Supply Chain Management Asset and Security

Supply Chain Management Asset and Security

The flow of assets throughout the supply chain requires various systems that enable the geo-location and the status of the assets. Supply chain management typically focuses and prioritizes efficiency for asset and product movement flow.  For example, for perishables in the cold supply chain, operators focus on temperature integrity of these assets. This means that supply chain operators are mainly concerned on logging temperatures and monitoring the histogram for the temperature variations as the product moves from manufacturer to distribution center, and from distribution center to final destination. In practical terms, depending on how sophisticated the supply chain operations are, there may be some particular interest on monitoring specific key performance indicators. In the case of the cold chain, there may be primary parameters of interest, such as: time it took for the product to be staged, loaded, and exposed to ambient temperature; and identifying products that recorded temperatures outside the acceptable range while in transit. Tracking product lots and batches for recall and reverse logistics is another step for mitigating safety issues. This is an example where the main focus of the supply chain management is the efficient transport, movement, and logistics of products for keeping the asset’s temperature integrity within acceptable range.

For other types of products and assets, the scope goes beyond efficiency for the supply chain operation by adding material security as an operational driver and supply chain measurement of performance. Security, in the context of supply chain security, means that as the asset flows through the supply chain, the integrity of the asset is kept intact. In some cases, this implies two different variables in the tracking of the asset: 1) method for knowing where that asset is and where the asset has been (track and trace) and 2) whether the asset's integrity markings indicate if it has been maintained or not, meaning is the asset being altered, counterfeited, or replaced by a copy. For the former point above, supply chain management registers the location of the assets in lots, or sets of products. In theory, if at each point of the supply chain,  the lot of the products is registered, then the supply chain manager will be able to pin point its location as the assets flow through the chain. For the latter however, unless there is secure marking that protects the integrity of the product, the supply chain manager cannot guarantee asset or product integrity.  It's only at destination where the end-user or recipient of the products, or assets, can determine its integrity. For instance, SICPA is a company that fully develops a complete portfolio of solutions for addressing asset integrity and protection for fulfilling the needs of all relevant stakeholders in the supply chain, including end-user stakeholders. The question is how to balance the need of efficiency and security as the product travels through the supply chain?  There is a set of recommendations and best practices that can be implemented to answer this question:

1)    Asset integrity can be improved if the assets are serialized with a unique ID (UID) managed by a centralized database. Product serialization means that each asset or product is uniquely identified (UID) and marked. In some manufacturing environments this is a challenge, however, this is also a best practice to enable product and asset integrity. An example of a company that addresses product serialization is Zebra Technologies with a full portfolio of products that include bar-coding and Radio Frequency Identification (RFID). Supply chain operators can reap efficiency for tracking product movement, while making serialized assets more difficult to compromise in the verification process, against a database of the manufacturer's production system. If the asset is damaged it's a straight forward operation tracking and tracing it for recall and marking the geographic location. If multiple illicit copies, with the same UID, are scanned for verification purposes, then the operator can flag the asset in the database and blacklist it for recall or reporting it to the corresponding task-force.  

2)    Asset integrity is fully covered if the product or asset is dressed with material security and a robust security marker. The end-user or final recipient can authenticate the product or asset based on the test results of the marker. Depending of the type of product, the secure marker can be overt: meaning that the end user can visually authenticate the product. One example of overt security features consist of the use of security inks with unique properties that cannot be copied, such as optically variable inks that shows different color depending on the angle of view of the marking. This is a property of the ink that cannot be photocopied by commercial means. Semi-covert security features are not conspicuous material markers that may require the aid of tool for authentication. For instance, micro-text is small text, where the end-user requires a loupe or similar visual aid to authenticate the feature that cannot be photocopied. Ultra-violet (UV) inks are also in this category, using a UV light source that matches the UV ink’s wavelength as to reveal the secure mark. Lastly, covert security features can consist of proprietary forensic markers that can only be authenticated via forensic lab or by the manufacturer of the assets and security marker itself.  This feature is fully invisible to the counterfeiter and only the producer of the asset can authenticate with dedicated tools. There are many other marking security features that can vary by type and vendors with patented technologies.  A good practice is having the asset to feature all three types of security in combination as security layers. This enables different economic operators of the supply chain to perform a form of authentication according to where is the asset in the supply chain, while dramatically increasing the difficulty for compromising the assets, or deterring illicit reproduction of assets by the counterfeiter, to render the illegal reproduction of assets as uneconomical as possible.

 

As a best practice for enabling security for supply chain management and asset integrity implies the use of asset serialization and secure material marking of assets. In combination, both features enable efficiency and security in the flow of assets throughout the supply chain. One common misconception is that serialization and verification of unique serial number is authentication. Verification is not authentication since assets and products can be attacked by illicit replication including the serial number or UID. With the lack of secure material marking of the asset or product, the end-user cannot easily distinguish between an original and a copy regardless of the serial number verification results, although duplicate verification may indicate the potential copy of assets or products.  Material authentication in layers with overt, semi-covert, and covert markings, make it very difficult for the counterfeiters to produce the copy of an asset. Depending on the value of the asset, is up to the supply chain operation managers to decide the level of investment for the level of sophistication for serialization and material marking. Regardless, it’s recommended that both, serialization and secure marking are seriously considered on a case by case basis to enable efficiency and security for the supply chain. 

RFID fitting and business profile: How RFID technology adheres to unique business processes

On my professional experience I have learned that every business and enterprise process shares several commonalities when compared to others. Operational efficiencies, supply chain, logistics, manufacturing, IT infrastructure, human resources, etc. There are several operational aspects on each business that are common across each industry and accepted as disciplines that are well established and managed as typical business processes. Yet each business has its own unique way to execute and depending on its size and market focus there are aspects that may only apply to the particular business.

On my opinion, this can be considered a business signature or business profile that is also noticed and experienced by the consumer that uses the end product or service. In a competitive business landscape most enterprises constantly work towards differentiating and adding value to its end users. In retail, for example, stock replenishment, material movement, forecast, distribution, and advertisement are critical besides the product market mix. Retail stores, to be competitive, must have the product in its shelves and product forecast depends on dynamic demand that puts pressure to the business supply chain.

What if there was a technology (or set of technologies) that enabled a differentiator and added competitive advantage increasing margins and diminishing operational deficiencies? Most likely the business would keep them as trade secrets for competitive advantage. RFID is one of those technologies and RFID suppliers and manufactures tout the benefits of RFID. Yet, RFID technologies still not widely adopted when compared to bar-code technology for example. On my opinion, one reason is that RFID must follow each unique business profile. This implies that RFID is a technology the must fit the existing business process and not the other way around. Therefore each RFID solution may be somewhat different from other similar business process elsewhere. In an age where most of us experience products and services that follow one size fits all or where a repeatable business model is desirable, RFID stands out as made to fit the business process. RFID is a wireless technology that is prone to interference, materials, polarization, RF power and frequency constraints. Therefore for a business to  successfully deploy RFID needs to understand that RFID is all about the business and their application.

The best advise I provide to my customers when they ask me about RFID is why they believe they have the need for it. This conversation is key for operation managers, supply chain and logistics to understand so that the business buys internally the rightful need for such a system. In turn must business manager appreciate the advise and more often than not act on the suggestion. I believe business can greatly learn and discriminate form vendors that are product focus form customer/solution centric focus. This is a shift on business philosophy that will enable the wide adoption of RFID in the industry since this approach has a higher rate of success when compared to product centric vendors or solutions providers. In conclusion, RFID is a technology that is made to fit and businesses that see a need for RFID can increase their rate of success by adopting solutions form costumer and solution centric providers to bring value, uniqueness in their business profile and differentiation for their market.

Asset management using RFID technologies

Most facilities and procurement managers have some computerized system in place for inventory control. Typically this is a tedious process where a bar code with a unique ID is attached to the asset that identifies it within the system. The types of assets can be from metal frames to large machines on a manufacturing floor. Regardless of the cost or the type of asset each entity in the system has to be tracked or accounted for inventory control purposes. As it is expected, annual audits are done manually. Typically, is only then that managers recognize the issues and the time consuming task of manual scanning and even manual recording for the assets within their facilities. RFID is a suitable tool that has the potential to reduce the time and therefore the costs associated with auditing, tracking and locating the assets. There are three reasons RFID technology is the best tool when compared to bar code and manual recording:

1. RFID can read several objects simultaneously at one time with 100% accuracy, therefore time savings can be realized.
2. RFID tags readability do not degrade with time, unlike bar code labels. Therefore, costs of reprinting and re-tagging the assets are eliminated.
3. RFID can enable smart systems and automate processes for asset movement and management at a fractional costs of bar code and manual scanning. Therefore, RFID enables scalability for the business enterprise more efficiently.

The benefits mentioned above make RFID a powerful tool. The main aspect is to design the application within the context of the physics of RFID. To realize the benefits of RFID a through and through analysis of the types of assets and the process of identifying them needs to be evaluated carefully to fulfill customer expectations and attain business objectives. Below, I give some pointers for starters:

1. Decide what type of RFID technology suits the application. As I wrote earlier, there is active RFID, passive RFID, battery-assisted passive (BAP), Wi-Fi Tags, etc. There are several differences for each of these RFID technologies besides price per tag (incremental costs for identifying the asset) and infrastructure costs for data collection purposes. The main aspect that defines what type of RFID technology to select is a combination of the type of asset, environmental constraints, and read range requirements for the application. For instance if the application requires a simple license plate ID read, then passive may be the best choice. If large expensive assets need to be tracked, such as containers, large machinery, or a data rich tag is needed beyond just an ID, then active or BAP tag maybe a better choice.
2. Define the form factor for the RFID tags to fit the assets. Some RFID technologies may be more sensitive to tag placement, orientation and distance with respect to the antenna of the reader, the material of the assets themselves can be an issue, operating environment, proximity to sources of RF noise or metals. All these aspects will define the success and the usability of RFID. A good practice is to have an RF engineer visit the facility to perform a site survey. The site survey should spell the type of infrastructure needed and the expected performance for identifying the different types of assets.
3. Software integration and business logic must be scoped. This piece of the RFID solution will define the type of alerts and type of RFID and related hardware required at each RFID read point. Perhaps this is the most costly part of the application. Typically, on my experience, the RFID middleware vendor in charge of the integration of the RFID network infrastructure can mitigate changes needed at the software enterprise level. However, I would suggest that the main software system that manages the WMS is modified such that the RFID system can be scaled rather than middleware dependent.

I could go on for several more points; however, the points above are a good starting point to evaluate the viability of RFID. Moving forward, to make a decision to implement RFID beyond this point, requires a well defined ROI to quantify the benefits of RFID versus opportunity cost in the form of more traditional technologies such as bar code or even adding more manual labor.

In Summary, RFID is an excellent tool and the varieties of RFID technologies available make it suitable for inventory control, asset management to automate audits and reduce costs of inventory count and procurement costs for the business enterprise.

A Business Approach To RFID

I could argue that most of the time when a new sales person enters into the RFID world, he/she encounters a world that is very different from other sales disciplines. So, what is the difference? after all, sales for most fields has a methodology well defined which includes a value proposition, ROI tools, relationship building, pricing strategy, market mix, etc. However, sales on RFID on my opinion, has several dimensions that separates it from other disciplines. The aspect that separates sales on RFID from other disciplines is the wireless dimension and the physical science behind every RFID application. Given these added dimensions, to have success on sales for RFID technology it is necessary to have the right approach. Below, I share some of my experience and give some pointers that perhaps are good practice for salespeople in RFID technology.

1. Understand the process flow: Most customers explore RFID technology because they have heard of the potential benefits or they have a problem that truly fits the RFID application. A good practice is to layout all the operational flow of the customer prior to looking at the RFID solution. Some examples are:
1. Work flow directly related to the process every customer is unique and it is important to have excellent understanding prior to propose any improvements to the current process
2. Asset flow and characteristics: Most RFID applications will involve the tracking and identification of assets. Having an understanding of the type of assets is half the battle
3. Environment, time, and space: RFID is a wireless technology prone to interference from other devices in the vicinity, metals, and liquids. The sales person has to understand how RFID will perform in this environment. Failure to consider this aspect can be catastrophic if the right customer expectations are not met
2. Understand the cost benefit and ROI analysis: Unlike purely hardware sales or software sales, RFID usually a mix (unless the customer is the one deploying the system). There are three key pieces to the ROI:
1. RFID tag form factor and asset tagging: The successful salesman is an expert on the type of tag and the asset to be tagged. While it is true that RFID is somehow more mature now than when the Wal-Mart mandates were first introduced, the type tag chosen is directly proportional to the read rate and read range performance. Lack of an understanding of this aspect will result on unacceptable read rates and high costs on portal or read point troubleshooting. On my experience I have seen a lot of time an effort lost trying to tune a portal to find out that the wrong type of tag was chosen for the asset from the beginning
2. Reader Infrastructure and reader network: the experienced sales person will have a estimated number of readers that will be needed in the customer facility based on the expected points of visibility within the process, the salesperson should lay on the proposal that the larger the number of RFID readers, the lower the cost of tags since the benefits of the tag visible in the facility’s reader network will surpass the cost of the incremental tags.
3. Middleware and software integration costs: Sales person has to understand how the data will flow from the RFID readers to the customer dashboard. The implications for this part of the proposal are key with budgetary costs for software. Some customers will reluctant invest on a new software system because of RFID. Therefore, the middleware piece has to be analyzed to make sure that the business rules and the existing software is accounted. This opens the door to new business therefore RFID integrators should be aware of the type ERP or WMS the customer uses.
4. Installation and professional services costs: the salesperson should be an expert on the RFID reader hardware and mounts and the amount of time it will take to make and install. Failure to have an understanding on the field install could critically diminish profit because of ill estimated costs for professional services.
3. Understanding the customer business: it is critical since RFID can be a significant investment for any company or enterprise. The salesperson approach to business in RFID has to go beyond the sale and has to be perceived as a partner. RFID is a technology that requires a long term commitment and along the way, because the way RFID technology works, the customer will have to make compromises in its processes and the way it interacts with its people and customers. The better the salesperson understand the customer the better the chances for recurring sales and service.

In summary these are some of the aspects that I consider a sales account manager should have experience on to be successful in RFID sales. While some will recognize that some of these traits are shared among other sales disciplines, I would emphasize that the RFID sales person ought to be an expert (unlike other sales disciplines) on the areas mentioned above and well versed in wireless technologies and the supply chain in order to be successful and help his/her customers.

RFID the way to economic recovery

Who could have foreseen the difficult time of and the slow down of the global economy. The negative news keep on coming, compounding the increase of unemployment, lack of job security, canceled projects, and diminished sales. However, some organizations take advantage of the slow times as an opportunity to position themselves through innovation. RFID is one of those technologies that are been sought after.

RFID has been a buzz word for the longest time. Walmart's initiative and its use by the DoD has been precursors to its potential uses across several industries, yet RFID still not a technology that has fulfilled the expectations for its widely adoption and use. The question remains: what is holding the adoption of RFID?

On my opinion RFID is following its course and a massive adoption will not happen on short period of time for the following reasons:

1. Cost and ROI: RFID technology has several advantages, but the price point for tags is not low enough. Pallet tagging has good business case, but item tagging is far aways and other more traditional technologies are more in use for AUTOID such as bar codes
2. Vertical application specific: RFID is more attractive to close loop applications and for process that require a more sophisticated control and visibility. For these cases RFID is seen as competitive advantage and most users are reluctant to publish its use and benefit.
3. Evolution RFID Technology: As RFID and its underlying technology evolves, potential users are on wait-and-see holding pattern, kick testing the tires of the technology. For instance the use of RTLS, and adoption of WiFi tags are making great leaps into the warehouse management and distribution.

It is for the reasons above that, on my opinion, RFID is not been widely adopted, yet I have the firm belief that the companies and organizations that do invest on RFID during these times of crisis could potentially see handsome rewards as soon as the economy picks up. Whether it is by deploying RFID in the warehouse or increase visibility on portals at distribution centers, RFID will enable business to be more efficient and enable a fast response to changing business environment. This is key to sustained growth for a business on highly competitive environment. Our current time enables customers to demand more because of the enhanced use of broadband communication. The Internet enables end users to check on global basis the products and services that best suits them with individual profiles. Even social sites like TWITTER can disseminate information about suppliers and their events to a wide audience of users. Therefore, it would be foolish, on my view, not to innovate business in likewise manner to enable better services and RFID is one of those potential technologies that do improve business response and efficiency in similar fashion.

Asset Management Assesment and Considerations

The topic on this subject could easily be expanded to a dissertation several pages long, below is a highlight what I have gathered from experience in the field using varieties of technologies, including RFID as a tool.

1) Container/asset management based on field data collection: Most companies depend on processes (sometimes automated) methods to track their containers as they move from point A to B. The issue at hand is that the data visibility is available only at the points of Entry or Exit. Therefore, the data is reported off-line, based on ERP projection, historical and estimates. Assets are accounted for and confirmed only at the points where the container is picked by the infrastructure managing the asset. If the assets have a means to communicate in real-time events as of their current status and geo-location, the benefits are that rather that relaying on modeling the data is fed to the ERP in real-time from the field.

2) Technology for data collection at the edge and security: On my opinion there are several technologies that do help in the automation on the data collection from the assets themselves. How and what kind of data reported is the second piece of the puzzle. There are several methods:

a. Barcode or RFID TAG ID: where handhelds and scanners collect the data by simple identification

b. RFID-RTLS: where a beacon pin points the presence of the container

c. RFID+ Sensing: these technologies enable to identify, and secure the assets at the same time.

3) Supporting infrastructure and asset management system: this has to do to the GPRS, SAT, Ethernet, Wireless and data network capabilities for visibility to the ERP and the data collection flow and data feed.

If you factor these three aspects, you will find that you can indeed have an ROI and efficiencies in your supply chain and asset management. You just have to concentrate on the pain points in the process and bring the benefits with the right eco system of technologies whatever they may be. RFID is a one more tool that can greatly benefit in the processes as long as the technolgy is understood and correctly applied beyond the context of more traditional data collection methods used today.

Data collection and RFID

The topic of today is data collection and Radio Frequency Identification (RFID). There are three aspects that have to be considered when looking at RFID as a data collection tool.

1. RFID tag form factor
2. Points of visibility
3. Software and middleware application

The tag form factor has to do with the physical aspects of the application. Aspects such as, type of tag, data capacity requirements, and desired read rates, a metric for system performance. Usually depending on the material to be tagged with RFID it's important that the form factor of the tag is taken into account . Well written specs of the operating conditions and the flow of the assets are required. the understanding of how the tag will applied to the assets whether the tags will be enclosed protective pockets or plastic or will be attached to a metal surface define a lot of the decisions in the RFID install. These physical aspects are of utmost importance for the reliability of the system.

The points of visibility are related to the RFID reader or access points that will collect the data. Usually a site survey has to be performed and spectrum analysis it is highly recommended to minimize the risks of interference and poor read rates. The quality of the reader is extremely important and the specs of the readers have to be accounted for to make sure the reader will fulfill the applications performance and constraints. Reader should be EPC compliant so that the industry standard can be used for any RFID tag vendor

Last but no least the middleware or software that will display the data is the defining factor to have a full deployment successfully running. There are several vendor and integrators and it is recommended that prior to contract or purchase any software, a good look is taken to the flexibility of the software to minimize expenses on complex integrations or software with too many or little features.

In summary these are the three aspects that should be considered closely prior to any RFID install or use of the technology in a data collection context.