 | Friday, January 11, 2008
Issue 755 | | Will Smith, Editor |  |
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Editor's Note: Today's top story is the Sam's Club plan to begin fining certain suppliers for failing to apply RFID labels to shipments, as the company is now requesting. The warehouse-club format retailer, which is owned by Wal-Mart, also gave suppliers to a Texas distribution center a tight deadline for new pallet- and case-tagging requirements.
RFID Update is compiling a list of RFID research and testing centers around the world. If you know of one or more that should be included on this definitive list, please email the name and location details to rfidcenters@rfidupdate.com.
InformationWeek has a profile of Tim Stanley, casino and entertainment company Harrah's chief information officer, whom the publication crowned 2007's CIO of the Year. Notable is the extent to which RFID plays a role in Stanley's vision of the future of gambling. "RFID might have run into problems at some early adopters like Wal-Mart," reads the article, "but Stanley says there's no stopping it in gaming, especially as an emerging mass market drives down prices."
Lastly, note the sponsored column today from Sirit, who will co-host with NXP an open webcast on Thursday, January 17 at 11:00 a.m. EST (5:00 p.m. CET) entitled Capturing the Value of EPC Gen 2 Custom Commands. The webcast will focus on the added features in NXP's G2X integrated circuits (ICs) and supported by Sirit's INfinity 510 Gen 2 reader. Register for the webcast here. |
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| Upcoming Events | | - SCAN & RFID CHINA 2008, June 19-21, Guangzhou, China (site) | | - 5th Annual DoD RFID Summit - Feb 26-27 - Arlington, VA (site) | | - RFID Smart Labels USA - Boston, MA - February 20-21, 2008 (site) | | - 2nd Annual Summit on Healthcare Supply Chain Management (site) | | - Global RFID ROI 2008, 29th - 30th January, Munich, Germany (site) | | - Asset Management Conference & Expo, Jan 22-23, Atlanta, GA (site) | | | Products & Services | | - Tag & SpyTM: NOX Surveillance by SimplyRFID (site) | | | RTLS & Active RFID | | 
Sponsored by Ekahau | |
| | - Locate it now. How? Ekahau. That's how! (site) | | | Employment | | - RFID Recruiters - 100% Focused on RFID Recruiting (site) | | | Research & Whitepapers | | - RFID Marketing Strategies Report from RFID Update (site) | |
| Column sponsored by Sirit |  |
Capturing the Value of EPC Gen 2 Custom Commands
NXP and Sirit to highlight Gen 2 Enhancements in Webcast
As a standard, EPC Gen 2 is being readily adopted by users both inside and outside the retail supply chain. Many of these RFID users are enjoying the benefits and are planning expanded roll-outs, while others are seeking features beyond just a unique identifier. The EPC standard allows additional functionality via "custom commands," which can bring added value to an RFID application and allow users to achieve a return on investment more quickly.
In order to examine the benefits and use cases of custom commands, NXP Semiconductors and Sirit Inc. will jointly host an open Webcast on Thursday, January 17 at 11:00 a.m. EST (5:00 p.m. CET) entitled, "Capturing the Value of EPC Gen 2 Custom Commands". The Webcast will focus on the added features in NXP's G2X integrated circuits (ICs) and supported by Sirit's INfinity 510 Gen 2 reader. Registration for the event is available at www.sirit.com.
"The custom commands that NXP's UCODE G2X chips incorporate provide enhanced features sought by many market sectors including retail, pharmaceuticals, recorded media, apparel, and asset management," stated Tony Sabetti, vice president of RF Solutions for Sirit Inc. "In combination with the best performance from any Gen 2 tag chip, this latest set of feature enhancements is a major step forward for the industry, and we are pleased that our INfinity 510 is the first Gen 2 certified reader to support these additional functions."
The NXP UCODE G2XL and G2XM are the only UHF integrated circuits (ICs) in the market today providing EPC Gen 2 custom commands such as Electronic Article Surveillance for increased theft protection; Read Protect, which prevents unauthorized reading of a tag and provides enhanced privacy; and Calibrate, which simplifies the reading and evaluation of tags. The G2XM also provides Extended User Memory which expands data storage beyond just the EPC number.
"With reliable operation on different materials, across very long read ranges and in dense reader environments, the UCODE G2X offers breakthrough UHF performance, as well as 512 bits of user memory which is the largest available on the market today," said Jan-Willem Reynaerts, general manager, RFID market sector, NXP Semiconductors. "We are pleased that leading makers of RFID readers, such as Sirit, are leveraging the full functionality of the UCODE G2X, which offer many enhanced features in addition to supporting the EPC Gen 2 standard."
In the January 17th webcast, Sirit will also explain the additional enhancements beyond support of the NXP UCODE G2X feature-set in the IN510's new firmware. Included among the numerous new features is the ability for IN510s to operate under regulatory approval in China, Taiwan, South Africa and Israel. The new firmware will be available to customers in the first quarter and can be flash uploaded to readers already deployed in the field.
Presenters in the Webcast will include Ralf Kodritsch, Marketing Manager, UCODE RFID products for NXP, along with Tony Sabetti, vice president, RF Solutions for Sirit. The two companies recently announced Sirit's INfinity 510 as the first EPC Gen 2 certified reader to support custom commands featured in NXP's G2X ICs.
Participants will receive a white paper entitled "Capturing the Value of EPC Gen 2 Custom Commands," along with a free copy of ODIN technologies' European RFID Reader BenchmarkTM test report. Registration for the free Webcast is available at www.sirit.com.
Column sponsored by Sirit
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Sam's Club Suppliers May Face RFID Fines from Wal-Mart
Retailer Sam's Club sent some suppliers a letter dated January 7, 2008, requiring EPC RFID tags be applied to distribution center shipments by January 31, 2008, RFID Update has confirmed from multiple sources. The letter also outlines fines ranging from $2 to $3 for each non-tagged pallet. This is believed to be the first time Wal-Mart, which owns and operate Sam's Club, has announced specific penalties for suppliers who do not follow RFID tagging guidelines.
The January 31 deadline applies to companies who supply a distribution center in DeSoto, Texas. Tagging requirements will extend to other distribution centers throughout the year. The fees for non-tagging are said to start at $2 and escalate based on how long the supplier is out of compliance, capping at $3. Tagging requirements depend on how products are packaged and which distribution centers are supplied. Suppliers who ship pallets loaded with a single product reportedly can apply tags at the pallet level, while mixed-pallet suppliers must tag individual cases.
One supplier (who requested anonymity) confirmed to RFID Update that it received such a letter. Dean Frew, CEO of Xterprise, an RFID solutions provider that works with many consumer goods manufacturers who supply Sam's Club and Wal-Mart, said the tagging requirement details obtained by RFID Update are consistent with what Xterprise is hearing from its customers, but no customers he spoke with had been informed of specific fines.
A Wal-Mart spokesperson confirmed to RFID Update that letters were recently sent to some suppliers, but did not provide details or answer questions about requirements, deadlines, and fines. The spokesperson provided the following statement:
"Sam's Club continues to learn more about electronic product code (EPC) utilization and partner with its suppliers in that initiative. Most recently, we issued a letter outlining our tagging direction to some suppliers as part of our ongoing communication. We appreciate the continued support and effort of our suppliers in our EPC Program, and are excited about the mutual benefits and value it will deliver to our businesses and ultimately Sam's Club Members. Suppliers with additional questions are encouraged to work through Sam's Club Merchandising or contact EPCglobal or the University of Arkansas."
A source who attended a Wal-Mart supplier summit last November said the retailer discussed the possibility of allowing suppliers to raise prices to help offset tagging costs, but no such allowances were mentioned in the latest requirements letter.
Wal-Mart previously announced its intention to track pallets at the Texas distribution center in November (see Wal-Mart's RFID Refresh). It is unclear whether suppliers to the DC received notification of tagging requirements before the January 7th letter, but it seems unlikely they weren't previously informed, based on how Wal-Mart has historically managed its RFID programs.
"We do know we're seeing growing demand from Wal-Mart and Sam's Club suppliers for tagging solutions," Xterprise's Frew told RFID Update. "There is demand from our existing customers and new customers. And they're not talking to us to get numbers for a budgeting exercise; they need something now."
Part of that urgency may be attributed to the prospect of being fined for not following labeling requirements. Retailers and other organizations have successfully used fine programs for years to compel suppliers to comply with bar code labeling requirements. Formal penalty programs have been mostly absent from RFID initiatives, but in August reports surfaced that European retailer METRO Group would charge suppliers who didn't apply RFID labels as directed (see METRO to Penalize RFID Non-compliance).
"Wal-Mart suppliers are moving forward with a sense of urgency," said Frew. "They also seem to be planning for high-volume, ongoing requirements, not for pilot or experimental systems."
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| Upcoming Events | SCAN & RFID CHINA 2008, June 19-21, Guangzhou, China
As one of the earliest, most specialized and authoritative exhibitions in China, approved and supported directly from State Ministry, the 8th SCAN & RFID CHINA 2008 will present you the impressive up-dated development and market of RFID technology in rising China. To know more, please go to www.scan-china.com. | 5th Annual DoD RFID Summit - Feb 26-27 - Arlington, VA
If you conduct business with the Department of Defense (DoD), you need to be at the DoD RFID Summit to stay abreast of the latest technology developments and take advantage of the "roll-up-your-sleeves" RFID implementation guidance that will be delivered for DoD personnel and DoD suppliers! Register now at www.DoDRFIDsummit.com. | RFID Smart Labels USA - Boston, MA - February 20-21, 2008
RFID Smart Labels USA 2008; the seventh annual analyst-driven event covers the hot RFID sectors, full technology analysis and market insight. February 20-21, 2008, in Boston, MA. Visit www.IDTechEx.com/USA to find out more and register. | 2nd Annual Summit on Healthcare Supply Chain Management
The 2nd Annual World Congress Leadership Summit on Healthcare Supply Chain Management will present strategic solutions to the challenges of accelerating financial returns, containing costs, implementing information technology, streamlining supply chain management processes and controlling physician preference items. Visit: www.worldcongress.com/supplychain | Global RFID ROI 2008, 29th - 30th January, Munich, Germany
Taking place 29th and 30th January, Global RFID ROI 2008 is bringing together the leading RFID practitioners from a broad cross section of industries that will give you the opportunity of discovering the real ROI behind RFID implementation. View the full programme at http://www.rfid-roi.com/downloadpdfx2.asp and to register, please call 0044 207 202 7558. | Asset Management Conference & Expo, Jan 22-23, Atlanta, GA
How much control do you have over your assets? Failure to manage assets can result in underuse, misplaced items, poor maintenance, increased operational costs, legal liabilities, and financial reporting errors. Attend the Expo and learn to increase asset visibility & life-cycle management, implement process & operational improvement, and explore the newest technologies. www.AssetExpo.com. | | | Products & Services | Tag & SpyTM: NOX Surveillance by SimplyRFID
Find out "Who Took It" and "Where It Is Now" with our "Stealth to Catch the Stealthy" RFID Surveillance systems. Alerts direct to your cell phone. Unprecedented accuracy and court-usable identification. Protect valuable equipment and documents! From the people trusted by more than 2,000 DoD (Department of Defense) Suppliers. Visit: www.SimplyRFID.com | | | RTLS & Active RFID | Locate it now. How? Ekahau. That's how!
Ekahau RTLS (Real-Time Location System) automatically tracks assets and people via your existing Wi-Fi network. Control costs and improve asset management with Ekahau. For more information, visit us at www.ekahau.com. | | | Employment | RFID Recruiters - 100% Focused on RFID Recruiting
Whether your company is looking for the best RFID talent or you have the best RFID talent and are looking for the best RFID employer, RFID Recruiters offers the most focused approach to your objective. To learn how the RFID industry and the RFID job market are evolving, visit www.rfidrecruiters.com | | | Research & Whitepapers | RFID Marketing Strategies Report from RFID Update
Thirty-nine pages of original research on RFID audience perceptions, including 30+ figures of tactics, content & messaging, and recommendations to guide marketing strategy. Also, Top-10 RFID company rankings based on 550+ survey respondents. View the executive summary free, with Top-3 sample rankings. Only $495 Individual License or $795 Corporate License. Available now |
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