RFID in Warehousing

8/9/2019 RFID in Warehousing

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Jerry Banks, Atlanta, FA USA

RFID in Warehouse

ManagementLogistics Short ourse

June !"#, $%%&Jerry Banks


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What is RFID'

Ra(io"Fre)uency IDenti*ication, or RFID, is a +rocess an(+hysical in*rastructure y -hich a uni)ue i(entity, -ithin a

+re(e*ine( +rotocol (e*inition, is trans*erre( *rom a (e.iceto a rea(er .ia ra(io"*re)uency -a.es/


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Is it a glori*ie( arco(e'

0 1he +rinci+le is not much (i**erent thanthat o* the arco(e

0As it is ase( on a micro+rocessorcontaining a (ata"memory s+ace, RFIDchi+s can e a++lie( in many instancesthat coul( not ha.e een e.er imagine(

-ith arco(es2


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What are some +ossiilities'

0 Imagine a -orl(

3 Where a com+any has no +rolem *in(ingin.entory in a -arehouse

3 Where the +ro(ucts shi++e( concur -ith theshi++ing or(er

3 Where (etermining that the +ro(ucts or(ere(

are all in the shi+ment3 Where stock outs can e eliminate(


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1he stage is set *or RFID2

0 RFID technology has een use( *or many years,ut not notice(

0 4.ery (ay use o* RFID technology has ecome

so common that many in(ustries (i(n5t e.enreally think aout its +otential

0 Many usinesses thought that the technology-as either not roust enough *or enter+rise"-i(e(e+loyment or not cost"e**ecti.e enough togenerate +ositi.e ROIs


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1he stage is set2

0 RFID is changing the *uture o* in(ustry ysu++orting huge increases in automation,+ro(ucti.ity, e**ecti.eness an( cost"sa.ing

o++ortunities


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6a.e you seen this e7am+le'

0 8ery common RFID a++lication use( y millions o* +eo+le on a (ailyasis

0 Many toll roa(s o**er the o+tion o* a 9*ast"lane: in -hich the (ri.er(oes not ha.e to sto+ at the toll ooth to +ay

0 Instea(, the (ri.er attaches a small (e.ice to the -in(shiel( -hich

allo-s the (ri.er to +rocee( through the 9*ast"lane: at a reasonales+ee( ;usually the s+ee( limitre*erence in*ormation, such as to -hat cre(it car( an(-hether the consumer -ants a recei+t or not, is store( inthe consumer5s +ro*ile an( use( at the +oint o* sale ;thegas +um+


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Moil5s S+ee(+ass


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RFID in*rastructure

0 An RFID system

3 RFID tag

3 RFID rea(er

3 >re(e*ine( +rotocol (e*inition ;*ormat< *or thein*ormation trans*erre(


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Real"-orl( systems

0 Inclu(e

3 RFID mi((le-are an( (ataase

3 RFID enale( a++lications


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1ag

0 Integrate( circuit

3 Micro+rocessor, memory an( a trans+on(er0 Micro+rocessor +rocesses the in*ormation coming

*rom the rea(er an(, at minimum, accesses thememory to +ro.i(e the uni)ue i(enti*ier *or the tag

0 4ach tag contains a uni)ue i(enti*ier-ithin the+re(e*ine( +rotocol (e*inition that makes it

(i**erent *rom e.ery other tag in a s+eci*ic set


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1ag

0 Antenna

3 Use( to communicate -ith the rea(er an(e7ten(s the range o* this communication

3 Antenna (esign .aries )uite (rastically ase(on the en.ironment an( a++lication o* the tag


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>assi.e 1ags

0 o uilt"in +o-er source3 >o-er is +ro.i(e( y the ra(io *re)uency -a.e

create( y the rea(er -hich in(uces in the antenna atiny ut su**icient electrical current to acti.ate the tag

3 When the tag comes into the range o* the ra(io*re)uency -a.e *iel( create( y the rea(er, it usesthat energy to +o-er u+ its internal com+onents an(to communicate -ith the rea(er

3A(.antages

0 Ine7+ensi.e to manu*acture, .ery small in siCe an( re)uiresno internal +o-er su++ly

3 Disa(.antage0 Range o* o+eration is limite( to only a *e- meters


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>assi.e 1ags


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Antenna con*igurations

0 Di**erent con*igurations -ork (i**erentlyase( on the constraints o* theen.ironment in -hich the tag -ill e use(

0 Much e7+erimentation is re)uire( to(esign an e**ecti.e antenna

3 In +ractice, this is usually +er*orme( on a trial"

an("error asis


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Acti.e tags

0 Internal +o-er source

3 Bee+ at s+eci*ie( inter.als0 Battery li*e is (etermine( y the *re)uency o* the

ee+s0 Signal strength is a lot higher than +assi.e tags

an( there*ore can e rea( *rom a *urther (istance/

0 In o+en"*iel( en.ironments -ith minimal

inter*erence, acti.e tags can e (etecte( morethan /E m a-ay *rom the rea(er


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Acti.e tags

0 1-o negati.es

3 ost an( siCe o* the tag0 ost o* the tag is oun( on the lo-er en( y the

cost o* the attery -hich, y itsel*, is usually morethan the cost o* a +assi.e tag

0 Battery takes s+ace an( there*ore the tag mustallocate real"estate *or the attery

0 Increases its siCe (ramatically -hen com+are( to a+assi.e tag


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Acti.e tags


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RFID in the -arehouse


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Basic *unction

0 1he asic *unctions o* a -arehouse cane (escrie( sim+ly as *ollo-s

3 Recei.e goo(s *rom a source

3 Store an( +rotect goo(s

3 Retrie.e goo(s accor(ing to customerre)uirements

3 >re+are goo(s *or trans+ortation to thecustomers


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RFID in -arehousing

0 Since the cost o* RFID tags is (ecreasing,RFID technology is gra(ually ecoming astrategic tool in -arehousing

3 1o im+ro.e com+etiti.e +osition0 Im+ro.ing the customer ser.ice le.el

0 ee+ing the cost o* o+eration to a minimum


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Warehousing o?ecti.es

0 MinimiCe the cost o* mo.ement o* goo(s-ithin the -arehouse

0 Ma7imiCe the e**ecti.e use o* s+ace,e)ui+ment an( laor

0 ee+ track o* all items -ithin the-arehouse correctly

0 Res+on( to customer re)uests oren)uiries in a timely manner


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Bene*its o* RFID in -arehousing

0 RFID technology can *acilitate theautomation o* all manual +rocesses

0 Re(uces the amount o* laor

0 RFID eliminates much human errorim+ro.ing (ata accuracy

0Re(uces the cost o* re-ork0 RFID can s+ee( u+ the han(ling +rocess

3 1hus, im+ro.ing through+ut


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0 Since in*ormation can e +rogramme( intothe tags or retrie.e( *rom the tags at any+rocessing +oint throughout the su++ly

chain, a more (ynamic (ecision making+rocess is allo-e( e.en -ithout a centralcontrolling in*ormation system


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0 More (etaile( an( real"time (ata such as the location o*the goo(s, the status o* the mo.ale assets or resourcescan e collecte(3 Forkli*ts, containers, o+erators, etc/

0 By e7tracting use*ul in*ormation *rom the large amount o*(ata collecte( an( integrating the e7tracte( (ata -ith thein*ormation system3 In.entory +lanning can e im+ro.e(

3 Asset utiliCation can e o+timiCe(

3 Better security control can e im+lemente( an(, ultimately

0 Thus, a higher level of customer satisfactioncan be achieved!


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But, managers shoul( care*ully

consi(er the R@I e*oreim+lementation


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1e7as Instruments G/EH M6C 1ag"It Inlay


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Activities in a warehouse

0 Recei.ing0 ross (ocking0 >uta-ay0

In.entory control an( stock locationmanagement0 >icking0 Sortation an( con.eying

0 Shi++ing0 Asset management0 >hysical control an( security


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Warehouse activities and

RFID possibilities0 Recei.ing

3 =oo(s are acce+te( *rom e7ternal sources

3 1he acce+te( goo(s are then checke(

against the ill o* la(ing to see -hether thecorrect +ro(uct in the right )uantity has een(eli.ere(

3A*ter checking, the res+onsiility o* the goo(sis then trans*erre( *rom the source to the-arehouse


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3 I* the +rocess is han(le( manually, it -ill e.ery time consuming an( su?ect to human

error3 4.en i* ar co(ing is use(, the recei.e( goo(sha.e to e scanne( in(i.i(ually y theo+erators

3 1he situation is e.en -orse i* the recei.e(goo(s contain multi+le +ro(ucts in (i**erent)uantities


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3 I* all the recei.e( goo(s are tagge( usingRFID, the goo(s can e automatically

scanne( -ithin secon(s -hen the +alletcarrying the goo(s is eing mo.e( throughthe recei.ing (oor

3 In*ormation concerning the recei.e( goo(s

can e (irectly sent to the in*ormation system*or .ali(ation -ith instantaneous *ee(ack tothe o+erator in the recei.ing (ock


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3 4liminates the +rocess o* re"tagging0 Instea( o* a((ing a ne- lael or a ar co(e to the

recei.e( goo(s to hol( the SU numer, thenumer can e +rogramme( (irectly into the RFIDtags


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3 Damage( goo(s can e easily (istinguishe(y +rogramming an in(icator in the tags

together -ith all other in*ormation relate( tothe (amage such as the ins+ection result

3 1he (amage( goo(s -ill then e easilyi(enti*ie( y suse)uent +rocesses an( sentthrough (i**erent han(ling +rocesses

W h i i i d


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RFID possibilities0 ross"(ocking

3A key *actor to the success*ul im+lementationo* cross"(ocking is the .isiility o* the goo(s

across the su++ly chain3 Su++liers, (istriution centers, -arehouses

an( retailers ha.e to e linke( to ensure thatall goo(s can e +icke( u+ an( (eli.ere(-ithin the re)uire( time -in(o-


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Recei.ing

Shi++ing

Sorting

W h ti iti d


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3 Using RFID technology -ill im+ro.e the e**iciency an(accuracy o* this +rocess

3A*ter the goo(s ha.e een mo.e( through therecei.ing (oor, their RFID tags are rea( an( thein*ormation is sent to the -arehouse managementsystem ;WMS< to check -hether the goo(s arenee(e( to *ill an o+en or(er at the shi++ing (ocks

3 1he goo(s -ill then e sent (irectly to the shi++ing(ocks i* re)uire(

W h ti iti d


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3 Using RFID -ill s+ee( u+ the +rocesses o*recei.ing an( i(enti*ying the cross"(ocke(

goo(s -ithout sacri*icing accuracy3 RFID technology is an im+ortant tool *or

im+lementation o* cross"(ocking throughoutthe su++ly chain

W h ti iti d


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RFID possibilities0 >uta-ay

3A*ter com+leting the recei.ing +rocess, goo(sare then mo.e( into the storage area o* a

-arehouse either manually or automaticallyy the material han(ling system

3 Di**erent kin(s o* +ro(uct may nee( to estore( in a s+eci*ic en.ironment an( maynee( (i**erent +rotection le.els

W h ti iti d


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3 RFID technology can e use( to ensure thatgoo(s are store( in the +ro+er en.ironment

3 1he en.ironmental re)uirement in*ormationcan e store( in the RFID tag itsel*

3 1he tags are scanne( automatically -hen

+assing through the storeroom (oor

W h i i i d


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3 RFID rea(ers can e installe( on the *orkli*tsto rea( the tags on the goo(s -hen these

goo(s are eing mo.e( to the storage area3 I* the in*ormation *rom the tags is integrate(-ith the -arehouse management system-hich has access +oints on the *orkli*ts,

*orkli*t (ri.ers can instantaneously otain thelocation o* the est storage location to -hichthe goo(s shoul( e mo.e(

W h ti iti d


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RFID possibilities0 In.entory control stock location management

3 In.entory control is the +rocess *or managing the)uantity o* goo(s to ensure that the su++ly o* goo(smeets the (eman(

3 Stock location management is the +rocess o*accurately recor(ing the storage location o* the goo(san( e**iciently retrie.ing the location -hen re)uire(

3 Both the e7act )uantity an( the e7act storage locationo* the goo(s are .ital to an e**iciently o+erate(-arehouse

W h ti iti d


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RFID possibilities0 In.entory control stock location management

3 RFID technology is an e**ecti.e tool *or oth in.entorycontrol an( stock location management

3 For e7am+le, i* RFID rea(ers are installe( on theracks -ithin the storage s+ace, then the item store(-ith its e7act location insi(e the storage area can econtinuously monitore(

3 Laor intensi.e -ork such as +hysical counting o*in.entory an( manual recor(ing o* the location o* thegoo(s can e a.oi(e(


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Alien rea(er, USK%%%

W h ti iti d


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RFID possibilities0 In.entory control stock location

management

3 In a ran(om location storage -arehouse,

there is no *i7e( location assigne( *or a gi.enSU

3 In such a system, there may e some

unoccu+ie( s+ace -ithin a *ille( storage area0 alle( honeycoming


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6oneycoming

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RFID possibilities3 By continuous monitoring o* storage s+ace

using RFID technology, storage s+aceallocation can e more e**ecti.e an( can hel+

to minimiCe honeycoming in a -arehouse

W h ti iti d


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RFID possibilities0 >icking

3 Selecting the correct items in the right )uantity *rom storageaccor(ing to the customer5s or(er

3 1o(ay, or(ers are eing *ille( -ith smaller )uantities ut more*re)uent (eli.eries to maintain a lo-er in.entory le.el at theretail sector

3 Fe-er *ull"+allet shi+ments to a retailer3 Mi7e( SUs on a +allet *or (eli.ery is ecoming the norm3 As a result, case le.el +icking is a necessity -hich increases

the time in +icking an( the chances o* errors eing ma(e3 1o +re.ent any inaccurate shi+ments, time an( laor cost s+ent

on .eri*ication has to e increase(3 RFID technology is an i(eal tool to re(uce the time o* the

.eri*ication +rocess an( to remo.e human error -ithin the+rocess

W h ti iti d


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RFID possibilities0 Sortation an( con.eying

3 RFID may also *in( a++lication in the area o* sortation

3 For e7am+le, a*ter retrie.al *rom storage, goo(s may

nee( to e sorte( accor(ing to the (estination or the+ro(uct ty+e e*ore eing loa(e( onto .ehicles

3 Be*ore eing mo.e( onto the sortation con.eyorsystem, goo(s ha.e to e i(enti*ie( in(i.i(ually

3 I* ar co(ing technology is use(, *or instance, eachitem has to e rea( in(i.i(ually y a ar co(e scanneror an array o* ar co(e scanners in a high s+ee(sortation system


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Sortation an( on.eying

W h ti iti d


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RFID possibilities0 Sortation an( con.eying

3 6o-e.er, ar co(ing re)uires line"o*"sight rea(ingan( the scanning result is also sensiti.e to theorientation o* the goo(s

3 1his is a limitation to the e**iciency o* the sortationsystem

3 RFID can han(le multi+le loa(s simultaneously(isregar(ing their orientation

3 I* RFID technology is use(, the limitations o* arco(ing can e remo.e( an( the e**iciency o* thesortation system can e *urther im+ro.e(

W h ti iti d


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RFID possibilities0 Shi++ing

3 1he aim o* a shi++er is to (eli.er the right +ro(uct to thecustomers in correct )uantities, *ree o* (amage, on time, -ithaccurate shi++ing (ocumentation

3 Any (e.iation *rom the ao.e statement -ill result in claims,

returns, inaccurate in.entory an( customer (issatis*action3 1o a.oi( these un(esire( results, shi++ers ha.e to .eri*y the

goo(s e*ore (eli.ery

3 6o-e.er, .eri*ication is a time consuming +rocess

3 A((itional staging s+ace is nee(e( to hol( the goo(s *or

.eri*ication3 A((itional laor is nee(e( to .eri*y the goo(s

3 All these *actors increase the shi++ing cost an( lea( time


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RFID possibilities0 Shi++ing

3 I* RFID technology is use(, all items going out o* theshi++ing (oor -ill e automatically scanne( an(re*lecte( on the shi++ing (ocuments

3 8eri*ication can e eliminate( *rom the +rocess,staging s+ace an( laor can e re(uce( an(through+ut can e im+ro.e(

3 1here -ill e a etter chance to (eli.er an error"*reeshi++ing or(er an( to maintain a high le.el o*customer satis*action



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RFID possibilities0 Asset management

3 47+ensi.e moile e)ui+ment such as trucks, tractors,trailers, *orkli*ts an( other material han(ling (e.icesare essential *or the mo.ement o* the goo(s -ithinthe -arehouse

3 But, o.er e)ui++ing the -arehouse is a -aste o*resources

3Also, containers, +allets an( cages nee( to emanage( *or han(ling (i**erent kin(s o* goo(s

3 Sometimes, o+erators cannot mo.e a loa( sim+lyecause the a++ro+riate +allet is not a.ailale


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RFID possibilities0 Asset management

3 Sche(uling ?os *or +ieces o* e)ui+ment is not aneasy task ecause e)ui+ment locations change

3 By installing long range acti.e RFID tags an(corres+on(ing rea(ers in a++ro+riate locations -ithinthe -arehouse, these mo.ale assets ecome moremanageale

3 Real"time location o* trucks an( *orkli*ts can e *e(into the -arehouse management system *or theo+erational le.el (ecision"making o* the managers

3 4.entually, utiliCation rates o* e7+ensi.e e)ui+mentcan e im+ro.e(, -ait time o* goo(s can e re(uce(an( management can e more res+onsi.e to changes


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RFID possibilities0 >hysical control an( security

3 1he -arehouse en.ironment -ith its a.ailaility o* *inishe(goo(s makes it a +rime area *or the*t

3 Item le.el tagging -ith rea(ers installe( on racks enales $!hour, continuous monitoring an( security control -hich +re.entor (ecrease the*t in the storage area es+ecially at night -henthere are *e- managers a.ailale

3 6o-e.er, this kin( o* control cannot +re.ent goo(s *rom the*t+rior to the goo(s arri.al at the -arehouse

3 =oo(s can e stolen y truck (ri.ers -ho (elierately (eli.er*e-er goo(s than the shi+ment re)uire(

31his in"transit the*t can only e a.oi(e( y care*ul counting inthe recei.ing +rocess

3 In the ol( -ay, +allets ha( to e roken (o-n an( cases ha( toe o+ene(, or at least sam+les o* cases ha( to e o+ene(, tocount the numer o* items insi(e the case



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RFID possibilities0 >hysical control an( security

3 1his +rocess -as e7tremely laor intensi.e

3 RFID can e a++lie( to re+lace manual counting an( to a.oi(human errors

3 6o-e.er, i* the truck (ri.er ?oins han( in han( -ith a (ishonestrecei.ing (ock -orker, goo(s are still easily stolen e*ore goinginto the -arehouse

3 Similar security threats also e7ist in the shi++ing +rocess

3 1his collusion o* the*t shoul( e a.oi(e( y care*ul ins+ectionan( checking -hich is also laor intensi.e an( +rone to human

error3 1hese ins+ection +rocesses can e e**ecti.ely automate( using

RFID technology



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RFID possibilities0 Although ar co(ing technology is ine7+ensi.e, reliale,

stan(ar(iCe( an( -i(ely use(, limitations such as theline"o*"sight re)uirement, +ro7imity (e+en(ence an(orientation"sensiti.ity make ar co(ing a slo- an( laorintensi.e +rocess increasing the +ossiility o* human

error0 4**iciency an( e**ecti.eness is also constraine( y thecharacteristics o* the ar co(e itsel*

0 Moreo.er, the (ata store( in a ar co(e is static an(non"re-ritale an( the amount o* in*ormation store( is

relati.ely small0 Inconsistent +rinting )uality also causes +rolems in thea++lication o* ar co(ing in the -arehouse en.ironment



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RFID possibilities0 hallenges

3 4.en -ith the (ecreasing tren( o* RFID tag +rices, cost is still a ma?orarrier to the -i(es+rea( a++lication o* the technology

3 om+romises ha.e to e ma(e an( a++lications shoul( e care*ullyselecte( to ensure +ayo** o* the in.estment in the early a(o+tion o* thetechnology

3 A+art *rom the return on in.estment, com+anies ha.e to consi(er+rocess changes in e.ery as+ect o* the -hole -arehouse o+eration inor(er to o+timiCe the ene*its rought y the technology

3 For e7am+le, shrink"-ra++ing is a +rocess commonly *oun( in a-arehouse

3 1he -ra++ing material may cause electrostatic (ischarges ;4SD< thatcan (amage the chi+ insi(e an RFID tag

3 Mo(i*ication to the +rocess to e +er*orme( on an antistatic *loor using4SD"sensiti.e -ra++ing material can eliminate the +rolem



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3 Like all other technologies, RFID also has its limitations3 ommunication et-een tags an( rea(ers are inherently susce+tile to

electromagnetic inter*erence es+ecially -hen there are other systemsusing the same *re)uency range -ithin the -arehouse

3 Also, metallic +ackages, li)ui( contents an( any other con(ucti.e

material +resent in the en.ironment may cause *ailure -hen RFID tagsare rea( y a scanner3 1o ma7imiCe the scanning rate, multi+le scanners may e installe( to

(etect goo(s +assing a location3 1his causes multi+le rea(s y (i**erent scanners on the same item3 1he (ata must then e *iltere( y mi((le-are e*ore sen(ing it to the

central (ataase

3 As scanners may rea( any tags +assing in their .icinity, the *acility an(layout shoul( e care*ully (esigne( so that any scanner installe( to(etect goo(s going through a (oor -ill not recor( those goo(s that aretagge( as they are going through some other (oor near the (esignate((oor



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3 Moreo.er, com+are( -ith a ar co(ing system, the amount o*(ata collecte( is (rastically increase( a*ter a(o+ting RFIDtechnology

3 1he com+any has to consi(er -hether the in*ormationin*rastructure can han(le the .ast amount o* (ata collecte(

3 In a((ition, since there are many RFID .en(ors in the market,relying on a single .en(or is too risky

3 Furthermore, it is unlikely that ar co(ing -ill e totally re+lace(y RFID technology o.ernight, or e.er, *or that matter

3 om+anies using RFID technology -ill ine.italy *ace thechallenge o* han(ling the en.ironment -ith multi+le RFID.en(ors o* tags, scanners, mi((le-are an( any other RFIDcom+onents that are mi7e( together an( integrate( into thein*ormation system -ith ar co(ing technology running in +arallel-ithin the com+any



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RFID possibilities0 In conclusion

3Although there are some outstan(ingchallenges that nee( to e o.ercome, RFID is

still a +romising technology *or an e**icientlyo+erate( -arehouse an( enales item le.el.isiility throughout the su++ly chain in the*uture


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4n(

RFID in Warehousing

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Transcript of RFID in Warehousing