RFID JOURNAL
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What is the Electronic Product Code?
What is the Auto-ID Center?
What is EPCglobal?
What is the difference between EPCglobal and EPCglobal US?
Why is EPC technology important?
Won't it be impossible to get every company in the world to go along with one standard?
Is EPCglobal or the Auto-ID Labs doing anything to bring down the cost of RFID tags?
Has EPCglobal created a 5-cent chip?
How much does an RFID tag cost today?
How much do RFID readers cost today?
Where will the initial benefits of EPC technology be?
How does the EPC system distinguish between one can of Coke and another?
Will my company have to replace our entire bar code infrastructure to take advantage of the Electronic Product Code?
How does the EPC work?
Will there be just one type of EPC?
What is the EPC header for?
How can a company track the item using the license plate, or EPC?
How will a company know what item 1-2345-67890 is?
How does a computer act on information about a product?
How do you avoid having all this data about individual products overload existing networks?
How do companies use the EPC data to become more efficient and more profitable?
How do Savants work?
What do Savants do?
How does the Object Name Service work?
Who will maintain the ONS?
What is the Physical Markup Language and how does it work?
What types of data will be stored in the PML file?
Where will all these PML files be stored?
What can the EPC Network do that existing bar code systems can't?
Why isn't EPCglobal developing RFID applications?
Are EPC standards finalized?
What is the "foundation protocol"?
Who owns the intellectual property created by the Auto-ID Center?
Are there any other RFID standards besides EPC?
What is the Electronic Product Code?
The Electronic Product Code (EPC) was created by the Auto-ID Center as an eventual successor to the bar code. The aim was to create a low-cost method of tracking goods using RFID technology. The benefits of RFID are that it doesn't require line-of-site, which means goods can be scanned through packaging and without needing people to scan items. EPC tags were designed to identify each item manufactured, as opposed to only the manufacturer and class of products, as bar codes do today. Back to Top
What is the Auto-ID Center?
The Auto-ID Center was set up in 1999 as a not-for-profit consortium to develop a system for using the Internet to identify goods anywhere in the world, using something called the Electronic Product Code, or EPC. It was originally supported by the Uniform Code Council, EAN International, Procter & Gamble and Gillette and was based at the Massachusetts Institute of Technology in Cambridge, Mass. Over time, it received funding form large companies who wanted to use RFID to track goods and who believed an open standard is critical. Other labs were established in England, Switzerland, Japan, and China. In October 2003, the center closed it's doors and was transitioned into two separate organizations. EPCglobal (see below) took over the commercialization of EPC technologies and Auto-ID Labs continued the research and development role of the Auto-ID Center. Back to Top
What is EPCglobal?
EPCglobal is a non-profit joint venture set up by the Uniform Code Council, which licensed the EPC technologies developed by the Auto-ID Center, and EAN International. EPCglobal is an umbrella organization that oversees local chapters that will work with companies to encourage the adoption of EPC technologies. EPCglobal will issue EPCs to companies that subscribe to its service. Back to Top
What is the difference between EPCglobal and EPCglobal US?
EPCglobal is an umbrella organization that oversees local EPCglobal chapters (see above). EPCglobal US is the chapter that will issue EPCs in the United States. It is a subsidiary of the Uniform Code Council. Other chapters of EPCglobal have been set up around the world. Back to Top
Why is EPC technology important?
Because it could because it could dramatically improve efficiencies within the supply chain. The vision is to create near-perfect supply chain visibility -- the ability to track every item anywhere in the supply chain securely and in real time. RFID can dramatically reduce human error. Instead of typing information into a database or scanning the wrong bar code, goods will communicate directly with inventory systems. Readers installed in factories, distribution centers, and storerooms and on store shelves will automatically record the movement of goods from the production line to the consumer. Back to Top
Won't it be impossible to get every company in the world to go along with one standard?
There is no guarantee that the EPC system will catch on. But Wal-Mart, P&G, Coca-Cola and some of the biggest companies on earth are putting a lot of time and effort into making it a reality. And some of the brightest minds at MIT, Cambridge and the other Auto-ID Labs are working to solve some of the engineering problems and bring the cost of chips and readers down to a level where RFID can be used to track bars of soap as well as big-screen TVs. And just as the world uses one network to share information -- the Internet -- it may be possible to use that same network to share information stored initially on an RFID tag. Back to Top
Is EPCglobal doing anything to bring down the cost of RFID tags?
The Auto-ID Center, the precursor to EPCglobal, worked with its technology sponsors to develop tags and readers that could be manufactured at low cost in high volumes. The main ways of achieving this were simplifying the tag –Back to Top
Has the EPCglobal created a 5-cent chip?
No. EPCglobal will not manufacture anything. Its goal is to promote adoption of EPC technology. EPCglobal hopes that as more companies adopt the technology, the price of the hardware will fall. Back to Top
How much do RFID tags cost today?
Most companies that sell RFID tags do not quote prices because they are based on volume, the amount of memory on the tag, and the packaging of the tag (is it encased in plastic or embedded in a label?). Generally speaking, a 96-bit EPC tag costs from 20 to 40 U.S. cents. If the tag is embedded in a thermal transfer label, which companies can print a bar code on, the price rises to 40 to 50 cents. Back to Top
How much do RFID readers cost today?
Most readers cost from $1,000 to $3,000 depending on the features in the device. Companies may also have to buy each antenna separately. Antennas are about US$250 and up. The price of readers is expected to fall as companies purchase them in large voumes. Back to Top
Where will the initial benefits of EPC technologies be?
Cutting supply chain costs will be the big driver of this technology. Once companies start putting RF tags on products, all kinds of other opportunities open up. Visit RFID Journal's Case Studies section to see how companies are beginning to tap this technology's potential in manufacturing and other areas. Back to Top
How does the EPC system distinguish between one can of Coke and another?
Like a bar code, the Electronic Product Code is divided into numbers that identify the manufacturer, product, version and serial number. But the EPC uses an extra set of digits to identify unique items. The EPC is the only information stored on the RFID tag's microchip. This keeps the cost of the tag down and provides flexibility, since an infinite amount of dynamic data can be associated with the serial number in a database. Back to Top
Will my company have to replace our entire bar code infrastructure to take advantage of the Electronic Product Code?
EPCglobal is promoting the Electronic Product Code as the next standard for identifying products. It is trying to create a migration path for companies to move from established standards for bar codes to the new EPC. To encourage this evolution, it has adopted the basic structures of the Global Trade Item Number (GTIN), an umbrella group under which virtually all existing bar codes fall. It is envisioned that companies will maintain their bar code systems and add new EPC infrastructure. Back to Top
How does the EPC work?
The EPC is a string of numbers and letters. There is a header and three sets of data partitions. The first partition identifies the manufacturer. The second identifies the product and the third is the serial number unique to the item. By separating the data into partitions, readers can search for items with a particular manufacturer's code, or a particular product code. Readers can also be programmed to search for EPCs with the same manufacturer and product code, but which have unique numbers in a certain sequence. This makes it possible, for example, to quickly find products that might be nearing their expiration date or that need to be recalled. Back to Top
Will there be just one type of EPC?
No. The Auto-ID Center originally proposed EPCs of 64-, 96- and 128-bits. Eventually, there could be more. The 96-bit number is the one the center believed would be most common. It chose 96 bits as a compromise between the desire to ensure that all objects have a unique EPC and the need to keep the cost of the tag down. The 96-bit EPC provides unique identifiers for 268 million companies. Each manufacturer can have 16 million object classes and 68 billion serial numbers in each class, more than enough to cover all products manufactured worldwide for years to come. Since there is no need for that many serial numbers at this time, the center has proposed an interim 64-bit code. The smaller code will help keep the price of the RFID chips down initially (the simpler the chip, the cheaper the tag), while providing more than enough unique EPCs for current needs. The center foresees using a 128-bit code to cover all the items made around the world. Back to Top
What’s the EPC header for?
The EPC header is used to indicate the format of the EPC code, (ie. the length of field partitions), and was designed to make the system flexible. For instance, the header tells the reader whether the tag has a 64-bit or a 96-bit EPC. The header also makes it possible to divide the data partitions in different ways, so a manufacturer that makes large amounts of only a few products could shift digits from the object class partition to the serial number partition. Back to Top
How can a company track the item using the license plate, or EPC?
The answer is to create a network of RFID readers (sometimes called interrogators). In a warehouse for example, there could be readers around the doors on a loading dock and on every bay. When a pallet of goods arrives, the reader on the dock door picks up its unique license plate. Computers look up what the product is using the EPC Network. Inventory systems are alerted to its arrival. When the pallet is put in bay A, that reader sends a signal saying item 1-2345-67890 is in bay A. Back to Top
How will you know what item 1-2345-67890 is?
The EPC by itself tells you no more about a product than a car’s license plate tells you about a car. Computers need a way to associate the EPC with information stored elsewhere about the unique item. To help computer systems find and understand information about a product, the Auto-ID Center has developed some new technologies and standards. The first key element is called the Object Name Service. ONS points a computer to an address on the Internet where information about a product is stored. The concept is based on the Domain Name Service, which points computers to the address of particular Web sites on the World Wide Web. ONS tells a company’s computer systems: "Everything you need to know about product1-2345-67890 is stored in a file on a computer located at the following Internet address . . . " Back to Top
How does a computer act on information about a product?
The whole point of automatic identification, of course, is to take people out of the loop, to enable computers to gather information and act on it. For that to happen, computers must be able to not just identify a product, but interpret some basic information about it. To make this possible, the Auto-ID Center created a new computer language called the Physical Markup Language. PML is based on the widely accepted eXtensible Markup Language (XML), which is used to describe common types of data (addresses, dates, invoice numbers and so on) and transactions (purchases, requests for quotes and so on) in a way computers running different proprietary applications can understand. PML files will be stored in the EPC Information Service (once called PML servers). EPC Information Service will reside on computers distributed across the Internet. (The Object Name Service, described above, points computers to data about products stored in the EPC Information Service.) Some information about each product will be stored in a PML file, such as a product’s name and broad category (soft drink, auto part, clothing and so on), when it was made and where, its expiration date, its current location, even its current temperature, if that’s important. PML files will provide information to existing enterprise applications or new yet-to-be developed applications. The PML file could contain instructions for where a pallet should be shipped. It could contain instructions for a point-of-sale display to lower the price of an item when its expiration date approaches. Or it could contain instructions for how long your microwave needs to cook a particular brand of frozen pizza. Back to Top
How do you avoid having all this data about individual products overload existing networks?
The Auto-ID Center created software technology called Savants to manage and move information in a way that doesn’t overload existing corporate and public networks. Savants use a distributed architecture, meaning the software runs on different computers distributed through an organization, rather than from one central computer. Savants are organized in a hierarchy and act as the nervous system of the new EPC network, managing the flow of information. At the edge of the network, Savants gather data from readers. They pass on only relevant information to existing business applications, such as which products are about to expire. A Savant running at a distribution center might determine when product needs to be reordered from manufacturers, and so on. The name "Savant" is being phased out by EPCglobal. Back to Top
How do companies use the EPC data to become more efficient and more profitable?
How companies use EPC data and the EPC Network will be up to them, just as it’s up to them to decide how they want to use the Internet. But the EPCglobal is working with industry partners to provide some basic tools that will help them take advantage of the network. VeriSign, for instance, has been awarded a contract to manage the root directory for the Object Name Service. VeriSign and others will host EPC Information Services for companies. And some of the functionality of Savants is being incorporated into commercial RFID middleware. These tools will enable companies to track and trace goods, which should help reduce counterfeiting, and enable many other improvements in supply chain efficiency. For instance, retailers may provide EPC data about stock levels in stores to enable automated replenishment of products. Back to Top
How do Savants work?
The Auto-ID Center designed Savants to act as the nervous system of the network. Savants are different from most enterprise software in that it isn't one overarching application. Instead, it uses a distributed architecture and is organized in a hierarchy that manages the flow of data. There will be Savants running in stores, distribution centers, regional offices, factories, perhaps even on trucks and in cargo planes. Savants at each level will gather, store and act on information and interact with other Savants. Back to Top
What do Savants do?
The Savants will perform several key tasks. They are:
Data smoothing: Savants at the edge of the network - those attached to readers - will smooth data. Not every tag is read every time, and sometimes a tag is read incorrectly. By using algorithms Savant is able to correct these errors.
Reader coordination: If the signals from two readers overlap, they may read the same tag, producing duplicate EPCs. One of the Savant's jobs is to analyze reads and delete duplicate codes.
Data forwarding: At each level, the Savant has to decide what information needs to be forwarded up or down the chain. For instance, a Savant in a cold storage facility might forward only changes in the temperature of stored items.
Data storage: Existing databases can't handle more than a few hundred transactions a second, so another job of the Savants is to maintain a real-time in-memory event database (RIED). In essence, the system will take the EPC data that is generated in real time and store it intelligently, so that other enterprise applications have access to the information, but databases aren't overloaded.
Task management: All Savants, regardless of their level in the hierarchy, feature a Task Management System (TMS), which enables them to perform data management and data monitoring using customizable tasks. For example, a Savant running in a store might be programmed to alert the stockroom manager when product on the shelves drops below a certain level. Back to Top
How does the Object Name Service work?
The Object Name Service (ONS) is an automated networking service similar to the Domain Name Service (DNS) that points computers to sites on the World Wide Web. When an interrogator reads an RFID tag, the Electronic Product Code is passed to a Savant (see above). The Savant can, in turn, go to an ONS on a local network or the Internet to find where information on the product is stored. ONS points Savant to a server where a file about that product is stored. That file can then be retrieved by the Savant, and the information about the product in the file can be forwarded to a company's inventory or supply chain applications. Back to Top
Who will maintain the ONS?
EPCglobal has awarded VeriSign a contract to maintain the root ONS directory. But the Object Name Service will handle many more requests than the Web’s Domain Name Service. Therefore, companies will likely maintain ONS servers locally, which will store information for quick retrieval. So a computer manufacturer may store ONS data from its current suppliers on its own network, rather than pulling the information off the Web site every time a shipment arrives at the assembly plant. The system will also have built-in redundancies. For example, if a server with information on a certain product crashes, ONS will be able to point the Savant to another server where the same information is stored. Back to Top
What is the Physical Markup Language and how does it work?
The Electronic Product Code identifies individual products, but all the useful information about the product would be written in a new, standard computer language called the Physical Markup Language (PML). PML is based on the widely accepted eXtensible Markup Language (XML). Because it's meant to be a universal standard for describing all physical objects, processes and environments, PML will be broad and will cover all industries. It will provide a common method for describing physical objects and will be broadly hierarchical. So, for instance, a can of Coke might be described as a carbonated beverage, which would fall under the subcategory soft drink, which would fall under the broader category food. Not all classifications are so simple, so to ensure that PML has broad acceptance, EPCglobal is relying on work already done by standards bodies, such as the International Bureau of Weights and Measures (Le Système International d'Unités - SI) and the National Institute of Standards and Technology in the United States. Back to Top
What types of data will be stored in the PML file?
In addition to product information that doesn't change (such as material composition), PML will include data that changes constantly (dynamic data) and data that changes over time (temporal data). Dynamic data in a PML file might include the temperature of a shipment of fruit, or vibration levels from a machine. Temporal data changes discretely and intermittently throughout an object's life. One example is an object's location. By making all of this information available in a PML file, companies will be able to use information in new and innovative ways. A company could, for instance, set triggers so the price of a product falls as its expiration date approaches. Third party logistics providers could offer service-level contracts indicating that goods will be stored at a certain temperature as they are transported. Back to Top
Where will all these PLM files be stored?
PML files will be stored in online databases that will be part of something called the EPC Information Service (formerly called a PML server). The EPC Information Service is a distributed system of managing EPC data across many computers connected to the Internet. One element of the service is to manage who has access to different types of company data. So a company might provide full access to some business partners, access to shipping information to its logistics providers and inventory data only to its retail partners. Companies may maintain their own EPC Information Service computers or outsource this to companies such as VeriSign. Back to Top
What can the EPC network do that existing bar code systems can't do?
Bar codes are a line-of-sight technology. That is, a scanner has to "see" the bar code to read it. That means people usually have to orient the bar code towards a scanner for it to be read. Also, if a bar code label is ripped, soiled or falls off, there is no way to scan the item. Radio frequency identification, by contrast, doesn’t require line of sight. RFID tags can be read as long as they are within range of a reader. And since radio waves pass through plastic, tags can be protected from damage. Because RFID tags can communicate with readers without line of sight in most cases, RFID also has the potential to reduce out of stocks. Studies show that, on average, products are not on the store shelves 7 percent of the time. Every time a customer leaves a store without buying what they came for because it wasn’t on the shelf, the retailer and the manufacturer lose out. RFID has the potential to dramatically reduce out of stocks by providing real-time visibility into what’s on the store shelves. It also has the potential to dramatically reduce theft by alerting store employees to unusual activity at the shelves. It may also reduce employee theft, counterfeiting, administrative errors, and mass recalls. And there are some unique benefits associated with the ability to track individual items. Down the road, RFID tags have the potential to be combined with sensors to monitor the status of the product. Sensors might, for instance, detect that a shipment of milk was left in a warm environment for a period of time. Computer systems could then bring forward the milk’s expiration date to account for the lack of refrigeration. Sensors might also reveal whether food products have been spoiled or tampered with. Once a company has installed the infrastructure to take advantage of tracking products over the EPC network, other capabilities can be added cost effectively. Back to Top
Why isn't EPCglobal developing applications?
EPCglobal is an independent, non-profit organization. Its aim is not to build and market hardware or software. It is creating a network that is akin to the Internet – an open, universal platform companies can use to do business. It is up to companies to leverage the network in whatever ways they see fit, just as they leverage the Internet today. EPCglobal is, however, working with end user companies to develop standardized ways of sharing data and conducting routine transactions, such as shipping and receiving. These standardized processes will remove some of the inefficiencies from the supply chain. Back to Top
Are EPC standards finalized?
The Auto-ID Center developed Class 1 and Class 0 specifications for EPC tags and handed these off to EPCglobal in September 2003. In June 2004, these two specifications completed EPCglobal's standardization process and became the first EPC standards. EPCglobal is now working on something called the "foundation protocol," a second generation EPC standard. That standard is expected to be approved in October 2004. Other standards for EPC Network technologies, such as the Physical Markup Language, are still under development. Back to Top
What is the "foundation protocol"?
The foundation protocol is a name being used to describe the second generation EPC "air interface" protocol (the air interface is the way tags and readers communicate). It is sometimes referred to UHF Gen 2. EPCglobal calls it the Foundation Protocol because it is designed a way that higher-class tags will also talk to readers. These higher-class tags will have more memory, encryption capabilities, the ability to use a battery to broadcast a signal to a reader and the ability to communicate information from temperature and other sensors. The Foundation Protocol is expected to be approved by the end of 2004. Back to Top
Who owns the intellectual property created by the Auto-ID Center?
The Auto-ID Center is a unique partnership between industry and academia. Strictly speaking, the intellectual property belongs to the universities where the research is being conducted. However, the intellectual property will be freely available to any company that wants to use it. The Uniform Code Council has an exclusive license to commercialize the core EPC technologies. Back to Top
Are there any other RFID standards besides EPC?
Yes. The International Organization for Standardization (ISO) has developed a number of RFID standards. Some deal with specific applications, such as tracking cattle or payment systems. Others deal with the "air interface" protocol -- the way RFID tags and readers communicate. ISO 18000-3 covers the use of 13.56 MHz tags in the supply chain. ISO 18000-6 covers UHF systems. EPCglobal wants the EPC air interface protocol to become an ISO standard. It will either submit its final standard for approval or ISO 18000-6 proposals will be modified to bring them into line with EPC standards. Either way, it is likely that EPC will become an ISO standard. Back to Top
If you have a question about EPC technology, submit it to editor@rfidjournal.com.
Electronic Product Code FAQs
This page has answers to questions related to EPC technologies. If you have general questions about RFID, click here.
If there are terms below that you are unfamiliar with, please refer to our Glossary.
What is the Electronic Product Code?
What is the Auto-ID Center?
What is EPCglobal?
What is the difference between EPCglobal and EPCglobal US?
Why is EPC technology important?
Won't it be impossible to get every company in the world to go along with one standard?
Is EPCglobal or the Auto-ID Labs doing anything to bring down the cost of RFID tags?
Has EPCglobal created a 5-cent chip?
How much does an RFID tag cost today?
How much do RFID readers cost today?
Where will the initial benefits of EPC technology be?
How does the EPC system distinguish between one can of Coke and another?
Will my company have to replace our entire bar code infrastructure to take advantage of the Electronic Product Code?
How does the EPC work?
Will there be just one type of EPC?
What is the EPC header for?
How can a company track the item using the license plate, or EPC?
How will a company know what item 1-2345-67890 is?
How does a computer act on information about a product?
How do you avoid having all this data about individual products overload existing networks?
How do companies use the EPC data to become more efficient and more profitable?
How do Savants work?
What do Savants do?
How does the Object Name Service work?
Who will maintain the ONS?
What is the Physical Markup Language and how does it work?
What types of data will be stored in the PML file?
Where will all these PML files be stored?
What can the EPC Network do that existing bar code systems can't?
Why isn't EPCglobal developing RFID applications?
Are EPC standards finalized?
What is the "foundation protocol"?
Who owns the intellectual property created by the Auto-ID Center?
Are there any other RFID standards besides EPC?
What is the Electronic Product Code?
The Electronic Product Code (EPC) was created by the Auto-ID Center as an eventual successor to the bar code. The aim was to create a low-cost method of tracking goods using RFID technology. The benefits of RFID are that it doesn't require line-of-site, which means goods can be scanned through packaging and without needing people to scan items. EPC tags were designed to identify each item manufactured, as opposed to only the manufacturer and class of products, as bar codes do today. Back to Top
What is the Auto-ID Center?
The Auto-ID Center was set up in 1999 as a not-for-profit consortium to develop a system for using the Internet to identify goods anywhere in the world, using something called the Electronic Product Code, or EPC. It was originally supported by the Uniform Code Council, EAN International, Procter & Gamble and Gillette and was based at the Massachusetts Institute of Technology in Cambridge, Mass. Over time, it received funding form large companies who wanted to use RFID to track goods and who believed an open standard is critical. Other labs were established in England, Switzerland, Japan, and China. In October 2003, the center closed it's doors and was transitioned into two separate organizations. EPCglobal (see below) took over the commercialization of EPC technologies and Auto-ID Labs continued the research and development role of the Auto-ID Center. Back to Top
What is EPCglobal?
EPCglobal is a non-profit joint venture set up by the Uniform Code Council, which licensed the EPC technologies developed by the Auto-ID Center, and EAN International. EPCglobal is an umbrella organization that oversees local chapters that will work with companies to encourage the adoption of EPC technologies. EPCglobal will issue EPCs to companies that subscribe to its service. Back to Top
What is the difference between EPCglobal and EPCglobal US?
EPCglobal is an umbrella organization that oversees local EPCglobal chapters (see above). EPCglobal US is the chapter that will issue EPCs in the United States. It is a subsidiary of the Uniform Code Council. Other chapters of EPCglobal have been set up around the world. Back to Top
Why is EPC technology important?
Because it could because it could dramatically improve efficiencies within the supply chain. The vision is to create near-perfect supply chain visibility -- the ability to track every item anywhere in the supply chain securely and in real time. RFID can dramatically reduce human error. Instead of typing information into a database or scanning the wrong bar code, goods will communicate directly with inventory systems. Readers installed in factories, distribution centers, and storerooms and on store shelves will automatically record the movement of goods from the production line to the consumer. Back to Top
Won't it be impossible to get every company in the world to go along with one standard?
There is no guarantee that the EPC system will catch on. But Wal-Mart, P&G, Coca-Cola and some of the biggest companies on earth are putting a lot of time and effort into making it a reality. And some of the brightest minds at MIT, Cambridge and the other Auto-ID Labs are working to solve some of the engineering problems and bring the cost of chips and readers down to a level where RFID can be used to track bars of soap as well as big-screen TVs. And just as the world uses one network to share information -- the Internet -- it may be possible to use that same network to share information stored initially on an RFID tag. Back to Top
Is EPCglobal doing anything to bring down the cost of RFID tags?
The Auto-ID Center, the precursor to EPCglobal, worked with its technology sponsors to develop tags and readers that could be manufactured at low cost in high volumes. The main ways of achieving this were simplifying the tag –Back to Top
Has the EPCglobal created a 5-cent chip?
No. EPCglobal will not manufacture anything. Its goal is to promote adoption of EPC technology. EPCglobal hopes that as more companies adopt the technology, the price of the hardware will fall. Back to Top
How much do RFID tags cost today?
Most companies that sell RFID tags do not quote prices because they are based on volume, the amount of memory on the tag, and the packaging of the tag (is it encased in plastic or embedded in a label?). Generally speaking, a 96-bit EPC tag costs from 20 to 40 U.S. cents. If the tag is embedded in a thermal transfer label, which companies can print a bar code on, the price rises to 40 to 50 cents. Back to Top
How much do RFID readers cost today?
Most readers cost from $1,000 to $3,000 depending on the features in the device. Companies may also have to buy each antenna separately. Antennas are about US$250 and up. The price of readers is expected to fall as companies purchase them in large voumes. Back to Top
Where will the initial benefits of EPC technologies be?
Cutting supply chain costs will be the big driver of this technology. Once companies start putting RF tags on products, all kinds of other opportunities open up. Visit RFID Journal's Case Studies section to see how companies are beginning to tap this technology's potential in manufacturing and other areas. Back to Top
How does the EPC system distinguish between one can of Coke and another?
Like a bar code, the Electronic Product Code is divided into numbers that identify the manufacturer, product, version and serial number. But the EPC uses an extra set of digits to identify unique items. The EPC is the only information stored on the RFID tag's microchip. This keeps the cost of the tag down and provides flexibility, since an infinite amount of dynamic data can be associated with the serial number in a database. Back to Top
Will my company have to replace our entire bar code infrastructure to take advantage of the Electronic Product Code?
EPCglobal is promoting the Electronic Product Code as the next standard for identifying products. It is trying to create a migration path for companies to move from established standards for bar codes to the new EPC. To encourage this evolution, it has adopted the basic structures of the Global Trade Item Number (GTIN), an umbrella group under which virtually all existing bar codes fall. It is envisioned that companies will maintain their bar code systems and add new EPC infrastructure. Back to Top
How does the EPC work?
The EPC is a string of numbers and letters. There is a header and three sets of data partitions. The first partition identifies the manufacturer. The second identifies the product and the third is the serial number unique to the item. By separating the data into partitions, readers can search for items with a particular manufacturer's code, or a particular product code. Readers can also be programmed to search for EPCs with the same manufacturer and product code, but which have unique numbers in a certain sequence. This makes it possible, for example, to quickly find products that might be nearing their expiration date or that need to be recalled. Back to Top
Will there be just one type of EPC?
No. The Auto-ID Center originally proposed EPCs of 64-, 96- and 128-bits. Eventually, there could be more. The 96-bit number is the one the center believed would be most common. It chose 96 bits as a compromise between the desire to ensure that all objects have a unique EPC and the need to keep the cost of the tag down. The 96-bit EPC provides unique identifiers for 268 million companies. Each manufacturer can have 16 million object classes and 68 billion serial numbers in each class, more than enough to cover all products manufactured worldwide for years to come. Since there is no need for that many serial numbers at this time, the center has proposed an interim 64-bit code. The smaller code will help keep the price of the RFID chips down initially (the simpler the chip, the cheaper the tag), while providing more than enough unique EPCs for current needs. The center foresees using a 128-bit code to cover all the items made around the world. Back to Top
What’s the EPC header for?
The EPC header is used to indicate the format of the EPC code, (ie. the length of field partitions), and was designed to make the system flexible. For instance, the header tells the reader whether the tag has a 64-bit or a 96-bit EPC. The header also makes it possible to divide the data partitions in different ways, so a manufacturer that makes large amounts of only a few products could shift digits from the object class partition to the serial number partition. Back to Top
How can a company track the item using the license plate, or EPC?
The answer is to create a network of RFID readers (sometimes called interrogators). In a warehouse for example, there could be readers around the doors on a loading dock and on every bay. When a pallet of goods arrives, the reader on the dock door picks up its unique license plate. Computers look up what the product is using the EPC Network. Inventory systems are alerted to its arrival. When the pallet is put in bay A, that reader sends a signal saying item 1-2345-67890 is in bay A. Back to Top
How will you know what item 1-2345-67890 is?
The EPC by itself tells you no more about a product than a car’s license plate tells you about a car. Computers need a way to associate the EPC with information stored elsewhere about the unique item. To help computer systems find and understand information about a product, the Auto-ID Center has developed some new technologies and standards. The first key element is called the Object Name Service. ONS points a computer to an address on the Internet where information about a product is stored. The concept is based on the Domain Name Service, which points computers to the address of particular Web sites on the World Wide Web. ONS tells a company’s computer systems: "Everything you need to know about product1-2345-67890 is stored in a file on a computer located at the following Internet address . . . " Back to Top
How does a computer act on information about a product?
The whole point of automatic identification, of course, is to take people out of the loop, to enable computers to gather information and act on it. For that to happen, computers must be able to not just identify a product, but interpret some basic information about it. To make this possible, the Auto-ID Center created a new computer language called the Physical Markup Language. PML is based on the widely accepted eXtensible Markup Language (XML), which is used to describe common types of data (addresses, dates, invoice numbers and so on) and transactions (purchases, requests for quotes and so on) in a way computers running different proprietary applications can understand. PML files will be stored in the EPC Information Service (once called PML servers). EPC Information Service will reside on computers distributed across the Internet. (The Object Name Service, described above, points computers to data about products stored in the EPC Information Service.) Some information about each product will be stored in a PML file, such as a product’s name and broad category (soft drink, auto part, clothing and so on), when it was made and where, its expiration date, its current location, even its current temperature, if that’s important. PML files will provide information to existing enterprise applications or new yet-to-be developed applications. The PML file could contain instructions for where a pallet should be shipped. It could contain instructions for a point-of-sale display to lower the price of an item when its expiration date approaches. Or it could contain instructions for how long your microwave needs to cook a particular brand of frozen pizza. Back to Top
How do you avoid having all this data about individual products overload existing networks?
The Auto-ID Center created software technology called Savants to manage and move information in a way that doesn’t overload existing corporate and public networks. Savants use a distributed architecture, meaning the software runs on different computers distributed through an organization, rather than from one central computer. Savants are organized in a hierarchy and act as the nervous system of the new EPC network, managing the flow of information. At the edge of the network, Savants gather data from readers. They pass on only relevant information to existing business applications, such as which products are about to expire. A Savant running at a distribution center might determine when product needs to be reordered from manufacturers, and so on. The name "Savant" is being phased out by EPCglobal. Back to Top
How do companies use the EPC data to become more efficient and more profitable?
How companies use EPC data and the EPC Network will be up to them, just as it’s up to them to decide how they want to use the Internet. But the EPCglobal is working with industry partners to provide some basic tools that will help them take advantage of the network. VeriSign, for instance, has been awarded a contract to manage the root directory for the Object Name Service. VeriSign and others will host EPC Information Services for companies. And some of the functionality of Savants is being incorporated into commercial RFID middleware. These tools will enable companies to track and trace goods, which should help reduce counterfeiting, and enable many other improvements in supply chain efficiency. For instance, retailers may provide EPC data about stock levels in stores to enable automated replenishment of products. Back to Top
How do Savants work?
The Auto-ID Center designed Savants to act as the nervous system of the network. Savants are different from most enterprise software in that it isn't one overarching application. Instead, it uses a distributed architecture and is organized in a hierarchy that manages the flow of data. There will be Savants running in stores, distribution centers, regional offices, factories, perhaps even on trucks and in cargo planes. Savants at each level will gather, store and act on information and interact with other Savants. Back to Top
What do Savants do?
The Savants will perform several key tasks. They are:
Data smoothing: Savants at the edge of the network - those attached to readers - will smooth data. Not every tag is read every time, and sometimes a tag is read incorrectly. By using algorithms Savant is able to correct these errors.
Reader coordination: If the signals from two readers overlap, they may read the same tag, producing duplicate EPCs. One of the Savant's jobs is to analyze reads and delete duplicate codes.
Data forwarding: At each level, the Savant has to decide what information needs to be forwarded up or down the chain. For instance, a Savant in a cold storage facility might forward only changes in the temperature of stored items.
Data storage: Existing databases can't handle more than a few hundred transactions a second, so another job of the Savants is to maintain a real-time in-memory event database (RIED). In essence, the system will take the EPC data that is generated in real time and store it intelligently, so that other enterprise applications have access to the information, but databases aren't overloaded.
Task management: All Savants, regardless of their level in the hierarchy, feature a Task Management System (TMS), which enables them to perform data management and data monitoring using customizable tasks. For example, a Savant running in a store might be programmed to alert the stockroom manager when product on the shelves drops below a certain level. Back to Top
How does the Object Name Service work?
The Object Name Service (ONS) is an automated networking service similar to the Domain Name Service (DNS) that points computers to sites on the World Wide Web. When an interrogator reads an RFID tag, the Electronic Product Code is passed to a Savant (see above). The Savant can, in turn, go to an ONS on a local network or the Internet to find where information on the product is stored. ONS points Savant to a server where a file about that product is stored. That file can then be retrieved by the Savant, and the information about the product in the file can be forwarded to a company's inventory or supply chain applications. Back to Top
Who will maintain the ONS?
EPCglobal has awarded VeriSign a contract to maintain the root ONS directory. But the Object Name Service will handle many more requests than the Web’s Domain Name Service. Therefore, companies will likely maintain ONS servers locally, which will store information for quick retrieval. So a computer manufacturer may store ONS data from its current suppliers on its own network, rather than pulling the information off the Web site every time a shipment arrives at the assembly plant. The system will also have built-in redundancies. For example, if a server with information on a certain product crashes, ONS will be able to point the Savant to another server where the same information is stored. Back to Top
What is the Physical Markup Language and how does it work?
The Electronic Product Code identifies individual products, but all the useful information about the product would be written in a new, standard computer language called the Physical Markup Language (PML). PML is based on the widely accepted eXtensible Markup Language (XML). Because it's meant to be a universal standard for describing all physical objects, processes and environments, PML will be broad and will cover all industries. It will provide a common method for describing physical objects and will be broadly hierarchical. So, for instance, a can of Coke might be described as a carbonated beverage, which would fall under the subcategory soft drink, which would fall under the broader category food. Not all classifications are so simple, so to ensure that PML has broad acceptance, EPCglobal is relying on work already done by standards bodies, such as the International Bureau of Weights and Measures (Le Système International d'Unités - SI) and the National Institute of Standards and Technology in the United States. Back to Top
What types of data will be stored in the PML file?
In addition to product information that doesn't change (such as material composition), PML will include data that changes constantly (dynamic data) and data that changes over time (temporal data). Dynamic data in a PML file might include the temperature of a shipment of fruit, or vibration levels from a machine. Temporal data changes discretely and intermittently throughout an object's life. One example is an object's location. By making all of this information available in a PML file, companies will be able to use information in new and innovative ways. A company could, for instance, set triggers so the price of a product falls as its expiration date approaches. Third party logistics providers could offer service-level contracts indicating that goods will be stored at a certain temperature as they are transported. Back to Top
Where will all these PLM files be stored?
PML files will be stored in online databases that will be part of something called the EPC Information Service (formerly called a PML server). The EPC Information Service is a distributed system of managing EPC data across many computers connected to the Internet. One element of the service is to manage who has access to different types of company data. So a company might provide full access to some business partners, access to shipping information to its logistics providers and inventory data only to its retail partners. Companies may maintain their own EPC Information Service computers or outsource this to companies such as VeriSign. Back to Top
What can the EPC network do that existing bar code systems can't do?
Bar codes are a line-of-sight technology. That is, a scanner has to "see" the bar code to read it. That means people usually have to orient the bar code towards a scanner for it to be read. Also, if a bar code label is ripped, soiled or falls off, there is no way to scan the item. Radio frequency identification, by contrast, doesn’t require line of sight. RFID tags can be read as long as they are within range of a reader. And since radio waves pass through plastic, tags can be protected from damage. Because RFID tags can communicate with readers without line of sight in most cases, RFID also has the potential to reduce out of stocks. Studies show that, on average, products are not on the store shelves 7 percent of the time. Every time a customer leaves a store without buying what they came for because it wasn’t on the shelf, the retailer and the manufacturer lose out. RFID has the potential to dramatically reduce out of stocks by providing real-time visibility into what’s on the store shelves. It also has the potential to dramatically reduce theft by alerting store employees to unusual activity at the shelves. It may also reduce employee theft, counterfeiting, administrative errors, and mass recalls. And there are some unique benefits associated with the ability to track individual items. Down the road, RFID tags have the potential to be combined with sensors to monitor the status of the product. Sensors might, for instance, detect that a shipment of milk was left in a warm environment for a period of time. Computer systems could then bring forward the milk’s expiration date to account for the lack of refrigeration. Sensors might also reveal whether food products have been spoiled or tampered with. Once a company has installed the infrastructure to take advantage of tracking products over the EPC network, other capabilities can be added cost effectively. Back to Top
Why isn't EPCglobal developing applications?
EPCglobal is an independent, non-profit organization. Its aim is not to build and market hardware or software. It is creating a network that is akin to the Internet – an open, universal platform companies can use to do business. It is up to companies to leverage the network in whatever ways they see fit, just as they leverage the Internet today. EPCglobal is, however, working with end user companies to develop standardized ways of sharing data and conducting routine transactions, such as shipping and receiving. These standardized processes will remove some of the inefficiencies from the supply chain. Back to Top
Are EPC standards finalized?
The Auto-ID Center developed Class 1 and Class 0 specifications for EPC tags and handed these off to EPCglobal in September 2003. In June 2004, these two specifications completed EPCglobal's standardization process and became the first EPC standards. EPCglobal is now working on something called the "foundation protocol," a second generation EPC standard. That standard is expected to be approved in October 2004. Other standards for EPC Network technologies, such as the Physical Markup Language, are still under development. Back to Top
What is the "foundation protocol"?
The foundation protocol is a name being used to describe the second generation EPC "air interface" protocol (the air interface is the way tags and readers communicate). It is sometimes referred to UHF Gen 2. EPCglobal calls it the Foundation Protocol because it is designed a way that higher-class tags will also talk to readers. These higher-class tags will have more memory, encryption capabilities, the ability to use a battery to broadcast a signal to a reader and the ability to communicate information from temperature and other sensors. The Foundation Protocol is expected to be approved by the end of 2004. Back to Top
Who owns the intellectual property created by the Auto-ID Center?
The Auto-ID Center is a unique partnership between industry and academia. Strictly speaking, the intellectual property belongs to the universities where the research is being conducted. However, the intellectual property will be freely available to any company that wants to use it. The Uniform Code Council has an exclusive license to commercialize the core EPC technologies. Back to Top
Are there any other RFID standards besides EPC?
Yes. The International Organization for Standardization (ISO) has developed a number of RFID standards. Some deal with specific applications, such as tracking cattle or payment systems. Others deal with the "air interface" protocol -- the way RFID tags and readers communicate. ISO 18000-3 covers the use of 13.56 MHz tags in the supply chain. ISO 18000-6 covers UHF systems. EPCglobal wants the EPC air interface protocol to become an ISO standard. It will either submit its final standard for approval or ISO 18000-6 proposals will be modified to bring them into line with EPC standards. Either way, it is likely that EPC will become an ISO standard. Back to Top
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