MAPS Analysis - cs.ucl.ac.uk · Web viewMarket Feasibility Study on RFID and Baggage Handling. Bala ... RFID was first discovered and used in the Second World War to allow the British

New Technology Ventures

A report onMarket Feasibility Study on RFID and Baggage Handling

Bala Krishnan Daniele QuerciaSimon Longbottom John Strafford

(This report contains 26 pages in total)

New Technology VenturesRFID and Baggage Security

CONTENTS

INTRODUCTION 4

What is RFID? 4

History of RFID and adoption 4

Why is RFID exciting? 6

How does RFID work? 8

RFID technology advantages over barcode 9

Applications 10

Technology showstoppers? What factors might limit adoption? 12Tag Reading 12Tag Manufacturing Cost 13

Is the timing right from a technology perspective? 13

THE RFID MARKET 14

Market Size & Growth 14

Macro-trends 14Socio-cultural trends 14Technological trends 14Regulatory trends 15

Market segments 15

RFID baggage handling submarket analysis 15Baggage handling segment growth 15IATA contribution towards standardization 16

THE BAGGAGE HANDLING INDUSTRY 18

Introduction 18

The major players 18

Competitive environment for RFID baggage handling solutions 1

Industry Summary 1

Is the timing right from the industry perspective? What is happening? 1

Current projects for RFID handling systems 1

2


Appendix 1 3

Appendix 2 5

Key players 5

3


INTRODUCTION

What is RFID?

RFID stands for Radio Frequency Identification. Quite simply it describes the method by

which a subject can identify itself, on request, by the transmission of identification information

through the medium of radio waves. The subject can be either

Animate: such as Humans, Dogs or farm animals etc, OR

Inanimate: packaged foods, cars, or consumer goods

History of RFID and adoption

RFID was first discovered and used in the Second World War to allow the British to

differentiate between friendly and enemy airplanes. The British warplanes were fitted with

a transponder that woke up when a British Radar signal was detected and then transmitted

a friendly signal back towards the source, indicating that the plane was friendly.

Though invented in wartime, in more peaceful times RFID research and development has

been driven forward by the promises of significant cost reduction and a multitude of

exciting value added services. In its early commercial manifestations each item to be

tagged had a small electronic assembly (a transponder) fitted to it that would respond with

a burst of radio frequency (RF) carrier modulated identification data when interrogated by

a RF signal (on a different frequency) from either a hand-held scanner/reader, or one

mounted, say, in a doorway. This burst of identifying data was intercepted by the scanner,

decoded and used to both identify the tagged item and for it to be counted. The early RFID

tagging means were battery powered (so called active devices). These were not only costly,

but also relatively bulky. Since then RFID use, and potential, has greatly increased in large

part due to the unit cost, size and power needs, of the essential ‘tag’ having decreased by

many orders. Despite the duration of its history RFID technology is still in its application

formative years. Chart 1 gives a sample overview of the development of RFID applications

with time, and some of the major activities that have lead to the current rapid uptake of the

technology.

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In many applications RFID tags replace barcodes, which have proven excellent for tracking

products through checkpoints for more than forty years (i.e. at the point of sale on the way

out of the supermarket for instance). However, the humble barcode suffers from a number

of drawbacks. More specifically barcodes

are limited to the data printed on them and cannot be updated, other than by

replacement or sticking a label over them (which may be labour intensive).

need to be substantially flat for reliable reading.

are typically (but not always) paper labels, or printed on paper based packaging,

and therefore prone to damage.

typically provide inventory data to the level of product category.

are very unlikely to show through which distribution depots and transport means

the product arrived at the point of sale.

As will be seen later in this paper, RFID technology overcomes the limitations of barcodes.

But as with barcodes, to gain wide international acceptance as the preferred means for

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inventory control systems there will have to be open standards for their use. Further if

RFID technology is to become as ubiquitous as barcodes in the distribution chain, then the

unit cost of the ‘tag’ will need to be substantially as cheap as the printed barcodes.

Arguably, an RFID tag may never become as cheap as the printed barcode incorporated on

the ‘cereal box packaging’, but because of RFID’s advantages they may become the

preferred inventory control means for consumer durables, and high value capital goods etc.

Why is RFID exciting?

RFID addresses and resolves all of the limitations highlighted above and with fantastic

prospects for further technology development offers a multitude of new and exciting

applications. Imagine for instance your clothes containing miniature RFID tags that when

placed in the washing machine, could tell the product how best to wash and care for it. Or

forget reading the instructions on the back of a microwave ready meal, with RFID tags on

the packaging the microwave could just read and follow the instructions automatically,

only informing you when you need to take action. These are just two of the value added

services that might enrich the world through the adoption of cheap RFID technology.

So, where is RFID on Gartner’s Hype Curve in 2005?

6


This figure shows that Gartner believe RFID to be 5 to 10 years from mainstream adoption.

However, by this placement, it would seem that RFID is on the verge of emerging from the

hype surrounding the technology and starting to deliver on some of its extravagant claims. To

understand this reasoning, it is necessary to fully examine the current status of RFID

development.

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TECHNOLOGY

How does RFID work?

The RFID ‘tag’ is essentially a memory device with a means of revealing and

communicating its memory contents, when prompted (scanned) to do so. The memory

consists of a plurality of binary (two state) digits, also known as bits, and the

communication comprises RF reception and transmission means. The binary data (bits) are

formed into binary words comprising typically 8, or 16 or 32 bits that can make up letters

and numbers in the same manner as in computing, the Internet and ‘texting’ on a mobile

phone. There are two broad categories of RFID system: Active, and Passive.

Active RFID tags contain a power source (normally a battery or are solar powered) and are

able to transmit a radio frequency wave with the identification information contained in the

tag’s microchip. If there is sufficient memory available, the microchip might contain

additional information (such as the washing/care instructions should the tag be from an

item of clothing).

There are two types of Active RFID tag: Active Transponder and Active Beacon.

An active transponder tag transmits information only when awoken by a reader, whereas a

beacon tag transmits its information at certain preset intervals (to conserve power).

As these devices have their own power source, they are able to transmit a strong radio

wave over relatively large distances (20-100 meters).

8

Microchip

Antenna

ReaderTag

RFID Device Host Subtrate


In contrast, passive RFID tags do not contain a power source. These tags are designed such

that they are able to draw a small amount of energy from an incoming Radio Wave, which

awakens the Microchip and piggy backs its unique identification signal onto the reflected

wave, which is emitted from the antenna.

As passive RFID tags contain no power source the range over which they operate is quite

small (0.05-10 m). The following table summarises the differing properties and

performance of the two different categories of RFID tag.

RFID Category Type Active Passive

Power source Yes (battery or solar power) No

Transmission range High (20 – 100 m) Low (0.05 – 10 m)

Price High ($10 - $50) Low (20 – 40c)

The data in the RFID tag memory may be pre-loaded (determined at time of manufacture)

as a Read Only Memory (ROM), or may be dynamically variable (Static Random Access

Memory) and take up the status of the last write/read cycle. The data is always read out

serially so that it can be correctly parsed. The information contained in the RFID tag

memory is deliberately kept to a minimum, and typically, dependent upon the data format

(its syntax, numerical format – decimal, hexadecimal etc) requires translating into a human

readable form via a host system.

RFID technology advantages over barcode

Compared to barcode inventory control systems RFID technology has significant

advantages, many of which are outside of product manufacture and distribution chain

applications. Some of these include

Not requiring line of sight access to be read.

The tag can trigger security alarm systems if removed from its correct location.

Scanner/reader and RFID tag are not (so) orientation sensitive.

Automatic scanning and data logging is possible without Operator intervention.

Each tag can hold more than just a unique product code.

Each item can be individually ‘labelled’.

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Tag data can be comprehensive, unique in parts/common in parts, and is compatible

with data processing.

With the right technology a plurality of tags can be concurrently read

It can be read only or read-write.

There is a very high level of data integrity (character check sum encoding).

Provides a high degree of security and product authentication – a tag is more difficult

to counterfeit than a barcode.

The supporting data infrastructure can allow data retrieval and product tracking

anywhere provided the scanner/reader is close enough to the tag.

Combined with its authentication is the ability to monitor shelf life – a societal

advantage in the pharmaceutical and food industry.

Since each tag can be unique they can act as a security feature if lost or stolen e.g. a

stolen smart travel card can be cancelled.

The technology is rugged and can be used in hostile environments such as down oil

wells (heat and pressure) to carry data to remote equipment.

The technology lends itself to being updated, for example, as a car goes through its life

its service record can be electronically logged with the car.

The technology could be adapted to a range of circumstances for instance a chip could

be inserted within a suit so that when it is sent to the cleaners it automatically gets the

right cleaning procedure applied to it.

The technology can be used to increase security for instance monitoring if a child

leaves a school in an unauthorised manner.

Applications

The applications for RFID tags are numerous and some of the most innovative and

successful may yet to be identified. However, initially the applications fall into the

following sub divisions.

Manufacturing

Supply Chain Management

Security Access & Control

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Asset Tracking

Payment

Manufacturing

Within the manufacturing environment RFID tags have been used for the past decade to

greatly improve operating efficiencies. Individual parts can be monitored as they pass

through the process and throughput times calculated. In this way bottlenecks can be

discovered and inventory build-ups identified. RFID also allows for easier tracking of parts

usage and re-ordering of components can be timed to minimise the costs of holding

unnecessary inventory. Therefore providing support for JIT manufacturing processes.

Supply Chain Management

In a bid to boost efficiencies and reduce costs, companies are seeking to employ RFID to

further streamline their operations. The large supermarket chains, such as Walmart, are at

the forefront of this development. The reasoning is that a deeper knowledge of where

exactly products are in the supply chain should help the company to identify areas where

unnecessary costs or inefficiencies are occurring that could impact the companies costs and

thereby their profit margins. For example, real-time knowledge of which products are

selling well on the shop floor can easily be linked to the companies ordering system

placing up-to-the-minute demand data in the hands of the supplier.

Security Access & Control

RFID tags have been used for some time to replace swipe cards in gaining access to

restricted access areas of buildings i.e. entry doors to a commercially sensitive area of an

R&D company for example. However, more recently RFID has been touted as a possible

replacement to the information contained in paper passports. Electronic passports could

carry personal data about the individual such as fingerprints and other biometric data as

well as any convictions that person may have received.

Asset Tracking

RFID tags can be used to track the location of all kinds of physical assets from cars to

library books. The principle purpose behind this application is the desire to know the

whereabouts of an asset whenever the information is required. In a library for instance a

misplaced book could be lost indefinitely causing lost revenue in rentals and perhaps even

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unnecessary replacement. As a proportion of revenue, this can cost Libraries a small

fortune. However, with the advent of low cost RFID tags in books a systematic sweep of

the library with a suitable reader should determine the exact locations of all of the books

and those that were misplaced could be easily identified. Likewise RFID tags can be

deployed to track stolen goods such as cars.

Payment Systems

There are many areas where the time taken to receive payment for goods or services can be

a major bottleneck in the process and cause major delays and queuing. Two examples of

this would be road toll payments and at the supermarket checkout. In these areas RFID can

offer significant reductions in the bottleneck, reducing queuing times and thereby

improving efficiency. RFID tags in cars allow the driver to drive straight through the toll

crossing without slowing down, knowing that the payment with be automatically deducted.

At the supermarket if all the items in the basket have RFID tags the user can simply push

the trolley through a reader, which will scan the goods, calculate the price and deduct the

money from the customer’s bank account by way of the RFID chip in his/her wallet.

Technology showstoppers? What factors might limit adoption?

There are a number of technological barriers, which must be overcome for many of the

above applications to become a reality:

Problems with Tag Reading

1. Location/position of tag

2. Interference

3. Signal absorption

High tag Manufacturing Cost

Tag Reading

One technological problem that may inhibit the take up of passive RFID tags in many

markets such as the supermarket business is the difficulty of reliably reading tags on all

products.

Metal packaged products reflect radio waves and these reflections can cause serious

interference. Similarly, packaged liquid products such as soups or bottled drinks can

absorb the radio frequencies and limit the useful read range of the products. These

problems are exacerbated by the orientation of the tag on the product relative to the reader.

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Products on shelves are rarely assembled with a consistent orientation and this can cause

the reader to fail to pick up certain products.

Tag Manufacturing Cost

Large capital investments are required to set up the capability to make passive RFID tags

in large quantities. As a result, large order quantities are required to recover the upfront

investment in the manufacturing technology.

Therefore, it has been a goal of the industry to find a single generic tag design, which can

be used, in as many different applications as possible. Driving up the potential market size

for that product and thereby reducing the tag cost.

As a corollary to this, it is possible to overcome some of the tag reading issues mentioned

above by using smart tag design. However, custom designed RFID tags tend to be

expensive and they also reduce the market size for that particular tag design.

Is the timing right from a technology perspective?

Currently there are many companies engaged in R&D activities with similar goals of

reducing tag cost and improving reading accuracy/reliability. As a result of this, no

consensus on the various standards that lie behind these different variants has emerged.

As a result, it seems that the technology is still not quite mature enough to move forward to

the mass adoption phase for passive RFID tags.

Lessons learnt from the take up of barcodes would suggest that the technology needs to be

mature enough that industry standards can be adopted before a technology will achieve the

mainstream.

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THE RFID MARKETMarket Size & Growth

The global market for RFID tags and equipments is big. Such a market has already reached

$1.7 billion in 2004 and is expected to reach $5.9 billion by 20081. Venture Development

Corporation predicts that the market will grow by 36% annually through 20082. In 2004,

the global market has grown 23.5% from 2003. A survey of 500 companies by AMR

Research further supports the positive trend: it expects corporate RFID spending to

increase by 16% from 2005 to 2006, and by 20% from 2006 to 2007. The shipment of

RFID tag readers will reach 1.6 million hardware units by 20073.

Macro-trends

We now take a look at whether general market trends favour the adoption of RFID

technology.

Socio-cultural trends

RFID technology leads to privacy and safety concerns, which may hinder its adoption4.

After purchase, tag serial numbers can be read at a distance without the owner knowledge.

As serial numbers uniquely identify items, tag (serial number) reading means item

tracking. This leads to privacy concerns (e.g., when tracking personal items) and safety

issues (e.g., when a malicious person scans shopping bags so to detect the presence of

luxury items). These concerns may, in turn, hinder RFID customer adoption.

Technological trends

Standardization is emerging and favours RFID adoption. Although a unique RFID

standard does not currently exist (there are more than a dozen manufacturers and

competing standards), a new promising standard (Gen2) has been recently proposed.

Furthermore, 20 companies announced the industry’s first patent-licensing consortium last

month5.

Another favourable trend is the decreasing cost of RFID tags. Average unit cost of first

generation tags has gone down from a few dollars to 12 cents.

1 RFID's Second Wave. Business Week. AUGUST 9, 2005. Available on http://www.businessweek.com/technology/content/aug2005/tc2005089_4131_tc_215.htm2 RFID Business Planning Service. 2005-2006 Global Asset and Transaction Management Systems. Venture Development Corporation3 RFID. Allied Business Intelligence. 4 How RFID works. Technology Review. March 2004.5 New Study Shows Strategic Shift of RFID Hardware Vendors. PR Newswire Europe. October 11, 2005.

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Regulatory trends

Regulatory trends are favourable. For example, European regulations have been changed

to allow RFID tags to work in the Ultra-High Frequency range. As a consequence, tags are

able to operate in both Europe and US, and vendors can thus offer one single product to

both regionsError: Reference source not found.

Market segments

Traditional applications drive the current RFID market. These applications include access

control, toll collection, and transportation.

However, the traditional segments are reaching saturation, and emerging application

segments are expected to create new opportunities for RFID market growth6. Table 1

shows the fastest growing RFID market segments.

Table 1 – From: Global Markets and Applications for RFID and Contact less

Smartcard Systems – VDC, 2002

Let us now focus on the fastest growing RFID market segment: that of baggage handling.

RFID baggage handling submarket analysis

Baggage handling segment growth

The market for RFID systems for air transportation is expected to grow and will reach

$236.4m in 20087.

Management and technology consulting firm BearingPoint has conducted a studyError:

Reference source not found,8 to assess the financial factors involved in implementing RFID 6 The Global Markets and Applications for Radio Frequency Identification and Contactless Smartcard Systems, 4th Edition, February 2003, VCD.7 Alien Buys Airport Systems Integrator. May 25, 2005. 8 Tuning the signal: successful implementation of radio frequency identification. BearPoint Report.

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for baggage tracking, i.e., whether there is a compelling business case for RFID

deployment by airlines and airports. A finding from the study was that baggage tagging

best serves larger airlines and airports with hub-and-spoke flight networks rather than

midsize airlines and airports that focus on point-to-point traffic.

IATA contribution towards standardization

The biggest barrier to adoption of RFID in the baggage-handling segment is the lack of

standardization. Once a standard will emerge, RFID bulk purchases are possible and, as a

result, the average tag unit cost will considerably decrease.

To address the problem, the IATA has been hard at work in aligning the industry. IATA

first produced a recommended practice several years ago through the Simplifying the

Business initiative, which provided a basic framework for RFID use. The recommended

practice was reviewed and amended in 2004 August, settling on UHF tags for baggage

encoded under ISO rules.

And just recently in November 2005, IATA has introduced a global standard for RFID

baggage tags that paves the way for widespread use of RFID for baggage management by

airports and airlines. The standard was unanimously endorsed by IATA member airlines at

the IATA Joint Passenger Services Conference held in Geneva.

The introduction of IATA standard RP1740c sends a clear signal to RFID chip

manufacturers that there is a new market segment to address which should help drive RFID

baggage tag prices down from the current US$ 0.21 average.

The new standard confirms the use of frequency ranging from 850MHz to 950MHz, also

known as UHF, which is licensed by different countries at different bands and powers for

the RFID chips. Other protocols that will be employed address

the way in which the reader talks to the tag and the way the tag responds;

the way data is delineated and compressed for storage;

commands that are available to interact with the tag.

According to IATA, the milestones for upgraded Simplifying the Business project include

100% electronic ticketing by end 2007, the use of bar coded boarding passes, common use

self service check-in and IATA e-freight which will free cargo of paper by the end of 2010.

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17


THE BAGGAGE HANDLING INDUSTRY

Introduction

The market analysis shows that airport baggage handling is the fastest growing RFID

application. Furthermore, the business case demonstrates how RFID can add significant

value across the baggage handling process in reduced luggage loss and improved customer

service (i.e. reduced transit times, luggage segregation etc). The major airlines stand to

benefit a great deal from the cost savings involved in an improved baggage handling

system. However, who else stands to gain from this new opportunity?

The major players

The table below highlights the key players in the industry for baggage handling RFID

systems.

Tags Integrated Systems

Providers

IT Consultants

& Implementers

Baggage Handling System

Providers

Aiport Authorities

Airlines

Alien Symbol IBM Alstec BAA British Airways

EM Microelectronic

FKI Logistex

Deloitte Siemens Logistics & Assembly Systems

IATA - International Air Transports Association

Delta

Escort Memory Systems

Alien (Quatrotec)

Accenture Fabricom Airports Systems

ACI - Airports Council International

Tagsys McKinsey & Co.

G&T Conveyer

Airport Operators Association

SCS corp FKI Logistex CAA - Civil Aviation Authority

18

Suppliers Buyers

Rivalry

Competitive environment for RFID baggage handling solutions

So, looking at the Industry from the standpoint of the baggage handling system providers, what does the industry environment look like? Does

it look like a business they would like to be involved in? Porters five forces model was used to consider this question and the results are

summarised below:

Threat of substitutes: LOW

No immediate substitute to follow RFID on the horizonOnce implemented, switching costs from RFID are high However, barcodes currently much cheaper

Buyer power: MEDIUM

Airlines and Aiport authorities collaborate to award contracts increasing their buying power.However there are a large number of airlines and airport authorities worldwide.

Supplier power: MEDIUM

High concentration of suppliers for tags, but not for systems integration and implementation servicesLow technology differentiation due to new IATA standardsNote: Supplier consolidation could significantly strengthen supplier power!

Competitive rivalry:LOW

Small number of large players serving a very large marketGrowth is predicted to be high with plenty of room for allPlayers tend to be locked into long term contracts with airport authorities

Threat of entry: LOW

Baggage handling system integrators locked into contracts making entry difficult (they tend to manage and maintain the baggage systems)

Significant learning curve RFID is a small part of their business

Industry Summary

Porters’ five forces analysis demonstrates the competitive attractiveness of the RFID

baggage handling market from the perspective of a current system integrator of baggage

handling systems such as Alstec or Siemens Logistics and Assembly Systems.

The baggage handling industry is comprised of several large systems integrators with a

significant worldwide market to cover.. These companies compete for very large contracts,

which usually take several years to complete. Baggage handling systems are mechanically

complex and therefore require constant maintenance and support following installation. As

a result, many of the baggage systems integrators also provide services to run the baggage

system following installation; this in turn leads to strong relations between the airline

industry and the baggage system suppliers. As RFID technology is really just a

complementary bolt-on to their existing business model there are significant barriers to

entry (and learning curves) associated with entering the business.

As a result of the above, we conclude that the Baggage Handling System integrators are in

a good position to benefit form the take up of RFID technology.

Is the timing right from the industry perspective? What is happening?

There are number of trials of RFID technology occurring. The following is a summary of

this activity.

Current projects for RFID handling systems

The first installation of an RFID baggage handling system was a trial coordinated by the

delta airline and the Transportation Security Administration. The project piloted an RFID

baggage handling system installed at Jacksonville International Airport in Florida for one

month. FKI Logistex was contracted to design, produce and install the system. FKI chose

Matrics to supply the RFID hardware for this project910.

While the trial only lasted for one month, Jacksonville has a permanent RFID system that

is only used to track selected baggage. The RFID hardware for this system was provided

by SCS corp. of San Diego.

9 Baggage handling upgraded to meet strict regulations. Modern Materials Handling. Oct 200310 Finding your luggage in a whole sea of Samsonite. Business 2.0. Sept 2004


The second RFID baggage handling installation is also being installed by FKI. McCarran

International Airport in Las Vegas will be the first airport to install an airport wide RFID

handling system. For the project the airports general construction contractor, Flagship

construction Co, hired FKI Logistex. The contract is worth $8 million to FKI Logistex.

Matrics who are supplying the RFID hardware have a five-year contract to supply 100

million RFID tags11 . FKI Logistex also has a contract for a RFID handling system at

Atlanta airport.

Matrics also have revenue from a direct-to-end user agreement with Hong Kong

International Airport. This is a $3.5 million deal to install readers in baggage handling

facilities12 .

San Francisco International Airport also has a RFID baggage handling system. Quatrotec

using hardware from Alien Technologies carried out this project.

Strategic partnerships and relationships between RFID industry and baggage handling

industry

The majority of relationships between the RFID industry and the baggage handling

industry involve the supply of RFID hardware to systems integrators. However; Alien

Technologies, a leading RFID hardware manufacturer, recently turned this trend on its

head by acquiring Quatrotec13 , a provider of systems and integration services to the air

transportation industry. This forward integration into the distribution chain represents a

different strategy to Matrics, which has mainly supplied this particular market through the

systems integrator, FKI Logistex. Alien is now positioned to supply RFID handling and

screening systems to airports directly.

In the RFID industry Matrics has recently been acquired by Symbol, originally a supplier

of bar-code scanners to track inventory14.

11 Every Bag in Place. Mechanical Engineering. April 200412 Lining Up the Luggage. Air Transport World. June 200513 Alien Buys Airport Systems integrator. RFID Journal. May 25 200514 Symbol buys Matrics Inc. for $230 million. Washington Times. July 2004

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Appendices

Appendix 1

Let’s analyse four reasons for baggage delay in an airport and how a RFID infrastructure

would manage them:

The bag arrived too early and was stored. The RF reader on the entrance to the store

monitors all the baggage entering and leaving the storage area. At the appropriate time, the

store operator is notified that there are bags in the store for the flight and is instructed to

collect them;

The bag was delayed due to processing through security or other steps. When your bag

is waiting in a queue for processing, nobody knows if the bags in front of it are more or

less urgent. With RFID, it would be possible to know exactly which bags were urgent and

which have a greater window for processing;

The baggage system had a fault and could not deliver the bag to the departing

aircraft. When a baggage problem like this occurs, what matters most is the time to

recovery. With RFID, you can read a number of bags and identify the ones that could still

be saved, and prioritise the return of others. There is no point in re-scheduling bags for an

evening flight in the morning, whilst the bags that could travel straight away are left

waiting;

The bag arrived too late and could not be processed in time. Even RFID cannot offer a

time machine for your bag. So if you have checked in too late, or your inbound aircraft has

been delayed, then RFID will not help. Of course, faster overall processing means that it

might take less time to process your bag, so the opportunity to miss is less.

The RFID tag itself also offers additional benefits:

Barcode labels are normally attached to the handles on the luggage. This poses a problem

because the handle is also the ideal place to pick the baggage up. The result is a crumpled

baggage label that is hard to read.

Secondly, automatic baggage handling systems, using 360-degree barcode readers, move

pretty fast. The barcode reader has to track the movement of the bag, find the label

attached to the bag and read it, all in a very short time window. The moving components of

3


the barcode reader mean that maintenance has to be regularly performed. Trials have

confirmed that RFID readers in an airline environment have not required any maintenance

in over a year of operation. A crumpled RFID label is also still readable, although there

are limits even for RFID – fold the tag crisply in half and it will not read. The RFID chips

themselves are still costly though, despite improvements in the manufacturing process.

Recent developments in the production process of the low cost write & read Class 1 Gen 2

RFID tag, developed by EPC global, and announcements from manufacturers seem to offer

an excellent promise in this area.

4


Appendix 2

Key players

The relatively stable industry of baggage systems integrators is made of several key

players. These include:

Siemens Logistics and Assembly Systems;

Alstec;

Glidepath and Inter-Roller Engineering;

Fabricom Airports Systems;

G&T Conveyor; and

FKI Logistex.

Siemens Logistics and Assembly Systems: recently secured a major new order for a

baggage handling system at Beijing Capital International Airport, this project is scheduled

for completion in December 2007. The company is also building a baggage handling

system at Incheon Airport in Seoul, South Korea and a fully checked bag screening system

in Australia’s Sydney airport. Siemens don’t have any experience in installing baggage

systems with RFID capability but their status as both a RFID supplier and a baggage

handling system integrator positions them well to provide systems incorporating RFID

technology.

Alstec: have worldwide experience in baggage handling system integration. As well as

supplying preliminary designs and system build, Alstec perform operation and

maintenance. While Allstec don’t indicate readiness in supplying RFID capable baggage

handling systems, they do market a software solution for advanced baggage control, which

can accommodate RFID readers.

Glidepath and Inter-Roller: have significant experience in airport baggage handling

systems having each achieved hundreds projects around the world. Inter-Roller supplies a

variety of airport logistics systems from baggage handling solutions to in flight catering

systems.

Fabricom Airports Systems (FAS): focuses on 100% Hold baggage screening, this will

be a requirement on all US flights by January 2006. FAS also supply baggage-handling

systems worldwide, with over 400 BHS solutions implemented.

5


G&T Conveyor: has also installed more than 400 baggage-handling systems worldwide.

Recently G&T Conveyor acquired assets and intellectual property from BAE Automated

Systems Inc.

FKI Logistex: leads the baggage handling industry in providing RFID implementation

with the world’s first permanent RFID baggage handling systems installed at Jacksonville

International airport, Las Vegas and Atlanta.

6

Documents

MAPS Analysis - cs.ucl.ac.uk · Web viewMarket Feasibility Study on RFID and Baggage Handling. Bala ... RFID was first discovered and used in the Second World War to allow the British