Alien Technology Public Template

Global RFID Use Cases(From Pilots to Production)

Joo-Hwan LeeExecutive VPAlien Technology Asia

- 1st RFID Journal Korea Conference

Public Information2

Fargo, NDAssembly and Test

Morgan Hill, CAHeadquarters and Manufacturing

Dayton, OHSolutions Center

About Alien Technology• Worldwide focus on UHF Gen 2

RFID readers, tags and services• 1,000+ customers worldwide• Advanced, patented tag

manufacturing technology - FSA• Quatrotec: advanced security

solutions for transportation• Global alliances and channels • 200+ employees• Headquarters in Morgan Hill, CA

• Assembly and test facility in Fargo, ND

• Solutions center in Dayton, OH• Quatrotec in Millbrae, CA

Public Information3

Our Business: Tags, Readers and Services

READERS

TAGS

SERVICES

Public Information4

Alien Reader PortfolioAttributes Applications

ALR-9800• Sensitive multistatic design• US, Europe, Asia

• Dock doors, conveyors and choke points requiring 2 or more antennas; large numbers of tags + transportation

ALR-9900• Top interference rejection• Monostatic• US, Asia

• Demanding applications requiring very high read rates

• Large numbers of tags• SCM, asset, manufacturing

ALR-9650• Integrated antenna• Power over Ethernet• Low profile; low system cost

• Single antenna applications• Indoor asset tracking• Low profile, small footprint applications

ALR-9010Portal

• Rugged industrial design• Easy to deploy & service• Safety certified

• Dock doors; large numbers of tags

All Alien readers employ the powerful Alien Reader Protocol

Public Information5

Alien Tag PortfolioAttributes Applications

Approximately ½ scale

Squiggle®• Highest performance• Meets World Tag criterion• Industry leader

• Case and pallet• General purpose

M• Optimized for plastic• Global operation• Strong backscatter signal

• Asset tracking (esp. plastics) • Noisy environments

2x2 • Omni-directional• Global use

• Baggage• Items, Apparel hang tags

Squiggle-SH • Meets World Tag criterion• Fits 3” labels

• Case and pallet – un-served 3” label segment

• Items, Apparel hang tags

Squiggle-SQ• Top performance for size• Very small –23mm square• US, Asia, EU use

• Items – fastest growing segment 2008-11 (ABI)

• Plastic Pharma bottles

Public Information6

Over 200 RFID Partnerships*

*Universities and some companies listed are partners of the RFID Solutions Center Dayton, a division of Alien Technology

E Smith Consulting, LLC

Public Information7

The RFID Industry

Improved Visibility• Accurate• Timely• Detailed

…Increased• Effectiveness• Efficiency• Security

Public Information8

Leading RFID Adopters

http://www.smuckers.com/home.asp?

http://www.target.com/gp/browse.html/ref=nav_t_logo/601-8920525-4648101?%5Fencoding=UTF8&node=1038576

Public Information9

Source: Allied Business Intelligence (ABI): Annual RFID End-User Survey : RFID Adoption and Usage Plans Among 175 Organizations (June, 2007)

Not Just About the Supply Chain Anymore…Broad Industry Interest in RFID

Current RFID Users and Evaluators (sub-segment):

1. Consumer Packaged Goods (~65% of manufacturing respondents)

2. Automotive (~12% of manufacturing respondents)

3. Aerospace & Defense (~9% of manufacturing respondents)

Manufacturing

Gov’t/Public Admin

Commercial Svcs

Communication/Elec/ Gas/

Sanitary Svcs

Transportation

HealthCare

Retail Trade/StoresOther

5.6%33.1%4.5%

7.3%

7.9%

8.4%

10.1%

11.2%

11.8%

Wholesale Trade

Public Information10

Signs of a Maturing Market• Standardization taking hold (EPC, ISO)

• Interoperability becoming a reality

• Entry by large software/hardware vendors

• Large enterprise businesses adopt RFID for

closed-loop systems (asset & item-level tracking)

• Passive UHF tags and software-enhanced readers are

now starting to enter segments otherwise served by

active tags and HF solutions


New Applications

Higher accuracy and more accurate order fulfillment

Barcode, human readable label

Work-in-Progress Tracking (IC, textiles and automotive manufacturers)

Higher accuracy and lower labor costsBarcode, manual Baggage Tagging (Airlines and

airports)

Lower cost, less maintenance and wider selection of supporting products

Active RFIDPortable Equipment Tracking (Hospitals)

Lower cost, better chain of custody and location information HF RFID, BarcodeDocument Tracking (Legal and

financial services firms)

Advantage Gained by Moving to UHF Gen 2 RFID

Technology Formerly Used

Application Now Possible with Gen 2 UHF RFID

Faster, lower cost and more accurate Manual countRetail, In-store, Inventory Control

(Apparel, books)


Inventory Tracking: Lexar (US)Overview

• Lexar is a leading marketer and manufacturer of NAND flash memory products including memory cards, USB flash drives, card readers and AA controller technology for the digital photography, consumer electronics, industrial and communication markets. And It is one of the key participants in Wal-Mart’s EPC initiative.

Challenge

• Use RFID to efficiently track digital memory products as they move from manufacturing at Lexar to Wal-Mart

• Be compliant with the RFID system at Wal-Mart

• Replace bar code inventory tracking system at Lexar with an automated RFID solution

• Have to handle several hundred orders a day headed to Wal-Mart distribution centers

Application

• Inventory tracking (Cases and pallets)

Area of Use

• Shipping dock

Range

• 8 to 10 feet (around 3 meters)


Results & Benefits

• Compliance well with Wal-Mart RFID-based inventory system

• Verifiable inventory asset tracking in warehouse

• Faster product distribution – As short as 96-hour turn-around from manufacturer to retail store shelves

• Increased traceability of orders sent to Wal-Mart

• Misplaced inventory that seven workers would have spent four hours tracing with a UPC system, the RFID system can find in about 45 minutes by interrogation

• Lexar will create a smart warehouse using more RFID system

Solution

• Lexar worked with KeyTone Technologies, to develop an RFID-based asset tracking application

• Create an RFID verification portal for outgoing shipments

• RFID tags would works with shrink-wrapped pallets

• Toolset includes: Alien ALR-9800 series readers and Squiggle tags, Middleware to interface Alien readers with Lexar’s SAP ordering system


Inventory Tracking :Daisy Brand (US)Overview

• Daisy Brand is leading provider of cultured dairy products and fourth-generation, family-owned business headquartered in Dallas, Taxes. The company provides sour cream and cottage cheese for the retail, food service industries, and military sectors. And It is one of the participants in Wal-Mart’s EPC initiative.

Challenge

• Track products’ locations and expiration dates at the warehouse

• Manage the flow of perishable products through the supply chain

• Ensure marketing promotions proceed as planned

• Be compliant with the RFID system at Wal-Mart

Application

• Inventory tracking (Cases and pallets)

Area of Use

• Warehouse and shipping dock (Forklifts and portals)


Results & Benefits • Improve real-time tracking of product locations and expiration dates• 67% reduction in loading time per pallet• Compliance with Wal-Mart RFID-based inventory system• Better manage promotions and high-volume shopping times by utilizing

information from Wal-Mart’s Retail Link

Solution

• Use of forklifts outfitted with Alien RFID readers and tablet computers used in conjunction with the RFID middleware platform

• The reader capture the EPC numbers of Alien’s Omni-Squiggle Gen2 tags used on pallets

• Data from forklift readers and fixed readers are routed into Daisy’s ERP system for immediate information access from the company’s factory and warehouse.

• Data about the product on a tagged pallet, including its type and sell-by date is also stored in the company’s ERP system. When a truck arrives to pick up a load, the system will let that driver know if he is picking up the proper pallet.

• The reader at the portal will also alert a driver on his tablet PC if he is loading the wrong pallet for a specific truck.

• Toolset includes: Alien ALR-9800/9900 series readers and Omin-Squiggle tags


Shipment Tracking :Diakinisis (Greece)Overview

• Diakinisis is the first company entered in third-party logistics industry in Greece which offers integrated logistics services of the highest standards, serving not only multinational clients but also leading firms in Greek market. Diakinisis is the leading company in the sector of 3PL (third-party logistics) service providers in Greece. Its core competence is based on continuously improvement through investments in systems, technology and human resources

Challenge

• one of Europe's first full-scale RFID installation

• To achieve 100% traceability in the in-coming pallet shipments

• Need to use outdoor portals with the harsh conditions of both adverse weather conditions, and the challenges of operation within a DC environment

Application

• Warehouse distribution center system for inventory and shipment tracking


Results & Benefits • Real time traceability of in-coming and out-going pallet movements• Faster replenishment of out of stocks• Reduction of manual orders• Reduction of out of stock

Solution

• Floor-mounted and shelf tags communicate to fork-lift mounted antennas and validate pick up and inventory data. Alien’s Gen 2 M tags are applied onto the concrete floor and Alien’s Squiggle tags are used on pallets and the shelves.

• Eight portals are used at the dock door to track the out-going Gen 2 tagged pallets.

• Trucks are tagged with RFID labels.

• Use shelf tags to verify use of the correct storage location to automate control of outgoing shipments

• Alien’s RFID solutions are being used as the central data capture methods for storing all in-coming shipments

• Toolset includes: Alien ALR-9800 series readers and Squiggle tags and M tags


Pallet Tracking :iGPS (US)Overview

• iGPS (intelligent Global Pooling Systems) is the company which offers a world-class information technology and logistics system to facilitate pallet ordering, inventory management, concise and simplified invoicing, and efficient pallet return-reprocessing.

Challenge• Use RFID to efficiently track pallet movements and control inventory• 100% of pallets need to have unique serial numbers

• Tracking system should provide operator-free, 100% visibility into pallet usage

Application

• Asset tracking

Area of Use

• Pallet factory, pallet pool sites, customer’s warehouses


Results & Benefits • Automatic data collection of pallet movement• Improved asset visibility, billing accuracy• Reduced loss and needless buys• Enable customers to track the products in transit by using the pallets’ RFID

numbers

Solution• Tags are inserted into pallet base and pallet top is welded on

• Four tags embedded in each pallet for redundancy and durability

• Tags encoded with GRAI (Global Returnable Asset Identifier) serial numbers• Trace shipments of pallets through customers’ dock doors and warehouses • Register delivery and return of assets

• Toolset includes: Alien ALR-9800 series readers and Squiggle tags


Manufacturing/Textile: Griva (Italy)Overview

• Griva is a leading textile company, producing approximately 300.000 rolls of fabric per year of which 60% is for the Italian market and 40% for the international market. Griva produces and distributes 500 pieces of fabric, equal to 20.000 meters, per day.

Challenge

• Use RFID to efficiently track fabric rolls as they move through manufacturing and into distribution at Griva S.p.A, one of the world’s leading textile manufacturers.

• Replace inaccurate bar code inventory tracking system at Griva with an automated RFID solution to maintain highly accurate inventory control

• Trace the textiles starting with the initial raw thread materials to woven fabric and finally to distribution and shipment of the fabric rolls.

• Fabric rolls undergo multiple treatment processes including harsh environment

Application

• EPC-compliant fabric roll tracking

Area of Use

• Manufacturing and warehouse (1,000 m2)


Results & Benefits

• Alien RFID reader and Squiggle tags combination offer optimal read range and read consistency performance.

• Sort fabrics automatically in the warehouse

• 30% ROI, including efficiencies in logistics and warehouse management costs.

• Time-management savings - Reduced shipping and transportation costs for the fabric rolls.

• Increased traceability of the more than 300,000 roles of fabric Griva produces each year

Solution

• Griva worked with Simet, an RFID integrator, to develop the world’s first EPC-compliant fabric roll tracking application.

• Griva selected Alien readers which is fully compliant with the European Telecommunications Standards Institute (ETSI) EN 302-208 specification and Squiggle tag which supports global operation at 860 to 960 MHz and sets the EPC Class 1 Gen 2 price performance benchmark.

• Toolset includes: Alien ALR-9800 series readers and squiggle tags and Simet Middleware, to interface Alien readers with Griva’s ERP


Manufacturing/Doors: Vicaima (Portugal)Overview

• Vicaima is a 100% Portuguese owned company, it was established 48 years ago and is currently one of the biggest European door manufacturers. With strong and increasing presence in international markets, it offers to the market a vast range of products, especially interior doors in wood and its derivatives.

Challenge

• Vicaima manufactures 7,500 doors per day

• There are 100’s of different types of doors for its production

• All products must be tagged

• RFID tags would support global operation

• Increase efficiency in its manufacturing processes and reduce the manpower

Application

• Material and inventory tracking

Area of Use

• Manufacturing and warehouse


Results & Benefits

• Reduce human intervention required for manufacturing process controls

• Eliminate tracking errors

• Greater flexibility and efficiencies at production control level

• Increase visibility into its production process – can see how long each door took through each stage of the production process

• More than 99% read accuracy in any situation including fire safety door made by metal

Solution

• Tags are coded, printed and attached on the production line and placed inside the door

• RFID application is integrated with Vicaima’s ERP system for maximum flexibility and efficiency at production and stock control levels.

• The system must be fully automated, so workers do not need to register the doors in the ERP system



File Management: FileTrail (US)Overview

• FileTrail is the leader in browser-based Records Management software and RFID tracking solutions. It is a west-coast specialist in the management of high-value documents, provides systems to legal firms, the state court systems and financial services companies.

Challenge• Files shared in decentralized work environment• Regulatory compliance issues• Confidentiality issues• Manual methods labor intensive & subject to error• Intrusive methods reduce productivity

Application

• File tracking

Area of Use

• legal firms, the state court systems and financial services companies


Results & Benefits

• Automated check-in and check-out eliminates human factor ensuring improved accuracy and security

• Know location and chain of custody of valuable, shared files

• In case of Sughrue Mion PLLC, Firm-wide audits of 5000 files took 4 man-days before, but with new system now takes 4 hours – 88% reduction

• In case of Kamlet Shepherd & Reichert LLP, automated data entry & file check in/out brought 75% reduction in file management costs & search time

Solution• Read tagged files and user’s security badge when user checks out files from

the central library• Use desk-mounted readers to locate files in offices• Use doorway portals to detect files as they leave the building



Vehicle Tracking: ICS (US)Overview

• Innovative Control Systems (ICS), a maker of automotive wash and services solutions with customers across North America, is leading its industry with automated RFID-based vehicle tracking.

Challenge

• Use RFID for unattended full-service customer vehicle tracking for care wash operations.

• Develop a new revenue stream for car wash operators while improving operating efficiency by eliminating the need for an employee to staff the car wash

• RFID tags would withstand harsh car wash conditions

Application

• Vehicle tracking

Area of Use

• Outdoor car wash


Results & Benefits

• Develop new business model for car wash industry

- Pre-paid packages of services at different price point

• Self-service options produce higher revenues with increased efficiency

• Increase customer loyalty by offering car wash clubs

• Reduce labor needed for wash operations

Solution

• ICA AutoSentry kiosk has an integrated RFID reader. This system automatically knows the services to which the vehicle is entitled, programs the wash equipment with these services and allows the vehicle to proceed to the wash entrance.

• ICS uses an application-specific windshield tag that is integrated into a wash-proof label. The tags are also coated for protection against the effects of sunlight and window washing cleaners.

• Tags have anti-theft protection via the RCDSecure tag design so they will stop working if removed. This means if someone tries to remove the label, the chip antenna self-destructs.



Vehicle Tracking: Pendik (Turkey)

Challenge

• The lot has four gates, far away from each other. The cars move in and out of the lot four or five times each day. The municipality did not want to hire four parking lot attendants, yet funneling all the traffic through a single, congested gate was not an option.

• Some of the gates are dangerously close to a motorway, municipality officials did not want to distract its drivers by having them press buttons to open the barriers

Overview

• The Municipality of Pendik in Istanbul, Turkey, operates a high-traffic parking area for its municipality-owned fleet of 1,000 vehicles.

Application

• EPC-compliant vehicle fleet tracking

Area of Use

• 1,000 vehicles housed in parking lot with four separate entrances

Range

• 5 ~ 6 meters of range


Results & Benefits

• Complete, automatic traceability of 1,000-vehicle fleet

• Secure parking payment system and enhanced barrier security in the parking lot for public employees. Pendik can operate and manage the parking lot without employing around-the-clock security attendants for four gates.

• Easy, automatic in-and-out access for drivers

• Improved employee satisfaction with easy and secure access.

Solution

• Municipality of Pendik worked with STS technology, a Turkish RFID solutions firm, to develop EPC-Compliant vehicle tracking solution.

• Each vehicle has a RFID tag, which is applied inside the windshield.

• STS built software based on Alien’s API, so the municipality administrators can record the vehicle movements almost 4,000 transactions a day.

• Toolset includes: Alien ALR-9800 series readers and circular antennas and Alien M tags


Self-Checkout: Fast Track Convenience (US)Overview

• Fast Track Convenience is a division of Sterling Service. Sterling Service is a food service management company which offered fresh cuisine selections supported by extraordinary customer service to our customers in the Detroit Metro area.

Challenge

• Create an unmanned grab-and-go market

- Create the first successful item-level tracking application in food service

• Fast Track Convenience teamed up with Freedom Shopping to create a self-service RFID kiosk for the food service market.

• Tagged metals and liquids products

Application

• Self-checkout kiosks for food service, hospitality and retail

Area of Use

• Unmanned or semi-manned retail operations


Results & Benefits • Uses a single tag for 4,000 different item types and SKUs• Enhanced customer satisfaction and increased store sales and profits of over

100%• Offer deli-fresh food in self-checkout food service with an item-level RFID

tagging application • 2X to 3X sales increase at same-store locations as compared to vending

machines• 3X to 4X more profitable than the vending machine business

Solution

• Freedom Shopping System create self-service kiosk using RFID, universal tags, and optional gate-style readers. The kiosk includes on-screen marketing tools, such as the ability to present complimentary items during checkout.

• The kiosk can handle the backend processes of accounting, merchandizing, reordering and inventory management.

• Freedom Shopping System developed a patented, universal tag which uses a 1/8-inch of foam to elevate the chip and antenna above the item’s surface

• Security portal using RFID would be added to monitor the exit doorways. If it senses that a tagged product that has not been checked out passes through the portal, an alarm will sound and a possible theft alert is triggered



Events: Racetimer (Sweden)Overview

• Racetimer is one of the fastest growing companies in Scandinavia and currently under contract for numerous sporting events including cycling, BMX, cross-country, triathlons and horse races.

Challenge

• Overcome issues with Barcode & Low Frequency tags/ID where runners are forced to attach bar code labels or LF (LF) RFID tags to the laces of runners’ shoes and remove costly and cumbersome mats were spread on the ground to track runners to checkpoints throughout the race track.

• Other: Inconsistent reads of ID, time, cost, no unique value-added services for runners---no extra revenue for organizers

Application

• Timing system for athletic events

Area of Use

• Finish line and checkpoints at races held throughout Europe


Results & Benefits

• Runners no longer have to stand in line at the finish to get their unique ID tag scanned

• Improved accuracy reads up to 20 meters (approximately 60 feet) to identify runners within seconds, saving up to several minutes per runner using UHF RFID over barcode or LF RFID.

• Handled high densities of runners – an absolute requirement when tracking individual start times.

• No need to collect tags after completion of a race

• Use fewer staff and volunteers at each race

• Value added services: track people to unique read points to sell photos and other time-tracking services (text messages) to friends and family

Solution

• Racetimer uses ultra high-frequency (UHF), disposable RFID tags, which provides several magnitudes higher read speeds

• Racetimer embeds RFID tag in the runner’s race bib, in a small flap that sits a few millimeters off the body (to avoid interference to the signal from the water contained in a runner’s body)



Guidelines for Implementations

• Apply the same investment metrics to RFID as to other essential business technologies

• Take advantage of education opportunities to become a smart consumer

• Select an achievable scope, measure results and learn from experience

• Scale up on the foundation of smaller, successful projects

• Demand enterprise-class manageability and reliability from hardware vendors


RFID Vision

There are 10 Trillion Barcodes in the world today…

…by 2015 there could be 1 Trillion RFID tags

Thank You!www.alienasia.comwww.alientechnology.com

http://www.alienasia.com/

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