RFID: Winning Technology at the 2008 Olympics and Across the Globe

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One of big winners of the 2008 Olympics in Beijing was RFID technology, which is also increasingly winning commercial applications around the world.


Last month, the world's fastest man, Usain Bolt, captured an Olympic medal for Jamaica when he ran the 100-meter dash in less than 10 seconds. That's stunningly fast. But did you know that before Bolt reached the finish line you could have scanned over 100 garments with a handheld RFID reader? That is one of the key findings in a study conducted by the RFID Research Center at the University of Arkansas.


Whether authenticating Olympic athletes or helping retailers and consumer good manufacturers track inventory, RFID has finally come of age.


One of the largest RFID deployments in history, the 2008 Olympics in Beijing last month was big in every way: China hosted 280,000 athletes, referees, journalists, and other workers from more than 200 countries and regions, and 7 million spectators watched the games at the venues, all identified with tickets using RFID anti-counterfeit technology.


In addition, to ensure the safety of food for athletes, coaches, and spectators by tracking the path from farm to plate, the China Olympic committee contracted for 12.2 million RFID tags to protect the production, processing, and transport of food and beverage products to coaches, athletes, and concession stands. A mix of 1,000 active and passive RFID systems recorded temperatures of highly perishable foods like beef and pork in addition to identifying the destination of thousands of different meals for hundreds of menus.


In short, RFID worked on a grand scale at the Beijing Olympics, and China will again turn to that technology for the 2010 World Expo in Shanghai, where nearly 70 million RFID tags will again help identify, track, and trace visitors, assets, and food stuffs.

From Gold Medals to Gold Lamé

Meeting Olympian challenges is not the only way RFID is being used in a big way this year. Research firm IDTechEx estimates that RFID spending on apparel will be $68 million in 2008. The Cambridge, Massachusetts-based company predicts that figure will rise to $988 million in 2013, an impressive 71 percent compound annual growth rate.


According to IDTechEx, some 200 million RFID tags were purchased in 2008 for apparel deployments alone. These staggering numbers are proof that RFID works. Retailers and apparel manufacturers have determined that the ROI (return on investment) from RFID is measurable, and despite the global economic slowdown, they are expanding their RFID plans.


For example, the Karstadt Warenhaus chain of German department stores has successfully deployed an item-level RFID system at its 323,000-square-foot Düsseldorf store. There, 50,000 items--from jeans, to sweaters, to shirts--from six suppliers were tagged, and this is what store management learned from the nine-month test:


  • Recording incoming merchandise used to take one hour; with RFID the process now takes eight minutes, a time savings of 85 percent.
  • Inventory checking used to take one hour and 20 minutes per department; with RFID, stock checking now takes 20 minutes, a time savings of 75 percent.
  • Repricing items used to take four days; with RFID, the process now takes two hours.
  • The store also saw a 75 percent decrease--from 80 seconds down to 20--in the amount of time spent checking stock for a specific type and size of jeans.

More Than "Slap and Ship"

The primary reason that RFID deployments are expanding this year is that pioneering customers in the field discovered that the more they invest in RFID, the better the ROI.


Manufacturers who implement minimal RFID technology only because they need to comply with an Electronic Product Code (EPC) mandate (from Wal-Mart or the Department of Defense, for example) and simply affix an RFID smart label on a carton and/or pallet as it leaves their facility are missing the opportunity to use the technology to save time, improve data accuracy, and save money. In short, you can get more benefits by employing RFID toward the beginning of your supply chain process, as opposed to leaving RFID to the end of the process. The earlier you introduce RFID and the more applications that become RFID-enabled, the greater the benefits.


For example, if you ask your supplier to put RFID smart labels on the cartons of raw materials or finished goods that you purchase, you can take advantage of the incredible time savings RFID offers in receiving. If you put RFID tags on totes and other fixtures that you use in your facility, you can track work in process, orders, and components far more efficiently than you can today. And, if you tag the finished goods that you store in your warehouse, you can dramatically reduce the time it takes to do physical inventory (or cycle counting), and you can automate picking, order fulfillment, and ASN creation to a greater degree.

Doing More with Less

The first step in determining your ROI is to measure your baseline Key Performance Indicators (KPI). How much time does it take now to receive goods? How much time does it currently take to pick, pack, and ship orders? What is the cost of misdirected orders? What is the cost of specialty ingredients that need to be reordered because they have expired and there is no system in place to track the expiration dates? What is the cost of idle machines and workers because of how long it takes to find a mold or a tool in your shop? And how visible are your inventory levels? Are you adding "safety" levels to your inventory that cost money but may not be needed? By looking at every facet of your business--from asset management to labor management to manufacturing to warehouse and supply chain management--you can find areas that can take advantage of the real benefits of the no-line-of-sight-required automatic identification that RFID can bring to your enterprise. No matter what business you are in, time is money, and the time savings of RFID let you do more with less.

The RFID Market Is Now Mature

Another reason that RFID deployments are starting to pick up steam is that the latest crop of readers and tags are delivering increased performance while also reducing installation, integration, and operations costs.


First, RFID readers have gotten smarter. Literally. For example, the Intermec IF61 Enterprise Reader is capable of running complex RFID applications all by itself. The IF61 filters, stores, and manipulates information from tags and sends it to a server in a required format, while monitoring external sensors and controlling audible and visual indicators. If the network is down or electrical power fails, the IF61 has "store and forward" capabilities. How many tags can this reader "store"? A fully loaded IF61 can store over 6 billion RFID tags.


Another new reader, the Motorola XR450, has advanced data collection features, such as filtering, reconciliation, user-defined association, and selective visibility. By setting filters based on rules and then associating the filters with specific read points, the XR450 can be configured through software to ignore all RFID tags except the ones the application is interested in. In addition, the XR450 features both bi- and mono-static antenna ports on one platform to protect RFID investments and decrease deployment complexities. Mono-static ports are ideal for real-time item-level tracking, while the bi-static ports offer the highest possible performance in the most challenging RF environments.


In the direction toward simplicity, new readers from Alien Technologies and ThingMagic make installing an RFID system much less costly and easier to deploy. The Alien 9860 and the ThingMagic Astra both feature integrated antennas and Power Over Ethernet (POE) to eliminate the need to run electricity to the read zone.

RFID Tags Now In Stock

Tags, too, have seen many advances: manufacturing processes have improved reliability, and the cost for passive RFID tags has dropped significantly. Gen 2 (EPCglobal's Class 1 Generation 2) is the first standard that was widely embraced by the entire RFID ecosystem: chip and tag manufacturers, reader and antenna manufacturers, and the businesses that have invested in RFID.


Because of this widely adopted standard, customers can now choose from many suppliers of Gen 2 hardware and supplies. Multiple suppliers of Gen 2 RFID tag inlays are now competing to supply the industry's label converters. This development has helped drop the cost of a 4" x 6" smart label from 45 cents to 15 cents over the past few years.


Also on the supply side, until the Gen 2 standard was ratified, no manufacturer wanted to stock smart labels if there was a chance the Class 0, Class 0+, and Class 1 tags would be rendered obsolete (which they now are; EPCGlobal is no longer developing Class 0 and 1 tags). Because no smart label supplier wanted to stock supplies, every order was a custom order, so no customer could benefit from quantity discounts. This cycle prevented budgeting for RFID because label converters would quote prices based on testing and pilot quantities but couldn't predict what the price would be as customers rolled out RFID systems in production. Now you can order, from stock, 2" x 4", 4" x 4", and 4" x 6" smart labels from a number of manufacturers at competitive prices.


In addition to lowering costs, tag manufacturers are continuing to add new capabilities as well. New Battery Assisted Passive (BAP) tags from companies such as Intelliflex and PowerID feature impressive read distances and improved performance characteristics at a fraction of the cost of active RFID systems. BAP tags give customers the very long range of an active (battery-powered) tag at a cost closer to a passive (non-battery-powered) tag.


The latest advance in RFID is from Mojix, a startup formed by a team of former JPL/NASA scientists. The Mojix STAR system combines advances in digital signal processing technology to deliver 100,000 times the indoor receiver sensitivity, 20 times the read range (600 feet), and 100 times the coverage area (up to 250,000 square feet) of existing passive RFID systems.

Putting the Power of RFID into IBM Power Systems

Putting all these advances in RFID tags and readers to work requires software to integrate the technology with ERP or WMS systems. This "middleware" communicates with RFID readers and collects, processes, consolidates, and reconciles the RFID tag data and then extracts business information. Before the advent of smart RFID readers (such as the Intermec IF61 and the Motorola XR450), this filtering (looking for specific tags) and smoothing (rejecting duplicates and erroneous reads) needed to be done by a standalone server; the sheer volume of tag data would clog a network and bog down a host optimized to run business applications. As the number of readers increased, this job became even more complex. In addition, this middleware server also had to manage and monitor the system to detect and report errors and maintain integrity and stability. Another task once performed by this separate server is reader configuration and maintenance: RFID readers for different locations and applications behave differently, so the configurations needed to be tracked and maintained.


Another component that needed to be in the system was an edge server, a device whose sole purpose is to communicate with devices on the edge of the network such as photo eye sensors (presence detectors) and signal lights.


A number of middleware vendors combine both middleware and edge functions into their offering. Sounds great, right? Well, except one big point: these vendors have developed products that will work with any server, but they don't run on System i. And because these vendors wish to be known in the marketplace as application-neutral, what that really means is that your IT staff (or an army of consultants) has to build the bridges between these boxes and your System i applications.


There's nothing more frustrating than a PC that locks up, especially if that PC has a vital role as an "RFID middleware server" in your supply chain. The dreaded "Blue Screen of Death" could severely limit your ability to get your products to market.


CYBRA Corporation recently conducted a survey of more than 514 System i shops to learn of their plans for RFID. As of May 2008, 25 percent of the customers surveyed are currently using, piloting, or implementing RFID technology.


When asked "On which computing platform is the current RFID System based?" 46 percent responded OS/400, 22 percent said Windows, and 5 percent said Linux or UNIX. But when asked "On which computing platform would you prefer the RFID System based?" OS/400 jumps to 63 percent, and Windows drops to 16 percent. Of customers who run their Warehouse Management Systems (WMS) on OS/400, the numbers are dramatic: only 10 percent of System i WMS customers prefer to run their RFID systems on a Windows, Linux, or UNIX platform.


System i customers overwhelmingly prefer the System i to the PC for RFID for obvious reasons. The things that the System i excels at--generating EPC codes, printing RFID smart labels, generating manifests, defining business rules, and storing configurations--are easier to manage on the System i because that's where your order and product information is. Now, if you can define a filter (show me only pallet tags), and a rule (divert pallets going to store 4501) on the System i, and program the reader directly from the System i, is there any reason to use PC middleware?


Is this the year System i customers start reaping the benefits of RFID? The RFID success at the Beijing Olympics proved there is no project too large for RFID. Pilot projects in retail and apparel are documenting real performance gains, RFID readers are getting more powerful while becoming easier to install, RFID tags are dropping in price yet having more capabilities and greater reliability, and the System i is uniquely qualified to be the perfect platform for RFID.


What are you waiting for?


Sheldon Reich
Sheldon R. Reich is vice president of CYBRA Corporation, the developer of EdgeMagic integrated RFID control software for the IBM System i and MarkMagic bar code labels, RFID tags, and electronic forms software for the IBM System i. A COMMON Conference Silver Medal speaker, he's been helping hundreds of companies implement bar code and RFID systems since 1990. He can be reached at




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    • Important considerations before implementing encryption



  • Security Bulletin: Malware Infection Discovered on IBM i Server!

    SB PowerTech WC GenericMalicious programs can bring entire businesses to their knees—and IBM i shops are not immune. It’s critical to grasp the true impact malware can have on IBM i and the network that connects to it. Attend this webinar to gain a thorough understanding of the relationships between:

    • Viruses, native objects, and the integrated file system (IFS)
    • Power Systems and Windows-based viruses and malware
    • PC-based anti-virus scanning versus native IBM i scanning

    There are a number of ways you can minimize your exposure to viruses. IBM i security expert Sandi Moore explains the facts, including how to ensure you're fully protected and compliant with regulations such as PCI.



  • Fight Cyber Threats with IBM i Encryption

    SB PowerTech WC GenericCyber attacks often target mission-critical servers, and those attack strategies are constantly changing. To stay on top of these threats, your cybersecurity strategies must evolve, too. In this session, IBM i security expert Robin Tatam provides a quick recap of IBM i security basics and guides you through some advanced cybersecurity techniques that can help you take data protection to the next level. Robin will cover:

    • Reducing the risk posed by special authorities
    • Establishing object-level security
    • Overseeing user actions and data access




  • 10 Practical IBM i Security Tips for Surviving Covid-19 and Working From Home

    SB PowerTech WC GenericNow that many organizations have moved to a work from home model, security concerns have risen.

    During this session Carol Woodbury will discuss the issues that the world is currently seeing such as increased malware attacks and then provide practical actions you can take to both monitor and protect your IBM i during this challenging time.


  • How to Transfer IBM i Data to Microsoft Excel

    SB_HelpSystems_WC_Generic3 easy ways to get IBM i data into Excel every time
    There’s an easy, more reliable way to import your IBM i data to Excel? It’s called Sequel. During this webinar, our data access experts demonstrate how you can simplify the process of getting data from multiple sources—including Db2 for i—into Excel. Watch to learn how to:

    • Download your IBM i data to Excel in a single step
    • Deliver data to business users in Excel via email or a scheduled job
    • Access IBM i data directly using the Excel add-in in Sequel

    Make 2020 the year you finally see your data clearly, quickly, and securely. Start by giving business users the ability to access crucial business data from IBM i the way they want it—in Microsoft Excel.



  • HA Alternatives: MIMIX Is Not Your Only Option on IBM i

    SB_HelpSystems_WC_GenericIn this recorded webinar, our experts introduce you to the new HA transition technology available with our Robot HA software. You’ll learn how to:

    • Transition your rules from MIMIX (if you’re happy with them)
    • Simplify your day-to-day activities around high availability
    • Gain back time in your work week
    • Make your CEO happy about reducing IT costs

    Don’t stick with a legacy high availability solution that makes you uncomfortable when transitioning to something better can be simple, safe, and cost-effective.



  • Node Webinar Series Pt. 1: The World of Node.js on IBM i

    SB Profound WC GenericHave you been wondering about Node.js? Our free Node.js Webinar Series takes you from total beginner to creating a fully-functional IBM i Node.js business application.
    Part 1 will teach you what Node.js is, why it's a great option for IBM i shops, and how to take advantage of the ecosystem surrounding Node.
    In addition to background information, our Director of Product Development Scott Klement will demonstrate applications that take advantage of the Node Package Manager (npm).
    Watch Now.

  • The Biggest Mistakes in IBM i Security

    SB Profound WC Generic The Biggest Mistakes in IBM i Security
    Here’s the harsh reality: cybersecurity pros have to get their jobs right every single day, while an attacker only has to succeed once to do incredible damage.
    Whether that’s thousands of exposed records, millions of dollars in fines and legal fees, or diminished share value, it’s easy to judge organizations that fall victim. IBM i enjoys an enviable reputation for security, but no system is impervious to mistakes.
    Join this webinar to learn about the biggest errors made when securing a Power Systems server.
    This knowledge is critical for ensuring integrity of your application data and preventing you from becoming the next Equifax. It’s also essential for complying with all formal regulations, including SOX, PCI, GDPR, and HIPAA
    Watch Now.

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  • Backup and Recovery on IBM i: Your Strategy for the Unexpected

    SB HelpSystems SC 5413Robot automates the routine tasks of iSeries backup and recovery, saving you time and money and making the process safer and more reliable. Automate your backups with the Robot Backup and Recovery Solution. Key features include:
    - Simplified backup procedures
    - Easy data encryption
    - Save media management
    - Guided restoration
    - Seamless product integration
    Make sure your data survives when catastrophe hits. Try the Robot Backup and Recovery Solution FREE for 30 days.

  • Manage IBM i Messages by Exception with Robot

    SB HelpSystems SC 5413Managing messages on your IBM i can be more than a full-time job if you have to do it manually. How can you be sure you won’t miss important system events?
    Automate your message center with the Robot Message Management Solution. Key features include:
    - Automated message management
    - Tailored notifications and automatic escalation
    - System-wide control of your IBM i partitions
    - Two-way system notifications from your mobile device
    - Seamless product integration
    Try the Robot Message Management Solution FREE for 30 days.

  • Easiest Way to Save Money? Stop Printing IBM i Reports

    SB HelpSystems SC 5413Robot automates report bursting, distribution, bundling, and archiving, and offers secure, selective online report viewing.
    Manage your reports with the Robot Report Management Solution. Key features include:

    - Automated report distribution
    - View online without delay
    - Browser interface to make notes
    - Custom retention capabilities
    - Seamless product integration
    Rerun another report? Never again. Try the Robot Report Management Solution FREE for 30 days.

  • Hassle-Free IBM i Operations around the Clock

    SB HelpSystems SC 5413For over 30 years, Robot has been a leader in systems management for IBM i.
    Manage your job schedule with the Robot Job Scheduling Solution. Key features include:
    - Automated batch, interactive, and cross-platform scheduling
    - Event-driven dependency processing
    - Centralized monitoring and reporting
    - Audit log and ready-to-use reports
    - Seamless product integration
    Scale your software, not your staff. Try the Robot Job Scheduling Solution FREE for 30 days.

  • ACO MONITOR Manages your IBM i 24/7 and Notifies You When Your IBM i Needs Assistance!

    SB DDL Systems 5429More than a paging system - ACO MONITOR is a complete systems management solution for your Power Systems running IBM i. ACO MONITOR manages your Power System 24/7, uses advanced technology (like two-way messaging) to notify on-duty support personnel, and responds to complex problems before they reach critical status.

    ACO MONITOR is proven technology and is capable of processing thousands of mission-critical events daily. The software is pre-configured, easy to install, scalable, and greatly improves data center efficiency.