**3. RFID in procedural conditions of logistic operators**

the tag. For example, if a person carries products that contain RFID tags, those tags may be surreptitiously read by an adversary. This could reveal that person's personal preferences such as where they shop, or what brands they buy, or it might allow them to track that per‐

Externality risk - RFID technology potentially could represent a threat to non-RFID net‐ worked or collocated systems, assets, and people. For example, an adversary could gain un‐ authorized access to computers on an enterprise network through Internet Protocol (IP) enabled interrogators if the interrogators are not designed and configured properly. Multi‐ ple RFID interrogators operating in a confined space may cause hazards of electromagnetic

Tracking applications are used to identify the location of an item, or more accurately, the lo‐ cation of the last interrogator that detected the presence of the tag associated with the item. An example of an intentional attack on an RFID business process is cloning, which occurs when an adversary reads information from a legitimate RFID tag and then programs anoth‐ er tag or device to emulate the behavior of the legitimate tag. Another attack on an RFID business process would be removing a tag from the item it is intended to identify and at‐

Supply chain management involves the monitoring and control of products from manufac‐ ture to distribution to retail sale. Supply chain management typically bundles several appli‐ cation types, including asset management, tracking, process control, and payment systems. Supply chain systems record information about products at every stage in the supply chain. Ideally, tags are affixed to products during the manufacturing process or soon afterward. As a product moves through the supply chain, to the customer, and to post-sale service, the

In addition, supply chain systems that use active tags can track larger objects such as cargo containers. Tags on these containers can store a manifest of the items shipped in each con‐ tainer. This manifest can be automatically updated when items are removed from the con‐ tainer. Potential problems are not just limited to the RF subsystem. If the network supporting the RFID system is down, then the RFID system is likely down as well. In supply chain applications, network failures at any point in the chain have the potential to impact the business processes of any subsequent link in the chain. For example, if a supplier is un‐ able to write manifest data to a tag, then the recipient cannot use that data in its operations even if its RFID interrogators and network infrastructure are fully functional. Servers host‐ ing RFID middleware, databases, analytic systems, and authentication services are all points

Any efforts to assess business process risk need to be comprehensive, because such a wide variety of potential threats exist. All of these threats have the potential to undermine the supported business process and therefore the mission of the implementing organization.[3]

tag's identifier can be used by all supply chain participants to refer to a specific item.

son's location at various points in time.[16]

410 Radio Frequency Identification from System to Applications

taching it to another unrelated item.

of failure.

radiation to fuel, ordinance or people in the vicinity.

*2.5.2. Risks in supply chain management and tracking applications*

Supply chain can be defined as the parts that are involved, directly or indirectly, in fulfilling a customer request (Chopra and Peter 2007). By this definition, it can be seen that a supply chain consists of manufacturers, warehouses, retailers, transporters, and customers. The purpose of a supply chain is to maximize the value generated for the customer; namely, maximizing the difference between the final product worth and the total expended by the supply chain to provide the product to the customer.

In order to succeed, the supply chain must be conducted to minimize the costs incurred. Supply chain management (SCM) is responsible for optimizing the flows within its opera‐ tional stages which include raw materials, manufacturing, distribution, and transportation in order to minimize the total cost of the supply chain. SCM is a unification of a series of concepts about integrated business planning that can be joined together by the advances in information technology (IT) (Shapiro 2007), yet many companies have not completely taken advantage of this process.

In today's world, the competition between companies, more demanding customers, and re‐ duced margins make the scenario more difficult for companies to succeed, to this context, SCM is an important practice for companies that want not only to keep in business but also have their results optimized and meet the clients' expectations.

Responsiveness in the supply chain has gained importance and it is a trend that appa‐ rently will dictate future decisions regarding supply chain design. According to Kovack, Langley, and Rinehart (1995), the themes that will have influence on logistics on the near future are:


From these themes, it can be seen that SCM plays and will continue to play an active role in successful companies' routines. In order to achieve better results in the supply chain and better responsiveness to customers' necessities, new techniques such as real-time inventory and dynamic supply chain need to be developed.

#### **3.1. Transportation in logistics and SCM**

As a supply chain driver, transportation has a large impact on customer responsiveness and operational efficiency. Faster transportation allows a supply chain to be more responsive but reduces its efficiency. The type of transportation a company uses also affects the inventory and facility locations in the supply chain. The role of transportation in a company's competi‐ tive strategy is determined by the target customers. Customers who demand a high level of responsiveness, and are willing to pay for the responsiveness, allow a company to use trans‐ portation responsively. Conversely, if the customer base is price sensitive, then the company can use transportation to lower the cost of the product at the expense of responsiveness. Be‐ cause a company may use transportation to increase responsiveness or efficiency, the opti‐ mal decision for the company means finding the right balance between the two.

**•** Fraction transported by mode measures the fraction of transportation (in units or dollars) using each mode of transportation. This metric can be used to estimate whether certain

Possibility of RFID in Conditions of Postal Operators

http://dx.doi.org/10.5772/53285

413

**•** The fundamental trade-off for transportation is between the cost of transporting a given product (efficiency) and the speed with which that product is transported (responsive‐ ness). Using fast modes of transport raises responsiveness and transportation cost but

It is no surprise that IT played a big role in enabling many processes and ideas in Supply Chain Management (SCM) that seemed impossible in earlier years. The first advance was the decreasing of inventory levels by managers abandoning rules of thumb and adopting the setting of inventories based on service level desired and historical demand (Shapiro 2007). IT allowed the analysis of a great quantity of units and the process of recalculating the inventory level as the demand changed. This ability to analyze inventory needs made the companies more agile while decreasing inventory levels and increasing service levels.

Another important fact that gave a great contribution to SCM was the electronic inter‐ change (EDI). This technology allows the direct data interchange between companies us‐ ing computers. EDI changed the relationship between the company and customers, with its suppliers, and also with the employees. The ability of trading data almost instantly across the supply chain gave companies the ability to manipulate more up-to-date infor‐ mation in a shorter period of time. This reduced the need for printing and transporting papers, enabled just-in-time practices, and helped to restructure logistics supply chain re‐ lationships. Together with EDI we can also mention the importance of the Internet in

Artificial intelligence systems are responsible for many advances achieved by society and by SCM as well. Computers can be programmed to execute routine functions and according to the rules imposed to the computer it can be capable of behaving an intelligent system that can execute complex activities in reduced time. This brought to logistics a much larger ca‐ pacity of processing information and executing tasks. Many activities can operate without human interference and this converges to a more responsive and accurate supply chain

Some technologies, discussed later in this chapter, can be used to make real-time adjust‐ ments to the supply chain. Those adjustments could be due to many events such at man‐ power shortages or equipment breakdowns. For example, if a problem occurs with a truck or the road conditions change due to weather, the system, supplied with this updated infor‐ mation, should be able to make the necessary corrections to the transportation routes of oth‐

This system would be very useful for natural disasters such as Hurricane Katrina. With realtime information, the system would reallocate transportation and production. This kind of modeling would reduce the response time for such events from months or weeks to days or

modes are overused or underutilized.

lowers the inventory holding cost.

**3.2. Information technology and SCM**

global business (Johnson et al. 1999).

er trucks to compensate for the truck failure.

(Johnson et al. 1999).

The transportation design is the collection of transportation modes, locations, and routes for shipping. Decisions are made on whether transportation will go from a supply source di‐ rectly to the customer or through intermediate consolidation points. Design decisions also include whether multiple supply or demand points will be included in a single run or not. Also, companies must decide on the set of transportation modes that will be used.

The mode of transportation describes how product is moved from one location in the supply chain network to another. Companies can choose between air, truck, rail, sea, and pipeline as modes of transport for products. Each mode has different characteristics with respect to the speed, size of shipments (parcels, cases, pallet, full trucks, railcar, and containers), cost of shipping, and flexibility that lead companies to choose one particular mode over the others. Typical measurement for transportation operations includes the following metrics:


#### **3.2. Information technology and SCM**

**3.1. Transportation in logistics and SCM**

412 Radio Frequency Identification from System to Applications

incoming shipment at a facility.

each outbound shipment at a facility.

cost of each outgoing delivery.

As a supply chain driver, transportation has a large impact on customer responsiveness and operational efficiency. Faster transportation allows a supply chain to be more responsive but reduces its efficiency. The type of transportation a company uses also affects the inventory and facility locations in the supply chain. The role of transportation in a company's competi‐ tive strategy is determined by the target customers. Customers who demand a high level of responsiveness, and are willing to pay for the responsiveness, allow a company to use trans‐ portation responsively. Conversely, if the customer base is price sensitive, then the company can use transportation to lower the cost of the product at the expense of responsiveness. Be‐ cause a company may use transportation to increase responsiveness or efficiency, the opti‐

The transportation design is the collection of transportation modes, locations, and routes for shipping. Decisions are made on whether transportation will go from a supply source di‐ rectly to the customer or through intermediate consolidation points. Design decisions also include whether multiple supply or demand points will be included in a single run or not.

The mode of transportation describes how product is moved from one location in the supply chain network to another. Companies can choose between air, truck, rail, sea, and pipeline as modes of transport for products. Each mode has different characteristics with respect to the speed, size of shipments (parcels, cases, pallet, full trucks, railcar, and containers), cost of shipping, and flexibility that lead companies to choose one particular mode over the others.

**•** Average inbound transportation cost, or the cost of bringing product into a facility as a percentage of sales or cost of goods sold (COGS). Cost can be measured per unit brought

**•** Average incoming shipment size measures the average number of units or dollars in each

**•** Average inbound transportation cost per shipment measures the average transportation cost of each incoming delivery. Along with the incoming shipment size, the metric identi‐

**•** Average outbound transportation cost measures the cost of sending product out of a fa‐ cility to the customer. Cost should be measured per unit shipped, oftentimes measured as

**•** Average outbound shipment size measures the average number of units or dollars on

**•** Average outbound transportation cost per shipment measures the average transportation

mal decision for the company means finding the right balance between the two.

Also, companies must decide on the set of transportation modes that will be used.

Typical measurement for transportation operations includes the following metrics:

in but is typically included in COGS. It is useful to separate this cost by supplier.

fies opportunities for greater economies of scale in inbound transportation.

a percentage of sales. It is useful to separate this metric by customer.

It is no surprise that IT played a big role in enabling many processes and ideas in Supply Chain Management (SCM) that seemed impossible in earlier years. The first advance was the decreasing of inventory levels by managers abandoning rules of thumb and adopting the setting of inventories based on service level desired and historical demand (Shapiro 2007). IT allowed the analysis of a great quantity of units and the process of recalculating the inventory level as the demand changed. This ability to analyze inventory needs made the companies more agile while decreasing inventory levels and increasing service levels.

Another important fact that gave a great contribution to SCM was the electronic inter‐ change (EDI). This technology allows the direct data interchange between companies us‐ ing computers. EDI changed the relationship between the company and customers, with its suppliers, and also with the employees. The ability of trading data almost instantly across the supply chain gave companies the ability to manipulate more up-to-date infor‐ mation in a shorter period of time. This reduced the need for printing and transporting papers, enabled just-in-time practices, and helped to restructure logistics supply chain re‐ lationships. Together with EDI we can also mention the importance of the Internet in global business (Johnson et al. 1999).

Artificial intelligence systems are responsible for many advances achieved by society and by SCM as well. Computers can be programmed to execute routine functions and according to the rules imposed to the computer it can be capable of behaving an intelligent system that can execute complex activities in reduced time. This brought to logistics a much larger ca‐ pacity of processing information and executing tasks. Many activities can operate without human interference and this converges to a more responsive and accurate supply chain (Johnson et al. 1999).

Some technologies, discussed later in this chapter, can be used to make real-time adjust‐ ments to the supply chain. Those adjustments could be due to many events such at man‐ power shortages or equipment breakdowns. For example, if a problem occurs with a truck or the road conditions change due to weather, the system, supplied with this updated infor‐ mation, should be able to make the necessary corrections to the transportation routes of oth‐ er trucks to compensate for the truck failure.

This system would be very useful for natural disasters such as Hurricane Katrina. With realtime information, the system would reallocate transportation and production. This kind of modeling would reduce the response time for such events from months or weeks to days or even hours. This system can also be expanded to urban transportation within a city or long distances between two cities.

**• Digital map database,**

**• Route planning and guidance,**

**Figure 4.** Integrated supply chain with RFID (Source: SAVI Technology)

lites when indoors (Feng and Law, 2002).

There are three positioning technologies that can be used: radio wave-based positioning, dead-reckoning, and signpost. The use of GPS for navigation can have direct and indirect impacts on intelligent transportation systems. GPS navigation systems can provide informa‐ tion about local surroundings. Also, emergency personnel can be provided with a precise lo‐ cation for situations, thus reducing response times. Asset tracking is one of the most popular uses of GPS. One of the limitations of GPS is that receivers cannot communicate with satel‐

Possibility of RFID in Conditions of Postal Operators

http://dx.doi.org/10.5772/53285

415

RFID and GPS are radio wave-based technologies that are currently used by many organi‐ zations. RFID is primarily used in inventory and material handling processes. Tags are placed on items. When these items pass by checkpoints where readers are located, the tag is read and the appropriate action can be taken. Real-time inventory can be kept by moni‐

**• Human-machine interface,**

**• Wirelesscommunication.**

**• Map matching,**

#### *3.2.1. Real-time technologies*

Radio frequency identification (RFID) and global positioning systems (GPS) are emerging technologies that will allow for real-time data collection to assist with decision support in SCM. RFID has a wide variety of applications. Some examples of RFID uses are library checkout stations, automatic car toll tags, animal identification tags, and inventory systems. Real-time data collected using RFID allows a supply chain to synchronize reorder points and other data. Real-time information can also be used to design and operate logistical sys‐ tems on a real-time basis. GPS is currently used solely as a means to locate equipment and derive navigation directions.

An RFID system consists of a reader, tags, and an air interface. The reader, also known as an interrogator, sends out a signal through an antenna. This signal is usually in the form of an electromagnetic wave, so a direct line of sight is not needed to read the information on the tag. This is a major advantage of RFID. The signal is received by the tag and a response sig‐ nal is sent back to the reader. This response signal contains a unique identifier associated with a tag. The response signal can be powered in two ways corresponding to the type of tag. Passive tags utilize the energy of the original signal to send a response signal back to the reader. Passive tags have a limited amount of energy to power the response signal. There‐ fore, the amount of information transmitted by a passive tag is fairly small, quite similar to the information carried in a bar code. Active and semi-active tags use energy from an attach‐ ed battery to power the response signal. The use of the embedded battery allows the re‐ sponse signal to contain more information and travel farther. The reader receives the response signal, decodes it, and sends that information to a database. Often the information in the response signal is connected to additional information in the database.

RFID technology can be used throughout the supply chain in order to promote visibility. This visibility helps coordinate actions between entities in the supply chain. Figure 4 shows the relationships within the supply chain that can be affected by the implementation of the RFID technologies. An example of RFID implementation is the use of active tags for detect‐ ing tampering and monitoring security of maritime containers. Those types of tags also have the tracking advantages of RFID and can be used to improve operations management. Those tags can be seen in Figure 5.

GPS systems consist of a series of receivers and satellites that orbit the Earth-GPS works by calculating the distances from a receiver to a number of satellites. With each distance be‐ tween a receiver and satellite, the number of possible locations is narrowed down until there is only one possible location. A receiver must calculate its distance from at least three satel‐ lites to determine a location on the surface of the Earth. However, four satellites are usually used to increase the location accuracy (Dommety and Jain 1996). This process of location would be controlled by the positioning module of GPS system. An average GPS positioning and navigation system would also have the following modules:


even hours. This system can also be expanded to urban transportation within a city or long

Radio frequency identification (RFID) and global positioning systems (GPS) are emerging technologies that will allow for real-time data collection to assist with decision support in SCM. RFID has a wide variety of applications. Some examples of RFID uses are library checkout stations, automatic car toll tags, animal identification tags, and inventory systems. Real-time data collected using RFID allows a supply chain to synchronize reorder points and other data. Real-time information can also be used to design and operate logistical sys‐ tems on a real-time basis. GPS is currently used solely as a means to locate equipment and

An RFID system consists of a reader, tags, and an air interface. The reader, also known as an interrogator, sends out a signal through an antenna. This signal is usually in the form of an electromagnetic wave, so a direct line of sight is not needed to read the information on the tag. This is a major advantage of RFID. The signal is received by the tag and a response sig‐ nal is sent back to the reader. This response signal contains a unique identifier associated with a tag. The response signal can be powered in two ways corresponding to the type of tag. Passive tags utilize the energy of the original signal to send a response signal back to the reader. Passive tags have a limited amount of energy to power the response signal. There‐ fore, the amount of information transmitted by a passive tag is fairly small, quite similar to the information carried in a bar code. Active and semi-active tags use energy from an attach‐ ed battery to power the response signal. The use of the embedded battery allows the re‐ sponse signal to contain more information and travel farther. The reader receives the response signal, decodes it, and sends that information to a database. Often the information

in the response signal is connected to additional information in the database.

and navigation system would also have the following modules:

RFID technology can be used throughout the supply chain in order to promote visibility. This visibility helps coordinate actions between entities in the supply chain. Figure 4 shows the relationships within the supply chain that can be affected by the implementation of the RFID technologies. An example of RFID implementation is the use of active tags for detect‐ ing tampering and monitoring security of maritime containers. Those types of tags also have the tracking advantages of RFID and can be used to improve operations management. Those

GPS systems consist of a series of receivers and satellites that orbit the Earth-GPS works by calculating the distances from a receiver to a number of satellites. With each distance be‐ tween a receiver and satellite, the number of possible locations is narrowed down until there is only one possible location. A receiver must calculate its distance from at least three satel‐ lites to determine a location on the surface of the Earth. However, four satellites are usually used to increase the location accuracy (Dommety and Jain 1996). This process of location would be controlled by the positioning module of GPS system. An average GPS positioning

distances between two cities.

414 Radio Frequency Identification from System to Applications

*3.2.1. Real-time technologies*

derive navigation directions.

tags can be seen in Figure 5.


**Figure 4.** Integrated supply chain with RFID (Source: SAVI Technology)

There are three positioning technologies that can be used: radio wave-based positioning, dead-reckoning, and signpost. The use of GPS for navigation can have direct and indirect impacts on intelligent transportation systems. GPS navigation systems can provide informa‐ tion about local surroundings. Also, emergency personnel can be provided with a precise lo‐ cation for situations, thus reducing response times. Asset tracking is one of the most popular uses of GPS. One of the limitations of GPS is that receivers cannot communicate with satel‐ lites when indoors (Feng and Law, 2002).

RFID and GPS are radio wave-based technologies that are currently used by many organi‐ zations. RFID is primarily used in inventory and material handling processes. Tags are placed on items. When these items pass by checkpoints where readers are located, the tag is read and the appropriate action can be taken. Real-time inventory can be kept by moni‐ toring tag reads at strategic points like loading docks. RFID can also be useful in material handling. Items on a conveyor can be diverted at the appropriate times based on the in‐ formation received from the RFID tag. GPS is primarily use to track assets such as vehi‐ cles and other expensive equipment. For example, if a truck breaks down, it is possible to locate the truck and get the shipment moving again in a fraction of the time it would take with a GPS receiver.

raw materials, and delivery points at any time. Visibility is currently [provided by a mixture of automatic identification, or auto-ID, technologies such as bar codes, smart labels, ISBN, and UPC codes, along with others. The opportunity for RFID is that its non-line-of-sight scanning, the integration of the aforementioned auto-ID identifiers into RFID nomenclature, and the push for standardized technology protocols will provide large supply chain savings. The real-time nature of RFID is considered a benefit and currently a challenge. The benefit is that you have the latest information to make the best decisions; the drawback is that the

Better visibility provides reduced inventory, labor and assets management using inventory policies, scheduling, and decision support system information. This is exemplified by the

**•** RFID supports the reduction of expensive assets such as facilities, trucks, containers, and railroad time because of more accurate information in decision support systems. The abil‐ ity for RFID to provide timely information and visibility into the supply chain are based

The RFID enabling technologies diagram shown in Figure 6 represents these components as

Real Time Info

Faster decisions

The figure also shows how RFID supports timely information in the supply chain by ena‐ bling information to be accessed faster. This implies that faster decisions can be made, which

Ability to repeat info cycle constantly

 labor inventory transport facilities

Possibility of RFID in Conditions of Postal Operators

http://dx.doi.org/10.5772/53285

417

Operational optimalization

amount of data currently presents a data storage problem for operational systems.

**•** RFID supports reduced inventory costs with more effective labor policies

**•** RFID supports labor reduction with more effective scheduling

on three components of RFID technologies. They are

Automatic Data Capture

access

Information Faster

**Figure 6.** RFID-enabling technology

**RFID** 

Real Time Location System

fact that:

**• Automatic data capture, • Real-time information**

**• Real-time location system.**

interconnecting orbits.

**Figure 5.** RFID Container Seal (Source : SAVI Technology)

#### **Summary of RFID and Information Enablers**

This section provides understanding of key technologies and how all the technologies differ and how they can be integrated to work for operational effectiveness. This will allow ware‐ house management system algorithms such as "bucket brigade" calculations, picking route optimization, and other effective system updates that will improve operations. Further in‐ sights into safety stock minimization, customer order optimization, and pick/stock labor minimization will be affected and discussed later.

#### *3.2.2. RFID Provides timely visibility in logistics*

RFID supports information in the supply chain by enabling visibility. The concept of visibili‐ ty describes the ability of anyone, including customers, to have access to inventory, orders, raw materials, and delivery points at any time. Visibility is currently [provided by a mixture of automatic identification, or auto-ID, technologies such as bar codes, smart labels, ISBN, and UPC codes, along with others. The opportunity for RFID is that its non-line-of-sight scanning, the integration of the aforementioned auto-ID identifiers into RFID nomenclature, and the push for standardized technology protocols will provide large supply chain savings.

The real-time nature of RFID is considered a benefit and currently a challenge. The benefit is that you have the latest information to make the best decisions; the drawback is that the amount of data currently presents a data storage problem for operational systems.

Better visibility provides reduced inventory, labor and assets management using inventory policies, scheduling, and decision support system information. This is exemplified by the fact that:


toring tag reads at strategic points like loading docks. RFID can also be useful in material handling. Items on a conveyor can be diverted at the appropriate times based on the in‐ formation received from the RFID tag. GPS is primarily use to track assets such as vehi‐ cles and other expensive equipment. For example, if a truck breaks down, it is possible to locate the truck and get the shipment moving again in a fraction of the time it would take

This section provides understanding of key technologies and how all the technologies differ and how they can be integrated to work for operational effectiveness. This will allow ware‐ house management system algorithms such as "bucket brigade" calculations, picking route optimization, and other effective system updates that will improve operations. Further in‐ sights into safety stock minimization, customer order optimization, and pick/stock labor

RFID supports information in the supply chain by enabling visibility. The concept of visibili‐ ty describes the ability of anyone, including customers, to have access to inventory, orders,

with a GPS receiver.

416 Radio Frequency Identification from System to Applications

**Figure 5.** RFID Container Seal (Source : SAVI Technology)

**Summary of RFID and Information Enablers**

minimization will be affected and discussed later.

*3.2.2. RFID Provides timely visibility in logistics*


The RFID enabling technologies diagram shown in Figure 6 represents these components as interconnecting orbits.

**Figure 6.** RFID-enabling technology

The figure also shows how RFID supports timely information in the supply chain by ena‐ bling information to be accessed faster. This implies that faster decisions can be made, which produces operational optimization that can be effectively repeated. In the figure, one of the boxes represents the RFID information flow. The ability to allow resident information col‐ lected automatically in real-time leads to faster, more effective decisions is where RFID shows future promise. Business costs are reduced as operations become more productive by reducing labor, transportation, and facility cost of moving inventory in the supply chain and postal services.

**Manufacturer – Logistics pickup**

dation).

manifest is loaded.

**Retail outlet – Customer**

chain management process.

*3.2.2.1. Future technologies*

**Customer**

**Logistics delivery – Distribution centre (dc)**

**Distribution centre – Logistics delivery**

**Logistics delivery – Retail outlet**

As the logistics vehicle arrives at the loading dock, the RFID reader positioned at the load‐ ing dock communicates with the unique RFID tag to confirm that the logistics vehicle is au‐ thorised to pickup goods. Upon approval, pallets leaving the loading dock communicate with the RFID reader to alert B2B systems (ASN) and ERP systems to initiate electronic

Possibility of RFID in Conditions of Postal Operators

http://dx.doi.org/10.5772/53285

419

As the logistics vehicle arrives at the Distribution Centre, the RFID reader and middleware initiates an event that captures the unique ID from the RFID tag, triggering the arrival of the manifest to initiate automatic routing of the goods to the next logistics vehicle (load consoli‐

As pallets are loaded onto the logistics vehicle the RFID reader positioned above the loading dock communicates with the RFID tags. The RFID tags broadcast their unique ID to the reader and via the RFID middleware transfer information to ERP systems indicating that the

As the shipments of goods arrive at the receiving dock (again being detected by RFID read‐ ers), Retail ERP systems are updated to manage inventory levels (automatically, accurately

As items are removed at shelf level, the RFID reader can automatically detect the event and via the RFID middleware, initiate additional product supply requests. With such a system in place, the need to maintain costly volumes in remote warehouses is almost eliminated. At this point of the process, the customer is initiating direct demand generation on the supply

Rather than wait in line for a cashier, the customer simply walks out the door with the pur‐ chase. A reader built into the door recognises the items in the cart by unique ID's. A swipe

Current applications of RFID and GPS systems have allowed for more effective tracking of inventory and assets. These technologies can be used in conjunction, but the data has to be captured and written to a database to be correlated to other tags or receivers. If these tech‐ nologies can be combined to produce hybrid systems, greater gains can be achieved. One fo‐ cus of research is the nesting of GPS receivers and various RFID tag types. If tags and receivers were able to communicate with one another, even more accurate real-time data

and at low cost) and initiate B2B messages to Suppliers to commence invoicing.

of the debit or credit card and the customer is on their way.

transactions, proof of pickup and potentially shipment invoicing.

Many organizations see that the benefit of using RFID is that they can effectively manipulate inventory. Inventory exists in the supply chain because of the variance between supply and demand. This variance is necessary for manufacturers where it is economical to manufac‐ ture in large lot quantities and then store for future sales. The variance is also present in re‐ tail stores where inventory is held for future customer demand. Oftentimes businesses suggest that inventory is a marketing vehicle creating demand by passing customers. The main role inventory plays is to satisfy customer demand by having product available when the customers want it. Another significant role that inventory plays is reducing cost by ex‐ ploiting economies of scale that may exist during production and distribution. Given that economy of scale is believed to have such a large impact on inventory, we will present some relevant information regarding inventory in the supply chain.

RFID is essentially in the same position occupied by mobility and wireless technology a few years ago. It is poised to spark a global revolution—in supply chain visibility and management. Using RFID in pivotal points in the supply chain can help enable a vision of having goods available to customers at the right place and at the right time. RFID technol‐ ogy is an enabler of this vision aiding the synchronization between physical and informa‐ tion flow of goods across the supply chain from Manufacturer to Retail Outlet, represented on figure 7. [1]

**Figure 7.** Supply chain containing RFID technology

#### **Manufacturing**

As goods travel down the production line, RFID tags are physically applied and a unique ID is written and then validated for quality assurance purposes. The unique ID is automatically as‐ sociated to the product/order details to facilitate further tracking and exception management.

During the pallet build process; goods (e.g cases) are automatically identified to aid with customer order configurations. Finally, pallets are identified and tracked as they are deliv‐ ered to the staging area ready for shipment.

#### **Manufacturer – Logistics pickup**

produces operational optimization that can be effectively repeated. In the figure, one of the boxes represents the RFID information flow. The ability to allow resident information col‐ lected automatically in real-time leads to faster, more effective decisions is where RFID shows future promise. Business costs are reduced as operations become more productive by reducing labor, transportation, and facility cost of moving inventory in the supply chain and

Many organizations see that the benefit of using RFID is that they can effectively manipulate inventory. Inventory exists in the supply chain because of the variance between supply and demand. This variance is necessary for manufacturers where it is economical to manufac‐ ture in large lot quantities and then store for future sales. The variance is also present in re‐ tail stores where inventory is held for future customer demand. Oftentimes businesses suggest that inventory is a marketing vehicle creating demand by passing customers. The main role inventory plays is to satisfy customer demand by having product available when the customers want it. Another significant role that inventory plays is reducing cost by ex‐ ploiting economies of scale that may exist during production and distribution. Given that economy of scale is believed to have such a large impact on inventory, we will present some

RFID is essentially in the same position occupied by mobility and wireless technology a few years ago. It is poised to spark a global revolution—in supply chain visibility and management. Using RFID in pivotal points in the supply chain can help enable a vision of having goods available to customers at the right place and at the right time. RFID technol‐ ogy is an enabler of this vision aiding the synchronization between physical and informa‐ tion flow of goods across the supply chain from Manufacturer to Retail Outlet,

As goods travel down the production line, RFID tags are physically applied and a unique ID is written and then validated for quality assurance purposes. The unique ID is automatically as‐ sociated to the product/order details to facilitate further tracking and exception management.

During the pallet build process; goods (e.g cases) are automatically identified to aid with customer order configurations. Finally, pallets are identified and tracked as they are deliv‐

relevant information regarding inventory in the supply chain.

postal services.

418 Radio Frequency Identification from System to Applications

represented on figure 7. [1]

**Figure 7.** Supply chain containing RFID technology

ered to the staging area ready for shipment.

**Manufacturing**

As the logistics vehicle arrives at the loading dock, the RFID reader positioned at the load‐ ing dock communicates with the unique RFID tag to confirm that the logistics vehicle is au‐ thorised to pickup goods. Upon approval, pallets leaving the loading dock communicate with the RFID reader to alert B2B systems (ASN) and ERP systems to initiate electronic transactions, proof of pickup and potentially shipment invoicing.

#### **Logistics delivery – Distribution centre (dc)**

As the logistics vehicle arrives at the Distribution Centre, the RFID reader and middleware initiates an event that captures the unique ID from the RFID tag, triggering the arrival of the manifest to initiate automatic routing of the goods to the next logistics vehicle (load consoli‐ dation).

#### **Distribution centre – Logistics delivery**

As pallets are loaded onto the logistics vehicle the RFID reader positioned above the loading dock communicates with the RFID tags. The RFID tags broadcast their unique ID to the reader and via the RFID middleware transfer information to ERP systems indicating that the manifest is loaded.

#### **Logistics delivery – Retail outlet**

As the shipments of goods arrive at the receiving dock (again being detected by RFID read‐ ers), Retail ERP systems are updated to manage inventory levels (automatically, accurately and at low cost) and initiate B2B messages to Suppliers to commence invoicing.

#### **Retail outlet – Customer**

As items are removed at shelf level, the RFID reader can automatically detect the event and via the RFID middleware, initiate additional product supply requests. With such a system in place, the need to maintain costly volumes in remote warehouses is almost eliminated. At this point of the process, the customer is initiating direct demand generation on the supply chain management process.

#### **Customer**

Rather than wait in line for a cashier, the customer simply walks out the door with the pur‐ chase. A reader built into the door recognises the items in the cart by unique ID's. A swipe of the debit or credit card and the customer is on their way.

#### *3.2.2.1. Future technologies*

Current applications of RFID and GPS systems have allowed for more effective tracking of inventory and assets. These technologies can be used in conjunction, but the data has to be captured and written to a database to be correlated to other tags or receivers. If these tech‐ nologies can be combined to produce hybrid systems, greater gains can be achieved. One fo‐ cus of research is the nesting of GPS receivers and various RFID tag types. If tags and receivers were able to communicate with one another, even more accurate real-time data collection could be achieved during transportation. This would also reduce equipment costs because fewer readers would be required. The nesting would follow the form in Figure 8.

cal character recognition. In this article we would like to specify, how can be transport units identified in the transmission process by RFID technology. In the carriage of postal items is necessary to decide what type of transport is used for that purpose, what the flows of items

Possibility of RFID in Conditions of Postal Operators

http://dx.doi.org/10.5772/53285

421

The part described scheme of the transport process, including planned technology and there

An unavoidable part of today is a dynamic development in the field of mobile technologies, their everyday use and application of the processes, which largely supports the level of quality of postal services and thereby strengthening the market positions of individual post‐ al operators. This area is even more pertinent that in all countries of the European Union since 1 January 2013 approved the postal market and postal services. In this respect, it is nec‐ essary to include postal processes embarked on new technologies to ensure the competitive‐

RFID technology has been selected by an international post corporation (IPC) to test deliver‐ ability (transit time) of items in 55 countries of the world (Slovak republic including). The requirement of transit time is defined by Universal Postal Services and applicable also for Slovak Post. Despite the RFID technology is being known and being improved for a long

Besides efficiency, consolidation and globalization within the European Union, interopera‐ bility is one of key elements. It is the ability of information and communication systems (in‐ cluding the supported processes) to exchange data, share information and knowledge,

For understanding of issue is should be analyze terms used. The availability of RFID compo‐ nents, GPS devices and possibility of using satellite navigation there is possible to create a relative effective infrastructure for improving management of transport process by post.

There is true, that personal correspondence is on the wane, the main reason is development of information technology especially Internet, but large part of using a postal services have a

When we focus on these connections, external influences on postal sector and potential cur‐ rent technologies there is important to analyze possibilities of automation individual proc‐ esses, improve a transportation operating activities and ensure continuity in fulfilling the goals. These aims lead to satisfying of customers in area of provide post services at phase in

The aim of this part is refer on possible improve in this area. The most important term of category, which will use in individual chapters are: mobile technology, definition of means

companies and therefore the services will remain an indispensable part of society.

is also simulated a real postal process in conditions close to operational.

ness of the national postal operator and alternative providers.

time, it is essential to define the standards and security requirements.

are and what their intensity is.

which leads to standardization.

**4.1. Methods and aims**

**4.2. Structure**

the delivery of mail.

transport.

If these technologies can be nested, it will allow the information in a bar code or a passive RFID tag to be collected by an active tag. This information could then be combined with the information contained within the active tag and transferred to a GPS receiver. The GPS re‐ ceiver could then send not only its location but all of the information about the cargo being shipped (Reade and Lindsay 2003). A possible application of this nested technology ap‐ proach would be in the railroad industry. Currently, there are two passive RFID tags attach‐ ed to the sides of all railcars in the United States. In addition, most railroads use GPS receivers to track locomotives. If nesting became possible, implementation would be easy. Active tags could be used to capture the information correlated to the cargo in all of the rail‐ cars and transmit it to the GPS receiver and thus to the inventory databases.

In addition to nesting technologies, more advanced tags can be developed to allow more de‐ tailed data collection. Tags that utilize sensors to capture and write data to the tag are being developed. Some tags have been developed but are still very unreliable. These sensor tags could be used to monitor physical parameters, like temperature and humidity, as well as se‐ curity parameters. The main problem faced by these passive sensor tags is the limited power supply. The sensor cannot use any energy while outside the range of the reader. Also, the amount of energy available while in read range is very small. This limits possible measure‐ ment techniques (Want 2004). With these sensor tags, perishable goods could be monitored to guard against possible safety issues. This could include salmonella outbreaks caused by frozen chicken reaching too-high temperatures for too long and medications being held at temperatures that reduce potency.
