As Published In July/August 2004

RFID: True Supply Chain Transparency
By Caroline Kvitka

Oracle Sensor-Based Services turn information into intelligence.

Imagine being able to locate an item at any point in the supply chain, from raw materials to end purchase. The potential is huge: no more inventory counts, no lost shipments, no more guessing how much inventory is on the shelves. Radio frequency identification (RFID) could make it all possible.

RFID uses radio waves to automatically identify individual items. The most common use of RFID is storing a serial number on a microchip attached to an antenna to create an RFID tag.

Think of RFID tags as bar codes that operate at a distance. Unlike bar codes, RFID tags don't need line-of-sight identification, which removes the need for human intervention. Each RFID tag, which can be affixed to a pallet or an individual item, has a unique identifier. RFID tags can be read as long as they are within range of a reader, a device as small as a coin that contains an antenna and converts the radio waves into a form that can be passed to a computer.

Increasingly, RFID tags are being combined with sensors that respond to physical stimulus and produce electronic signals. For example, by combining RFID with a temperature sensor on a pallet of wine, you'll be alerted when your shipment reaches a certain temperature—so you can take action when your shipment is sitting on a hot loading dock going bad. With the addition of advanced tracking technologies such as Global Positioning System (GPS), RFID tags can also provide location information.

Oracle's RFID Support

One of the side effects of sensor-based technologies is data—and lots of it. Oracle is leveraging its expertise in data management to develop solutions for RFID and sensor-based computing.

"Turning the massive potential of sensor-based technologies such as RFID into a sustainable competitive advantage depends on how effectively RFID data can be turned into valuable operational intelligence used to continuously refine business processes," says Allyson Fryhoff, vice president, Oracle Sensor-Based Services/RFID Program Office. Fryhoff says that in order for this to occur, companies will need an information architecture that supports evolving standards and emerging technologies as well as the increased demands on their server and data management infrastructure.

Next Steps LEARN more about Oracle's RFID solutions VISIT Oracle's RFID partners

With Oracle Sensor-Based Services, companies can capture, manage, analyze, access, and respond to data from RFID tags and other sensors. The offering, based on Oracle Database 10g, Oracle Application Server 10g, Oracle Enterprise Manager 10g, and Oracle E-Business Suite, allows companies to integrate sensor-based information into their enterprise systems, automate business processes, and reduce risk.

Oracle Compliance Assistance Package is designed to help firms comply with recent mandates from the Department of Defense, Target, Wal-Mart, and others requiring top suppliers to incorporate RFID tags into all pallet shipments by as early as January 2005. The RFID Pilot Kit, for companies exploring RFID and sensors, includes drivers for leading RFID readers, reporting capabilities, and advanced business intelligence tools.

The next version of Oracle Warehouse Management will include RFID capabilities such as improved inventory control. Oracle Application Server 10g will support out-of-the-box integration and device management for RFID readers in version 9.0.5.

Oracle customers and partners are already testing RFID technologies. DHL, for example, is working with Oracle in pilot projects worldwide to see how RFID can increase productivity and efficiency, lower costs, and provide better customer service. "Early results indicate that incorporating RFID capabilities into our operations could be very helpful in extending supply chain visibility to our customers and partners," says Trevor Pierce, global RFID program director at DHL.

Oracle is also partnering with technology companies, systems integrators, and consultants such as BearingPoint, Cap Gemini Ernst & Young, and Tata Consultancy Services to provide a comprehensive RFID solution.