The RFID Revolution

A Radio Frequency Identification (RFID) tag or label can be constantly detected as a product moves through the supply chain from manufacturing to warehouse and into a retail store. © metamorworks – stock.adobe.com

How converters can jump on board the RFID train

By Andy Thomas-Emans, Strategic Director of Tarsus Labels Group

Radio Frequency Identification (RFID) technology has been with us for over two decades, during which time major retail groups and the pharma industry have played with how it might help improve supply chain efficiency and product security. For most label converters, however, RFID has not been on the radar.

This situation changed dramatically when Walmart committed to extend its RFID Mandate to most categories of products it sells. Every converter in the U.S. will now need to understand the mandate, what it means in terms of new equipment and workflows and how RFID labels will tie into Walmart’s wider supply chain.

Firstly, back to basics.

What is RFID?

Labelexpo Americas 2024 focuses on how converters can jump on board the RFID train following the expansion of Walmart’s RFID Mandate to include most categories of retail products. © photo for everything – stock.adobe.com

The unique property of an RFID tag or label is the ability to store information to a chip and to read it back using RFID readers. This means that information stored on an RFID chip can be constantly detected, for example as a product moves through the supply chain from manufacturing to warehouse and into a retail store.

The RFID chip is attached to an antenna which picks up the radio frequency (RF) signal which triggers the exchange of data. This assembly is delivered as an RFID inlay, supplied on a reel, for insertion into a PS label laminate.

Manufacturing an RFID label is basically a standard delam-relam operation to insert the inlay into a laminate. But there are several special conditions: static elimination is essential as electrostatic discharge can kill the chip; and the converter must have the ability to test and validate the RF performance of the label after lamination and die cutting before delivery to the end customer.

Encoding of the RFID chip can take place at different points in the supply chain, including by the label converter.

Most commonly today for mass market applications the chip will be programmed upstream, at, or close, to the point of label application.

RFID tags and labels need to be powered up before they can receive or transmit data. Power either comes from an on-board battery pack, known as an ‘active’ chip, or the chip assembly is powered by the same radio frequency waves which carry data. These are known as ‘passive’ RFID tags and labels.

Label converters are most likely to be dealing with passive RFID labels and tags operating in the UHF (ultra-high frequency) or HF (high frequency) part of the spectrum. The brand name for the passive UHF RFID technology that is widely used in retail and other applications to identify and trace items is called RAIN RFID. The unique benefits of RAIN RFID include the ability to read the tags in high volumes, at high speeds.

The reader hardware which remotely powers the RAIN RFID chips can have a read/write range typically up to 40 feet and does not require direct line-of-sight. The RFID reader units can be installed at a fixed location, for example, over a conveyor belt, across a warehouse aisle or at a gateway. Hand-held reader devices can be used when mobility is needed. Smart phones with NFC chip readers can also interact with passive HF RFID chips across very short distances.

Walmart Mandate

Walmart first trialled RFID tags across its apparel and jewelry ranges in 2020. Each tag contains unique identifiers and essential information about the product, including item description, price and store location.

The apparel trial fully vindicated Walmart’s faith in RFID. The company was able to identify and restock products quickly, reducing the instances of empty shelves while reducing excess inventory.  As a result, Walmart and its suppliers have better visibility into the movement of products facilitating faster response across the supply chain.

In 2022, Walmart announced the extension of its RFID Mandate to wider categories of products including toys, home goods, electronics and sporting goods, which must now be individually outfitted with UHF RFID chips.

It is the responsibility of suppliers to program the chips with accurate and up-to-date data related to each product. Suppliers are also required to use UHF RFID inlays that have Walmart-approved (ARC) certification.

The RFID Mandate means converters and their brand customers must determine how to implement a robust RFID system that will comply with Walmart’s standards.

To comply, suppliers will need to understand a range of factors: what type of RFID inlay is approved for use; where to source RFID tags or labels; what equipment and software is required to encode the tags properly; and how RFID labels will be attached to each individual item.

While bigger brands will have the inhouse knowledge, smaller ‘challenger’ brands may not, which opens a new business opportunity for RFID-savvy converters.

Retail Applications

Encoding of the RFID chip can take place at different points in the supply chain, including by the label converter. © vetkit – stock.adobe.com

Walmart is by no means alone in driving the faster adoption of RFID. Amazon has adopted the same UHF passive RFID tags and label technology to drive its new line of checkout-free stores.

The company’s ‘Just Walk Out’ stores first opened in 2018, and today are present in franchises across North America, the UK, and Australia.

These first generation ‘Just Walk Out’ stores rely on computer vision technology, which requires that ‘softlines’ like clothing stored in bags or boxes where the camera can see them, which is not convenient for consumers who want to try on garments.

Amazon’s second-generation stores will combine vision-based technology with item-level RFID, implemented in partnership with Avery Dennison.

This means customers can grab clothes, hats, shoes, and more and simply walk out of the store through an exit gate — even while wearing their purchases — by tapping their credit or debit card or hovering their palm over an Amazon One palm recognition device.

The first retail rollout is at multiple concessions at NFL Seattle Seahawks Lumen Field stadium, where a doubling of sales has already been reported.

RFID Adoption

Retail applications are only one aspect of the rapidly accelerating RFID revolution. In industrial sectors like automotive manufacturing, RFID is finding an increasing number of uses from tracking car tires to automatically identifying engine parts.

It is also worth noting how sustainability legislation might drive RFID adoption. The European Union’s Digital Product Passport (DPP) regulation, combined with the circular economy directive, will require that every product placed onto the European market has a ‘digital twin,’ giving access to a growing range of sustainability data points.

Two ways the digital twin can be accessed are via a QR code and/or RFID chip. RFID has the added advantage that reusable containers can be tracked on their circular journeys from cleaning stations to refill and packaging to the consumer and round again.

RFID at Labelexpo Americas 2024

Labelexpo Americas 2024 will have a strong focus on how converters can get involved in the RFID revolution, from Sept. 10-12 at the Donald Stephens Convention Center in Chicago. For more information, visit https://www.labelexpo-americas.com.

The morning of Thursday 12th September the Label Academy will present a half-day workshop on RFID in Labels and Package Printing sponsored by Avery Dennison. Topics delivered by industry experts include end user mandates, a comprehensive overview of RFID technology, and the equipment required to convert, test and encode RFID labels and tags.

Participants will also learn how to secure RFID networks, and how Electronic Product Codes (EPC) are implemented in an RFID system to identify individual products. The workshop closes with a converter case study.

About the Author

Andy Thomas-Emans is Strategic Director of the Tarsus Labels Group, which organizes the Labelexpo Global Series of exhibitions. For the highly entrepreneurial label converting industry, RFID at Labelexpo Americas 2024 represents a major opportunity for business expansion. Find show and exhibitor highlights online for the exhibition scheduled Sept. 10-12 at the Donald Stephens Convention Center in Chicago: https://www.labelexpo-americas.com.