A significant update to the RFID Tag Data Standard (TDS) is set to transform supply chain visibility, combat organized retail crime, and enhance traceability across multiple industries. The new standard, TDS 2.3 from GS1, introduces a web-resolvable domain name to RFID tags.
The updated RFID Tag Data Standard, TDS 2.3 introduces new Electronic Product Code (EPC) encoding schemes to accommodate domain name information along with an identifier in the RFID tag, enabling seamless decoding to a web resolvable url that specifies a globally unique items such as a specific logistics unit or product. This is enables EPC/RFID tags to support current value chain applications, as well as smart device connectivity.
The new standard allows logistics units, such as a pallet of goods, to have a unique, web-accessible address, enabling them to “phone home” to a source website or web service, according to Jonathan Gregory, senior director of global standards at GS1 US.
TDS 2.3 Upgrades
“The driver for TDS 2.3 was the digital product passport (DPP) European Union regulation” said Gregory. ” RFID tags didn’t have that capability until TDS 2.3.”
While DPP was the catalyst, Gregory emphasizes that the most significant near-term opportunity lies not with individual products, but with logistics units. “This addresses the biggest challenge to sharing logistics data across the supply chain – that being ‘where to go to find and share data’,” he explained.
Theft and Organized Retail Crime
This new capability is a powerful tool in the fight against supply chain theft. With organized retail crime and cargo theft on the rise, the ability to automatically track the movement of goods provides unprecedented visibility.
“When I think about organized retail crime. and the skyrocket to the theft that’s happening, I can now much more easily track the movements of items flowing through the supply chain in an automated, very lightweight manner,” Gregory stated.
The standard helps address theft in two main areas: protecting goods as they move through the supply chain to the store, and identifying stolen goods after they leave the store without being purchased. This technology can be used as a tool against structured criminal organizations that often steal items based on demand signals.
If law enforcement recovers a warehouse of stolen goods, the serialized data on the RFID tags can quickly identify the origin of the items. According to Gregory, this “lowers the friction” for law enforcement to press charges and for retailers to reclaim their property, reducing red tape and improving recovery efforts.
Impact on Various Sectors and Small Businesses
While the pharmaceutical industry already has robust traceability systems, Gregory sees a “huge step change for apparel and general merchandise,” as well as significant potential in the food sector as the FSMA mandates looms. The standard is particularly valuable in supply chains with varied distribution channels, where intermediary parties often lack complete information.
“The intermediary often is missing information, such as sourcing certifications, serialized content, weights, dimensions, storage conditions and the like” Gregory noted.
Contrary to the belief that new regulations burden smaller operations, Gregory sees TDS 2.3 benefiting businesses of all sizes. By reducing theft, it can lower the cost of goods and potentially decrease insurance premiums related to in-transit theft.
“I think this would help all businesses,” Gregory said, highlighting benefits like reduced theft, better traceability, and improved inventory visibility. “Now I can know when this item is going to arrive. I see the breadcrumbs much more easily.”
The Role of the DPP
While the EU’s DPP regulation was the genesis for web-enabling RFID tags, its focus is on individual products. Gregory explained that the broader application for logistics is a beneficial side effect.
“DPP was the origin for that. And basically this rode the coattails of DPP, because that’s about product identifiers,” he said. “DPP has nothing to do with logistics unit identifiers. It just is the catalyst for web enabling RFID tags.”
Gregory’s focus remains on the immediate, tangible benefits for the supply chain. “I’m thinking, okay, the logistics unit identifier that can phone home, that’s the big benefit.”
Broader Applications and Future Plans
The updated standard is poised to increase the overall value and utility of RFID technology. The hierarchical traceability data— knowing which specific items are in which carton and on which pallet— becomes far more valuable and accessible.
“Such data hasn’t really been able to be leveraged because of the difficulty of getting that data in front of the various stakeholders,” Gregory explained. “Now that we have this capability we know where to get and share visibility data.”
This accessibility will invite new participants into the RFID ecosystem who previously had no reason to use the technology. They can implement simple, low-cost reader solutions to track logistics units, providing visibility and gaining benefits themselves.
GS1 US is actively pushing this initiative forward with pilot programs and significant investment. “There’s just a lot of energy behind this,” Gregory concluded. “The GS1 strategy involves significantly investing in and enhancing supply chain visibility, and this is a major part of it.”