The RFID Retail Landscape for 2014 (and what LP Leaders need to know)

RFID technology has experienced rapid adoption in Retail over the past 12 months.  Far from being a standalone technology, retailers see RFID-enabled inventory management as providing the core infrastructure for Omni-Channel retailing.

The adoption curve for RFID-enabled retailing commonly looks like this:

What LP (Loss Prevention) leaders need to know is that they can, and should play a key role in the RFID planning process.  An RFID-enabled inventory program often uncovers hidden sources of shrink, highlighting LP's impact on inventory accuracy.  In addition, RFID inventory data can benefit LP by uncovering patterns of ORC and internal theft, which are hard to track using traditional methods.

We're holding an online event on December 12 to discuss trends, technologies and deployment tips for RFID in Retail, featuring:

• The research team behind the 2013 Global Retail Theft Barometer
• A 500+ store specialty retailer deploying RFID-based EAS for omni-channel inventory and loss prevention
• An LP industry luminary from the National Retail Federation and Disney Stores

Registration Link: RFID in Retail 2014: What LP Leaders Need to Know

Harsh Reality for RFID & RTLS -- It's About the ROI

Just presented at RFID Journal's RFID in Harsh Environments event on the evolving business case and ROI metrics for RFID.   The definition of "Harsh Environments" is quite broad, but it generally applies to extreme temperatures/operating conditions, remote worksites and hazardous or highly-regulated materials.   Harsh Environments span multiple industries including Oil & Gas, Chemicals, Aerospace & Defense, Healthcare and Industrial Equipment -- as shown below:

RFID Application Areas in Harsh Environments

Once we get past the definition of a harsh environment, it's important to look at the value drivers for RFID and RTLS (we support all Auto-ID modalities, so we use the terms interchangeably).   The industries listed above, by nature, have complex asset management challenges that are well suited to RFID automation.   We see three primary drivers for RFID adoption in harsh environments:

1. Cost Pressure -- where 100s of millions of dollars/euros/pounds of capital equipment impacts working capital allocation -- a reduction in redundant equipment or write-off/repair of non-working assets can have an impact on operating profit.
2. New Programs -- with new exploration projects, aircraft programs, infrastructure projects comes revenue opportunity -- and customer scrutiny.  Customers are increasingly demanding transparency for programs in progress - not just at critical milestones.  RFID visibility can help provide this transparency, leading to stronger partnerships and minimizing the risk of contract breach.
3. Operational Risk -- the only way to address compliance, audit and safety issues is to build error proofing into the process automation. 

RFID & RTLS in Healthcare - Part 2 - What Assets to Track?

A common myth in healthcare is that RTLS and RFID are only used to track the location and movement of medical equipment.  

But that neglects the fact that healthcare and life science firms have infrastructure to maintain like every other business. Hospitals, pharmaceutical firms and research labs have capital equipment that needs to be tracked and traced; IT assets; consumables and supplies; tissue samples; tools; vehicles and transportation devices.

And location is not the only thing that needs to be tracked. Since consumables and tissue samples are perishable and specialized equipment needs to be regularly calibrated, maintained and/or sterilized, updating an asset's location along with its current status helps ensure patient safety. 

The following table lists examples of assets tracked with RFID in Healthcare:

More information:
RTLS & RFID use cases in Healthcare
White paper download "RFID and RTLS in Healthcare: Myths and Realities".

WIP Transparency: One Reason Aerospace and Defense Firms Are Adopting RFID

An article in this month's issue of Manufacturing Engineering, 5 Trends Driving RFID Adoption in Aerospace and Defense, outlines why the complexity of A&D operations makes it a good fit for RFID process automation.

Sept 2013 Manufacturing Engineering Article

WIP Transparency is one of the key trends driving adoption of RFID in A&D.

End customers are increasingly requesting visibility into Work-in-Process, well before a product is scheduled for final assembly and delivery.  

With a customer facing process, there’s nothing to hide – for an aircraft manufacturer who provides custom variations (like protective options for law enforcement, or specialized avionics, there’s no component substitution. 

RFID tracking helps keep work orders on schedule, locating and pre-staging raw materials, components, tooling and conveyances prior to each process step, and providing WIP visibility to the end-customer.   

Here's a typical WIP tracking process automated with RFID:

Automating Work-in-Process Tracking with RFID

Customer-facing processes get attention from the highest levels.  Many manufacturers are justifying RFID automation with improved on-time delivery percentages and cost savings from rework, expedite fees, discounting and contract fines.

 

Getting Started with RFID Tool Tracking

Managing Tools & Equipment Across a Manufacturing Facility

There's been quite a bit of confusion in the the market on what RFID tool tracking really does, what sorts of tools can be tracked, and how automating tool tracking processes with RFID really works (especially when it involves ERP, MMS or Service & Maintenance systems).

Tracking Indirect Materials in the Field

Last month, we ran two instructional sessions on how to get started with RFID Tool Tracking.  Topics covered included:

• Planning tips (based on tool/equipment type, operating environment, maintenance schedule, contractual requirements and usable life)
• Best practices (based on customer deployments in Industrial Manufacturing, Aerospace & Defense, Oil & Gas and Life Sciences) 
• Process automation examples and scenarios with adjacent processes, incl. Work-in-Process Tracking

We covered a lot of ground in 30 minutes!  Online registration for the video recording is at: 

http://www.oatsystems.com/RFID-Tool-Tracking-Webinar/

What's Driving RFID in Manufacturing Operations?

Today's manufacturers have a full plate of initiatives, from reshoring to sustainability, faster design-to-delivery cycles and greater work order transparency.  And their use of RFID is becoming more and more prevalent.  But the rationale behind RFID process automation has evolved over the years, from supplier mandates, to cost reductions, to performance improvement.  In a recent article in Manufacturing Business Technology, OAT Asset Tracking Senior Director, Chris Forgione, discusses five major trends that are driving the adoption of RFID and RTLS in Manufacturing:

1. Multi-facility Assembly  
2. Design-to-Delivery
3. Product Innovation
4. Customer-Facing Operations
5. Enterprise Asset Management

Many of these trends are gaining importance because they're not relegated to a corner of the manufacturing operation.  They are taking hold because, like working capital allocation, they have a direct impact on corporate performance and shareholder value.  

More details on the Manufacturing Business Technology site. 

RFID Tool Tracking Webinars Aug 15 & Aug 20

Whether it's indirect materials, production tooling or specialized equipment, our #1 request from customers is how to automate tool tracking with RFID.  

Our product management team is holding Tool Tracking webinars this month to discuss:

1. What RFID Tool Tracking does 
2. How companies use it in daily operations
3. How to map RFID automation to existing business processes

Information-packed, 30 minute webinars are being held at:

Thursday August 15 at 11:00 AM EST

Tuesday August 20 at 1:00 AM EST

Online registration is at : 

http://www.oatsystems.com/RFID-Tool-Tracking-Webinar/

RFID & RTLS in Healthcare: Part 1 - Who Uses RFID in Healthcare?

A common myth is that large hospitals are the only adopters of RFID and RTLS technology in healthcare.  

The reality?  RFID Asset Tracking is being widely used in a number of different healthcare segments other than hospitals. 

These include medical labs, emergency medical services, doctor’s offices and clinics, and even manufacturers of healthcare products, supplies and medications. Even relatively small doctors’ practices are using asset tracking to track equipment for service and maintenance schedules, as well as keep track of incoming medication and consumables. And, hospitals are deploying asset tracking in highly diversified settings and applications, from inventory management of equipment and supplies to compliance and real-time asset location.  

The following table lists some of the most common business processes for RFID  and RTLS Asset Tracking:

Common RFID-RTLS ApplicaTIONS – HEALTHCARE

Our RFID & RTLS in Healthcare - Myths and Realities guide has more information. 

Integrating RFID with SAP

RFID and sensor data is real-time, high volume and operational in nature. RFID technology is designed to inform and enrich systems and processes, not be an end in itself. To that end, most OAT deployments include enterprise systems integration of some kind.

Many of our customers are SAP customers as well, particularly in Manufacturing, Logistics, Aerospace and Defense.   Since an ERP system such as SAP serves as the system of record, informing these systems with RFID and RTLS can provide up-to-the minute updates for manufacturing, logistics and service operations.  

To simplify deployments, we've co-produced Manufacturing, A&D and Supply Chain webinars and deployment guides with SAP to illustrate OAT-SAP integration by specific functional area, use case and business process.  

RFID-enabled SAP in Manufacturing

RFID-enabled SAP in Aerospace & Defense

RFID-enabled SAP in the Supply Chain

Integrating RFID & RTLS Data with SAP Applications

Introducing the Airbus A350 - First RFID-enabled Aircraft

The Airbus A350 made its formal debut at the Paris Air Show this week.
It is the first aircraft to be RFID-enabled from the ground up, with approximately 3000 RFID-tagged component parts on each A350.
The RFID tags are designed to remain with the parts throughout their entire lifecycle in order to digitally store the full maintenance history - improving process automation and traceability for suppliers, airlines and MRO providers.

RFID Journal details the part marking announcement here. OATSystems has worked closely with Airbus since 2008 -- first to RFID-enable the A380 supply chain and then to roll out part marking programs for the Airbus A350.
More info on the Airbus A350 Part Marking Program, and supplier packages here.

RFID in Retail - Scaling up Item-Level Inventory Management

Great discussion on RFID in Retail yesterday with RFID Journal, featuring presentations from our customer C&A  who is rolling out RFID across 25 EU stores in Europe and deployment considerations for scaling up to Chain-Wide RFID.  Here's a demonstration of our RFID handheld inventory management solution, that enables store associates to count merchandise in teams, and aggregate item-level inventory at the enterprise level.


To accompany the RFID in Retail event, the RFID for Retail Planning Guide - "Scaling Up" outlines key considerations for moving from RFID retail pilots to chain-wide deployments. 

The planning guide is designed to provide retail professionals with the background information to thoughtfully scope a multi-store RFID deployment, including:

•Solution Components of Chain-Wide RFID Solutions
•Building a Holistic View of Inventory Management
•Systems Architecture Considerations
•Extending RFID Use Cases
•Implementation Planning Processes

How to Track Tools with RFID

OAT Systems Engineer Kapil Asher demonstrates how to track hand tools, tooling, specialized equipment and conveyances with RFID technology

From bearing pullers to digital calipers to composite tooling, jigs, right-to-use tools and FOD prevention, a flexible RFID tracking system has it covered.

5 Myths About Asset Tracking in Healthcare

In any new application area, it’s easy to run into misconceptions or just flat-out errors about the applicability or challenges associated with a technology such as asset tracking. Asset tracking has a long, impressive track record in a wide variety of industries with similar supply chains and workflows as healthcare – such as industrial manufacturing and even retailing. Here are a few common myths and the real-worth truths about the utility of asset tracking in healthcare, from an article in Healthcare Technology Online:

Redefining Tool Tracking for Equipment and Indirect Materials

Tools = Tooling = Indirect Materials = Conveyances = Equipment

Every industry and every business function needs to track capital equipment, whether it's used for service, manufacturing or  distribution operations.

For service providers in Healthcare, Aviation, Utilities and Transportation, the cost of tracking equipment is not just related to the value of the asset, but how often it is needed. A missing wheelchair or infusion pump can compromise patient care. A missing towbar or test kit can result in flight delays. 
For manufacturers - particularly for those with complex processes , production equipment and tooling is highly-specialized, single-sourced and difficult to replace. Misplaced or out-of-spec equipment can derail a production schedule.
For logistics providers - conveyances and reusable transport items (RTIs) must be carefully managed - missing conveyances make for missed shipments.

On the OATSystems website we have separate sections for equipment tracking and tool tracking based on how indirect materials are defined in different industries.  

When building our "asset wall"  and asset tracking for RFID Journal Live this year, we used sample assets from healthcare, manufacturing, aviation and transportation.   In this case, we didn't need to define "tool tracking" in a thousand words - we had the pictures, (of surgical trays, medical supplies, infusion pumps, autoclaves, ventilators, conveyances, bearing pullers, digital calipers, roll cages, composite tooling...) instead.

Tips for RFID Tool Tracking Deployments

A few deployment tips we've learned from RFID Tool Tracking deployments:

Before you get started: 

1. Determine What Types of Tools Need to Be Tracked (hand tools, indirect materials, conveyances, right to use tooling)
2. Figure Out Exactly What You Need to Know About the Tool (beyond its location)
3. Know which Adjacent Processes are Impacted by Tool Tracking  (you may be able to gain additional efficiencies and/or secure additional budget for your project)
4. Understand Whether Tracking Data Needs to be Shared With Your Enterprise Systems (ERP, MRO, Program Mgt, MMS, etc).  You may be able to use some of your enterprise systems budget as part of your project.

More details, and a tool tracking planning guide

RFID vs. Barcode

We've been deploying RFID solutions for over a decade.  We still get questions, though, as to why RFID is better than barcode.   (Note:  many of our customers use both together, to get the best of both worlds).

Here's a handy comparison:

RFID in Manufacturing: New Trends, New Rules

This week, we participated in an RFID in Manufacturing Event with RFID Journal, to discuss 5 new trends driving the adoption of RFID in manufacturing operations:  

1. Multi-Facility Assembly
2. Design to Delivery
3. Product Innovation
4. Customer-facing Operations
5. Enterprise Asset Management

Manufacturing operations are getting more and more complex, and RFID is helping to automate critical processes -- so that manufacturers can continue to innovate, design and deliver.

The deployment guide accompanying the event outlines key process areas where RFID can make a difference in manufacturing efficiency, along with specific use cases, process flows and integration options. 

How RFID and RTLS Can Save Lives

HIMSS '13 showcased RFID and RTLS technologies in multiple ways:  the Intelligent Hospital Pavillion and speaker sessions from primary care providers, including the US Veterans Health Administration.

The key message?  By automating administrative and operational tasks, RFID and RTLS technology enable healthcare professionals to focus on patient care.  In short, these "invisible" technologies can save lives.  The following article in Healthcare IT News sums it up.

http://www.healthcareitnews.com/news/rfid-rtls-can-save-lives

Defining Asset Tracking

There may be as many definitions for "RFID Asset Tracking" as there are RFID Asset Tracking deployments.  Assets vary by industry and business function and can range from medical devices in healthcare to composite materials in manufacturing, to transport vehicles in logistics to plant & equipment in industrial manufacturing.  Some of the most common examples are listed here:

Asset Tracking Examples by Industry and Function

RFID or RTLS?

Deploying RFID or RTLS shouldn't be hard.  We've done it hundreds of times, and have fine-tuned best practices along the way.

One of the questions we hear most often is:  "Should I use RTLS or Passive RFID?"  Our answer?  "Why Not Both"?  Some of our most successful implementations use a mix of RFID, RTLS, UWB, Wi-Fi and barcode, depending on use case, asset type, facility size and business process.