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EPC (Electronic Product Code). The impact of IT on logistics – part 15

September 27, 2004 | Adalbert

 

The impact of IT on logistics – part 15

At the end of the series of columns illustrating the impact of IT on logistics, I cannot fail to notice a truly revolutionary data identification technology in logistics, which will take the previous considerations about the impact of IT on logistics in a completely different direction. The Electronic Product Code (EPC), often referred to as a “radio barcode” or “next-generation barcode”, is currently one of the biggest challenges for companies in the FMCG industry. It uses RFID technology, in which an identification number is recorded in a special marker called a tag placed on each product, and high-frequency electromagnetic waves are used to read it. The invention of the microchip and the related technological progress led to the design and application of so-called passive RFID tags, i.e., markers that can be read without the need for power from external sources, e.g., a battery. The lack of power supplies reduced the cost of such markers on the one hand, as they used the energy of the radio wave sent by the reader, but on the other hand, it limited the read distance range.

It seems that thanks to new capabilities, RFID technology will soon be able to finally fulfill the dreams of individual product identification, fast and simple identification of transport packaging contents, and the possibility of on-line tracking of the flow of goods. RFID technology, which uses radio frequencies to identify objects, is not an entirely new technology. However, it is only in the last few years that its enormous potential has begun to be recognized, especially in combination with the Internet, which has led to the development of a completely new solution – the Electronic Product Code (EPC) concept.

The Electronic Product Code (EPC) is a solution that encompasses much more than just the code itself, as it is a combination of RFID technology with the capabilities offered by the Internet. It is also often referred to as the “Internet of products”. The entire concept is based on the following assumptions:
  • only the identification number is stored in the tag (chip)
  • special software is used – the so-called middleware, acting as an interface between the reader and the application and the Internet, used to manage the flow of information across the entire EPC network
  • information regarding each object is stored in a public network. Access to it is provided via the ONS (Object Naming Service), similar to DNS for websites
  • tags and readers are inexpensive and adapted to standards
  • tags and readers are compatible with an open, global standard, guaranteeing that they will work together regardless of the country of origin of the goods

Within the developed EPC coding scheme, it is possible to uniquely identify individual objects, whether consumer goods, pallets, logistic units, resources, or anything else. Replacing the barcode label with an electronic tag makes it possible to locate and track products throughout the supply chain, as numbers can be read instantly and without the need to have the object in the line of sight. The EPC coding scheme for a 96-bit tag will allow every manufacturer (EPC manager) to uniquely label 1.8×1019 objects. This should be sufficient today and in the foreseeable future.

P05-15.pdf