New uses for RFID in the supply chain

Three roll-outs in Europe illustrate the evolution of RFID in logistics.

By Bob Trebilcock, Editor at Large -- Modern Materials Handling, 7/5/2007

RFID is finding its niche in the supply chain, but not necessarily in areas like pallets, cases and individual items as originally anticipated. 

In the June issue of Modern, you read how shippers like Horizon Lines are using RFID to track trailers over the open road between the port and retail distribution centers. 

Meanwhile, three recent implementations in Europe illustrate the evolution of RFID in the supply chain. “What these deals say is that RFID isn’t just about item-level visibility,” says Andris Berzins, managing director of EMEA for AeroScout, a provider of WiFi-based real-time locating systems.  

Shipper DHL is working with a major pharmaceutical manufacturer to track temperature-controlled products during shipment. In this application, the manufacturer is liable for ensuring that vaccines remain within a specific temperature range from the factory to the end customer. 

Today, the pharmaceutical manufacturer installs a data logger on a pallet before its loaded onto a truck. At the distribution center, the pallet is placed in quarantine while the data logger is sent to a lab for analyzing, a process that can take up to three days. 

“There’s complexity and cost in administering the solution,” says Berzins. “In addition, inventory is tied up for three days and if something does happen in route, they can’t do anything about it.” 

Soon the pallets will be tagged with an RFID tag and temperature sensor. The tag sends an update to a GPS unit equipped with a GPRS modem on the outside of the truck. If the temperature goes out of range while in transit, an alert is sent to the driver who can take action to make sure the heating or cooling unit is working properly. If nothing goes wrong, the shipment can be released immediately.