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1. What is RFID? RFID(Radio Frequency Identification) is a technology that allows automatic identification of objects, animals or people. RFID is not just a better bar…
  • 1. What is RFID? RFID(Radio Frequency Identification) is a technology that allows automatic identification of objects, animals or people. RFID is not just a better bar code Capabilities More data, greater accuracy, automated delivery Line of sight not required Reads 1000’s of items simultaneously Benefits Improved accuracy, visibility, operational efficiency and security Opportunities to quantify processes and map improvements Opportunities for exception based management
  • 2. RFID Components Tag : It is a transponder that is made up of an integrated antenna and an electronic circuit. The information can be written and rewritten on a tag. The ID written on the tag is known as the EPC (Electronic Product Code). Reader : An RFID reader is a device that is used to interrogate an RFID tag. The reader has an antenna that emits radio waves; the tag responds by sending back its data Host Computer : It reads/writes data from/to the tags through the reader. It stores and evaluates obtained data and links the transceiver to applications. Tag RFID Reader Host Computer
  • 3. How RFID works? Radio command signal issued from reader Host Computer Modified signal containing data returned Reader 164B28F34 Antenna
  • 4. Value Chain Cost Distribution Value Chain stages Cost Distribution R&D 15% Primary Manufacturing Cost 5-10% Secondary Manufacturing/ Packaging 15-20% Marketing / Distribution 30-35% General Administration 5% Profit 20% Total 100% Source: Imperial College, 2005
  • 5. The Development of RFID From World War II to your corner shop Like the internet, RFID has its roots in the military. During the Second World War, a crude form of this radio wave based technology was used to distinguish enemy planes from friendly aircraft. But like the Internet, RFID has left its military history behind, becoming a cutting-edge technology which is widely used by the private sector and consumers. RFID has the potential to transform the way we live and work – just as the invention of electricity and telecommunications did in the late 19th century. Revived in MIT
  • 6. RFID – What is it? Radio Frequency Identification Device Holds a small amount of unique data – a serial number or other unique attribute of the item The data can be read from a distance – no contact or even line of sight necessary Enables individual items to be individually tracked from manufacture to consumption!
  • 7. An RFID infrastructure consists of four basic components Tags • Active or passive • Usually attached to specific items Antenna • Receives and transmits the radio frequency signals Reader Host Computer • Communicates • Stores and evaluates with the tag obtained data & links to an application e.g. ERP 9
  • 8. Passive RFID Tags No power supply "on board“ Transponder reflects/modulates radio signal from reader Shorter read range Lifetime not limited by energy source The field allows the chip/antenna to reflect back an extremely weak signal containing the data The data sent by the reader is modulated and backscattered from the tags at range. Price : 10 to 30 cents
  • 9. Active Tags Own energy source (e.g. battery) Transponder transmits radio signal Higher read range Cost between $20 and $40 per item Life between 2 – 4 years
  • 10. RFID Marketplace Integrated Circuits Hardware Equipment System Integration Auxiliary services
  • 14. RFID Applications in Logistics
  • 15. Cargo list 1. Manufacturing RFID tags being attached “Read” radiation 2. Warehouse Activation radiation 3. Retail store Tag activated EPC stored 1.A. Data transferring Smart Shelf automatically orders product as being removed from the shelf
  • 16. In procurement, sorting & placing
  • 17. Views on the Value of RFID Labour Cost Savings Accenture estimates, as reported in Lacy (2005), that the savings in receipt is 6.5%, while 100% of the labour in physical inventory count could be eliminated. Inventory Reduction Economist (2003) cites IBM’s estimates to be at 5 to 25%, Shrinkage and Out-of-Stock Reduction First, by having visibility so that the inventory record corresponds closer to actual inventory, replenishment can be more accurate, leading to fewer stock outs. Second, the ability to accurately monitor inventory can reduce the process failures, prevent misplacements, and avoid frauds,1 leading to a direct reduction of inventory shrinkage. IBM’s estimate (Alexander et al. 2002) is that shrinkage can reduce by 2/3 Lee and O¨ zer: Unlocking the Value of RFID 60 Production and Operations Management 16(1), pp. 40–64, © 2007 Production and Operations Management Society
  • 18. Bad data quality could kill the benefits of RFID
  • 21. Counterfeit Viagra Counterfeit Viagra was found in the Summer of 2004 in two retail pharmacies in California. Bottles were for 100mg, 30-counts. Cost < $1/bottle Cost $270/bottle 23
  • 22. Counterfeit Ponstan Ponstan is an anti-inflammatory product. This counterfeit was found in Columbia. The yellow powder consisted of boric acid, floor wax, yellow highway paint. Pressed into tablets and placed in foil packs with labeling. Source: Pharmaceutical Manufacturer Research Association 24
  • 23. Drug Counterfeiting Cumulative US Counterfeiting Losses: Over $1 Billion Average impact to major manufacturer: $50 to $100 Million annually 7% of the World Drug Supply Chain is Counterfeit—WHO Additional losses occur due to negative brand impacts and the costs of recalling suspect product
  • 24. Potential Solutions Product based solutions ◦ Self-contained positive identification of the genuine product ◦ Holographic labels, embed technology in the packaging or product Supply chain level solutions ◦ Stop counterfeit product from entering the supply chain ◦ Tightly control the chain of custody with documented pedigree ◦ Solution is only as effective as the weakest link in the supply chain RFID Moves Forward, Hallie Forcinio, Pharmaceutical Technology/s Packaging Forum editor 26
  • 25. Paper Vs E- Solution A paper solution will be very costly to the industry • Florida has enacted pharmaceutical pedigree papers • Paper pedigree must be maintained through the entire supply chain • Estimation on distribution side alone shows that efficiency would go down by 85% Electronic Solutions: Advanced Bar Coding and RFID •Advanced bar coding (i.e 2D) and RFID technologies are potential technologies to enable efficient electronic pedigree •RFID is emerging as the preferred solution for package level tracking 27
  • 26. Project Jumpstart A group of premier organizations in the Pharmaceutical Supply Chain have worked together to explore the potential of RFID/EPC The limited test validated the feasibility of RFID in the pharmaceutical supply chain A number of issues and limitations were identified While not a complete success, Jumpstart was a good first step 28
  • 27. RFID Tag Manufacturing Details Steps that were performed to create Jumpstart tags printed EPC Number on label converted inlay into 2-ply label EPC Number printed on tag created inlay attaching chip to antenna created chip with EPC Number Showing peel of tag from clear second layer of 2-ply construction Roll of Tags Tag was not readable so VOID printed across tag. These have been removed from rolls sent to companies Notch used by printer to line up printing of EPC Number on label
  • 28. Pharmaceutical Pedigree 20% • , 80% Pharmaceutical Manufacturer Distributors 1,500 (Top 30 = 80%) 100 (Top 3 = 85%) Providers 100,000+ Simplified US Pharmaceutical Supply Chain • e-Pedigree – The process Electronic record, containing information regarding each transaction resulting in a change of ownership of a prescription drug, from sale by manufacturer, through acquisition and sale by a wholesaler, until final sale to a pharmacy or person furnishing, administering or dispensing the prescription drug RFID Moves Forward, Hallie Forcinio, Pharmaceutical Technologys , Packaging Forum editor 30
  • 29. Pedigree Data Elements Identify drug, dosage form & strength • Manufacturer • Quantity by Lot number • Corresponding invoice / shipping / transfer document number • Transaction dates • Certification of authentication • Contact information for each wholesaler • Signature / oath that pedigree is accurate & complete • Manufacturer’s unique tracking number when available
  • 30. An Example of an ROI analysis for introducing RFID program
  • 31. Characteristics of Indian pharma supply chain Large number of small players dominating the market Supply Chain not well integrated Distribution system complex and fragmented Based on the two-tier sales tax structure, namely CST and local sales tax
  • 32. THE GREAT INDIAN SUPPLY CHAIN Manufacturing unit Around 25 per company. i.e. one per state Excise paid godown C&FA Around 60,000 across the country Wholeseller District Stockist Retailer Ref. Express pharma Around 500,000 across the country
  • 33. In future???? Manufacturing unit Emergence of 3PL VAT Consolidation Company driven to Regional distribution Centers industry driven industry Forward distribution Centers Retailer
  • 34. The Future "Imagine an Internet of things, where everyday objects, rooms, and machines are connected to one another and to the larger digital world.” - Business 2.0
  • 36. Our USP’s Vector based customizable GIS MAP Services available with three different views (Street, Satellite & Hybrid). In house Research & Development for new technology integration Reliable third party Hardware Manufacturing Reliable third party customised Application Capability to integrate with Future Technology
  • 37. Benefits Achieved by Using RFID •An RFID-enabled location system makes it much easier and more efficient to locate tagged assets, providing visibility for repurposing equipment. • An unused server sitting in one data center, for instance, can be quickly deployed to another site that needs it right away, in order to get a project going. Knowing immediately which server is available, and its exact location, saves Companies the cost of having to purchase a new system. • It also provides up-to-the-minute data regarding when a device is decommissioned and leaves an organization. •Inventory time reduced from months to less than a week •Increased accuracy, security and visibility •Reduced man power •Inventory accuracy of 99.2%, leading to loss rate of less than 1 %
  • 38. Contact US MONTEAGE TECHNOLOGIES B-86, Sector – 60, Noida – 210310, INDIA Phone – 0120-4118472
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