New Technology:RFID from Microsoft

Executive Summary

Whatever you read about packaging, supply chains, or identification, you will come across an article or advertisement for Radio Frequency Identification (RFID). Why does it seem that this technology is being touted as the best thing since sliced bread? And is it just another piece of hype meant to confuse and make us invest money in another piece of technology?

RFID is evolving as a major technology enabler for identifying and tracking goods and assets around the world. It can help hospitals locate expensive equipment more quickly to improve patient care, pharmaceutical companies to reduce counterfeiting, and logistics providers to improve the management of moveable assets. It also promises to enable new efficiencies in the supply chain by tracking goods from the point of manufacture through to the retail point of sale (POS).

As a result of the potential benefits of RFID:

• The automotive industry has been using closed-loop RFID systems to track and control major assemblies within a production plant for over 30 years.
• Many of the world's major retailers have mandated RFID tagging for pallets and cases shipped into their distribution centers to provide better visibility.
• There are moves in the defense and aerospace industry to mandate the use of RFID to improve supply chain visibility and ensure the authenticity of parts.
• Regulatory bodies in the United States are moving to the use of ePedigrees based on RFID to prevent the counterfeiting of prescription drugs.
• Hospitals are using RFID for patient identification and moveable asset tracking.
• RFID tags are being used to track the movement of farm animals to assist with tracking issues when major animal diseases strike.

But while the technology has received more than its fair share of media coverage recently, many are still unfamiliar with RFID and the benefits it can offer. In the face of this need for clear, comprehensive information about RFID and its benefits, this paper defines the opportunities offered by the technology for all organizations involved in the production, movement, or sale of goods. It is equally relevant for organizations wishing to track or locate existing goods, assets, or equipment.

In addition, the paper seeks to outline the business and technical challenges to RFID deployment and demonstrates how these issues can be addressed with technology from Microsoft and its partners. Above all, it explains how Microsoft technology—which provides the software architecture underpinning the solution rather than the tags or readers—can support the deployment of RFID-based solutions.

What Is RFID Really?

But what is RFID? RFID is the reading of physical tags on single products, cases, pallets, or re-usable containers that emit radio signals to be picked up by reader devices. These devices and software must be supported by a sophisticated software architecture that enables the collection and distribution of location-based information in near real time. The complete RFID picture combines the technology of the tags and readers with access to global standardized databases, ensuring real time access to up-to-date information about relevant products at any point in the supply chain. A key component to this RFID vision is the EPC Global Network.

Tags contain a unique identification number called an Electronic Product Code (EPC), and potentially additional information of interest to manufacturers, healthcare organizations, military organizations, logistics providers, and retailers, or others that need to track the physical location of goods or equipment. All information stored on RFID tags accompanies items as they travel through a supply chain or other business process. All information on RFID tags, such as product attributes, physical dimensions, prices, or laundering requirements, can be scanned wirelessly by a reader at high speed and from a distance of several meters.

RFID Bill of Materials

So what is the bill of materials for RFID then? RFID Component parts are:

Tag or Transponder—An RFID tag is a tiny radio device that is also referred to as a transponder, smart tag, smart label, or radio barcode. The tag comprises a simple silicon microchip (typically less than half a millimeter in size) attached to a small flat aerial and mounted on a substrate. The whole device can then be encapsulated in different materials (such as plastic) dependent upon its intended usage. The finished tag can be attached to an object, typically an item, box, or pallet, and read remotely to ascertain its identity, position, or state. For an active tag there will also be a battery.

Reader or Interrogator—The reader—sometimes called an interrogator or scanner—sends and receives RF data to and from the tag via antennas. A reader may have multiple antennas that are responsible for sending and receiving radio waves.

Host Computer—The data acquired by the readers is then passed to a host computer, which may run specialist RFID software or middleware to filter the data and route it to the correct application, to be processed into useful information.


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