Special Interview: Larry Kellam
ASCET: What is the Electronic Product Code Network?
Kellam: Most of the communications on EPC are about the cheap tag and the agile reader. Both the cheap tag and reader are very important, but comprise only two parts of the five-part EPC Network. The EPC Network works with: EPC tags and readers, object name service or ONS, EPC information services, and EPC middleware. The EPC number, a unique identity, is stored on a special EPC tag. These tags will be applied during the manufacturing process. In turn, using radio waves, the tags will communicate their EPCs to EPC readers, which will then pass the information along to a computer or local application system. Next is object name service. Since only the EPC is stored on the tag, computers need some way of matching the EPC to information about the associated item. Thats the role of the ONS, an automated networking service similar to the domain name service that points computers to sites on the Internet. ONS will render the global EPC Network essential for tracking goods anywhere. EPC Information Services will enable users to exchange data with trading partners based on EPCs. And lastly, EPC middleware is software designed to manage and move information in a way that does not overload existing corporate and public networks. It uses a distributed architecture, meaning it runs on different computers distributed through an organization, rather than from one central computer.
ASCET: Why is EPC important?
Kellam: The EPC Network will enable organizations to be more responsive to customer and consumer needs by providing information and data to the network of users about the EPC-coded products in the supply chain. This will, in turn, drive business value through increased revenue, decreased costs, and increased asset utilization. There are strong business cases for implementing the EPC Network in the heart of the supply chain of many industries today. In consumer goods, for example, the EPC Network has the potential to increase product availability in the retail store by reducing out-of-stocks and better meeting the needs of consumers. The technology enables retailers to locate items in their back-store operations and improve replenishment and inventory management between retailers and manufacturers.
ASCET: Who is EPCglobal and what will they do?
Kellam: EPCglobal is the industrys trusted partner for driving the global adoption and implementation of the EPCglobal Network across industry sectors. Their mission is to make organizations more effective by enabling true visibility of information about items in the supply chain. To that end, EPCglobal develops and oversees standards for the EPC Network. Additionally, EPCglobal will provide a global EPC number registry service for electronic product codes in the supply chain.
As a joint venture between EAN International and the Uniform Code Council, EPCglobal leverages a nearly 30- year heritage of successfully partnering with industry. Id like to add that EPCglobal is a neutral, consensus-based, not-for-profit standards organization.
ASCET: What are the key issues the industry faces now with EPC Network adoption?
Kellam: The key barriers or issues to broadscale EPC Network adoption are being worked on as aggressively as possible by EPCglobal and its members. The issues seem to be: EPC Network technology, standards, internal business cases, and public policy.
Lets start with EPC Network technology. EPC tags and readers are relatively new technology. As such, there are start-up issues like read rates, read ranges, and tag reliability. While RFID is not new technology, the application to consumer-packaged goods and products is new and it will take some time to work through all of the different electromagnetic product permeations that exist. Certainly, the EPC Network needs to operate as robustly and reliably as the bar code system of today. Second is standards.
Having EPCglobal led by the joint venture of the Uniform Code Council and EAN organization gives the EPC network a real possibility of becoming the global standard. UCC and EAN have been supporting the bar code standards and its improvements for nearly 30 years and are well-equipped to lead the standards process for EPC too.
Theres also internal business cases where each manufacturer and retailer needs to complete their business case that determines how and where they can benefit from EPC technology. I strongly believe that with transformation of business processes, the technology will have excellent payback. On the other hand, if all a company does is to add an EPC tag wherever a bar code exists and not change any processes, business benefit will be hard to find.
And finally, there¡¯s public policy. Consumer privacy and consumer education will be extremely important for broadscale EPC Network adoption beyond its supply chain applications. In the future, it is not hard to imagine the EPC Network being used in hospitals ¨C to connect patient ID and prescription dosages to ensure 100 percent accuracy before administration. This EPC Network application could save lives and is only one of the many other uses for EPC beyond the consumer products supply chain.
