RFID and AS2

RFID: Improving Supply Chain Visibility

RFID is a technology using electronic identification tags attached to objects and a wireless RFID receiver or gun to capture and collect data contained in the tag.

RFID has been around for years in applications like electronic tollway passes, identification chips for pets and in Mobil’s Speedpass gas card. It has been used to effectively track cattle on ranches, as well as to track equipment in the military. As the costs for the chips comes down, this opens up the technology to new applications and industries including retail and Consumer Packaged Goods (CPG).

With distinct advantages over bar codes including the ability to hold more data, the ability to dynamically change the data as processing occurs, and the ability to work effectively in a wide range of environments, RFID is well suited to tracking goods through the supply-chain. The benefits of increased visibility can lead to increased inventory and distribution efficiencies, which reduce out-of-stock situations and thereby promote revenue.

A Complete RFID Solution

A complete RFID solution involves several components. In addition to the tags, hardware is required for scanning and software for recording and managing the information in a database. Once the data is collected it must be communicated securely to the appropriate parties. It is at this step that Cleo LexiCom fits into the picture. AS2 is expected to be the protocol of choice for communication of RFID data.

Any type of data captured with RFID, can be communicated with AS2. For example, a pallet is scanned using RFID. The reader tells the host computer (via RFID software) that 72 units were received at 10:00 am. The host computer then sends that data securely via AS2 to the transportation provider to instantly relay confirmed receipt of the shipment. Since exchanges take place securely using encryption and Digital Certificates, both parties can be sure the information has not been altered and that the companies exchanging data are who they claim to be. The use of Message Disposition Notifications (MDNs) allows the sender to verify receipt with the specified party. This combination of a digital certificate and MDN provides a high-level of security known as non-repudiation.

The Future of RFID

Several major retailers have announced plans for RFID adoption, including Wal-Mart who has stated that it require its top 100 suppliers to use RFID tags on cases and pallets by January of 2005. Home Depot, Carrefour, Target, Gillette, P&G, UniLever, Kimberly Clark, J&J, AHOLD, Lowes are all planning adoptions of RFID. By 2006 as many as 50,000 suppliers are expected to implement RFID solutions.

By getting on board with AS2 now, whether for data synchronization or EDI communication, suppliers will have systems in place to exchange RFID data using real-time, secure AS2 communication. Our products are proven in use by thousands of companies worldwide.