solution," concludes Foppiani. "But until something is done, security will continue to suffer."
http://www.abiresearch.com

Click here to subscribe or renew your subscription to Global Logistics & Supply Chain Strategies magazine