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The possibility of not only knowing about a product but also being able to pinpoint its location without seeing it is beyond the scope of bar-code technology.















What makes RFID and the EPC so exciting from a data warehousing standpoint is their combined ability to deliver information rapidly and continually.


Products that speak for themselves

Stephen Poole

WHAT DO LOST PETS, CARGO CONTAINERS and library books have in common? All can be tracked using radio frequency identification (RFID), a technology that was first developed more than 50 years ago-and which now stands poised to radically alter the way commerce will be conducted in the years to come.

The basic RFID concept is quite simple. An RFID tag, which consists of a transponder and an embedded silicon chip with encoded data, is placed on an object -any object. When the tag passes within range of an antenna broadcasting radio waves on a specific frequency, the transponder "wakes up" and sends the chip's data to a transceiver. From there the data passes on to a decoder. The decoded data is sent to a computer, which records the chip's data and the location where it was read. The resulting information can be used in any number of ways.

The antenna, transceiver and decoder can be combined in a single unit called a reader. Place enough readers in the right places and enough tags on the right products, and it becomes possible to locate any item at any time. Clearly, the potential for such a system to revolutionize supply chain management, inventory management and related fields, is astounding, particularly when compared to limitations of the older, more-established UPC/SKU bar-code system.

For instance, the chip's data can contain an individualized serial number for even high-volume items such as cans of soda or packages of hardware components. What's more, RFID tags can endure extreme environmental stress and can't be torn or obscured like paper bar-code labels. They can be re-written and re-used thousands of times, whereas bar-code labels are most often used just once. They also are automatically activated without the need for line-of-sight laser beams and human interaction. And they are fast: With readers scanning at ultra-high rates of speed (currently under 100 milliseconds), it's possible to scan the entire contents of a shipping container in just a couple of seconds, the contents of a cargo container in just minutes.

All radio frequency identification tags are not created equal

RFID TAGS AREN'T "ONE SIZE FITS ALL." Their applications and limitations are determined by two factors: whether the tag has an internal power source and what type of chip is embedded inside it.

RFID tags can be active, passive or semi-passive. Active tags carry a battery that powers the chip's circuitry and broadcasts the data to a reader. Passive tags draw all their power from the reader's electromagnetic wave. Semi-passive tags are a hybrid-they use a battery to run the chip's circuitry but draw their broadcast power from the reader.

Typically, active and semi-passive tags are equipped with read-write chips-thus the need for a battery to power the chip's circuitry. The data on a read-write chip can be modified or overwritten when the tag is within range of a reader or when it receives new data from another source such as a sensor, which is often built into the tag.

The combination of a read-write chip and a sensor lets you track not only the location of an item, but also its condition. "With a read-write chip and a sensor, I could track how a machine on a manufacturing line is performing, the characteristics of a vital engine part or the temperature of something in a moving vehicle," says Teradata Chief Technology Officer Stephen Brobst.

Although an active tag with a read-write chip and a sensor isn't cheap (in some cases they run more than $100 each), it's well worth the expense if it prevents a major mechanical breakdown or the loss of an entire shipment of perishable goods.

Passive tags, on the other hand, carry read-only chips whose data cannot be modified (although some read-only chips called EEPROMS can have old data overwritten with new read-only data). The read range of passive tags is also much shorter-say, 10 to 20 feet compared to up to 300 feet for some specialized active tags. But they are small and cheap, and because they do not rely on a battery, passive tags never "die."

Practical matters
So why isn't RFID as commonly used as bar codes and UPCs? Three major factors come into play: the current high cost of tags and readers, as well as their limited ranges; the lack of a uniform standard like the UPC; and the process of transforming the RFID data into a format that crucial enterprise data warehouse applications can readily utilize.

As with all silicon chip technology, the first of these issues will resolve itself over time. Helping make current costs more acceptable, says Teradata CTO Stephen Brobst, is the long-term reduction in labor costs.

"Readers are a one-time expense whose costs are significantly defrayed over time," he says. "Today, a worker typically opens a big carton, starts pulling items out and individually scans every piece. An RFID reader, on the other hand, could be pointed at the carton to automatically bring every single item in the crton into inventory (management systems)."

Costs are also relative. "No one would spend 50 cents to put an RFID tag on an item that costs a dime, but they would spend 50 cents to locate a $500 suit that's been misplaced in the warehouse or left in a dressing room by a customer," Brobst points out.

That possibility-to not only know about a product but also to pinpoint its location without seeing it-is beyond the scope of bar-code technology.

Then there's the issue of a uniform standard. In the past, RFID vendors tended to create proprietary systems that were perfect for in-house operations but useless elsewhere. Enter the electronic product code (EPC), a universal standard that can deliver an unprecedented abundance of knowledge about any single product.

The EPC, which is still in development, is based on a set of numbers, similar to an IP address on the Internet. The numbers, which are stored on a RFID chip, reveal four pieces of information: the EPC version number, the manufacturer, the product and an individual serial number. Although that data is important, it doesn't tell everything you need or want to know about a product. For instance, just having the serial number for a gallon of milk doesn't tell you where it was produced, how long it was in transit, what environmental conditions it has "experienced" or its expiration date.

But the EPC offers a point of access to that information, thanks to Savant software and Physical Markup Language (PML), which is based on the widely used eXtensible Markup Language (XML). These newly developed tools will not only manage the flow of RFID data, but theywill also make it easy for enterprises to bring that information into an enterprise data warehouse.

From dairy farm to shopping cart: How RFID tracking actually works

IT'S ALL WELL AND GOOD TO DISCUSS RFID and the theories behind its development. But how will it play out in real-world applications? What can you actually do with it? Here's a glimpse into the not-so-distant future of radio frequency identification.

Yum-Yum Dairies places an RFID tag containing a unique EPC on every carton of milk it produces. The cartons go into crates that are themselves tagged with a unique EPC. A number of crates are then loaded onto pallets that have been tagged in a similar fashion.

As the pallets leave the dairy, a reader activates all the tags and they begin to broadcast the EPC information. The reader "reads" the EPCs in sequence and sends them to a computer running Savant software, which uses distributed architecture to avoid overloading private and public networks.

Next, Savant sends a query over the Internet to a database on an Object Name Service (ONS), which matches the EPC with an address on a PML server maintained by the manufacturer. The address points to a PML file that contains highly detailed information about every tagged Yum-Yum item.

The PML files can be altered by Savant, so each time the tags pass a reader wired to a Savant system-as the products they are attached to are placed in containers, unloaded at warehouses, shipped to grocery stores and so forth-the PML record is updated. And because readers also transmit their location information along with any tag data, the PML also records which dairy farm-or even which production line-is responsible for each carton of milk.

Finally, the Yum-Yum milk reaches a Save-A-Bundle distribution center and is trucked to a Save-A-Bundle supermarket. Both the distribution center and store location have their own readers and Savant systems, enabling them to track shipments and monitor environmental conditions. If temperatures rise above a safe level, the tag knows it.

What's more, the supermarket's shelves-both in the storeroom and out on the sales floor-have integrated readers. When a sales shelf is empty, the storeroom is notified to replenish it, and when storeroom inventory is depleted to a certain level, Save-A-Bundle's supply chain management software automatically places an order for more milk. In turn, Yum-Yum's data warehouse can use predictive analysis and logical data models to determine production levels, arrange procurement of raw materials and optimize logistics.

This supply-chain example doesn't even begin to explore the consumer applications likely to develop with RFID, but the possibilities are virtually endless. The ability of the EPC, PML and RFID to deliver vital information and value to manufacturers, distributors, retailers and, yes, even customers is limited by only two things: the current state of technology and our imaginations.

PML is intended to be a universal standard for describing not only physical objects but also environmental changes and other events that might have affected an item. PML files can be updated by Savant-enabled computers, which receive data from readers. With the right type of tag, for example, a PML file for a crate of produce could be updated every 15 minutes to record the temperatures during the course of its shipment and distribution. It also records the location of a tagged item each time it's activated by a reader.

What makes RFID and the EPC so exciting from a data warehousing standpoint, however, is their combined ability to deliver information rapidly and continually. As Brobst notes, "The power of the Teradata enterprise data warehouse is truly leveraged when there's a continuous acquisition of information, and RFID provides it at whatever rate that's needed. Once the data is in the warehouse, software-based 'event detectives' automate the process of figuring out which events-supply levels, delivery times, etc.-you really care about."

Implemented properly, RFID, EPC and a real-time enterprise data warehouse provide enormous benefits, such as the elimination of out-of-stock items, reduced inventory costs, faster deliveries, lightning-fast product recalls, the prevention of product tampering or counterfeiting, and instant product tracking, to name just a few.

Of course, any technology that allows individual products to be tracked from the production line to a retailer's checkout lane-and potentially beyond-is bound to raise concerns regarding consumer privacy. Benetton found itself in the midst of a public uproar when Phillips Electronics announced last March it would be supplying the clothing retailer with RFID tags. Benetton later said that it was analyzing RFID technology but had not yet tagged any of its clothes because it was unsure of the feasibility of RFID. However, most analysts believe Benetton backed away from RFID because it was concerned about possible boycotts and a "big brother" image.

But tagging items at higher levels in the supply chain, when they are still in cargo containers or trucks, on pallets and even in cartons and cases, doesn't pose a threat to privacy. What's more, the notion of a pervasive privacy invasion is already being addressed by companies that make RFID chips: Alien Technology, Matrics and Philips Semiconductors all recently announced the development of an optional "kill switch" that would allow consumers to permanently disable the tag once they've purchased the product.

Naturally, widespread item-level RFID tagging is at least a few years away, but pallet-level tests have already been completed, and carton-level testing is currently in progress. This month, the EPC Executive Symposium in Chicago will host the formal launch of the first
platform of the EPC Network that was developed by the MIT Auto-ID Center, which is responsible for creating Savant, PML and the EPC concept itself.

How well RFID will work remains to be seen, but one thing is certain: A Teradata Warehouse is the perfect solution to handle the staggering amount of data such a system will create, especially when combined with Teradata's sophisticated data-mining tools, logical data models and other enterprise-software solutions. T

Stephen Poole has written about computers and technology since 1988.

ILLUSTRATIONS BY DAVE CUTLER




Copyright by Teradata Corporation 2001-2007.