News | July 18, 2006

RFID Tracking: Logistics Global Market Leader And NBG ID Carry Out Two Large-Scale Pilot Projects Using PowerID Battery-Assisted, Passive UHF RFID Labels

NBG ID, a PowerID VAR based in France, enables leading third party logistics provider to track high value pallets where passive RFID labels failed

The PowerID Division of Power Paper Ltd., a leading provider of next-generation printable microelectronic devices and thin and flexible batteries, and NBG ID, a PowerID value added reseller (VAR) and a subsidiary of NeoPost (NEO: Euronext Paris), a provider of mailing and shipping solutions, today announced that a global market leader of the logistics industry has carried out two successful large-scale pilots using PowerID battery-assisted, passive UHF RFID labels and readers at the distribution centers of the logistics provider in France.

The logistics provider has used PowerID hardware, including tens of thousands of labels, in two projects that track high value assets in challenging supply chain environments:

  • Inventory Tracking – Using an RFID-enabled forklift, the logistics provider has taken inventory of shelved pallets carrying alcoholic beverages in its distribution center bonded warehouse. The pallets, which belong to one of the logistics provider's retail customers, are tagged with PowerID labels and cross-referenced with PowerID labels affixed directly onto metal shelves to provide location information. 100% read rates have been achieved in this project.
  • Pallet Tracking – PowerID labels have been placed on a retailer's mixed pallets upon exiting the distribution center. The mixed pallets usually contain products that include metals, liquids, and foils. The PowerID label is read at reader gates found at the dock door of the distribution center and at the dock door of the retailer's stores. The reader gate assures the shipment of pallets to the correct stores. 99.7% read rates have been achieved in this project.

NBG ID chose PowerID's battery-assisted, thin and flexible, environment-friendly labels for the projects after comparing their performance to that of other passive labels and active tags. Passive labels that were tested failed to address the requirements provided by the logistics provider, namely: read rates of 99.5% or higher, the ability to read a label placed anywhere on a mixed pallet or pallet carrying alcoholic beverages, and a fully disposable label that does not contain toxins which could endanger the safety of pallets carrying food and beverages.

Both projects have demonstrated a strong business case. Pallet tracking with PowerID has completely reduced shrinkage and misrouted pallets. NBG ID's patented RFID-enabled forklift has reduced inventory tracking time from once every quarter to once every week; this results in the retailer paying excises and duties on alcohol once a week, according to an accurate, instead of an estimated, inventory count.

The projects have utilized tens of thousands of PowerID L-1010 labels. As part of the projects, NBG ID developed a software middleware suite for pallet tracking on shelves utilizing an RFID-enabled forklift. The combined software and hardware have achieved 100% read rates of shelved pallets, far superior to passive label systems that were tested for the pilot.

"We found PowerID to be the only UHF RFID solution that addresses the stringent requirements of the logistics provider at a price point that allowed us to achieve return on investment for a possible future rollout," said Bruno Fabre, CEO of NBG ID. "We tested PowerID alongside passive solutions, which failed to provide the required performance, and bulky, expensive active tags, which often contain batteries not suited for placement adjacent to food and beverages."

"We are very pleased to be the supplier of choice for this important global customer. We have once again demonstrated that our patented, battery-assisted, passive UHF RFID technology is the only solution for these applications" said Erez Kahani, Executive Vice President of Power Paper's PowerID division. "We are excited to forge ahead as a pioneer in the field of battery-assisted, passive RFID. As time progresses, we are confident that our products and technology will be adopted as the de-facto standard for RFID tagging in demanding environments."

For more information on these projects, please visit PowerID's case study webpage.

About Power Paper
Power Paper Ltd., founded in 1997, is a leading developer of next-generation, printable micro-powered devices and technologies. The Company's core technology -- thin and flexible, environment-friendly, printable energy cells -- is being integrated into a host of applications. The two primary markets in which Power Paper operates are the skincare market, where it offers PowerCosmetics microelectronic patches that provide immediate rejuvenating effects and/or unparalleled delivery of active ingredients; and the radio frequency identification (RFID) market, where it offers PowerID battery-assisted RFID label systems for tracking high value assets in challenging environments. Power Paper's technologies, production processes and product designs are protected by over 50 patents worldwide. For more information, please visit www.powerpaper.com or www.power-id.com.

About NBG ID
NBG ID's mission is test, develop, and implement RFID projects exclusively for logistics and freight companies on a global basis. NBG ID is involved in a number of major RFID projects, including live implementations in the fresh food, trucks, pharmaceutical, pallets and cartons, and RPC's vertical markets. NBG ID also has access to a large software development team that creates software solutions for focus applications. NBG ID is headed by Bruno Fabre who has been involved in logistics for many years and created a business for scanning and storage / retrieval of transport company POD's (DHL, GEODIS, French Post, etc.). That company was acquired by Neopost and now trades as Neopost DIVA. Fabre, thereafter, established NBG ID, with Neopost as a shareholder. For more information please visit http://www.nbgid.com.