SATO CL408e User manual

Version 0.8
“THE RFID GUIDEBOOK”
(REVISION 8)

Version 0.8 21/10/2004 Page 1 of 44
FOREWORD
Built upon a strong foundation of over 60 years of experience,
SATO solutions enable any business to quickly and efficiently
identify anything—be they products, components, actions or
people.
Since its incorporation in 1940, SATO has been known to be
insatiable in its pursuit of innovation and provision of labour-
saving solutions to meet society's needs. In 1962, SATO's hand
labeller was a worldwide best-seller. Then, in 1974, SATO
developed the world's first printer for barcodes and OCR
characters, and took the lead when the rising tide of in-store
marking swept across the retailing industry.
Barcodes proved ideal for computer input, so SATO moved far beyond the retail trade,
developing electronic printers that were soon in service throughout the economy. SATO
has then maintained its lead as a manufacturer of automatic identification systems and
related consumable supplies. It revolutionised the bar coding industry by introducing the
Data Collection System (DCS) and Labelling concept – a total barcode and labelling
solutions approach providing high quality barcode printers, scanners/hand held terminals,
label design software and consumables.
SATO has been supplying high frequency (HF) RFID solutions for some years, and fully
supports the Uniform Code Council’s (UCC) Electronic Product Code (ePC) initiatives as
well as the recent Wal-Mart and Metro mandates that require their top 100 suppliers to
embed RFID tags at the case and pallet level by 2005.
Many of Wal-Mart’s and Metro’s Top 100 suppliers are longstanding SATO customers who
look to SATO to help satisfy their RFID requirements. Labelling an item with a barcode, or
RFID tag, allows that item to be immediately and accurately tracked throughout its
despatch trail.
SATO is a publicly listed company in Japan and has worldwide offices in United
States, Germany, United Kingdom, Poland, Belgium, Singapore,
Malaysia, Thailand and China. Reported revenues in 2002 were US$445 million.
SATO stocks are traded on the first section of the Tokyo Stock Exchange. Whether you
are required to implement an RFID compliant system, or are just looking to increase
internal efficiency, you can trust SATO to provide you with complete support from start to
finish. More information can be found at www.satoworldwide.com.

Version 0.8 21/10/2004 Page 2 of 44
EXECUTIVE SUMMARY
Radio waves are commonly used to transmit and receive information to avoid the use of
wires. While RFID (Radio Frequency Identification) technology has been available for
many years, it was not until recently that interest in using RFID for business, healthcare,
and governmental applications took off.
It can be challenge to understand and apply RFID within a specific deadline, but very
gratifying once it is successfully implemented. RFID tagging can help improve internal
operations as well as enable more effective
communication with trading partners.
Other acronyms for RFID: IC tag, “Smart tag”, RF tag
SATO has compiled this guidebook with a focus on
promoting better understanding and awareness of RFID
technology. This can provide useful insights on the
importance of RFID integration, and can help you
determine whether you are prepared to put a winning
RFID system into action. This RFID guidebook will:
•Introduce RFID technology, standards, specifications, types of tags
•Identify the pros and cons of RFID implementation
•List major retailers that expressed interest in establishing a RFID system
•Explain how RFID can benefit various industries
•Summarise the challenges that are involved in the global marketplace concerning
RFID
•Describe the testing process involved to evolve an RFID concept into a working
pilot
•Present labelling technology options

Version 0.8 21/10/2004 Page 3 of 44
“ T H E R F I D G U I D E B O O K ”
T A B L E O F C O N T E N T S
FREQUENTLY ASKED QUESTIONS Page
•How does an RFID system work? ……………………………………….... 4
•Why are supply chains embracing this technology?............................... 4
•What was the first application of RFID? ………………………................ 4
•When was RFID first used to track inventory or livestock? ……………. 4
•What was the first implementation of RFID towards consumer
applications?........................................................................................... 4
•What is the driving force behind the initiative of so many companies to
implement RFID? ……………………………………………...................... 4
•What was the “real” reason behind implementing RFID in today’s
society?……………………………………………………………………….. 5
•What is the difference between low-, high-, and ultra-high
frequencies?…………………………………………………………………. 6
•How many frequency bands are used around the world for RFID
applications? …………………………………………………………........... 6
•Do all countries use the same frequencies?……………………………… 6
•What are the differences between passive and active tags?.................. 7
•What are the characteristics of RFID tags in terms of data storage
capabilities? ……………………………………………………………….… 8
•What does an RFID reader do?.............................................................. 8
•What are the differences between barcodes and RFID?........................ 9
•Why are line-of-sight barcode readers at a disadvantage over RFID
readers?…………………………………………………………………….… 9
•Would RFID technology ever replace the ever-present barcode?.......... 9
•What are some of the typical applications for inductive coupling tags? 9
•What is the difference between passive and active tags?...................... 11
•Who is EPCglobal?................................................................................. 11
•What are the key goals of EPCglobal?................................................... 12

Version 0.8 21/10/2004 Page 4 of 44
•Does RFID conform to EPCglobal specifications and will it meet Wal-
Mart and U.S. Department of Defense (DoD) requirements?................. 12
•What is ISO’s role in regards to RFID?................................................... 12
•What types of regulatory requirements must RFID systems comply?.... 13
•Will the tags work globally?..................................................................... 13
•What are the benefits of read-only vs. read-write tags?......................... 14
•How does improved visibility free up capital?......................................... 15
•How is product traceability improved?.................................................... 15
•How does it make more business sense to utilize RFID to tag items
that move through harsher environments?............................................. 15
•Which tags work better near metal and fluids?....................................... 16
•Why are consumers expected to see cost increases passed to them
when the key purpose of RFID is to lower costs?................................... 16
•How will European supply chain centres be negatively impacted by
regulations imposed by ETSI?................................................................ 16
•How will large entities such as Wal-Mart and U.S. Department of
Defense (DoD) impact the supply chain with regards to RFID?............. 17
•How can RFID-enabled retail outlets gain a competitive edge over
non-RFID equipped retailers?................................................................. 18
•How can RFID help to reduce human error in hospitals?....................... 18
•How else can RFID help to prevent counterfeit drugs from entering the
market?................................................................................................... 18
•What are the primary challenges of successfully implementing RFID in
a global marketplace?............................................................................. 24
•Why are anti-RFID protesters against RFID implementation?................ 24
•Are there any benefits to the consumers if the tags are left “active”?..... 24
•Does that mean that privacy activists want RFID technology to
disappear altogether?............................................................................. 24
•How are tag costs affecting the way many companies in supply chains
are implementing RFID?......................................................................... 25
•What will need to be done to the technical infrastructure to
successfully support RFID?.................................................................... 25
•What will need to take place in order for RFID tag costs to drop?.......... 26

Version 0.8 21/10/2004 Page 5 of 44
•Can SATO RFID printers withstand environmentally demanding
requirements?........................................................................................ 29

Version 0.8 21/10/2004 Page 6 of 44
WHAT IS RFID?
RFID is best described as a wireless memory chip, or “smart tag”, that is attached to both
the product and transport packaging.
Q: How does an RFID system work?
RFID offers higher data storage capacities, higher identification speeds, and greater
immediacy and accuracy of data collection. RFID readers control the wireless reading and
writing of information stored on an RFID tag by generating a radio frequency field around
the antenna. The RF field gives the tag power (if passive tag), and a way to transfer data
from the tag to the reader. The tag modulates the reader's RF field, and the reader can
detect this. Likewise, the reader turns the RF field on and off in the right sequence in order
to write the tag.
Q: Why are supply chain management companies embracing this technology?
An increasing number of supply chain management companies worldwide are embracing
RFID technology to identify multiple items in a single container in an expeditious manner—
a feat that is not always possible with bar-coding systems. The technology’s enhanced
accuracy and security in data collection makes it an ideal data collection platform for the
healthcare, pharmaceutical, manufacturing, warehousing, logistics and retail sectors.
Q: What was the first application of RFID?
RFID can be traced back to World War II days, when the British military needed to find a
way to identify whether an approaching aircraft was friend or foe. Even today, as more
sophisticated navigation technology becomes accessible, the United States military is
currently using various forms of RFID.
Q: When was RFID first used to track inventory or livestock?
In the 1980s, Compaq Computer had begun using RFID tags to trace components through
the production process. The railroad industry has also used RFID to track nearly every rail
car in North America, while the agricultural industry has used RFID tags to trace its
livestock.
Q: What was the first implementation of RFID towards consumer applications?
Additionally, RFID has also been used for various consumer applications. Vehicle
transponders use RFID to communicate with toll booths on bridges, expressways, or
special toll roads to automatically deduct funds from the account holder of the transponder.
Q: What is the driving force behind the initiative of so many companies to
implement RFID?
One of the major reasons is because a few major retailers, along with the U.S. Department
of Defense (DoD), have decided to utilise RFID technology within their supply chain
management. The major retailers are mandating that their top 100 suppliers utilise RFID
tags on all product deliveries by 2005.

Version 0.8 21/10/2004 Page 7 of 44
Q: What was the “real” reason behind implementing RFID in today’s society?
The main reason for implementing RFID lies in one simple fact: our competitive global
market demands a change in the way business is conducted. To stay competitive means
to conduct business with greater efficiency, to deliver goods more rapidly, and to lower
overhead costs.
Below is a chart recounting the history of RFID:
Decades of RFID
Decade Event
1940’s •Radar refined and used. Major World War II development effort.
•RFID invented in 1948.
1950’s •Early explorations of RFID technology, laboratory experiments.
1960’s •Development of the theory of RFID.
•Start of application field trials.
1970’s •Explosion of RFID developmental work for
electronic article surveillance (EAS) to counter
theft, improve animal tracking, vehicle tracking
and factory automation
•Tests of RFID accelerate.
•Very early adopter implementations of RFID.
1980’s •Commercial applications of RFID enter mainstream.

Version 0.8 21/10/2004 Page 8 of 44
1990’s •Emergence of standards.
•RFID, such as electronic toll collection, deployed throughout the
U.S.
•RFID becomes part of everyday life with a single tag capable of
handling multiple applications such as electronic toll collection,
parking lot access and fare collection, gated community access,
and campus access.
Early 2000s •Development and implementation of RFID for supply chain
management, healthcare/pharmaceuticals, library information
systems
2003 -
Present •Major retailers mandates to suppliers to implement pallet and case
level tagging by January 2005 spark rapid RFID research and
development
Since RFID uses electromagnetic radio waves for its operation, its effectiveness is subject
to the same physical laws governing any other RF operating device. The distance between
the RF interrogator antenna, the corresponding RFID tag, and the frequency, are all
directly interrelated.
Q: What is the difference between low-, high-, and ultra-high frequencies?
Similar to your radio tuning into different frequency channels to listen to different stations,
RFID tags and readers must both be tuned to the same frequency in order to communicate.
The most regularly used frequencies among RFID systems are low- (around 125 KHz),
high- (13.56 MHz) and ultra-high frequency (860-950 MHz). Radio waves behave in a
different way at different frequencies, so you must choose the best frequency for the
correct application.
Low Frequency High Frequency Ultra High
Frequency
Operating Range 125 KHz 13.56 MHz 860 – 950 MHz
Read Range 10 cm 1 m Up to 3 m
Power Consumption Low Moderate High
Data Transfer Rate Slow Moderate Fast

Version 0.8 21/10/2004 Page 9 of 44
Application ●Point-of-Sale
●Small scale
Retail applications
●Library systems
●Patient
identification
●Airline baggage
tag
●Tracking of
controlled drugs
●Pallets
●Cases
Q: How many frequency bands are used around the world for RFID applications?
Currently, eight frequency bands are used around the world for RFID applications.
However, the majority of companies, including SATO, tend to organise these bands into
the low, intermediate, and high range.
Q: Do all countries use the same frequencies?
No. Presently, Europe uses 868-870 MHz for UHF while the U.S. uses 902-928 MHz.
Japan is in the process of designating RFID to fall somewhere in the 950-956 MHz range.
The governments regulate the power limits of readers to limit interference with other
devices. SATO’s solution can currently select a frequency anywhere in the 860-950 MHz
range, which makes it globally compatible. And SATO will continue developing products
that will conform to the ever changing RFID global standards
Below is a map showing the frequencies used by major markets such as U.S. and Canada,
EU countries, Japan, and Australia and New Zealand:
A basic RFID system consists of three components:

Version 0.8 21/10/2004 Page 10 of 44
1. A programmable RFID tag for storing data;
2. An antenna to facilitate the reading and writing of data into the tag;
3. A reader that encodes/decodes the data in the tag's integrated circuitry
The programmable RFID tag is an integrated circuit (IC) embedded in a thin film medium.
Information stored in the tag is transmitted via radio frequencies to an RF
Figure: Construction of a RFID tag
(Thermal Transfer Paper can also be PET substrate)
reader. The performance characteristics of the RFID tag will then be determined by factors
such as the type of IC used, the read/write capability, the radio frequency and the read
range.
Q: What are the differences between passive and active tags?
RFID tags are categorized as either passive or active (also semi-passive).
Passive tags do not have an independent power supply, and must absorb their power from
the host reader. There exist passive RFID tags with the capability to store a few kilobytes
of data.
Active tags come with their own battery power source to start up the tag operation. As a
result of the built-in battery, active tags can operate over a longer range but have a shorter
service life and are more costly. What makes the active tags attractive is the extended
reading distance, which can be up to many miles—allowing communications with even
orbiting satellites. For a lower cost of implementation, passive tags are a more attractive
solution.
Q: What are the characteristics of RFID tags in terms of data storage capabilities?
The information that can be stored inside an RFID tag is defined by its read/write
characteristics. For a read-only tag, the information to be stored within it must be recorded
during the manufacturing process and cannot be erased. Typically, the information stored
is a unique “serial number” to allow one tag to be distinguished from another. Read-only
tags are therefore useful for identifying an object, much like the “license plate” of a car. For
a read/write tag, data can be written to and erased from the IC on demand. Depending on
the application, a rewriteable tag can be updated hundreds of times, and its reusability can
help to reduce the number of tags that need to be purchased.
Q: What does an RFID reader do?

Version 0.8 21/10/2004 Page 11 of 44
RFID readers are capable of automatically recognising and distinguishing all the RF tags
IFFERENCES BETWEEN RFID AND BARCODES w
: What are the differences between barcodes and
chnology, which employs an
tags was
, and,
t
: Why are line-of-sight barcode readers at a disadvantage over RFID readers? en
at
-
: Will RFID technology ever replace the ever-present barcode? er-present barcode
odes.
IFFERENT TYPES OF RFID
within their reading field. This capability allows the RFID reader to simultaneously process
all the data and provide for efficient material handling, packaging, and sorting of inventory.
Not only will these RFID readers be able to track tagged items and equipment, but they
can also be used to track patients (i.e. in hospitals).
D
RFID and barcode are both identification technologies that allo
identification data to be stored and read back with a reader. While
barcodes have been around for ages, the idea of
using RFID in applications such as supply chain
management is a new concept. Hence, RFID has
been coined as the “wireless” or “radio” barcode.
Q
RFID?
In contrast to barcode te
optical reader to read data, RFID reads data
using radio technology. The concept of RFID
driven by its greater data capacity that enables it to
carry more information than barcodes. RFID
technology also enables tag reading from a
greater distance, even in harsh environments
unlike optical barcode readers, has no line-in-
s in order to send and receive information. sight requiremen
Q
Line-of-sight between the label and a barcode reader is often difficult, unfeasible, or ev
impossible to achieve in industrial environments due to conditions such as dust or label
fading. By transferring data via radio waves, RFID has an advantage over barcodes in th
RFID tagged objects could be read through packaging, whether or not they can be seen
by our eyes. RFID solutions can thus significantly condense redundant inventory stock,
help to reduce inventory loss, and facilitate better quality assurance by providing the end
user with real-time product information.
Q
SATO believes that RFID tags will not replace, but complement the ev
system. Given the growing popularity and viability of RFID, it can be expected that majority
of the industries using barcode technology will experience pressure to implement RF
(radio frequency) tagging systems to some extent, to complement or supplement barc
D

Version 0.8 21/10/2004
A very common type of RFID implementation is the inductive coupling system. This
works in the HF (high-frequency) range at close distances.
The system consists of a powered reader and a passive tag. The passive tag receives
power from the reader by means of a scientific principle called inductive coupling. Basically,
the principle states that power can be transmitted from one inductive circuit (the reader)
to another inductive circuit (the unpowered tag) if there is a shared magnetic field
(coupling) between them. Once power is fed to the tag through this coupling, the
integrated circuit in the tag can then send data to the reader using the same waves of
electromagnetic energy sent by the reader.
Q: What are some of the typical applications for inductive coupling tags?
Typical applications for inductive coupling RFID tags include: RF EAS (electronic article
surveillance), smart cards, access control, apparel, baggage control, biometrics, item level
tagging, libraries, and transport.
Frequency area:
HF 13.56 MHz
Distance:
Within 120 cm vicinity
Data Carrier:
Communication passive
Energy supply passive
Serial Number:
64 Bit
Data Capacity:
< 1kbit EEPROM
Page 12 of 44
RFID tags that use back scatter technology reflect back to the reader a portion of the radio
waves that reach them. Data can ride along the reflected signal through a process called
modulation. Compared to the HF that is present in inductive coupling systems, the UHF
(Ultra-High frequency) frequencies used here are capable of operating at a greater range.
Both the communication and energy supply
data carriers are passive and work similarly
to two-way remote control units. The RF reader-
writer is transmitting the signal in which the
transponder generates the necessary energy to
bounce back a mirror signal which is
modulated back to the RF reader-writer. Typical
applications include: baggage handling, and
supply chain pallet and case tagging.

Version 0.8 21/10/2004 Page 13 of 44
Frequency area:
UHF 860-950 MHz
Distance:
Long range around 3 to 4m
Data Carrier:
Communication passive
Energy supply passive
Serial Number:
96 Bit
Data Capacity:
0 to 2K bytes information WORM,
R/W
The battery-assisted passive system relies on a battery located inside the tag as its energy
supply. The communication data carrier is passive and the transponder functions similarly
to a smaller “smart label” tag, but the energy supplied to the IC inside the tag is provided
by the battery. Typical applications using back scatter semi-active RFID tags include:
electronic toll collection.
Frequency area:
UHF 860 – 950 MHz
UHF 2.45 GHz
Distance:
Long range around 4 to 8m
Data Carrier:
Communication passive
Energy supply active
Serial Number:
10 digit number ID
Also available are systems that have data carriers which operate with active
communications as well as an active energy supply. These systems are more costly to
implement but are very flexible and able to handle longer ranges. The RF reader-writer
transmits data to the tag and the tag is generating its own modulated wave back to the RF
reader. Mobile phones operate using the same principle. Typical applications include:
electronic toll collection and real-time location of goods.

Version 0.8 21/10/2004 Page 14 of 44
Frequency area:
UHF 2.45 GHz
Distance:
Long range around 3 to 15m
Data Carrier:
Communication active
Energy supply active
Serial Number:
32 Bit + 16 Byte PROM
Data Capacity:
U
p
to 32 Kb
y
tes RAM
Q: What is the difference between passive and active tags?
Passive tags rely on the airwaves emitted by RFID readers as a power source, instead of
relying on battery power. This essentially gives passive tags an unlimited lifespan. Power
is derived from the active RF reader’s electromagnetic field. Without a battery, passive
tags are generally smaller and lighter in comparison to active tags. But the read range is
shorter and much smaller than that of an active tag.
Active tags capture attention of the reader and function using battery power. A battery is
either connected to, or built into the tag. Active tags can operate over greater distances
but are usually more expensive due to the cost and size of the battery.
WHAT ARE THE PROPOSED STANDARDS OF RFID?
Q: Who is EPCglobal?
EPCglobal, a global RFID organisation, is in charge of establishing EPC (electronic
product code) standards. The organisation is a joint venture between EAN International
and Uniform Code Council (UCC) as our implementation partners have many years of
experience in administering global standards. The EPCglobal Network employs Electronic
Product Code™ (EPC) and Radio Frequency Identification (RFID) technologies. These
standards offer the potential for increased efficiency and accuracy through automation,
tracking and security through improved visibility and collaboration by providing a globally
standard framework for information exchange.
Q: What are the key goals of EPCglobal?
The EPCglobal Network aims to enable trading partners to minimise shrinkage and
shortages, accelerate order processing and increase responsiveness to consumer
demand by enabling the flow of real-time information about goods enabled within the

Version 0.8 21/10/2004 Page 15 of 44
supply chain. Efficiency in handling physical goods during processes such as receiving,
counting, sorting, and shipping is better improved.
Below is an example of a 96-bit EPC data structure, which consists of the header, in which
the first 2 bits must contain zeros, the EPC Manager (manufacturer number), Object Class
(identifies product), and the factory or end-user programmable serial number (an uniquely
assigned number for each individual item).
Q: Does RFID conform to EPCglobal specifications and will it meet Wal-Mart and U.S.
Department of Defense (DoD) requirements?
Wal-Mart and the U.S. Department of Defence are major factors in determining the
standard for the technical specifications that are to be used in RFID tags. RFID conforms
to the EPC Global specifications, however the EPC Class 0 and 1 protocols, although they
conform to ISO (International Organization for Standardization) standards, are
incompatible with each other. Therefore, Class 1 Generation 2 RFID is in the process of
merging these two protocols to gain approval by ISO.
The International Organization for Standardization (ISO) is a non-governmental
organization, although its members are not, with a network of the national standards
institutes of over 140 countries, on the basis of one member per country. The Central
Secretariat in Geneva, Switzerland coordinates the system. ISO holds a special position
between the public and private sectors. Some of its member institutes are part of the
government structure of their countries or mandated by their government, while other
members are from the private sector, having been set up by national partnerships of
industry associations.
Q: What is ISO’s role in regards to RFID?
ISO is responsible for moving RFID towards the EPCglobal’s (then known as Auto-ID)
Electronic Product Code, which could become the de facto standard for UHF. Matrics and
Alien Technology are already selling RFID tags that conform to EPCglobal’s Class 0 and
Class 1 tags respectively.
Q: What types of regulatory requirements must RFID systems comply?

Version 0.8 21/10/2004 Page 16 of 44
Specifications, standards, and terminology are continually updated. RFID systems must
comply with all relevant regulatory requirements as local governments regulate allowable
frequencies, power output, emissions, and other performance characteristics. RFID
standards created by the International Organisation for Standardization (ISO) in Geneva
meet all worldwide regulatory requirements, so users can be assured their systems are
available for global use.
Q: Will the tags work globally?
EPCglobal is in progress with a goal and mission to establish a global standard for
immediate, automatic identification of any RFID item in the supply chain of any company,
in any industry, anywhere in the world. Additionally, different regions of the world have
designated different frequencies for RFID; thus, tags that are able to handle a wider range
of frequencies would have more global coverage. Additionally, UHF tags, despite the
target design frequency, can be read by another UHF frequency (i.e. a 915 MHz tag can
be read with an 868 MHz reader and vice versa) given that the reader can support the
handling of multiple frequencies. However, a degradation of performance can be expected
when using mismatched components.
DIFFERENTIATION BETWEEN EPC TAG PROTOCOLS
The current specifications of the EPC (Electronic Product Code) protocol are open
standards with the intention of allowing any vendor to manufacture products to either one
of these specifications. Unfortunately, these protocols are not interoperable. A single
reader can't read all these tags unless it is a multi-protocol reader. While Class 0 and 1 are
tag protocols, Class 2, 3, and 4 are not distinct protocols, but different configurations.
Differences lie in the following:
Class 0 is a read-only tag, which is the simplest type of tag where the EPC data is written
only once into the tag during manufacture, resulting in a unique ID number assigned only
to that particular tag. The memory is then disabled from any further updates. Class 0 is
also used to define a category of tags called EAS (electronic article surveillance) or anti-
theft devices, which have no ID, and only announce their presence when passing through
an antenna field.
There is a newer version of the Class 0 tag, the Class 0 plus, which can read and write,
and in which the transponders generally provide a tamper-proof fix factory-set identification
code. Other than the read-write capabilities of this tag protocol, the Class 0 plus tag is
identical to the Class 0 tag.
Class 1 is a read-write tag allowing the end-user to input any serial number. Both operate
in the 860-950MHz frequency band. This offers advantages in many applications where

Version 0.8 21/10/2004 Page 17 of 44
the identification code needs to be changed or where variable data is more important than
a unique identity.
As far as Class 1, Generation 2 specifications are concerned, it calls for RFID tags that are
WORM (write-once-read-many), which implies that it is one-time programmable, and
carries a 96-bit EPC (Electronic Product Code) with an additional 32 bits in order to
execute error correction and the kill command. The kill command renders the tag
inoperable and is useful for end-users in areas such as the retail industry where tags need
to be killed at the point-of-sale and never allowed to be activated again. Another great
feature of this protocol is a robust anti-collision algorithm so an RFID reader can swiftly
read many EPC tags within its read field. This new standard will be optimised to work
globally by conforming to the ISO standards.
This is the most flexible type of tag, allowing users to read and write data into the tag’s
memory. They are typically used as data loggers, and therefore contain more memory
space than what is needed for just a simple ID number.
These tags contain on-board sensors for recording parameters like temperature, pressure
and motion, which can be recorded by writing into the tags memory. As sensor readings
must be taken in the absence of a reader, the tags are either semi-passive or active.
Similar to miniature radio devices, Class 4 tags are capable of communicating with other
tags and devices without the presence of a reader, denoting that they are active tags with
their own battery power source.
Q: What are the benefits of read-only vs. read-write tags?
Read-only
tags: These RFID tags generally provide a fixed factory-set
identification code that is tamperproof. The unique
code, known as a “License Plate”, enables the tag to be
cross-referenced with a database, thereby allowing the
tagged item to be closely followed and monitored. The
data on the EPC is a unique serial number.
Read-write
tags:
The customer can modify the tag’s data. This offers
advantages in many applications where the
identification code needs to be changed, or where
variable data is more important than a unique identity.
PROS AND CONS TO USING RFID

Version 0.8 21/10/2004 Page 18 of 44
As with many advanced technologies, there exist pros and cons in the use of RFID.
Nonetheless, the majority of these cons can be overcome in order to maximise the utility of
such technologies. RFID happens to be one of these technologies.
This wireless technology is capable of slashing a great deal on
overhead costs by accelerating order processing and increase
responsiveness to consumer demand by enabling the flow of real-
time information about goods within the supply chain in a time
efficient approach. Time and labour costs can be reduced. If
optimally implemented, it would result in the positive effect of
sprinkling lower costs down the supply chain to the consumer. In
addition, systems can easily be built to set off an alarm when an
item passes through an exit “reader” but had not been passing through the checkout
“reader”. This effectively deters and detects theft.
Q: How does improved visibility free up capital?
Implementing an RFID system helps to improve inventory visibility which in turn lowers
safety stock. For this reason, the overall carrying cost for inventory is reduced, and this
inventory reduction frees up working capital.
Q: How is product traceability improved?
Product traceability with RFID is immensely improved as it is able to professionally
manage tasks ranging from product life cycle control, automation of transaction and
settlement management, logistic efficiency, to rationalisation of manufacturing production
control. This translates to additional productivity. RF readers are then capable of reading
data that is stored on the chips at a distance, without line-of-sight scanning or physical
contact. This is possible because readers can automatically recognise and differentiate all
the RF tags in their reading field, which provides additional flexibility for material handling,
packaging, and sorting operations. Individual items could be identified, where the current
barcode scheme does not distinguish between the two items of the same type (e.g. two
identical packs of popcorn). As a result, the shopper will experience shorter queues and
quicker checkout times while merchants can keep track of inventory in real-time so
products that are running low could be re-shelved and irrelevant inventory reduced.
Q: How does it make more business sense to utilize RFID to tag items that move
through harsher environments?
Companies that are capable of uniquely identifying items can expect to see a huge
potential benefit. Barcode labels are prone to wearing out and fading in harsh
environments because the line-of-sight requirement dictates that such labels be placed
physically on the packaging.
Conversely, RFID technology enables much greater accuracy in tracking and tracing
goods and the containers that hold them, even in harsh environments, since RFID tags do
not wear out and don’t require line-of-sight to function. Additionally, RFID can uniquely

Version 0.8 21/10/2004 Page 19 of 44
identify products, cases, and other items to provide increased productivity and save on
labour costs compared to barcodes, virtually eliminating the need to have people locate
items and manually scan barcodes.
Unfortunately, every technology has its limits. RF tags and
transponders transfer information by way of radio waves and are
subjected to interference—predominantly by metal and liquid
products, especially when merchandise is packaged in metal cans or
containers. These potential sources of interference must be
recognised and accounted for during system planning.
Q: Which tags work better near metal and fluids?
Tags with lower frequencies tend to read better near metals or fluids. This is due to radio
waves bouncing off of metal and or being easily absorbed by water in correlation to higher
frequencies.
Q: Why are consumers expected to see cost increases passed to them when the key
purpose of RFID is to lower costs?
Consumers may see cost increases passed to them during the initial stages of RFID tag
implementation. This is due to the necessary changes of the information systems
infrastructure, such as middleware, which is designed with support for RFID systems in
order to filter information to software applications. Another problem could happen if an item
has a defective RFID tag that could not be read. These items would require manual entry
at checkout, inventory time, receiving time, etc.
Q: How will European supply chain centres be negatively impacted by regulations
imposed by ETSI?
While global companies are moving rapidly to adopt RFID systems that can operate in the
UHF spectrum, regulations proposed by the European Telecommunications Standards
Institute (ETSI) won’t enable European companies to use UHF systems for supply chain
management. ETSI currently allows only 0.5 watts of effective radiated power (ERP) in a
narrow 250 kHz band range from 869.4 to 869.65 MHz. This allocation is for short-range
devices which can only be on 10 percent of the time. The Federal Communications
Commission (FCC) of the United States is more lenient on U.S. companies, allowing them
to deploy RFID readers that emit 4 watts effective isotrophic radiated power in the