Avery Dennison RFID Guide
Solutions Group
Understanding RFID
Avery Dennison RFID Guide
Solutions Group
How to integrate
RFID into your label
conversion process
After decades of real world application, radio frequency
identification (RFID) technology is no longer seen as a
mystery, but an opportunity. Increased efficiency and
profitability across a wide range of industries is driving
the global RFID market to reach $24 billion by 2033,
according to IDTechEx Research.
As more converters integrate RFID into their label
production processes, they are discovering two things:
` RFID capabilities enable deeper and more diverse
customer relationships.
` Choosing an experienced supplier can expedite
successful adoption.
How RFID Works
There are three main hardware or physical
components to any RFID system:
` The chip is the brain or memory that stores
identifying data.
` The antenna is the transmitter that relays data
from the chip to the reader.
` The reader is a programmable logic controller
that activates whatever function is required —
from recording inventory adjustments to issuing
counterfeiting or theft alerts.
The inlay is the integrated unit made up of a chip
and antenna. These two components are built onto
a flexible carrier, which label converters can then
insert into a finished product.
Every inlay has unique design characteristics
dictated by the end user’s information tracking,
monitoring and/or reporting requirements. How
the customer uses RFID technology will determine
which type of inlay a converter will need.
Avery Dennison RFID Guide
Solutions Group
Benefits of Adoption
Where bar codes use an optical identification process,
RFID uses radio waves and thin antennas to identify data
and transmit it. This process eliminates concerns about
label orientation or line-of-sight obstructions.
An RFID chip also offers comparatively vast data storage
capabilities, giving end users a new way to track and store
different types of data for diverse market applications. In
the health care industry, end users have reported a return
on investment up to $4 for every medication tracked with
RFID tags. Even the grocery business, where razor-thin
margins are the norm, is discovering food loss can be
reduced by as much as 20 percent using RFID technology
— representing $22 billion in savings worldwide.
Investing in
RFID Technology
As more end users experience the ROI benefits of using
RFID, demand for the technology is growing rapidly.
Customer requirements impacting inlay Market-savvy converters adopting RFID capabilities
design include: for their customers are already gaining a competitive
advantage and market share in industries ranging from
` Application — Passive RFID requires a signal retail to food and beverage to aviation.
to be read, or activated, whereas active
RFID is battery-powered, enabling Still, integrating RFID into the converting process involves
additional applications such as time and an investment of time and resources in areas such as:
temperature tracking.
` Testing — An insertion and testing process must be
` Frequency — The operating range of an RFID incorporated into an existing conversion line. Testing is
application will dictate whether low frequency, also required to ensure the electrical functions of the
high frequency or ultra high frequency radio chips are operating properly.
waves are used.
` Equipment — New equipment may be required to
` Attachment method — This is the method by integrate RFID capabilities. Requirements will depend
which the chip is attached to the antenna. on whether the inlay insertions are dry or wet.
Direction-style attachment is suitable for many
standard layouts, whereas strap attachment ` Packaging — Modifications in packaging may also be
enables custom inlay designs that can improve necessary to avoid chip damage during shipping.
converter throughput when more complex
designs are required.
` Carrier material — Carrier materials vary greatly,
from environmentally responsible substrates
such as the paper label to more standard
polyester films that can be layered into a
finished label.
Avery Dennison RFID Guide
Solutions Group
RFID uses radio waves and
thin antennas to identify
and transmit data
So, how can you determine the right time to invest? ` Identify conversion equipment and process
modification requirements to ensure the proper
Prior to adoption, consider working with another converter installation and packaging of inlays.
on a toll-manufacturing basis as a stopgap measure.
As customer demands become clear, you can then make ` Recommend electronic testing points and
incremental investments in equipment modifications other quality control procedures within the
and improvements. conversion production line to achieve desired
performance outcomes.
Choosing an experienced partner for RFID implementation
` Identify continual improvements needed to meet each
will also clarify any lingering concerns about the perceived
customer’s changing requirements.
complexity of the technology.
RFID is transforming end users’ expectations of today’s
label conversion processes, just as bar codes challenged
A knowledgeable inlay manufacturer will: the status quo more than 40 years ago. Avery Dennison is
committed to supporting converters and their customers
` Properly assess the scope of work required to fulfill an
worldwide through the RFID adoption process.
end user’s performance expectations.
` Design a chip/antenna configuration and carrier
substrate appropriate to the scope of work.
As a pioneer in RFID technology and the largest UHF
RFID inlay manufacturer and distributor worldwide,
Avery Dennison can help you achieve and protect each
customer’s information — gathering objectives, while
opening new windows of opportunity for deeper, more
profitable customer relationships.
Contact us if you want to talk to one of our experts:
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