RFID in Retail - Ammannato.it

cribabsurdElectronics - Devices

Nov 27, 2013 (3 years and 7 months ago)

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www.idc.com

What’s the Frequency?

The Future of RFID for the Retail
Supply Chain

Christopher Boone

Program Manager

U.S. IT Opportunity: Retail/Wholesale/CPG

Massachusetts Software Council

May 20, 2004


Agenda

Overview of major RFID announcements

Promise vs. reality

RFID ecosystem

Adoption of RFID for retail supply chain

Essential guidance

What Is RFID?

RFID = Radio Frequency Identification

RFID tags: chips, antenna, inlay

Multiple frequency ranges


Low (125KHz)


High (13.56MHz)


UHF (868
-
954 MHz; 915MHz in N. America)


Microwave (2.45GHz)

Common uses of RFID today include:


Security access cards


Mobil Speedpass


Toll road transponders

What Is RFID for Retail Supply Chain?

Tagging pallets, cases, and items with RFID

Today, focus on pallets and cases


Electronic Product Code (EPC)


UHF


N. America: 915MHz


Europe: 865.5

867.6MHz


Japan: 950

956MHz (likely)


Passive tags


Read
-
only, read
-
write

Item
-
level tracking: second wave, not first

Major RFID Initiatives

2005, 2006 mandates

2005

2010 phase
-
in

Nov 2004 mandate

April 2004, Sept 2004

Spring 2005, 2007

April 2005

Agenda

Overview of major RFID announcements

Promise vs. reality

RFID ecosystem

Adoption of RFID for retail supply chain

Essential guidance

RFID: Promise vs. Reality

Reality


High costs


Standards in flux


Lack of end
-
user knowledge


Interference


Inability to read 100% of cases
on pallet


One frequency and tag design
does not fit all


“Slap
-
and
-
ship” compliance vs.
long
-
term business cases

Promise


Reduce out
-
of
-
stocks


Reduce safety stocks


Reduce manual inventory
management tasks


Identify and reduce shrinkage


Improve efficiencies


Improve asset management


Authenticate products against
counterfeiting


Improve responsiveness to
product recalls

RFID Standards in Progress

EPC


Class 0 (today)


Class 1 (today)


Class 1 Generation 2 (mid
-
late 2004)

ISO


18000
-
1,
-
2,
-
3,
-
4,
-
5,
-
6,
-
7

Agenda

Overview of major RFID announcements

Promise vs. reality

RFID ecosystem

Adoption of RFID for retail supply chain

Essential guidance

RFID Ecosystem in Retail

RFID Layer

Tag

Tag

Tag

Tag

Tag

Tag

Tag

Tag

Tag

Tag

Tag

Tag

Antenna

Antenna

Antenna

Antenna

Reader

Reader

Edge Server (Savant)

RFID Middleware (Savant)

ONS

Server

PML

Server

UCCnet

Global

Registry

Global Data
Synchronization

Merchandise

Planning &

Allocation

Forecasting,

Buying,

Replenishment

Sales &

Marketing

Brand management,

Promotions,

Advertising,

Signage

Inventory

Management

Warehouse Mgmt,

Logistics &

Distribution,

Loss Prevention,

Salvage

Supply Chain Management & Execution


Store

Operations

POS,

Labor scheduling,

Open and Close


Non
-
store

Customer

Channels

Internet/eCommerce

Call Center

Customer Care

Customer Relationship Management

Business
Process
Layer

Enterprise
Application
& System
Integration
Layer

EAI

Enterprise Applications

Database

Database

Database

Database

Source: IDC, 2004

Russian nesting dolls

RFID deployed in analogous phases


Matrioshka 1: Inside the four walls


Matrioshka 2: Just beyond the four walls


Matrioshka 3: The retail supply chain


Matrioshka 4: The retail supply network


Matrioshka 5: Beyond the retail supply network

Companies will only make it to Matrioshka

1

3 in next five years

The Matrioshka Process

Source: IDC, 2004 (Document #30311,
The RFID Ecosystem for the Retail Supply Chain
)

RFID Ecosystem for the Retail Supply
Chain

UCCnet

Global

Registry

Data

Pools

Partner Exchange/Portal

Tag

Tag

Tag

Business
Process
Layer

Business
Process
Layer

Business
Process
Layer

Business
Process
Layer

CPG

Manufacturer

Wholesaler/
Distributor

Retailer

Logistics
Provider

Enterprise
Application &
System
Integration
Layer

Enterprise
Application &
System
Integration
Layer

Enterprise
Application &
System
Integration
Layer

Enterprise
Application &
System
Integration
Layer

Tag

Tag

Tag

Tag

Tag

Tag

Tag

Tag

Tag

Antenna

Antenna

Antenna

Antenna

Reader

Reader

Reader

Reader

Edge Server

Edge Server

Edge Server

Edge Server

RFID Middleware


(Savant)

RFID Middleware


(Savant)

RFID Middleware


(Savant)

RFID Middleware


(Savant)

ONS

Server

PML

Server

ONS

Server

PML

Server

ONS

Server

PML

Server

ONS

Server

PML

Server

Source: IDC, 2004 (Document #30311,
The RFID Ecosystem for the Retail Supply Chain
)

Agenda

Overview of major RFID announcements

Promise vs. reality

RFID ecosystem

Adoption of RFID for retail supply chain

Essential guidance

Timeline 2003

2008


RFID spending
flattens


Major
deployments for
pallet, case
tracking
complete


Spending on
tags continues


Cost, technical
limitations still
too high for
broad item
-
level
tracking


Passive EPC tag
cost average
$0.05


Matrioshka 1, 2,
& 3


Wal
-
Mart close
to 100%
compliance from
all suppliers


25
-
30 additional
retailers have
RFID
capabilities for
pallet & case
tracking


Reach early
majority phase


Partial refresh of
hardware from
2004


Passive EPC
tag cost average
$0.10


Matrioshka 1, 2,
& 3


Majority
compliance
with Wal
-
Mart
2005, limited
compliance
across all
suppliers


More retailers
deploy RFID


Early
deployments
broadened


Firmware
upgrades


Passive EPC
tags cost
average $0.15


Holiday
blackouts


Matrioshka 1,
2, & 3


Jan: partial
compliance
with Wal
-
Mart


Best practices
from 2004
identified &
adopted


C1G2 tags
more widely
available


Reader and
tag costs drop


Passive EPC
tag cost
average $0.35


Holiday
blackouts


Matrioshka 1,
2, & 3


Business
cases and
pilots


More retailer
mandates


First C1G2
tags available
late 2004


Passive EPC
tag cost
average $0.50


Holiday
shipping/
shopping
season
blackouts


Matrioshka 1
& 2


Pilots


Metro Future
Store


Auto
-
ID
becomes
EPCglobal


Wal
-
Mart
mandate,
supplier mtg


DoD
announcement


Passive EPC
tag costs

range between
$0.50
-
$1.00

Source: IDC, 2004 (#30490,
U.S. RFID for the Retail Supply Chain Spending Forecast and Analysis, 2003

2008
)

2003

2004

2005

2006

2007

2008

0
200
400
600
800
1,000
1,200
1,400
2002
2003
2004
2005
2006
2007
2008
Hardware
Software
Services
U.S. RFID for the Retail

Supply Chain, 2002

2008

$1.3B

$1.27B

$91.5M

$M

Source: IDC, 2004 (#30490,
U.S. RFID for the Retail Supply Chain Spending Forecast and Analysis, 2003

2008
)

U.S. RFID for the Retail

Supply Chain, Long View

2002
2008
2020
Pallet & Case
Level Boom

Pallet & Case
Level Peak

Item
-
level
Begins

Item
-
level

Takes Off

Source: IDC, 2004

RFID and Privacy


Top
-
of
-
mind concern


Reality vs. fantasy



What vendors should
NOT

do with RFID

as important as what they
should do

Agenda

Overview of major RFID announcements

Promise vs. reality

RFID ecosystem

Adoption of RFID for retail supply chain

Essential guidance

Essential Guidance

Educate, educate, educate

Address consumer privacy concerns

Collaborate to create viable business cases

Recognize RFID bubble and

plan accordingly

Contact Info

Questions?

Please email me at

cboone@idc.com