Kirsi Viskari Technical paper + 7604 Takeaways from this - - PowerPoint PPT Presentation

Protecting the Brand While Gaining Operational Efficiencies with Item Level Identification

Kirsi Viskari Technical paper + 7604

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Takeaways from this presentation

• What is item-level identification?
• Why should it be used?
• How could it be used?
• What are the obstacles ?

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Contents

• Identification techniques and methods
• Use cases
• Conclusions

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Printed identification

• Human eye or machine readable codes
• Barcodes most common

– Linear vs two-dimensional

• Conventional printing limits variable information usage

– Inkjet and other digital printing enables

• Low-cost method

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Embossing and holograms

• Embossing used for production related batch level

information

• Holograms mainly used for authentication

– Normal holograms easy to copy

• Micro embossing used for hologram-like effects
• Embossing not adding new materials
• Limitations for variable information usage

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Laser marking

• Used in packing lines for production related information
• Enables also usage of variable information
• Not adding new materials
• Difficult to erase
• High investment, but low variable cost

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Radio Frequency Identification RFID

• Efficient identification of several items at a time without

a line of sight

• HF for short distance, UHF for longer distance
• Passive tags in supply chain cases
• Limitations with metal and liquids
• Relatively high variable cost (tags)

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Fingerprint technologies

• Information interpretated from scanning a spot of the

surface

• Laser bean diffraction exhibits a pattern – fingerprint
• Not adding any materials, impossible to copy
• Requires special readers and careful guarding of first

readings

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Logistics use cases; wholesale/transport

• Logistics efficiency crucial for these companies
• Often not part of decision makers when choosing

identification systems, but have to comply

• Increasing demand and decreasing order size speak for

automated solutions like RFID

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Logistics use cases; retailer

• Major retailers are pushing actively for new technologies

like RFID

– Having the power to mandate

• Wal-Mart as the spear head
• Main objective to improve inbound and in-store logistics

and reduce out-of-stock situations

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Logistics use cases; consumer

• Case specific services existing (UPS, FedEx etc)

– Consumer needs to know which system to use

• New technologies available, but use cases missing

– > hen-and-the-egg situation

• Increased functionalities like digital cameras in mobile

devices, but user experience not yet on acceptable level

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Logistics use cases; reverse logistics

• Need to be controlled on item level in pharmaceutical

product recalls

• Would provide benefits for the manufacturer in

– Consumer electronics recalls – Warranty cases like in car industry

• Efficient methods required together with item level

identification

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Anti-counterfeiting use case

• Increasing problem causing

– Financial losses for brand manufacturers – Increased costs for customs and other officials – Health risk for consumers

• Brand protection means often easy to copy – secure

means expensive to implement

• Involving all supply chain parties improves the security

level

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Conclusions

• Implementation of item level identification is slow due to

– Rapidly developing technology – Lack of global standards

• No one technology or method suitable for all cases

– Combining technologies offers flexibility and cost-efficiency – Different technologies for different packaging levels

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Combining packaging levels in tracking

08:57:32 08:32:21 14:02:52 Tracking history 12.01.2007 08:32:21 Packing line 12.01.2007 08:57:32 Warehouse inbound 12.01.2007 14:02:52 Warehouse outbound 13.01.2007 18:32:12 Wholesaler inbound 15.01.2007 06:20:13 Wholesaler outbound 15.01.2007 08:54:28 Retailer inbound

Transparent relations handling allows unique item level time stamps to be created and updated automatically when pallet or container is read and identified in the logistics chain.

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Case: PackAgent Securing Orion Pharma’s Prescription Drug

• Whole supply chain (pharmaceutical brand owner,

converter/printer, distributor/wholesaler, 7 pharmacies)

• Item level RFID and shipping case level RFID and

barcode

• One prescription drug
• Duration from Nov 2005 to April 2006

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Main results of the pilot

• Manufacturer:

– Unit level information management enables accurate and real- time supply chain management – RFID used in warehouse logistics can alone increase efficiency substantially

• Wholesaler:

– Increased effectiveness with decreasing order sizes and increased transactions

• Retailer:

– Change from bar codes to RFID label could be bigger than the change from ordinary price tags to bar codes

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Summary

• Fast developing technologies offer new possibilities
• Item level identification will become more and more

important

– > The role of packaging will increase

• Need for global, accepted standards

– Or need for a strong initiator

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Thank You for Your Attention!