It is difficult to imagine a technology topic which has generated more discussion recently in the produce sector than the RFID (Radio Frequency Identification) and the EPC (Electronic Product Code). Ask any retailer currently involved in testing and implementation and they will all say “It’s not a matter of if, it’s only a matter of when.”

What is RFID?
Radio frequency identification, or RFID, is a generic term for technologies that use radio waves to automatically identify individual items. It is helpful to think of the RFID as the physical carrier of the data, which is in the form of the EPC. There are several methods of identifying objects using RFID, but the most common is to store a serial number that identifies a product, and perhaps other information (the EPC), on a microchip that is attached to an antenna (the chip and the antenna together are called an RFID transponder or an RFID tag). The antenna enables the chip to transmit the identification information to a reader. The reader converts the radio waves returned from the RFID tag into a form that can then be passed on to computers that can make use of it. Source: RFID Journal.

For more information on RFID: www.epcglobalcanada.org/rfid.htm

What is the EPC?
The Electronic Product Code (EPC) is a numbering scheme that uniquely identifies all objects and is built as part of a network, EPC Global. In essence each EPC on an item is the key to information about that item which exists on the EPC Global network. In each country a division of EPC Global will manage the EPC system and the data carried through the EPC/RFID. Like bar codes, the EPC (SGTIN) contains numbers that identify the company and the item but in addition includes a serial number which uniquely identifies that particular item. (Please note that there are various EPC tag coding standards depending on what the EPC is used for. For item identification, the EPC standard is the SGTIN.)

What is EPC Global’s role?

As noted by EAN International, “Under the terms of the agreement with the Auto-ID Center, EPCglobal will oversee the development of open, global standards for the EPC Network to facilitate worldwide, multi-sector industry adoption.”

The basic format of the EPC (SGTIN) is as follows:

• Header – a number which identifies the length, type, structure, version and generation of the EPC

• EPC Manager Number -which identifies the company or company entity (like the Company Prefix in a traditional bar code)

• Object Class – which is used to identify a class of objects – similar to the Item Reference portion of a traditional bar code or to an SKU

• Serial Number – number to make each EPC/item unique (as a produce example, instead of indicating a 5 lb bag of carrots, the serial number would uniquely identify if from every other 5 lb bag of carrots in the world)

Although there are many challenges, perhaps none is greater than the need for synchronization of data between trading partners. Without synchronization it has been suggested that all RFID will achieve will be the more efficient movement and collection of bad data.

Will Barcodes Survive?

This question is asked frequently in discussions of RFID and the short answer all agree on is, yes. For many reasons, including as a back-up to a failed RFID read and cost of RFID implementation, especially at the consumer item level, the barcode is expected to co-exist with RFID for some time into the future. As with all technology there will be slow and fast adopters but what may be the future legacy of the RFID is the unique identification of items via the EPC. This in itself represents a revolution at the case/trade unit (and consumer item) level. While the SSCC includes a unique serial number per pallet or logistics unit, this is not the case for items carrying an RFID tag. How important is this? The implications for traceability, supply chain logistics and other issues will form this answer for industry. One thing is clear, for companies like Wal-Mart, Metro AG, Tesco, Albertson’s and others, the projected savings with RFID implementation ensure its place in future supply chains.

Gaps

• Standards are not yet stabilized (evolving)
• Significant cost to implement
• Business processes may need re-engineering
• Multiple standards (all are evolving)
• Labour impact implications
• Consumer acceptance