Monitoring the flow of goods in real time: who is (should be) interested and why

1. Monitoring Intermodal Flows at thePort of Trieste: an UHF RFID ApplicationGiovanni Grieco, CAEN RFIDPaolo Paganelli, Insiel5th PROMIT Workshop on Intermodal Transport Across BordersBologna, 20-21 November 2007

2. Monitoring the flow of goods in real time:who is (should be) interested and why Industry • Supply chain visibility • Product tracking • Customer service Logistic Operators • Resources optimization • Exceptions management • Customer service Goodson the move Infrastructures • Traffic planning • Accidents and congestionprevention • Users service Authorities • Security and public safety • Customs control • Simplified procedures

3. Main obstacles to technical feasibility appear as removed (or close to) • Technologies for identification (RFID), positioning (GNSS) and ubiquitous wireless connectivity. • Service Oriented Architectures and interoperability platforms, supporting data interchange and collaboration processes between actors in the supply chain. • Standards such as GS1 EPC Global, providing the necessary reference and support for RFID-based goods identification, as well as a reference architecture (the EPC Global Network) for tracking and managing information on RFID-tagged items on a global scale.

4. Monitoring goods on the move: still a patchwork exercise Area not covered by current solutions ERP,SCM Item Package Detail level Track & Trace Shipment Fleet mgmt,Traffic control Transport Warehouse Route Territory Extension

5. Single-stakeholder perspective • Industry: • Focus on a specific supply-chain nodes (company plants, warehouses). • Limited visibility on transport and logistic operations. • Very limited contribution of information from SMEs. • Logistic service providers: • Focus on an individual route. • Lack of integrated information across operators for multimodal door-to-door transport. • Lack of item details. • Infrastructures and authorities: • Focus on a specific area or infrastructure, for traffic management and security purposes. • Transit monitoring and certification seen as “yet another e-Government platform” (why not sharing fine-grained data with industry and logistic service providers?)

6. The main obstacles are not technical • Data protection concerns • Shared platforms have failed in the past for lack of data committed by the commercial parties involved (e.g., web based centralized reservation systems). • Unclear cost and benefit allocation • RFID and wireless technology investments are easy to evaluate locally, much less in distributed contexts • Standard adoption is not an attractive investment “per se” • RFID tagging responsibility tends to be up to no-one (typically transferred upwards in the supply chain).  Result: Localized systems that work, Shared platforms that fail to achieve critical mass.

7. An example of multi-stakeholder approach:The SEC project in Friuli Venezia Giulia Tracking of trailers at a Regional level: • RFID tagging of trailers for automatic identification through EPC global information standards. • Sharing of vehicle IDs, driver and cargo information through integration with relevant players in the transport chain (shippers, terminals, motorways, ..). • Monitoring of relevant events (transit, load, unload, ..) through RFID readers positioned at gates and in the terminal areas. • Real-time integration with shippers and carriers systems to synchronize vehicle movements with terminal and ship operations. • Sharing of vehicle, cargo and driver information with customs and public authorities for security control. Benefits: • Real-time monitoring of flows and terminal operations. • Security management. • Speed-up of administrative, security and healthcare controls. • (potential) tracking support for end users.

8. Carriers Port Authority,Customs (SVAD), GDF Terminal operators Regional server Operation of the SEC regional platform Security control data Data on carrier, shipper, container, goods Real-time data (transit, entrance, exit, load, unload) Port entrance Motorway gates (Lisert) Embark or park instructions Port terminals(Samer ROROl) Land Terminal (Fernetti) Railways Pre-booking, priority reservation Movements in real time Availability for pre-booking

9. The RFID application in SEC • An RFID tag will be applied on the trailers and road-tractors that need to be tracked. The tag includes a microchip holding various data, including a code (ID) that univocally identifies the trailer, tractor or container. The Tag or Transponder • RFID tags can be passive, active or semi-active. Passive tags are the less expensive and easy to install. Since they have no battery, they do not need to be replaced over time.

10. What is RFID? • RFID means: Radio Frequency IDentification • RFID is an Analog to Digital Converter technology that uses Radio-Frequency waves to transfer data between a reader and a movable item to identify, categorize, track... • RFID is fast, reliable, and does not require physical sight or contact between reader/scanner and the tagged item

11. A little bit of history • RFID technology was used for the first time from RAF during the Second World War with IFF (Identification Friend or Foe) purposes • Late 60’s – Personnel identification in nuclear areas • 1977 – Los Alamos laboratories disclose the technology to the public • 80’s – First passive Tags and commercial applications • 2000 – First Standards and interests from the big corporations

12. Components of an RFID system • The TAG or TRANSPONDERlocated on the object to be identified • The READER or INTERROGATOR which can read/write the transponder • The physical environment • The IT infrastructure • An RFID system includes at least four components: Server/ Enterprise Resource Planner Edgeware Environment IT Infrastructure

13. What is a Reader? • A reader is a device that is used to communicate with a RFID Tag • The reader has two basic components: • A scanning antenna • A transceiver with a decoder to interpret the data • Can implement anti-collision algorithms

14. What is a Tag? • A Tag is a transponder which receives a radio signal and in response to it sends out another radio signal • Tag contains an antenna and a chip that can store data • Active • Tag transmits radio signal • Internally powered memory, radio & circuitry • High Read Range (up to 100 meters) • Passive • Tag reflects radio signal from reader • Reader powered • Medium Read Range (up to 10 meters) • Semi Passive • Power Source used to keep alive some circuitry • RF circuit is not powered by this source Active Tag Metal-Mount Tag Temperature Logger

15. Why so much interest in RFID? • After September 11th the Security/Access control sector of the RFID has been growing in an exponential way • UHF solves distance issues previously unsolved with LF/HF RFID • Wal-Mart, DoD, Metro have been pushing their top 100 suppliers to adopt RFID at the pallet/case level • The RFID market belongs to the fastest growing sector in radio technology industry • Analysts believe that RFID will be the 3rd IT Revolution after the Personal Computer and the Mobile Phones

16. What are the most important benefits of RFID? • Cost Reduction • Flow Process Efficiency • Shipping Accuracy • Improved inventory management • Freight Traceability (Government Regulations) • Quality Assurance • Data Sharing between players Quantitative Qualitative

17. Shifting the focus from the “platform” to the cargo itself:The EURIDICE project European Inter-Disciplinary Research on Intelligent Cargo for Efficient, Safe and Environment-friendly Logistics • Large scale integrated project (IP) approved in the 1st call of the 7th EU Framework Program FP, “ICT for Transport” area. • 22 partners from 9 countries, coordinated by Insiel. • EURIDICE aims at providing information services centered on the individual cargo item and on its current interaction with the surrounding environment and the user. • The project is planned for start on January 2008, has a duration of three years and a budget of 14 millions euro.

18. The EURIDICE consortium

19. EURIDICE objectives • Supporting the interaction of individual cargo items with the surrounding environment and users on the field, through “on the fly” combination of services from multiple stakeholders (shippers, carriers, infrastructures). • Improving logistic performances through the application of intelligent cargo concepts and technologies in the working practices of operators and industrial users. • Developing collaborative business models for an intelligent cargo infrastructure to be established, sustained and fed with appropriate information. • Realizing more secure and environment friendly transport chains through the adoption of intelligent cargo to support modal shift and door-to-door intermodal services.

20. The “intelligent cargo” concept