Week 10 | Session 3: T&T Systems — RFID, Sensors, Packaging Levels, Process Design & Benefits
Course: Supply Chain Digitization — Module 4: Digital Infrastructure
Session Agenda
Section titled “Session Agenda”1. RFID — Radio Frequency Identification Tags
Section titled “1. RFID — Radio Frequency Identification Tags”Tags with embedded chips that store information and relay it via radio frequency signals to an RFID reader. Key difference from barcode/QR: no close proximity or precise angle needed — reader can be remote.
Key Advantages Over Barcode / QR
Section titled “Key Advantages Over Barcode / QR”| Advantage | Explanation |
|---|---|
| No line-of-sight required | Tag can be inside a sealed container and still be read. |
| Scan-on-the-move | No stopping required — critical for conveyor lines. |
| Bulk scanning | Scan a whole container or pallet without opening it. |
| No manual intervention | Gates open automatically once tag is identified. |
Applications
Section titled “Applications”- Manufacturing / assembly lines: items move on conveyor — scanned automatically at each workstation.
- Containers & pallets: import/export — scan container moving through port zone without stopping.
- Toll collection (FASTag — India): vehicle RFID triggers automatic toll debit and gate opening.
- Vehicle fleet tracking: embedded tag tracks movement through checkpoints.
- Pet / animal tracking: tag embedded under skin — scanned without harming the animal.
2. Wireless Sensors & IoT — Real-Time Monitoring
Section titled “2. Wireless Sensors & IoT — Real-Time Monitoring”Devices that capture product/environment conditions continuously in real time (not just at scan points). Connected to IoT platforms — data streamed via internet to cloud or local storage.
What Data Can Sensors Capture?
Section titled “What Data Can Sensors Capture?”| Data Type | Examples | Key Use Case |
|---|---|---|
| Climatic conditions | Temperature, humidity, pressure | Pharma, food, blood, IV fluids — cold chain |
| Location | GPS-based position | Live transit tracking |
| Vehicle status (Telematics) | Speed, fuel, vibration, wear & tear, breakdown alerts | Remote routes, high-value cargo |
Telematics
Section titled “Telematics”Tracking vehicle movement parameters using sensors. Products are monitored indirectly via the vehicle’s environment — especially useful for remote routes with poor roads where vibration can damage products.
3. All Four Technologies — Side-by-Side
Section titled “3. All Four Technologies — Side-by-Side”Cost increases as data richness and automation increases: Barcode → QR → RFID → Wireless Sensors
| Attribute | Barcode | QR Code | RFID | Wireless Sensor |
|---|---|---|---|---|
| Format | Lines on sticker | 2D matrix — physical or digital | Embedded chip in tag | Hardware sensors + IoT devices |
| Data capture | Point-in-time scan | Point-in-time scan | Triggered by reader signal | Continuous real-time stream |
| Proximity req. | Very close + precise angle | Flexible angle/distance | No close proximity — remote | Product must be near sensor zone |
| Info capacity | Low (few attributes) | High (links to web/data) | Moderate — chip-stored data | High — continuous multi-param stream |
| Static/Dynamic | Static only | Static or dynamic | Static (read/write models exist) | Dynamic — live data at every moment |
| Cost | Very low | Low | Moderate | High |
| Best for | Retail checkout, cargo bags | Secondary pack, pallets, payments | Conveyor lines, containers, tolls | Cold chain, telematics, pharma, food |
4. Levels of Product Labelling — Packaging Hierarchy
Section titled “4. Levels of Product Labelling — Packaging Hierarchy”Tags and codes can be applied at different packaging levels — choice depends on the granularity of tracking needed.
| Packaging Level | What it Is | Typical Info Captured | Technology Used |
|---|---|---|---|
| Primary (Item level) | The product itself — e.g., a bottle, box, blister pack | Unit serial no., batch, expiry, price | Barcode (most common), RFID chip embedded |
| Secondary (Carton level) | Multiple units packed in a carton / inner box | Carton code, contents description, quantity | QR code, barcode on carton face |
| Tertiary (Pallet level) | Many cartons stacked on a wooden pallet for B2B transport | Pallet ID, contents, origin, destination | QR code, RFID tag (no need to unpack to scan) |
| Container / Vehicle | Container on ship/truck, or the vehicle itself | Container ID, vessel/vehicle no., route, timestamp | RFID (passive/active), telematics sensors on vehicle |
5. Product Tracing — Connecting Timestamps Across the SC
Section titled “5. Product Tracing — Connecting Timestamps Across the SC”The power of T&T: timestamp data at every scan point creates a complete product trace — a full chronological history. This trace can be used to root-cause quality issues or diagnose service delays.
Walkthrough — Consumer Complaint Scenario
Section titled “Walkthrough — Consumer Complaint Scenario”- Consumer complaint at retail: Customer reports quality issue. T&T reference: checkout scan at retail → identifies product code + timestamp.
- Retail → Warehouse: Product code traced to carton scan at DC dispatch. Identifies which pallet it left on and when.
- Warehouse → Factory: Pallet scan at factory dispatch + arrival scan at warehouse reveals transit time and any delays.
- Factory — batch/line: Carton scan at factory dispatch → linked to production batch + date → reveals manufacturing context.
- Factory → Suppliers: If manufacturing is not the issue — trace further upstream to raw material arrival records at factory → reveals procurement delays or material issues.
6. Process Design — Key Questions Before Implementing T&T
Section titled “6. Process Design — Key Questions Before Implementing T&T”Technology alone is not enough — process design determines what to track, when, how, and for whom.
| Process Design Question | What to Consider |
|---|---|
| Scope of monitoring? | End-to-end SC or only certain stages? Depends on the problem being solved. |
| Data of interest? | Movement only? Or also health (temperature, humidity)? Connects to technology choice. |
| Parallel or sequential? | Is scanning a separate activity or can it happen alongside another process (e.g., conveyor)? |
| Transmission & storage? | On-premise servers or cloud? Which database/ERP? How does data integrate with existing IT? |
| At which stages captured? | GRN at receipt? Cycle counts? Pre-dispatch? Real-time in-transit? Define scan checkpoints. |
| Manual or automated? | If labelling/scanning hampers productivity → automate. Depends on volume and cost-benefit. |
| Commercial returns? | T&T takes time to stabilize. Set clear milestones for ROI. Do financial analysis first. |
| Energy requirements? | Sensors and RFID need power — battery or electricity. Factor into operational cost. |
| Documentation linkage? | How does scan data feed into GRN, ASN (Advance Ship Notice), invoices, audit trails? |
7. People — Training & Change Management
Section titled “7. People — Training & Change Management”What Personnel Need to Be Trained On
Section titled “What Personnel Need to Be Trained On”- Labelling: how to apply codes correctly; label position must be accessible for scanning.
- Scanning: low skill for routine tasks; higher for billing/inventory contexts.
- Data management: storing records correctly, maintaining database integrity.
- Decision-making from data: interpreting dashboards, using tracking data to review processes.
Automation Reduces Training Need
Section titled “Automation Reduces Training Need”RFID + sensors can automate scanning — no person needed at the scan point. The Amazon Go example: customer picks item → product scanned automatically → billed via app on exit → no cashier, no checkout. This represents the shift from monitoring-only to monitoring + control systems.
Change Management
Section titled “Change Management”Migrating from paper-based to automated T&T requires a mindset shift — not just a tool change. Personnel whose jobs were manual tracking may face job displacement concerns.
- Re-skill displaced personnel — redeploy to higher-value tasks (data analysis, decision support).
- Run regular training programs with clear communication of job security plans.
- Manage expectations — poor change management = implementation failure even if the technology is good.
8. Benefits & Challenges of T&T Systems
Section titled “8. Benefits & Challenges of T&T Systems”| ✅ Benefits | ❌ Challenges |
|---|---|
| Authentic timestamped product data | High implementation cost — escalates with IoT, blockchain, more checkpoints |
| Real-time visibility of inventory status | Data storage & analysis also requires technology investment |
| Tracks productivity of SC processes | Change management — migrating from paper to automated is disruptive |
| Reduces errors and SC issues | Personnel re-skilling needed — older roles may be eliminated |
| Enables SC partner collaboration | Technology evolves — frequent redesign creates disruption |
| Enables quick refunds / returns (e-commerce) | New T&T system must integrate with existing IT/ERP |
| Defines contract clauses with 3PL players | Multiple tagging systems (RFID + QR) may need integration |
| Enables monitoring AND control (automated alerts) | Returns are not immediate — system stabilization takes months |
Session Summary
Section titled “Session Summary”- RFID: embedded chip, remote read, scan-on-move, no line-of-sight — conveyors, containers, tolls, pet tracking.
- Wireless sensors + IoT: real-time continuous data stream — temperature, humidity, GPS, telematics — cold chain, pharma, food.
- Telematics: vehicle movement monitoring — speed, fuel, vibration, route — indirect product health via vehicle environment.
- Cost order: Barcode < QR < RFID < Wireless Sensors. Higher cost = richer real-time data.
- Packaging levels: Primary (item) → Secondary (carton) → Tertiary (pallet) → Container/vehicle. Label at the level you manage.
- Product trace: backward timestamp chain — complaint at retail → retail → WH → factory → supplier.
- Process design: 9 key questions — scope, data type, parallel/sequential, storage, checkpoints, automation, ROI, energy, documentation.
- People: train on labelling, scanning, data mgmt, decisions. Automate where possible. Manage change carefully.
- Benefits: authentic data, visibility, productivity tracking, collaboration, contracts, monitoring + control.
- Challenges: high cost, data storage investment, change management, IT integration, technology redesign disruption.