Odette has just released its Best Practice
Recommendation for the use of RFID (Radio Frequency Identification)
in Supply Chain Packaging Management. RFID is playing an ever
more important role in the automotive sector and, for some
processes, radio-based identification is already superior to
other identification methods, such as bar-coding, in terms
of process efficiency and quality criteria. RFID technology
has been applied for many years in the industry, primarily
in closed loop systems, which serve exclusively for the development
of internal company processes. The full potential of RFID in
the management of containers and packages or, to be more exact,
Returnable Transport Items (RTIs) is only realised when the
different elements of the supply chain use the same standards
and technologies and information is processed at every stage
in an open loop system.
The Odette Recommendation describes an RFID
supported process for the optimisation of the management
of RTIs in the automotive supply chain.
For this purpose, the necessary data structures, including the identification
logic used, as well as requirements for the underlying RFID technology are described. Another
objective of the recommendation is to define uniform interfaces for the exchange
of information between different RTI management logistics systems used
by partners integrated in the process. |
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The RFID specific functionality
and the
requirements for sharing data have also been considered.
The recommendation concentrates specifically
on the automated identification of all forms of RTIs used in
the automotive
industry. Many aspects may, however, be easily transferable
to other objects, such as components and even vehicles themselves.
Stakeholders
The following companies have contributed to the
content of the Odette recommendation – Ford Europe,
BMW Group, Daimler, Michelin, Renault, PSA Peugeot Citroën,
AB Volvo, Volkswagen Group, Continental Automotive, Geodis,
Olle Hydbom. |
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| In addition, a number of technical
experts from North America, Japan and Europe have made
valuable contributions to the work. |
Types of packaging covered by the recommendation
There is no absolute definition of which
types of packages or containers could be marked and identified
following this
recommendation. In general all kinds of returnable packaging
used in logistics and manufacturing flows are of interest.
They could be small, medium or large containers, made from
any material (metal, plastic, wood …).
Benefits from applying RFID to these kinds
of containers or packages include:
- Reduced risk of non-availability
which, in the worst case, could stop production
- More efficient use of the packaging
stock
- Better control of packaging maintenance
- Improved traceability
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- Quicker and more accurate reading
of the packaging (RTI) ID
- Reduction in the cost of premium
freight and/or emergency packaging
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Technical specification
Some of the major assumptions of the recommendation include:
- Use of passive ISO-18000-6C type tags
in the frequency range of UHF 860 – 960 MHz
- Tag Memory of at least 240 bits for
the UII memory as part of a 272 bit sized MB012
- RTI ID stored and password locked
in the UII
The main structure of the information
in the UII memory is made up as follows:
Data Identifier (DI) + Issuing Agency
Code (IAC) + Company Identification
Number (CIN)
+ Object (RTI)
Type + Object Sequence
Number
Examples of tag coding schemes are given
for guidance in the recommendation for
the following
IACs:
ISO/IEC Compliance
The Odette project team has been in close contact with the
ISO/IEC standards committees. This has ensured that the new
recommendation is fully compliant with all the relevant ISO/IEC
standards including:
- ISO/IEC 15459-1 Unique identifiers
for transport units
- ISO/IEC 15961 Data protocol: application interface
- ISO/IEC 15962 Data protocol: data encoding rules and logical
memory functions
- ISO/IEC 18000-6 Part C: Parameters for air
interface communications at 860 MHz to 960 MHz
This means
that any implementation of RFID in the automotive
industry, based on this recommendation, will be totally open
and can therefore easily be integrated with all the other
forms of ISO/IEC compliant use of RFID. RFID in relation to labelling and EDI
The Odette RFID recommendation is totally compatible with other
related recommendations such as those for EDI messaging for
logistics and other processes, as well as labelling recommendations
such as the Global Transport Label. This means that it is
possible to combine the use of bar-coding with the use of
RFID so that the appropriate technology can be employed wherever
it best fits.
Global perspective
Odette International is a member of the Joint Automotive Industry Forum (JAIF)
- a global network of automotive organisations working on communications and
logistics process standardisation. Other JAIF members include the US Automotive
Industry Action Group (AIAG) and the Japanese Automotive Manufacturers Association
(JAMA) and Japanese Automotive Parts Industry Association (JAPIA). |
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It is important to mention that there is already
an agreement between the JAIF organisations concerning
the basic aspects of use of RFID. AIAG is soon to publish their
updated parts marking recommendation, B-11, which is fully
in line with the tag memory data allocation specification
of the Odette recommendation, and a JAIF recommendation
on
RFID for RTIs, which fully complements the Odette recommendation,
will shortly be available.
It is expected that a JAIF recommendation
on parts marking will follow in 2010.
The JAIF is proud of the fact that it has developed a
solution for putting data into the tag memory using a
global standards
methodology, making the automotive industry the first to
achieve media independence from an IT perspective. Implementation
Several OEMs in Europe have started, or are planning to start
pilots, having identified returnable packaging as a priority
area for the use of RFID.
Volkswagen Group is one such OEM:
RFID at Volkswagen
Volkswagen has worked on a major
pilot project that uses RFID technology to optimise
their packaging logistics operations. The aim
of the project – known as Logistics Process
Acceleration through RFID (LeoPARD) – is
to establish a fully integrated paper-free in-house
production and logistics chain.
Under the LeoPARD project, 3000
special shipping containers have been equipped
with passive RFID tags, allowing Volkswagen to
track goods from the time they leave the supplier
through their shipping, unloading, material handling
and storage in VW facilities. The system has
also recorded deliveries to the assembly line
and the return of empty containers. For this
purpose the forklift trucks were also equipped
with RFID technology. Through this pilot, Volkswagen
expects to determine the technical feasibility,
efficiency, and cost-effectiveness of RFID. The
software and processes being used in the pilot
follow the Odette recommendation on RFID in Supply
Chain Container Management.
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The ultimate potential for the use of RFID at
VW includes the following areas:
• returnable transport items
• material flow management
• parts tracking
• CKD packaging
• truck tracking
• vehicle distribution
The particular benefits for VW centre around cost
reduction and include:
• reduction of packaging inventory,
• reduction of manual scanning,
• prevention of the need to fix new paper labels
• reduction of material stocks
• reduction of manual handling. |
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“RFID is here to stay” said Markus Sprafke who heads Volkswagen
Group’s RFID office. "What makes this Odette recommendation significant
for VW and the rest of the automotive industry is that they can move to real
paper free processes and open up supply chain management with positive contributions
to the bottom line".
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Other RFID
recommendations from Odette
Odette International will soon publish two other recommendations related to the
use of RFID:
o RFID in the Vehicle Distribution Processes
o RFID for Tracking of Parts & Components in the Automotive Industry
Access Odette RFID recommendations
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