RFID: Loewen Snowboarding

1. RFID: Loewen Snowboarding Presented by: Craig Galyon (ceo) Katie Moore (CFO) Julian Behrendt (CoO)

2. Loewen Snowboarding • Snowboard equipment dealer • Located in Bend, OR • Offers products such as: • Snowboards, Boots, Bindings, Helmets, Jackets, Gloves, Socks, etc. • Also offer Snowboarding paraphanalia such as key chains and stickers.

3. Problem Statement Business is growing and opening a new, larger, location in Bend. Increased size means increased inventory management and theft concerns. Major concerns include: Can we use an RFID system to manage our current inventory?    Will this be something we can use on all items (i.e. stickers, key chains)?    How much will it cost to implement and maintain such a system?   How can the RFID system help us to track theft and maintain a level of security?

4. Outline Concept Map What is RFID? How does RFID work? How can RFID be used? Problems with RFID Costs Our Recommendations Questions

5. Concept Map Loewen Snowboarding Is RFID right for us? Functionality for all products Inventory Management? Costs Security What technologies fit all criteria? Our recommendation

6. What is RFID? • Radio Frequency Identification Technology: • It contains two main parts: • Tag (contains the chip) • Reader or interrogator (reading device) • Both of them have antennas • Can handle – 40° F to 500° F

7. Whatis RFID ? Size depends on how much data or coverage the tag should have Smallest ones are the size of a dust particle Some can handle – 40° F to 500° F

8. RFID Video

9. History First RFID chip, that is comparable to current ones was invented in 1973 First patent on RFID by Charles Walton (USA) in 1983. Developing very fast the next generation of the Bar- Code

10. Howdoes RFID work? 1. A processor controls the reader 5. Antenna of the reader receives it and a computer system processes and stores the data 2. The reader sends radio frequency waves 3. The tag uses the waves to power the circuits 4. Tag modulates waves and “sends” it back to the reader

11. Possible Uses Toll Identification of people (discotheque/bar/club) Clothing Warehousing and supply chain purposes Passports Security

12. Different Types of RFID Low frequencies (30 -500 KHz): not that long coverage, not very good for huge amount of data High frequencies (3 – 30 MHz): middle coverage, normally used for smart tags (labels) Very high frequencies (850 – 950): good coverage; high speed reading; Passive: no battery (short coverage) Active: battery (longer coverage), often used for high value goods (cars on trains) Can store from 1 bit to a couple of Kbyte

13. Why Doesn‘t Everyone Use RFID? Most effective, ifyouuse RFID in house: + No compatibility problems + Can reuse the old tags + perfectforsupplychainpurposes Use out of house - different vendor companies and compatibility problems - no re-use of the tags possible (not worth while for low price goods)

14. Concerns It is possible to put them in every kind of goods, and track where you are There are many different technologies, compatibility problems No statewide or nationwide laws about using RFID

15. How Much Does an RFID Tag Cost? Based on volume, the amount of memory on the tag and the packaging of the tag Generally a 96-bit EPC inlay costs from 7-15 cents and up. Low and high frequency tags cost a little more

16. How much does an RFID reader cost? Most cost between $500 and $2,000 depending on features. May also need to buy cables and antennas.

17. Additional costs • Depends… • Application • Size of installation • Type of system • Middleware • A systems integrator • Upgrades • Electrical power wiring costs • Connection to a corporate network

18. One Choice • Subscribe to RFID Journal and do a “Request for Quote Wizard” • Put in information • Searches over 500 vendors (without commission) • Can send a Request for information or proposal to them

19. EPC RFID Tags The Electronic Product Code (EPC) is a set of identification coding or numbering standards. EPC can identify a product by its unique ID number The lowest cost EPC RFID tags, which are standard chosen by Wal-Mart and Target, are available today at a price of 5 cents each. http://www.epcglobalinc.org/home

20. Our Recommendations • Contact your suppliers to determine what steps they are taking to implement RFID, if any… • Same suppliers for all equipment? • Snowboards already have RFID chips built in? • Packages have RFID tags rather than barcodes?

21. Our Recommendation Has a leadership role in RFID 30 years in Automated Identification Data Collection First EPC-compliant hand-held RFID readers

22. Recommendations (inventory) Can we use an RFID system to manage our current inventory?  Yes – EPC RFID tags will work perfectly for this application Can be used to quickly audit all products within the store with a hand-held reader MC9090-G RFID Handheld Mobile Computer

23. Recommendations (all items?) Will this be something we can use on all items (i.e. stickers, key chains)?  • No – It is possible, but not economical • Tags cost 7-15 cents each • Use RFID tags for large/expensive items • Snowboards • Jackets • For shipping purposes you may consider tagging packages of stickers, or entire boxes of small merchandise

24. Recommendations (costs) How much will it cost to implement and maintain such a system?   • Depends… • $4,995/reader * 4 readers = $19,980 • $0.10/tag * 100,000 tags = $10,000 • Accessories = $2,000 • Total Cost: $31,980

25. Recommendations (security) How can the RFID system help us to track theft and maintain a level of security? RFID tags can be used in conjunction with RFID readers located at your store entrances to signal when a product is leaving the store. This requires more sophisticated RFID tags and readers which cost more money. Not recommended for a smaller/local company

26. Conclusion RFID can help your company manage and maintain inventory RFID may have high fixed costs up front, but with large orders can be relatively inexpensive Contact suppliers for information on RFID, and use Motorola for future needs

27. Questions Any?