Volume III | Issue III
15 - 31 July 2005                                                                                                                    

Focus: RFID Applications In Transport And Logistics


EPC based Radio frequency identification (RFID) is one of the most promising and anticipated technologies in recent years poised for nothing less than complete transformation in the Supply chain. The technology allows seamless communication across the value chain from suppliers to end users.

Transport and Logistics is one Industry sector which can benefit very significantly through early adoption of RFID technology in its supply chain processes.

Freight forwarders, Shipping lines, Ports, Airport Authorities, Courier agencies, Customs, Cargo handling agencies, Multi-modal logistics providers, Third party logistics providers, Container handling depots, Railways etc. can get complete consignment/container visibility and traceability through deployment of EPC based RFID technology. This includes consignments in transit, in warehousing operations and at depots etc.


Some of the other benefits are:

  • Shrink reduction.
  • Theft /pilferage detection.
  • Improved on-shelf availability.
  • Elimination of shipping and receiving errors.
  • Counterfeit detection and item authentication.
  • Enhanced productivity and labour efficiency.
  • Full end-to-end track and trace capabilities.
  • Asset tracking.
  • Efficient and fast product recalls.
  • Safe & secure Supply Chain .

RFID deployments in the transport and logistics sector is taking place globally.

  South Korea's largest and busiest port, the Port of Busan, is deploying a trial RFID container-tracking system to help secure and expedite shipments.

  The Hong Kong Airport has also undertaken the largest RFID project in Asia. It has implemented a luggage tracking system using RFID from January 2005. The Airport Authority Hong Kong, believes that RFID tracking will greatly improve customer satisfaction, security & significantly cut the airport's operating costs.

•  Leading logistics service providers like DHL & Menlo Worldwide have already introduced RFID Services while FedEx & UPS Inc etc. are already deeply involved in driving adoption of this technology in their global operations.

•  British Airways also hopes that investing in radio frequency identification technology will cut its lost-luggage bills. BA loses about 18 bags per 1,000 and pays customers an average of about $100 (55 pounds) per lost piece of luggage. Bags are lost largely as a result of sticker bar codes being damaged or misread. The airline believes it could save about $732 million by introducing RFID because the technology could reduce the read-error rate to nearly zero.

      RFID is a means of identifying an object using a Radio Frequency transmission. A typical RFID system uses RFID tags attached to objects which identify themselves when detecting a signal from an RFID reader by emitting Radio frequency transmission.

     This identification of an object takes place through what is termed, the Electronic Product Code (EPC), captured within an RFID tag. The EPC contains an array of product information, that can uniquely identify an individual item, whether that object is a consumer item, case, pallet, logistic asset or virtually any thing else. This provides the ability to locate or track a product through the supply chain and to read these EPCs at a distance and out of direct line of sight.

     EPCglobal Inc. has recently formed a Transportation and Logistics Action Group comprising of leading players such as DHL, APL, Maersk, P & O Nedlloyd, Panalpina World Transport

     It has been formed to facilitate the adoption & implementation of EPC based RFID technology in this sector. Participation in this is open to all EPCglobal member companies worldwide.



  

 

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