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Ahead of the Curve

7/1/2006
Texas Instruments Educational & Productivity Solutions (TI E&PS), the provider of graphing, scientific and financial calculators, took a different approach to RFID compliance tagging from most other companies. It bypassed all first generation RFID protocols and did all of its testing and development with Gen 2. The decision led TI E&PS to work with many beta versions of tags and equipment. Just finding companies that could provide technology to meet project timelines was a major challenge.

"We were on the bleeding edge of Gen 2, which ironically proved to be a challenge for us," says Chris Parker, IT infrastructure and client services manager, TI E&PS. "We found that the number of companies who actually could support us by providing working Gen 2 technology did not match up to their claims." But despite shifting specifications and product delays, TI E&PS beat the odds to become the first Wal-Mart supplier to provide EPCglobal Gen 2-standard tags on shipments in January 2006.

Slim Pickings

Because TI E&PS is the smallest business unit of Texas Instruments family, its pockets don't go as deep when compared to Wal-Mart's major suppliers. The choice to bypass Class 0 and Class 0+ protocols and head straight for Gen 2 was due in part to avoid spending time and money on Gen 2 upgrades later.

"Our goals were to be compliant, beat the deadline and send a positive message to Wal-Mart about the kind of partner we are," says Tom Shields, supply chain service and RFID manager, TI E&PS. "That put us in situations where what we were dealing with was new to everyone. The key was to do it right the first time."

Doing it right the first time meant that TI E&PS had to do their homework, which proved difficult when the subject matter -- Gen 2 -- was only an emerging concept for most companies at the time. Even so, Shields and his team conducted two full years of research around RFID once Wal-Mart announced its RFID plans in 2003. The team also worked with ODIN Technologies, which focuses on the physics of RFID infrastructure testing, solution design and deployment, to design the parameters of TI E&PS' RFID business process.

From there, TI E&PS relied on its existing technology partners -- namely Zebra Technologies, Intermec, NCR and brethren Texas Instruments RFid Systems (an unrelated business unit within Texas Instruments) -- to create a roadmap for its Gen 2 RFID roll out.

Uncharted Waters

During testing phases, TI E&PS found itself traveling through uncharted waters. For example, when TI E&PS ships products in less-than-pallet quantities, the pallet is shrink-wrapped in a process that exceeds 350 deg. F. The team was concerned whether or not Gen 2 tags on cases would perform after heat exposure.

At times the TI team also created its own systems for reading tags for testing. "We knew we were quite far out in front with Gen 2, and it turned out we were in front of the reader development too," says Shields.

Fortunately, TI E&PS did find the partners it needed. Support and products from Zebra and TI RFiD helped TI E&PS achieve its goal of being the first Wal-Mart supplier to tag products with Gen 2 labels.

Solving the Puzzle

Zebra provided working R110Xi printer/encoders that could encode prototype Gen 2 chips. TI E&PS used the R110Xi printer/encoders to evaluate Gen 2 inlay samples (the RFID tag-antenna combination that is packaged within a tag or label) that it received from multiple providers. TI E&PS also took advantage of the ZebraNet Bridge Enterprise management to install new firmware, change configurations and make sure settings were consistent for all our printer/encoders. After comprehensive testing, TI E&PS selected inlays from brethren TI RFiD. Representatives from TI E&PS and TI RFiD worked together to develop testing procedures for inlays.

In fact, the team integrated a temperature sensor with the RFID tags and ran them through the shrink-wrap machine and learned that the internal pallet temperature only reached about 150 deg. F. More importantly, they learned that the TI inlays used in the test could withstand the environment.
With its RFID technology foundation set, the TI E&PS team focused on preparing its business processes to support compliance tagging. The company's Oracle ERP system and Warehouse Management System from Yantra automatically flag orders that require RFID smart labels by checking the ship-to address for the order. If the order is destined for one of the RFID-enabled Wal-Mart distribution centers, it prints the command for the RFID labels to an R110Xi smart label printing/encoding station. Workers then manually apply labels to cases and pallets.

"The fact that we're not fully automated made the implementation easier," says Shields. "If we were running high-speed automated print-and-apply operation, it would have been more difficult to integrate smart labeling."

TI E&PS checks tagged shipments for readability with handheld readers, and does not pass each pallet through a verification portal as Gen 2-compliant portal readers weren't available when the installation was completed.

Big Picture

TI E&PS was so far out in front shipping Gen 2-tagged cases and pallets to Wal-Mart that the retail giant was still putting the finishing touches on its Gen 2 infrastructure systems when the first TI shipments arrived.

"TI is ahead of the curve with Gen 2 adoption," says Wal-Mart RFID Strategy Manager Simon Langford. "We commend them on being the first to begin Gen 2 tagging of cases and pallets in support of Wal-Mart's RFID expansion plans in 2006."

TI E&PS is currently applying Gen 2 smart labels to 12 SKUs that it provides Wal-Mart. It is also using the RFID data Wal-Mart provides through Retail Link EPC Gen 2 Web portal. "We can see when the shipment was received at the distribution center and when it was received at stores," explains Shields. "The final place Wal-Mart reads RFID is at their box crushers, so you can know when the individual case was consumed. We end up with an accurate history of how our products travel through Wal-Mart's distribution system." The company has integrated data from Retail Link into its own demand planning software, to provide a near real-time view of consumption.
"We envision this will help us maintain fully stocked shelves during the back-to-school season, which is a very busy and extremely important time for us," says Shields.
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