**Supply Chain Management in International Logistics – RFID Applications**

Miguel Merino and Perfecto Mariño *University of Vigo Spain* 

### **1. Introduction**

168 Business Dynamics in the 21st Century

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organizational goals.

**4. Conclusions** 

relationships.

**5. References** 

*Theory*:201.

Wiley.

Press.

The evolution of international transport is linked to the requirement of its customers and their needs. Modern logistics require compliance with a demand-based planning, hence the current management disciplines are grouped around the supply chain management (SCM) and seek to optimize the resources available to the transport, ie., ordering of supplies, time, cost and information. Production needs condition the next supplies the place of consumption, and the sequence or order of delivery. Information systems have played a key role in responding to these requirements and the Electronic data Interchange (EDI) has provided the necessary technologies to do so. Nevertheless, despite the extent of EDI systems that normalize the content of messages required for synchronization between systems, we encounter the difficulty of consolidating information between customers and suppliers with different software.

The intermodal traffic truck-boat-truck and stores (consolidation of cargoes in containers) and destination (deconsolidation and service picking/kanban) to Tier1 factories in automotive industry, is managed so that local optima are obtained in each of the processes involved in each of transport modes, storage and management of load / unloading of containers at ports of origin, transit and destination (Moyano, 2009).

The RFID applications provide an advantageous solution to specific scenarios and industrial sectors, especially those who are currently based on international standards as automotive industry. This chapter discusses, throughout a real case application as a representative scenario of "digital gap", which is challenging the usability of those information tools. After a description of using "best effort" solutions in real applications, a more integrated information model is proposed where several agents must be involved, from network operators to service providers.

This chapter begins by analyzing logistic services in International Transport of goods. This is supported by standardized models based communication system in some cases, i.e. automotive sector, through EDI/ODETTE messages or alternatively ad-hoc messages based on FTP or SMTP. A key part of this study is the infrastructure of the Wireless Sensor Networks (WSN) and operating standards that make operating in many different conditions.

In terms of information system, the change means moving from a "push concept", in which events are transmitted by collecting the information by the means mentioned above, to a

Supply Chain Management in International Logistics: RFID Applications 171

consumption, and the sequence or order of delivery. Information systems have played a key role in responding to these requirements and the EDI has provided the necessary technologies to do so. Nevertheless, despite the extent of EDI systems that normalize the content of messages required for synchronization between systems, we encounter the difficulty of consolidating information between customers and suppliers with different

In the past 50 years the greatest innovation in international transport has been containerization. That it has done so can be attributed to the beneficial interaction of three broad kinds of factors: technical, economic and organizational (Frémont, 2009). We address the further case study, exclusively to transport in "containers" because the feature

Since its advent of containerization this has been bringing about the integration of the transport chain (Brooks, 2000). On the other hand, shippers´ and logistics operators needs have been increasing steadily as they take advantage of the opportunities offered by globalization, to develop their production and /or distribution activities at an international scale, and this necessitates synchronization of their activities in space and time through the introduction of logistics chains. The management of these chains is a source of control as well as providing a source of profit for all actors involved in these chains (Heaver T.D., 2001). All international transport companies now claim to be logistics operators capable of providing a customized response to the needs of their shipping clients (Frémont, 2009).

For container identification, the current standard which deals with the coding, identification and marking of containers is DIN EN ISO 6346, dated January 1996. (Fig 2) (BIC, 2010).

In any case, these codes are targeted in preference to identify the physical units of containers and some supplementary information on the load (weight, dangerous load, etc.), but

The current trend in port terminals, is to identify these codes using techniques of optical character recognition (OCR), with great difficulty due to positioning, light and contrasts that

One important advantage of containerization is the development of logistics services. The entire logistics chain extends from supplier to end client. It must enable the overall management of resources in order to provide the best service for current and forecast customer demand, including physical transport flows, with their associated information flows and interfaces management between different actors in the chain from producer to

In sea transport there are a large number of intermediate agents (IA) involved, causing a large flow of information from the logistics operator to each of them. The only information

nothing about its actual content, or their origin or destination.

software.

"multimodal" and the type of supply chain itself.

Fig. 2. Container's codification

occur outdoors.

consumer.

"pull concept" in which interested parties consult the information at the time that the need to replenish their stocks, and flows of goods, as close to real time. This new approach is based on information directly supported by RFID tags (Ahson, 2008) (Morreale, 2010), retrieved through WSN, (Dargie, 2010), (Akyildiz, 2010), (Verdone, 2008) which in turn have the IP address which will be recognized on the Internet.

Tags based on RFID technologies (Fig. 1) provide the opportunity to incorporate the same content and routing information, which would not necessitate the transmission of messages or files between different actors. Complete information would be captured by WSN sensors and available for SCM. There are five major areas where RFID can be effectively used in a port cargo terminal: Access controls, Container security, Container identification and Location, Activity Tracking and Regulatory Compliance (Mullen, 2007).

Fig. 1. Tag UHF RFID. Courtesy of AV Converter RFID Company.

Regarding contents, we study the evolution from based systems barcode to RFID technology. The Electronic Product Code (EPC) standards and RFID technology give the global coding object to each entity as a unique code, and construct a global real-time network for sharing material goods information. EPC code + RFID + Internet put together Internet of things (IoT) (European Commission, 2009), (Forum Europe, 2010). EPC could be made by a bar code or RFID based. RFID technology is a cornerstone of the EPC, and it has become a Global Identification System (EAN.UCC System) (Laowe, 2010).

Finally the chapter will address issues related with a wide insight over the state-of-the-art of relevant international standards in the field of International Logistics provided from several institutions like: ODETTE, AIAG, European Union, IEEE, ISO, IEC and others; A proposal from the ICT market giving new information codes for RFID tags, better sensors deployment (WSNs) in the access network) freight containers and vehicles; An open network structure in order to provide the basic rationale for potential users, network operators and service providers, in order to have a clear framework where new offers (infrastructure networks and ICT services) could be better integrated in existing business software tools.

## **2. Logistic services in international transport of goods**

The evolution of international transport is linked to the requirement of its customers and their needs. Modern logistics require compliance with a demand-based planning, hence the current management disciplines are grouped around the Supply Chain Management (SCM) and seek to optimize the resources available to the transport, ie., ordering of supplies, time, cost and information. Production needs condition the next supplies the place of

"pull concept" in which interested parties consult the information at the time that the need to replenish their stocks, and flows of goods, as close to real time. This new approach is based on information directly supported by RFID tags (Ahson, 2008) (Morreale, 2010), retrieved through WSN, (Dargie, 2010), (Akyildiz, 2010), (Verdone, 2008) which in turn have the IP

Tags based on RFID technologies (Fig. 1) provide the opportunity to incorporate the same content and routing information, which would not necessitate the transmission of messages or files between different actors. Complete information would be captured by WSN sensors and available for SCM. There are five major areas where RFID can be effectively used in a port cargo terminal: Access controls, Container security, Container identification and

Regarding contents, we study the evolution from based systems barcode to RFID technology. The Electronic Product Code (EPC) standards and RFID technology give the global coding object to each entity as a unique code, and construct a global real-time network for sharing material goods information. EPC code + RFID + Internet put together Internet of things (IoT) (European Commission, 2009), (Forum Europe, 2010). EPC could be made by a bar code or RFID based. RFID technology is a cornerstone of the EPC, and it has

Finally the chapter will address issues related with a wide insight over the state-of-the-art of relevant international standards in the field of International Logistics provided from several institutions like: ODETTE, AIAG, European Union, IEEE, ISO, IEC and others; A proposal from the ICT market giving new information codes for RFID tags, better sensors deployment (WSNs) in the access network) freight containers and vehicles; An open network structure in order to provide the basic rationale for potential users, network operators and service providers, in order to have a clear framework where new offers (infrastructure networks and ICT services) could be better integrated in existing business

The evolution of international transport is linked to the requirement of its customers and their needs. Modern logistics require compliance with a demand-based planning, hence the current management disciplines are grouped around the Supply Chain Management (SCM) and seek to optimize the resources available to the transport, ie., ordering of supplies, time, cost and information. Production needs condition the next supplies the place of

Location, Activity Tracking and Regulatory Compliance (Mullen, 2007).

Fig. 1. Tag UHF RFID. Courtesy of AV Converter RFID Company.

become a Global Identification System (EAN.UCC System) (Laowe, 2010).

**2. Logistic services in international transport of goods** 

software tools.

address which will be recognized on the Internet.

consumption, and the sequence or order of delivery. Information systems have played a key role in responding to these requirements and the EDI has provided the necessary technologies to do so. Nevertheless, despite the extent of EDI systems that normalize the content of messages required for synchronization between systems, we encounter the difficulty of consolidating information between customers and suppliers with different software.

In the past 50 years the greatest innovation in international transport has been containerization. That it has done so can be attributed to the beneficial interaction of three broad kinds of factors: technical, economic and organizational (Frémont, 2009). We address the further case study, exclusively to transport in "containers" because the feature "multimodal" and the type of supply chain itself.

Since its advent of containerization this has been bringing about the integration of the transport chain (Brooks, 2000). On the other hand, shippers´ and logistics operators needs have been increasing steadily as they take advantage of the opportunities offered by globalization, to develop their production and /or distribution activities at an international scale, and this necessitates synchronization of their activities in space and time through the introduction of logistics chains. The management of these chains is a source of control as well as providing a source of profit for all actors involved in these chains (Heaver T.D., 2001). All international transport companies now claim to be logistics operators capable of providing a customized response to the needs of their shipping clients (Frémont, 2009).

For container identification, the current standard which deals with the coding, identification and marking of containers is DIN EN ISO 6346, dated January 1996. (Fig 2) (BIC, 2010).

Fig. 2. Container's codification

In any case, these codes are targeted in preference to identify the physical units of containers and some supplementary information on the load (weight, dangerous load, etc.), but nothing about its actual content, or their origin or destination.

The current trend in port terminals, is to identify these codes using techniques of optical character recognition (OCR), with great difficulty due to positioning, light and contrasts that occur outdoors.

One important advantage of containerization is the development of logistics services. The entire logistics chain extends from supplier to end client. It must enable the overall management of resources in order to provide the best service for current and forecast customer demand, including physical transport flows, with their associated information flows and interfaces management between different actors in the chain from producer to consumer.

In sea transport there are a large number of intermediate agents (IA) involved, causing a large flow of information from the logistics operator to each of them. The only information

Supply Chain Management in International Logistics: RFID Applications 173

Fig. 3. Flow of freigths between Asia and Europe

Fig. 4. Reader RFID for logistics purpose. Courtesy Deister Electronic.

(code number and serial number, or type of pallet cage).

The matrix of considered scenarios is made in Table 2.

No

Yes

every stage in an *open loop system* (Odette, 2010)*.* 

User-Data used

Table 2. Matrix of considered scenarios

can be modified in the process.

written.

For some processes in the automotive sector, RFID is already superior to other identification procedures in terms of process efficiency and quality criteria. This technology distinguish as before the class of parts (code number, type of container), but individual entities of a class

The real potential of using RFID with automotive parts occurs when the different elements of the value chain use the same standards and technologies, and information is processed at

> Read/Write permissions on Tag No Yes

> > Scenario: 1 Tag contains only part ID

Scenario 2: Read access to user data

In Scenario 1, the only data field used is "part ID", it is protected and cannot be over-

The Scenario 2 cover other user data requirements, whereas in the Scenario 3 the user data

Scenario 3: Read/Write access to user data

physically available is the number (code) that identifies the container, so that all information associated with their content and routing has to be transferred in parallel throughout EDI messages, EDI / XML, EDI / SMTP, to update the databases for each agent.

This approach would provide new services throughout the supply chain based on a container with extended encoding information relevant to such services (Table 1):


Table 1. Logistic services and technologies (Cárdaba, J., 2008) and own elaboration

#### **2.1 Intermodal traffic in automotive industry**

The automotive industry employs some of the most sophisticated networks of suppliers worldwide. Automobile manufacturers demand supply chains becoming more streamlined and efficient to support new models of development and shorter product life cycles. Logistics Services Provider (LSP) must manage "just-in-time" applications for distribution centers and transportation, as well as services related to receipt of goods by multi-modal transportation, consolidation or de-consolidation package, storage, inventory control, "picking" and sequenced synchronous or "Kanban" deliveries.

The current case study refers to companies acting as Tier 1 in supplying parts to assemblers of cars and trucks. This companies use the services of a global logistics providers for the supply of component parts of its products, from its factories in Asia to its plants in Europe, including consolidation centers and picking services from a store (MAF) close to its assembly plant, which also is the safety stock of components, for possible stock shortages driven by transportation and other incidents since the beginning (Fig. 3).

The physical flow of goods is based solely on the use of Odette standards (Odette Transport Label v3). The information about the part must be accessed via the relevant back-end system or other databases from each of the actors involved throughout EDI transmissions.

The data structures on the RFID tag in Odette recommendation permit three fundamentally different scenarios of the process design with RFID support, which place different demands on the total system (tag, reader, network, middleware, applications, organization, etc.) (Fig. 4).

Fig. 3. Flow of freigths between Asia and Europe

physically available is the number (code) that identifies the container, so that all information associated with their content and routing has to be transferred in parallel throughout EDI

This approach would provide new services throughout the supply chain based on a

Identification of container **Current** 

Container management Tracking Tracking and tracing +

Parcel No Pallet tags; Routing

Location Tracking CCTV/GPS/RFID RFID/EPC/WSN Activity tracking GPS/RFID RFID/EPC/WSN

Table 1. Logistic services and technologies (Cárdaba, J., 2008) and own elaboration

The automotive industry employs some of the most sophisticated networks of suppliers worldwide. Automobile manufacturers demand supply chains becoming more streamlined and efficient to support new models of development and shorter product life cycles. Logistics Services Provider (LSP) must manage "just-in-time" applications for distribution centers and transportation, as well as services related to receipt of goods by multi-modal transportation, consolidation or de-consolidation package, storage, inventory control,

The current case study refers to companies acting as Tier 1 in supplying parts to assemblers of cars and trucks. This companies use the services of a global logistics providers for the supply of component parts of its products, from its factories in Asia to its plants in Europe, including consolidation centers and picking services from a store (MAF) close to its assembly plant, which also is the safety stock of components, for possible stock shortages

The physical flow of goods is based solely on the use of Odette standards (Odette Transport Label v3). The information about the part must be accessed via the relevant back-end system

The data structures on the RFID tag in Odette recommendation permit three fundamentally different scenarios of the process design with RFID support, which place different demands on the total system (tag, reader, network, middleware, applications, organization, etc.) (Fig. 4).

or other databases from each of the actors involved throughout EDI transmissions.

Multimodal Transport EDI/XML/SMTP WSN/IoT Logistic reception EDI/XML/SMTP WSN/IoT Clearance EDI/XML/SMTP WSN/IoT

warehousing No Cargo consolidation +

Extended Container Identification **Future** 

stowage + priority

routing

messages, EDI / XML, EDI / SMTP, to update the databases for each agent.

**Logistic Services** 

LTL&LT. Consolidation

**2.1 Intermodal traffic in automotive industry** 

"picking" and sequenced synchronous or "Kanban" deliveries.

driven by transportation and other incidents since the beginning (Fig. 3).

container with extended encoding information relevant to such services (Table 1):

Fig. 4. Reader RFID for logistics purpose. Courtesy Deister Electronic.

For some processes in the automotive sector, RFID is already superior to other identification procedures in terms of process efficiency and quality criteria. This technology distinguish as before the class of parts (code number, type of container), but individual entities of a class (code number and serial number, or type of pallet cage).

The real potential of using RFID with automotive parts occurs when the different elements of the value chain use the same standards and technologies, and information is processed at every stage in an *open loop system* (Odette, 2010)*.* 

The matrix of considered scenarios is made in Table 2.


Table 2. Matrix of considered scenarios

In Scenario 1, the only data field used is "part ID", it is protected and cannot be overwritten.

The Scenario 2 cover other user data requirements, whereas in the Scenario 3 the user data can be modified in the process.

Supply Chain Management in International Logistics: RFID Applications 175

Fig. 6. Flow of information: pull model

Fig. 7. Memory Structure of ISO/IEC 18000-6C tag

For some processes in the automotive sector, RFID is already superior to other identification procedures in terms of process efficiency and quality criteria. This technology distinguish as before the class of parts (code number, type of container), but individual entities of a class

The principal structure of the data stored of the tag has been defined in the "air interface" standard according with ISO/IEC-18000-6C.

#### **2.1.1 A model for data integration**

The current model of information is based on the willingness of each event logistics management, to send to the recipients of that information by means, from traditional fax, email or more advanced such as FTP that allow integration with their own information systems (like ERP, CRM,…).

This model used in intermodal transport and storage in automotive sector, it is based on a "push concept" in which events are collecting the information from intermediate for the management of each unit or flow control and transmitted through conventional means (Fig.5).

Fig. 5. Flow of information: push model

Introducing concepts and technologies such as Wireless Sensor Networks, Internet of Things, Cloud and IP Networks, we can move towards a "pull model", where each entity can purchase your information when they want or need.

This new model based on Radiofrequency Identification (RFID) and Wireless Sensor Networks (WSN) and Cloud computing, is characterized by the ability to provide the information necessary to demand of each of the actors involved, and real time (Fig.6).

#### **2.1.2 Data structure on the tag (Air Interface)**

The principal structure of the data stored on the tag has been defined in the ''air interface' standard in accordance with ISO/IEC18000-6C.

ISO/IEC 18000-6C assumes a logical division of the tag storage into 4 data segments, which are represented in the diagram below (Fig. 7):

Fig. 6. Flow of information: pull model

The principal structure of the data stored of the tag has been defined in the "air interface"

The current model of information is based on the willingness of each event logistics management, to send to the recipients of that information by means, from traditional fax, email or more advanced such as FTP that allow integration with their own information

This model used in intermodal transport and storage in automotive sector, it is based on a "push concept" in which events are collecting the information from intermediate for the management of each unit or flow control and transmitted through conventional means

Introducing concepts and technologies such as Wireless Sensor Networks, Internet of Things, Cloud and IP Networks, we can move towards a "pull model", where each entity

This new model based on Radiofrequency Identification (RFID) and Wireless Sensor Networks (WSN) and Cloud computing, is characterized by the ability to provide the information necessary to demand of each of the actors involved, and real time (Fig.6).

The principal structure of the data stored on the tag has been defined in the ''air interface'

ISO/IEC 18000-6C assumes a logical division of the tag storage into 4 data segments, which

standard according with ISO/IEC-18000-6C.

**2.1.1 A model for data integration** 

Fig. 5. Flow of information: push model

can purchase your information when they want or need.

**2.1.2 Data structure on the tag (Air Interface)** 

standard in accordance with ISO/IEC18000-6C.

are represented in the diagram below (Fig. 7):

systems (like ERP, CRM,…).

(Fig.5).

Fig. 7. Memory Structure of ISO/IEC 18000-6C tag

For some processes in the automotive sector, RFID is already superior to other identification procedures in terms of process efficiency and quality criteria. This technology distinguish as before the class of parts (code number, type of container), but individual entities of a class

Supply Chain Management in International Logistics: RFID Applications 177

charging, disaster recovery, rural monitoring and control (Mariño, 2010),

Given their wireless nature WSNs are intended for "field applications", that is to say, their deployment can be made in places with difficult access, or where wired infrastructures are impossible (very remote or wild zones) or not justified (economic or ecological impact, regulatory barriers, etc.). This rises a specific demand for this kind of networks about low power consumption (mW), because all energy for the sensors and sinks nodes in the network (whether "ad-hoc" or "with-infrastructure") must be provided by batteries. Nevertheless battery replacement could be impractical or impossible for particular requirements from the WSN architecture (very high number of nodes, remote placement, etc.), rising the question about energy conservation for network survivability, as a

Designing nodes for a WSN must balance consumption between communication tasks (protocols) and processing ones. Usually consumptions for communications are bigger than processing ones. Commercial microcontrollers embedded in sensor nodes have different power consumption modes like "active", "idle" and "sleep", in order to reduce the power when a full processing operation is not required. Also communication protocols in WSN´s nodes are more lightweight designed using a reduced number of bytes, short bandwidth requirements (kHz), reduced duty cycle (less than 1%), and low data rate transmissions

Alternative sources of energy replacing batteries are well known such as solar (photovoltaic panels, 10mW/cm2), ultra-capacitors and fuel-cell. Other new approaches come from "harvesting" or "scavenging" energy timely on the environment and storing it for later use such as: vibration (100microW/cm2) (Buckley, 2009), heat (25microW/cm2) (Hammerschmidt, 2010), wind flows and electromagnetic radiation (0.1microW/cm2) (Neuquelman, 2011). Transducers that created electricity from readily available physical sources can be thermoelectric generators (TEG) (Armstrong, 2010) or thermopiles (temperature differences), and mechanical vibration or strain (piezoelectric or

electromechanical devices) among others (Despesse, 2011), )Jerez, 2011), (Ling, 2011).

Propagation of radiofrequency (RF) signals is impaired by phenomena like interference, multipath and attenuation (TSE, 2005). In a WSN two nodes are linked when the signal power at the receiver antenna is above the receiver sensitivity. Therefore that signal power can be reduced with the distance between the nodes (attenuation), interference sources (multipath and undesired external signals) and the influence of materials in the propagation medium causing phenomena like reflection, diffraction and scattering (Pérez,

Robust modulation techniques provide to RF signals some mitigation of above mentioned impairment effects. Physical protocols for WSNs are intended for giving modulation schemes improving bandwidth, robustness against interference and enough data rate.

telecommunications applications, gaming, robotics and contextual awareness.

fundamental restriction in WSN´s design (Schmidt, 2011).

**3.3 Communication topics and RF bands** 

**3.2 Operation and powering** 

(kbits/s).

2008).

(code number and serial number, or type of pallet cage). (is a part of Odette Recommendations).

USER: formatted and organized freely by the user.

TID: Unique part and serial number of the tag. Permanently locked.

UII: Unique Item Identifier.

RESERVED: Access and kill password.

#### **3. Wireless Sensor Networks (WSNs)**

#### **3.1 Introduction to WSN**

A WSN is a wireless network of sensor nodes oriented to the monitoring of real world measurable parameters, whether physical, biochemical, chemical, industrial, medical or anything others, for a data collection application. In that way a WSN is "data centric", not "address centric" like Internet. A sensor node can include at least one sensor and actuators with capabilities for processing data and networking to manage the wireless access. An actuator can execute an action over the real world (i.e, trigger and alarm, turn on an electric motor, turn off a robotic arm, etc.) as a response to an input electric signal.

In data collection applications there are one or more nodes oriented to gathering, processing and controlling the received data from the sensor nodes. Those nodes are called "sink" ones. Therefore a typical WSN is a set of "wireless sensor nodes" delivering their data, also wirelessly, towards one or more "sink" nodes (Gómez, 2010).

The topology of a WSN can be "ad-hoc" if no connection is provided outside itself, or on the contrary "with-infrastructure" if it is connected to other networks ( by wire or wirelessly) for remote access and management. An "ad-hoc" WSN is called MANET (Mobile Ad-hoc Network) when its nodes are also in motion (Conti, 2007), (Capps, 2001). When a WSN is "with-infrastructure", its connection with the other network is made through an intermediate equipment called BS (Base Station), or AP (Access Point) or even, more technically "Gateway" (Misra, 2009), (ZVEI, 2010).

The three main topologies for WSNs are: Star (i.e., a "sink" node gathering all data from all surrounding "sensor" nodes), Tree (i.e., all "sensor" nodes are clustered over an specific "sink" node, and all the "sink" nodes are also connected like a star network centred over a global "sink"), and Mesh (i.e, all "sensor" nodes are connected like a grid where "sink" nodes are not required).

Like other computer network protocol architectures the WSNs follow a layered approach based on the OSI (Open Systems Interconnection) model (Mariño, 2003), where a bottom layer gives a set of services to the upper layer. Typically these protocols are: physical, link (MAC: Medium Access Control), routing, transport, data encoding and aggregation protocols.

The main areas of applications for WSNs are among others: environmental monitoring (Perry, 2002), health care (Cao, 2009), sports and fitness, assisted living, structural monitoring (Bur, 2010), automotive, logistics, home and building automation (Gómez, 2010), industrial monitoring and control, smart utility, urban monitoring and control, road usage charging, disaster recovery, rural monitoring and control (Mariño, 2010), telecommunications applications, gaming, robotics and contextual awareness.

#### **3.2 Operation and powering**

176 Business Dynamics in the 21st Century

(code number and serial number, or type of pallet cage). (is a part of Odette

A WSN is a wireless network of sensor nodes oriented to the monitoring of real world measurable parameters, whether physical, biochemical, chemical, industrial, medical or anything others, for a data collection application. In that way a WSN is "data centric", not "address centric" like Internet. A sensor node can include at least one sensor and actuators with capabilities for processing data and networking to manage the wireless access. An actuator can execute an action over the real world (i.e, trigger and alarm, turn on an electric

In data collection applications there are one or more nodes oriented to gathering, processing and controlling the received data from the sensor nodes. Those nodes are called "sink" ones. Therefore a typical WSN is a set of "wireless sensor nodes" delivering their data, also

The topology of a WSN can be "ad-hoc" if no connection is provided outside itself, or on the contrary "with-infrastructure" if it is connected to other networks ( by wire or wirelessly) for remote access and management. An "ad-hoc" WSN is called MANET (Mobile Ad-hoc Network) when its nodes are also in motion (Conti, 2007), (Capps, 2001). When a WSN is "with-infrastructure", its connection with the other network is made through an intermediate equipment called BS (Base Station), or AP (Access Point) or even, more

The three main topologies for WSNs are: Star (i.e., a "sink" node gathering all data from all surrounding "sensor" nodes), Tree (i.e., all "sensor" nodes are clustered over an specific "sink" node, and all the "sink" nodes are also connected like a star network centred over a global "sink"), and Mesh (i.e, all "sensor" nodes are connected like a grid where "sink"

Like other computer network protocol architectures the WSNs follow a layered approach based on the OSI (Open Systems Interconnection) model (Mariño, 2003), where a bottom layer gives a set of services to the upper layer. Typically these protocols are: physical, link (MAC: Medium Access Control), routing, transport, data encoding and aggregation

The main areas of applications for WSNs are among others: environmental monitoring (Perry, 2002), health care (Cao, 2009), sports and fitness, assisted living, structural monitoring (Bur, 2010), automotive, logistics, home and building automation (Gómez, 2010), industrial monitoring and control, smart utility, urban monitoring and control, road usage

Recommendations).

UII: Unique Item Identifier.

**3.1 Introduction to WSN** 

nodes are not required).

protocols.

RESERVED: Access and kill password.

**3. Wireless Sensor Networks (WSNs)** 

USER: formatted and organized freely by the user.

TID: Unique part and serial number of the tag. Permanently locked.

motor, turn off a robotic arm, etc.) as a response to an input electric signal.

wirelessly, towards one or more "sink" nodes (Gómez, 2010).

technically "Gateway" (Misra, 2009), (ZVEI, 2010).

Given their wireless nature WSNs are intended for "field applications", that is to say, their deployment can be made in places with difficult access, or where wired infrastructures are impossible (very remote or wild zones) or not justified (economic or ecological impact, regulatory barriers, etc.). This rises a specific demand for this kind of networks about low power consumption (mW), because all energy for the sensors and sinks nodes in the network (whether "ad-hoc" or "with-infrastructure") must be provided by batteries. Nevertheless battery replacement could be impractical or impossible for particular requirements from the WSN architecture (very high number of nodes, remote placement, etc.), rising the question about energy conservation for network survivability, as a fundamental restriction in WSN´s design (Schmidt, 2011).

Designing nodes for a WSN must balance consumption between communication tasks (protocols) and processing ones. Usually consumptions for communications are bigger than processing ones. Commercial microcontrollers embedded in sensor nodes have different power consumption modes like "active", "idle" and "sleep", in order to reduce the power when a full processing operation is not required. Also communication protocols in WSN´s nodes are more lightweight designed using a reduced number of bytes, short bandwidth requirements (kHz), reduced duty cycle (less than 1%), and low data rate transmissions (kbits/s).

Alternative sources of energy replacing batteries are well known such as solar (photovoltaic panels, 10mW/cm2), ultra-capacitors and fuel-cell. Other new approaches come from "harvesting" or "scavenging" energy timely on the environment and storing it for later use such as: vibration (100microW/cm2) (Buckley, 2009), heat (25microW/cm2) (Hammerschmidt, 2010), wind flows and electromagnetic radiation (0.1microW/cm2) (Neuquelman, 2011). Transducers that created electricity from readily available physical sources can be thermoelectric generators (TEG) (Armstrong, 2010) or thermopiles (temperature differences), and mechanical vibration or strain (piezoelectric or electromechanical devices) among others (Despesse, 2011), )Jerez, 2011), (Ling, 2011).

#### **3.3 Communication topics and RF bands**

Propagation of radiofrequency (RF) signals is impaired by phenomena like interference, multipath and attenuation (TSE, 2005). In a WSN two nodes are linked when the signal power at the receiver antenna is above the receiver sensitivity. Therefore that signal power can be reduced with the distance between the nodes (attenuation), interference sources (multipath and undesired external signals) and the influence of materials in the propagation medium causing phenomena like reflection, diffraction and scattering (Pérez, 2008).

Robust modulation techniques provide to RF signals some mitigation of above mentioned impairment effects. Physical protocols for WSNs are intended for giving modulation schemes improving bandwidth, robustness against interference and enough data rate.

Supply Chain Management in International Logistics: RFID Applications 179

In a WSN a "sensor" node includes hardware elements like memory, input/output and communications. Therefore the resources of a "sensor" node must be managed by an operating system (OS) to make the hardware independent from the executed applications. Given that a WSN is a distributed scenario the OS should provide additional distributed capabilities as a "middleware" placed in the elements of the network. There are in the market a large range of OSs for "sensor" nodes like TnyOS and Contiki (Gómez, 2010).

Software tools intended for enabling the development, maintenance, deployment and execution of WSN applications, are useful for designers before and after implementing the

As a basic summary of requirements for implementing a WSN can be stated the following

Radio features (radio range, type of antennas, data loss rate, propagation

Traffic pattern (many "sensors" to a "sink" like in a "star", or one-to-many as in a

Among the software tools can be found the following, intended for different or complementary purposes along the WSN´s designing cycle such as: simulators, emulators,

A simulator is a software that imitates selected parts of a real WSN´s behaviour and is currently used as tool for its research and development. Depending on the simulator´s intended usage, different parts of the WSN are modelled and imitated, and these parts can also be of varying abstraction level. A simulator for WSN can imitate the wireless media and

As a networked embedded system a WSN application involves sensor node hardware, its drivers, operating systems and communication protocols. As a result, the performance of the WSN application depends on all these factors in addition to its implementation. An emulator is a kind of simulator intended to enable realistic performance evaluation for

Node distribution uniformity (existence of routing voids or not)

"mesh", point-to-point routing or data-centric routing)

Traffic load (high "duty cycle" or low one like in message delivery)

Quality-of-service (QOS) requirements on latency and throughput

data display, testbeds, debuggers, code-updaters and network monitoring.

**3.4 Software tools for WSNs** 

ones (Misra, 2009):


Size of on-board memory

Accessibility of the network

 Expected network lifetime Data packet size and format

the restrictions of nodes in the network.


impairments, etc.) - Network scale and deployment setting

real distributed wireless network (Dwivedi, 2011).

Power supply: battery power or harvesters

 Size of the network and coverage zone Node density ("sensor" nodes/km2)

Availability of sensor node locations

Homogeneous nodes or heterogeneous ones

Radiofrequency bands are used worldwide using those intended for free use (unlicensed bands) on industrial, scientific and medical applications (ISM bands). Defined by the ITU-R (International Telecommunication Union-Radio) these bands may depend on regional or national regulations (i.e., about transmit power, duty cycle or modulation schemes). The acronym RFID (Radiofrequency Identification) is a WSN´s particular application for product identification.

A subset of the ISM and other unlicensed bands (or "free" bands) available for WSNs are (band, availability and applications) (Gómez, 2010):


New band assignments from international and national telecommunication authorities have been studied for unlicensed usage, based on current paradigms such as cognitive radio (CR) technologies (Fette, 2009), (Wyglinski, 2009), (Zhang, 2010), by using licensed bands under strict requirements (Ray, 2011), or giving a "digital dividend" enabling the use of former UHF analogue TV bands ( 790-862 MHz) (Fitch, 2011), (Zhang, 2009).

A new trend in the use of electromagnetic spectrum for WSNs is the VLC (Visible Light Communications) proposal (Johnson, 2010). Like the IrDA (Infrared Data Association) standard (Mariño, 2003) from 1994 for remote control in home electronic products, VLC proposal intends the use of "vision band" (380-760nm wavelength) by means of cheap photoemissors (LED: Light Emission Device) and photodetectors (i.e: a photodiode), for avoiding the crowded RF bands from ISM.

Therefore a WSN based on VLC proposal will have "sensor" and "sink" nodes without RF antennas, only a couple photoemissor-photodetector for each node. The IEEE 802.15.7 will be the reference standard for VLC applications.

#### **3.4 Software tools for WSNs**

178 Business Dynamics in the 21st Century

Radiofrequency bands are used worldwide using those intended for free use (unlicensed bands) on industrial, scientific and medical applications (ISM bands). Defined by the ITU-R (International Telecommunication Union-Radio) these bands may depend on regional or national regulations (i.e., about transmit power, duty cycle or modulation schemes). The acronym RFID (Radiofrequency Identification) is a WSN´s particular application for product

A subset of the ISM and other unlicensed bands (or "free" bands) available for WSNs are

identification.











avoiding the crowded RF bands from ISM.

be the reference standard for VLC applications.

(band, availability and applications) (Gómez, 2010):



UHF analogue TV bands ( 790-862 MHz) (Fitch, 2011), (Zhang, 2009).


New band assignments from international and national telecommunication authorities have been studied for unlicensed usage, based on current paradigms such as cognitive radio (CR) technologies (Fette, 2009), (Wyglinski, 2009), (Zhang, 2010), by using licensed bands under strict requirements (Ray, 2011), or giving a "digital dividend" enabling the use of former

A new trend in the use of electromagnetic spectrum for WSNs is the VLC (Visible Light Communications) proposal (Johnson, 2010). Like the IrDA (Infrared Data Association) standard (Mariño, 2003) from 1994 for remote control in home electronic products, VLC proposal intends the use of "vision band" (380-760nm wavelength) by means of cheap photoemissors (LED: Light Emission Device) and photodetectors (i.e: a photodiode), for

Therefore a WSN based on VLC proposal will have "sensor" and "sink" nodes without RF antennas, only a couple photoemissor-photodetector for each node. The IEEE 802.15.7 will In a WSN a "sensor" node includes hardware elements like memory, input/output and communications. Therefore the resources of a "sensor" node must be managed by an operating system (OS) to make the hardware independent from the executed applications. Given that a WSN is a distributed scenario the OS should provide additional distributed capabilities as a "middleware" placed in the elements of the network. There are in the market a large range of OSs for "sensor" nodes like TnyOS and Contiki (Gómez, 2010).

Software tools intended for enabling the development, maintenance, deployment and execution of WSN applications, are useful for designers before and after implementing the real distributed wireless network (Dwivedi, 2011).

As a basic summary of requirements for implementing a WSN can be stated the following ones (Misra, 2009):

	- Power supply: battery power or harvesters
	- Size of on-board memory
	- Radio features (radio range, type of antennas, data loss rate, propagation impairments, etc.)
	- Size of the network and coverage zone
	- Node density ("sensor" nodes/km2)
	- Node distribution uniformity (existence of routing voids or not)
	- Homogeneous nodes or heterogeneous ones
	- Accessibility of the network
	- Availability of sensor node locations
	- Traffic pattern (many "sensors" to a "sink" like in a "star", or one-to-many as in a "mesh", point-to-point routing or data-centric routing)
	- Traffic load (high "duty cycle" or low one like in message delivery)
	- Expected network lifetime
	- Data packet size and format
	- Quality-of-service (QOS) requirements on latency and throughput

Among the software tools can be found the following, intended for different or complementary purposes along the WSN´s designing cycle such as: simulators, emulators, data display, testbeds, debuggers, code-updaters and network monitoring.

A simulator is a software that imitates selected parts of a real WSN´s behaviour and is currently used as tool for its research and development. Depending on the simulator´s intended usage, different parts of the WSN are modelled and imitated, and these parts can also be of varying abstraction level. A simulator for WSN can imitate the wireless media and the restrictions of nodes in the network.

As a networked embedded system a WSN application involves sensor node hardware, its drivers, operating systems and communication protocols. As a result, the performance of the WSN application depends on all these factors in addition to its implementation. An emulator is a kind of simulator intended to enable realistic performance evaluation for

Supply Chain Management in International Logistics: RFID Applications 181





For applications in logistics a particular WSN´s technology is called RFID (Radio Frequency Identification), as a means of identifying objects via radio frequency transmission (Bollic, 2010), (Finkenzeller, 2010). A typical RFID system comprises a tag, a reader, a host computer and a middleware (Hartmann, 2010). Middleware is a software that performs a connecting function between lower level objects, such as the readers, and the applications they support. For RFID applications the middleware sends control commands to the reader and responds with tag data received from the reader. In the WSN architecture the "tags" are the "sensor"

In the enterprises world RFID is a third evolution on asset tracking by optical reading technology, from "bar codes" (1981) in the beginning, and "QR"(Quick Response) codes or 2-D codes after (Toyota 1994). In RFID based on relative distances from tags and readers, their respective antennas might operate in Near Field (NF) or Far Field (Radio Frequency or RF). In NF (ZVE, 2007), (Fischer, 2009), (Mager, 2011) operation distances between antennas are lower than 4cm, and the transmission effects are mainly inductive or reactive as in a transformer (Magnetic Field). In RF operation the respective distances could be bigger than 10m like in a typical WSN. An industrial RFID standard based on NF is RuBee (IEEE 1902.1,

In RF operation, the tags are classified by their capacity for storing power as: Passive (without battery and the power comes from the reader only up to 10m), Semi-active (battery only for activation and the reader makes data transmissions up 30m) and Active (battery for activation and transmissions larger than 100m). In NF transmission the tags

**4.1 Rationale for Automotive International Logistics (AIL) and description of basic** 

Relying on new ICT standards and available technologies, the authors propose to modify

Planning the shipment according to production needs and safety stock located in the





nodes, and the "readers" are the "sink" ones.

2007) operating in the 131kHz band (ISM).

the operational support as follows (Fig 8):

**4. A model for data integration in case study** 

MAF (transit time forecast from port to port about 31 days).

are active.

**operations** 

(Hodkinson, 2008)


Internet (Ogden, 2009)

WSN applications, which can be directly run for testing, debugging and performance evaluation.

Visualization tools can support different data types gathered from WSNs, and usually saved as a numerical form in a central data base (DB). There are many programs that enable the viewing of these large amounts of data.

Testbeds are like an experimental benchmark for WSNs that provides support to measure a number of physical parameters in controlled an reliable environment. This environment contains the hardware, instruments, simulators, various software and other support elements to conduct a test. By providing the realistic environments for testing the experiments, the testbeds bridge the gap between the simulation and deployment of real devices.

Debugging tools in WSNs are aimed for diagnosing specific faults, such as detection of crashed nodes, sensor failures, or identifying faulty behaviour in nodes.

Code-updaters for WSNs can change the requirements from the network or the environment in which the deployed nodes may change after long periods of time. This may need modifying the executing application, or re-tasking the existing one with a different set of parameters.

Network monitoring tools enable accurate knowledge of network health status, including nodes and links of each type, for correctly configuring applications on real implementations or over testbeds for assessing the data collected from them.

#### **3.5 International standards and RFID**

Standardization development organizations in the world allow for global harmonization about the different communication protocols intended for WSNs. Some international agencies provide the "jure" standards from IEEE, IETF, ISO, CEN, CNELEC, ITU, ETSI, or the "facto" standards from industry alliances such as ZigBee, Bluetooth Special Interest Group (SIG), Z-Wave, Wavenis Open Standard Alliance (OSA), INSTEON, EnOcean and others. Each alliance creates "working groups" (WG) with specialized tasks for each protocol development (Festag, 2009).

A typical international agency is the Institute of Electrical and Electronics Engineers (IEEE), a professional association which develops and promotes engineering, computing and technology information. The IEEE has a particular committee (or WG) devoted to develop network communication standards, which code number is "802". Therefore a code for any proposal from this committee is published under the format "IEEE 802.n.m", where "n" stands for coverage (in wireless networks), and "m" indicates the kind of application intended for. For example, the "jure" standard IEEE 802.15.1 stands for WPANs (Wireless Personal Area Networks), where number "15" indicates a coverage until 30 meters, and number "1" means for applications in wireless audio, harmonizing with "Bluetooth", an equivalent the "facto" standard promoted by Ericsson company.

Among the communication standards proposed for WSNs are the following (Willig, 2005):



180 Business Dynamics in the 21st Century

WSN applications, which can be directly run for testing, debugging and performance

Visualization tools can support different data types gathered from WSNs, and usually saved as a numerical form in a central data base (DB). There are many programs that enable the

Testbeds are like an experimental benchmark for WSNs that provides support to measure a number of physical parameters in controlled an reliable environment. This environment contains the hardware, instruments, simulators, various software and other support elements to conduct a test. By providing the realistic environments for testing the experiments, the testbeds bridge the gap between the simulation and deployment of real

Debugging tools in WSNs are aimed for diagnosing specific faults, such as detection of

Code-updaters for WSNs can change the requirements from the network or the environment in which the deployed nodes may change after long periods of time. This may need modifying the executing application, or re-tasking the existing one with a different set of

Network monitoring tools enable accurate knowledge of network health status, including nodes and links of each type, for correctly configuring applications on real implementations

Standardization development organizations in the world allow for global harmonization about the different communication protocols intended for WSNs. Some international agencies provide the "jure" standards from IEEE, IETF, ISO, CEN, CNELEC, ITU, ETSI, or the "facto" standards from industry alliances such as ZigBee, Bluetooth Special Interest Group (SIG), Z-Wave, Wavenis Open Standard Alliance (OSA), INSTEON, EnOcean and others. Each alliance creates "working groups" (WG) with specialized tasks for each

A typical international agency is the Institute of Electrical and Electronics Engineers (IEEE), a professional association which develops and promotes engineering, computing and technology information. The IEEE has a particular committee (or WG) devoted to develop network communication standards, which code number is "802". Therefore a code for any proposal from this committee is published under the format "IEEE 802.n.m", where "n" stands for coverage (in wireless networks), and "m" indicates the kind of application intended for. For example, the "jure" standard IEEE 802.15.1 stands for WPANs (Wireless Personal Area Networks), where number "15" indicates a coverage until 30 meters, and number "1" means for applications in wireless audio, harmonizing with "Bluetooth", an

Among the communication standards proposed for WSNs are the following (Willig, 2005):

crashed nodes, sensor failures, or identifying faulty behaviour in nodes.

or over testbeds for assessing the data collected from them.

equivalent the "facto" standard promoted by Ericsson company.



**3.5 International standards and RFID** 

protocol development (Festag, 2009).

evaluation.

devices.

parameters.

viewing of these large amounts of data.


For applications in logistics a particular WSN´s technology is called RFID (Radio Frequency Identification), as a means of identifying objects via radio frequency transmission (Bollic, 2010), (Finkenzeller, 2010). A typical RFID system comprises a tag, a reader, a host computer and a middleware (Hartmann, 2010). Middleware is a software that performs a connecting function between lower level objects, such as the readers, and the applications they support. For RFID applications the middleware sends control commands to the reader and responds with tag data received from the reader. In the WSN architecture the "tags" are the "sensor" nodes, and the "readers" are the "sink" ones.

In the enterprises world RFID is a third evolution on asset tracking by optical reading technology, from "bar codes" (1981) in the beginning, and "QR"(Quick Response) codes or 2-D codes after (Toyota 1994). In RFID based on relative distances from tags and readers, their respective antennas might operate in Near Field (NF) or Far Field (Radio Frequency or RF). In NF (ZVE, 2007), (Fischer, 2009), (Mager, 2011) operation distances between antennas are lower than 4cm, and the transmission effects are mainly inductive or reactive as in a transformer (Magnetic Field). In RF operation the respective distances could be bigger than 10m like in a typical WSN. An industrial RFID standard based on NF is RuBee (IEEE 1902.1, 2007) operating in the 131kHz band (ISM).

In RF operation, the tags are classified by their capacity for storing power as: Passive (without battery and the power comes from the reader only up to 10m), Semi-active (battery only for activation and the reader makes data transmissions up 30m) and Active (battery for activation and transmissions larger than 100m). In NF transmission the tags are active.

## **4. A model for data integration in case study**

#### **4.1 Rationale for Automotive International Logistics (AIL) and description of basic operations**

Relying on new ICT standards and available technologies, the authors propose to modify the operational support as follows (Fig 8):

 Planning the shipment according to production needs and safety stock located in the MAF (transit time forecast from port to port about 31 days).

Supply Chain Management in International Logistics: RFID Applications 183

ISO/IEC/IEEE 21451-4)

In Fig. 10 is depicted a network model for AIL applications where all involved agents in the value chain, between the "product origin" (PO) and "product destination" (PD) are

Sensor Interface (ISO/IEC/IEEE 8802-15-4)

(ISO/IEC15418); Unique item identification(ISO/IEC 15459); Encoding (six bit) (ISO/IEC29162); Unique tag ID(ISO/IEC15963); Unique sensor ID(IEEE EUI-64 –

(TC104); Ships (TC8); ITS (TC204); Anti-Counterfeiting

Technology RFID (ISO/IEC 18000); Sensors (IEEE 1451); Wireless

Data Content Data syntax (ISO/IEC15434); Data semantics

Conformance Conformance to Air Interface; (ISO/IEC 18000)

Application Standards Packaging (TC122-ISO 1736x); Freight container

(TC247)

Network Sensor Networks (IEEE 1451)

Fig. 10. Framework of SCM Information-Centric networking for AIL

Table 3. Standards based upon ISO/IEC JTC 1/SC31

**4.2 A new network model** 

connected.


Fig. 8. On-board proposed operational support (Harmon, 2010)


Fig. 9. Roadside operational support (Harmon, 2010)

 In MAF operations are symmetrical and inverse to the consolidation warehouse. The MAF input-output is linking to IP network through smart WSN.

The new basic operations in this case study, are affected by the following standards, under the recommendations of American Industry Association Group (AIAG) (Harmon, 2010) (Table 3):


Table 3. Standards based upon ISO/IEC JTC 1/SC31

#### **4.2 A new network model**

182 Business Dynamics in the 21st Century

 As supply chain pallets are being built, transport unit tags are loaded to pallet tags identifying contents, which built the shipment, purchase order number, and when the

 In consolidation warehouse, as pallets are loaded into the container, pallet tags are loaded to container supply chain tags identifying contents, which built the shipment, purchase order number, container ID, eSeal ID, and when the container was stuffed. Container loaded onto chassis. When the tractor connects to the chassis, container information, chassis ID, and tractor ID is loaded to the On-board Unit (OBU) through

 At the border crossing point in warehouse exit, the contents of the OBU are transferred to the Road-side Unit (RSU-WSN). The Road-side Unit (RSU) might also capture

 Well known wireless communication standards for Intelligent Transportation Systems (ITS) are CALM and WAVE. (ITU-T , 2007), (Uzcategui, 2009), (Williams, 2008)

Information is available in the WSN through an IP network to be read from the

In MAF operations are symmetrical and inverse to the consolidation warehouse. The

The new basic operations in this case study, are affected by the following standards, under the recommendations of American Industry Association Group (AIAG) (Harmon, 2010)

MAF input-output is linking to IP network through smart WSN.

information from the Container ID, eSeal, and Supply Chain/Manifest tag.

shipment was built. Pallets are sent to storage consolidation.

Fig. 8. On-board proposed operational support (Harmon, 2010)

Communication Air Network (CAN).

OBU also able to drive GPS system

management point LSP (Fig. 9).

Fig. 9. Roadside operational support (Harmon, 2010)

(Table 3):

In Fig. 10 is depicted a network model for AIL applications where all involved agents in the value chain, between the "product origin" (PO) and "product destination" (PD) are connected.

Fig. 10. Framework of SCM Information-Centric networking for AIL

Supply Chain Management in International Logistics: RFID Applications 185

Fig. 11. SOA's testbed for SCM in AIL based on the new network model

identify assets in the most challenging conditions.

the gates

Fig. 12. Reading infrastructures OCR/RFID in Georgia Port Authority. Courtesy of Identec.

and need to be in and out as quickly as possible to meet shipper schedules. So planning for the future meant handlingan increasing volume of trucks without compromising service levels. License plate recognition software was considered, but discounted due to lack of consistency in license plate position and misreads due to dirty or damaged plates. Instead, radio frequency identification (RFID) technology won the day for its ability to uniquely

To capture key data and manage business processes, plus middleware to integrate data into central terminal management applications, use RFID, GPS & Wireless Sensor Solutions:

Optical character recognition (OCR) to identify containers and chassis passing through

A position detection system (PDS) to locate containers and equipment in the yard

Those intermediate agents (IAs): warehouses, carriers, administrations, legal advisers, logistics operators, etc., are considered "in-flight" or "on-route" producer-consumers ("prosumers") of "routing information" (RI). Therefore there is a two-ways data flow PO<- >RI<->PD, with multiple input/output operations depending on the use of particular "access networks" (AN) from the diverse aforementioned IA´s. In this network model all participants can access, if it is technically possible, to a distributed data bases (DDBs) or centralized ones (CDBs), whether directly or indirectly through the "cloud", sharing realtime information about the state-of-routing from a given product between its origin and its destination.

Therefore some considerations should be made in order to assure the affordability of this model, if technical, economic and complexity barriers must be overcome for each involved enterprise. For example, in the value chain, SMEs could be not interested in complex procedures, using heavy ERP tools with specialised workers, and high communications costs, among other possible reasons.

In this model is possible given its open structure, to include other indirect partners from the information and communication technologies (ICT) providing: new ERP tools, more practical standards, affordable access networks and information-based logistic services. New ERP tools should integrate moreover its "product ID" also its "origin ID" and its "destination ID". Each IA in the value chain can profit these data to give more flexibility to its business model.

More practical standards could facilitate information formats with generalized use by diverse AIs, in order to achieve compatible software tools and file transfers.

Affordable access networks are possible giving the new legal agreements from the providers´ sector about next generation networks (NGN), where networks operators can generate creative offers to new industrial customers not necessarily early-adopters minded, giving flexible and customized options for specialized demands.

Information-based logistic services could find a new niche market for creative service providers, able to collaborate with the IAs grouped in a particular "value chain". Given the abovementioned model, an example could be an ISP providing services of hosting and housing for DDBs, CDBs and ERP tools in a particular AIL application.

In Fig.11 is depicted a network architecture for the proposed model, according to the requirements of Software Oriented Applications (SOA):

#### **5. The need to deploy RFID reading infrastructures in seaports**

#### **5.1 Active RFID as a key enabler**

Finding a data capture technology that would reliably identify trucks in the harsh marine environment was a key aspect of Port Authorities, (Fig.12). Especially, needed a way to "marry" containers and trucks in its management system, i.e. to track which inbound and outbound boxes were paired with which street trucks as they entered, transited and exited the terminal. (Identec, 2010).

In most ports, a high percentage of containers arrive and depart by truck, including many short-haul, time-sensitive moves. Truck drivers may visit the terminal several times a day

Those intermediate agents (IAs): warehouses, carriers, administrations, legal advisers, logistics operators, etc., are considered "in-flight" or "on-route" producer-consumers ("prosumers") of "routing information" (RI). Therefore there is a two-ways data flow PO<- >RI<->PD, with multiple input/output operations depending on the use of particular "access networks" (AN) from the diverse aforementioned IA´s. In this network model all participants can access, if it is technically possible, to a distributed data bases (DDBs) or centralized ones (CDBs), whether directly or indirectly through the "cloud", sharing realtime information about the state-of-routing from a given product between its origin and its

Therefore some considerations should be made in order to assure the affordability of this model, if technical, economic and complexity barriers must be overcome for each involved enterprise. For example, in the value chain, SMEs could be not interested in complex procedures, using heavy ERP tools with specialised workers, and high communications

In this model is possible given its open structure, to include other indirect partners from the information and communication technologies (ICT) providing: new ERP tools, more practical standards, affordable access networks and information-based logistic services. New ERP tools should integrate moreover its "product ID" also its "origin ID" and its "destination ID". Each IA in the value chain can profit these data to give more flexibility to

More practical standards could facilitate information formats with generalized use by

Affordable access networks are possible giving the new legal agreements from the providers´ sector about next generation networks (NGN), where networks operators can generate creative offers to new industrial customers not necessarily early-adopters minded,

Information-based logistic services could find a new niche market for creative service providers, able to collaborate with the IAs grouped in a particular "value chain". Given the abovementioned model, an example could be an ISP providing services of hosting and

In Fig.11 is depicted a network architecture for the proposed model, according to the

Finding a data capture technology that would reliably identify trucks in the harsh marine environment was a key aspect of Port Authorities, (Fig.12). Especially, needed a way to "marry" containers and trucks in its management system, i.e. to track which inbound and outbound boxes were paired with which street trucks as they entered, transited and exited

In most ports, a high percentage of containers arrive and depart by truck, including many short-haul, time-sensitive moves. Truck drivers may visit the terminal several times a day

diverse AIs, in order to achieve compatible software tools and file transfers.

giving flexible and customized options for specialized demands.

requirements of Software Oriented Applications (SOA):

**5.1 Active RFID as a key enabler** 

the terminal. (Identec, 2010).

housing for DDBs, CDBs and ERP tools in a particular AIL application.

**5. The need to deploy RFID reading infrastructures in seaports** 

destination.

its business model.

costs, among other possible reasons.

Fig. 11. SOA's testbed for SCM in AIL based on the new network model

Fig. 12. Reading infrastructures OCR/RFID in Georgia Port Authority. Courtesy of Identec.

and need to be in and out as quickly as possible to meet shipper schedules. So planning for the future meant handlingan increasing volume of trucks without compromising service levels.

License plate recognition software was considered, but discounted due to lack of consistency in license plate position and misreads due to dirty or damaged plates. Instead, radio frequency identification (RFID) technology won the day for its ability to uniquely identify assets in the most challenging conditions.

To capture key data and manage business processes, plus middleware to integrate data into central terminal management applications, use RFID, GPS & Wireless Sensor Solutions:


Supply Chain Management in International Logistics: RFID Applications 187

technologies as WSN, either of content from the initial EDI to the current based on ISO-

Some challenges should be overcome in order to enhance the productivity of the business involved in SCM domain. These challenges could be faced by the ICT market providing

First of all, is necessary to consider some important aspects such as the support for international transport for automotive parts (AIL) between suppliers to automotive constructors, where some SCM challenges have been detected in the "best effort" practices actually made, to say the least. Second, consider a wide insight over the state-of-the-art of relevant international standards in the field of AIL provided from several institutions like:

Also propose from the ICT market giving new information codes for RFID tags, better sensors deployment (WSNs) in the access network (RSUs), freight containers and vehicles (OBUs). Build a model based upon an open network structure in order to provide the basic rationale for potential users, network operators and service providers, in order to have a clear framework where new offers (infrastructure networks and ICT services) could be

Will be convenient studying infrastructures identification ICT already deployed in the most

1. Administrative complexity. Multiple administrations with different regulations and

2. Selection of suitable information standards, in order to achieve compatible software

3. Involving network operators and ISP providers for giving suitable WSNs in a few points on the logistic chain, in order to maintain the model affordability whether by

4. Involving hosting and housing service providers for implementing DBs in selected places "on-route" for producer/consumers of unified data formats, from the moving

5. Involving a bunch of Intermediate Agents (IAs) with compatible ERPs, user interfaces

6. Developing a whole "case study" over the implemented testbed between two end points of the supply chain for selected moving products, in order to get valuable experiences and software tools refinements until to give a real SOA´s application. 7. Further enhancements of flexible and customized software options able to be integrated

in current business software tools, for new potential industrial customers.

2. Limitations in current software tools don't provide the necessary standards

1. Involving the two extreme main places in international logistic traffic scenario.

tools and file transfers through the "cloud", over the unified data formats.

software tools (ERPs) better integrated in the business models.

ODETTE, AIAG, European Union, IEEE, ISO, IEC and others.

advanced ports and benefits from the standpoint of SCM and security.

One testbed could be implemented following these seven main points:

3. Incompatible technology platforms from different vendors

budgetary reasons or low-complexity purposes.

better integrated in existing business software tools.

Limitations of this developments:

competences.

identified products.

and AIL applications.

Future work:

18000c.


RFID solution to provide real-time visibility into truck inventory and enable data capture at the required hand-off points:


#### **5.2 Gate benefits**

Combined with OCR for container ID, the introduction of RFID in Ports enable to move staff away from the direct gate area, alleviate the administrative burden of manual data processing and allow trucks to move faster through the system. RFID technology also supports to Ports Authorities (PA) web access system, a related efficiency measure introduced by the port for trucking companies to preadvise container pick-ups and dropoffs before arriving at the terminal.

Other key gains include the elimination of truck queues outside the terminal gates, with productivity benefits both for the port and truckers, reduced highway congestion and less pollution from idling trucks.

#### **5.3 Yard benefits**

Once empty and laden street trucks enter the yard, the RFID system helps manage the container hand-off process between trucks and yard cranes. As with the gate, use of RFID in the yard help PA to improve operational safety and productivity and provided real-time intelligence on truck and container inventory location.

Working conditions and efficiencies for the operators are also improved. They no longer have to look down at containers some 70-80ft below to manually read container ID numbers, while automated job promotion eliminates the need to scroll through a list of assignments on the cab data terminal in order to find the right task.

#### **5.4 Commercial a security benefits**

Ports can provide data feeds as required. A broad range of terminal operational data supporting security processes and logistics operational processes by use RFID active tags with commercial and security benefits as:


#### **6. Conclusions and future work**

The evolution of international transport of goods is closely linked to technological developments such as RFID technologies, and the adoption of standards, whether of technologies as WSN, either of content from the initial EDI to the current based on ISO-18000c.

Some challenges should be overcome in order to enhance the productivity of the business involved in SCM domain. These challenges could be faced by the ICT market providing software tools (ERPs) better integrated in the business models.

First of all, is necessary to consider some important aspects such as the support for international transport for automotive parts (AIL) between suppliers to automotive constructors, where some SCM challenges have been detected in the "best effort" practices actually made, to say the least. Second, consider a wide insight over the state-of-the-art of relevant international standards in the field of AIL provided from several institutions like: ODETTE, AIAG, European Union, IEEE, ISO, IEC and others.

Also propose from the ICT market giving new information codes for RFID tags, better sensors deployment (WSNs) in the access network (RSUs), freight containers and vehicles (OBUs). Build a model based upon an open network structure in order to provide the basic rationale for potential users, network operators and service providers, in order to have a clear framework where new offers (infrastructure networks and ICT services) could be better integrated in existing business software tools.

Will be convenient studying infrastructures identification ICT already deployed in the most advanced ports and benefits from the standpoint of SCM and security.

Limitations of this developments:


#### Future work:

186 Business Dynamics in the 21st Century

RFID solution to provide real-time visibility into truck inventory and enable data capture at

Container transfer between vehicles and mobile container handling equipment (CHEs)

Combined with OCR for container ID, the introduction of RFID in Ports enable to move staff away from the direct gate area, alleviate the administrative burden of manual data processing and allow trucks to move faster through the system. RFID technology also supports to Ports Authorities (PA) web access system, a related efficiency measure introduced by the port for trucking companies to preadvise container pick-ups and drop-

Other key gains include the elimination of truck queues outside the terminal gates, with productivity benefits both for the port and truckers, reduced highway congestion and less

Once empty and laden street trucks enter the yard, the RFID system helps manage the container hand-off process between trucks and yard cranes. As with the gate, use of RFID in the yard help PA to improve operational safety and productivity and provided real-time

Working conditions and efficiencies for the operators are also improved. They no longer have to look down at containers some 70-80ft below to manually read container ID numbers, while automated job promotion eliminates the need to scroll through a list of assignments

Ports can provide data feeds as required. A broad range of terminal operational data supporting security processes and logistics operational processes by use RFID active tags

Audit trails for isolation, recovery and learning ("inspected already" –quicker re-starts)

The evolution of international transport of goods is closely linked to technological developments such as RFID technologies, and the adoption of standards, whether of

RFID to track trucks moving through the gates and around the terminal

A wireless local area network for data transmission

 Inbound and outbound gate moves for street trucks Container transfer between yard cranes and street trucks

intelligence on truck and container inventory location.

on the cab data terminal in order to find the right task.

Positioned for "green lane" (reduced inspections)

**5.4 Commercial a security benefits** 

Brand protection

Reduce pilferage, damage

with commercial and security benefits as:

**6. Conclusions and future work** 

the required hand-off points:

offs before arriving at the terminal.

pollution from idling trucks.

**5.3 Yard benefits** 

**5.2 Gate benefits** 

One testbed could be implemented following these seven main points:


Supply Chain Management in International Logistics: RFID Applications 189

Frequency Identification (RFID) equipment at UHF

ISO/IEC 15418 Information technology --EAN/UCC Application Identifiers and Fact

ISO/IEC 15961 Information technology --Radio frequency identification (RFID) for itemmanagement --Data protocol: application interface

ISO/IEC 15962 Information technology --Radio frequency identification (RFID) for

ISO/IEC 18000-6 Information technology --Radio frequency identification for item

ISO/IEC 18000-7 Defines the air interface for radio-frequency identification (RFID)

ISO/IEC 18046 Information technology --Automatic identification and data capture

ISO/IEC 8859-1 Information technology --8-bit single-byte coded graphic character sets --

ISO/IEC 18047-6 Information technology --Radio frequency identification device

communications at 860 MHz to960 MHz

ISO/IEC 17367 Supply Chains Applications of RFID -Product tagging

Data Application Identifier Standard

IEEE 802.15.4 Specifies the physical layer and media access control for low-rate

Electromagnetic compatibility and Radio spectrum Matters (ERM); Short Range Devices (SRD) intended for operation in the band 865 MHz to 868 MHz. Guidelines for the installation and commissioning of Radio

wireless personal area networks (LR-WPANs). It is maintained by

itemmanagement --Data protocol: data encoding rules and logical

management -Part 6: Parameters for air interface communications at 860

devices operating as an active RF Tag in the 433 MHz band used in item

techniques --Radio frequency identification device performance test

conformance test methods --Part 6: Test methods for air interface

**8. Table of standards referenced in this chapter (Odette, 2010)**

**Standard Title**

EPCglobal EPC global Tag Data Standards Version 1.4

memory functions

MHz to 960 MHz

methods

management applications

Part 1:Latin alphabet No. 1

Odette RFID in supply chain container management

ISO/IEC 15434 Syntax for high-capacity ADC media

ISO/IEC TR24729 Implementation Guidelines

Odette Labels (OTL1, OTL3 and GTL)

ANSI MH10.8.2:

2006

the IEEE 802.15 working group

Data Identifiers and Maintenance

ETSI TR 102 436

V1.2.1

#### **7. Glossary**


CRM: Customer relationship management, is a widely implemented strategy for

EDI: EDI stands for Electronic data Interchange and is the umbrella term for

EPC: The Electronic Product Code (EPC) is designed as a universal identifier that

FTP: File Transfer Protocol (FTP) is a standard network protocol used to transfer

ISM: The industrial, scientific and medical (ISM) radio bands are radio

KANBAN: Kanban is not an inventory control system. Rather, it is a scheduling

MAF: Advanced warehouse consolidation, deconsolidation and security, for

RFID: Radio Frequency Identification is a technology for the contact-free

SCM: Supply Chain Management, logistics process between suppliers and

SMTP: Is an Internet standard for electronic mail (e-mail) transmission

XML: Extensible Markup Language (XML) is a set of rules for encoding

ODETTE: Odette International is an organization, formed by the automotive industry

identification of objects of any type by means of radio waves

TIER 1: A Tier 1 supplier would be a company who makes products specifically for one of the original equipment manufacturers (OEMs)

customers; also multilevel, i.e., the chain of all suppliers up to the

distributed autonomous sensors to *monitor* physical or environmental conditions, such as temperature, sound , vibration, pressure, motion or pollutants and to cooperatively pass their data through the network to a

purposes other than communications

for the automotive industry in Europe

across Internet Protocol (IP) networks

WSN: A wireless sensor network (WSN) consists of spatially

documents in machine-readable form

service to auto assembly plants

completion of the end product

WAVE: Wireless Access for a Vehicular Environment

main location

association of companies involved in the automotive industry in America

managing a company's interactions with customers, clients and sales

industry standards for the electronic exchange of business documents

files from one host to another host over a TCP-based network, such as

bands (portions of the radio spectrum) reserved internationally for the use of radio frequency (RF) energy for industrial, scientific and medical

system that tells you what to produce, when to produce it, and how much

provides a unique identity for every physical object anywhere in the world,

AIAG: The Automotive Industry Action Group (AIAG) is a not-for-profit

CALM: Continuous Air-interface, Long and Medium Range

prospects

for all time

the Internet

to produce

**7. Glossary** 

## **8. Table of standards referenced in this chapter (Odette, 2010)**


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**Section 3** 

**Money and Finance in Global Markets** 

