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Nov 02, 2024

Changing gears with RFID | Labels & Labeling

RFID label technology has emerged as a game-changer for the automotive industry. The automotive industry is expanding the use cases for RFID, from prototype testing to personalization and smart

RFID label technology has emerged as a game-changer for the automotive industry.

The automotive industry is expanding the use cases for RFID, from prototype testing to personalization and smart after-sales. Image courtesy of FineLine Technologies.

When Walmart announced in 2003 that its 100 largest suppliers would be required to use RFID tags on every case and pallet shipped to the retailer’s stores, tiremaker Goodyear Tire & Rubber volunteered to participate in this effort.

Fast forward to 2020, Walmart again adopted RFID tags in its retail apparel sector and saw the benefits of inventory management, resulting in a better in-store shopping experience for customers, additional online and in-store pickup opportunities, and improved sales potential. This led Walmart to expand RFID deployment to other categories, including automotive tires and batteries, in 2022.

As both Walmart and Goodyear learned, RFID integration not only streamlines car manufacturers’ processes, but also creates transparent integration with parts suppliers – and enables all the potential benefits of the digital transformation. Embracing this technology can give car manufacturers a competitive edge in this dynamic industry.

Sean Lowry, president at auto ID specialist Lowry Solutions, says: ‘A good solution, like RFID tags, makes everyone’s work easier by offering unprecedented levels of efficiency, accuracy and visibility in logistics and tracking operations. By utilizing radio waves to automatically identify and track objects, RFID systems have transformed the auto industry, enabling seamless supply chain management and enhancing overall operational performance— ultimately reducing stress and boosting the bottom line.’

According to Consegic Business Intelligence, the automotive labels market is anticipated to be worth USD 10.7 million by 2030, showing significant growth from its value of USD 6.9 million in 2022. This growth is expected to be at a CAGR of 5.7 percent between 2023 and 2030.

RFID technology is a key driver in this market, adding value to traditional labeling methods. A passive RFID label allows datato be read from and written to an integral chip attached to an antenna powered from an external radio frequency source. These chips contain unique identification codes, which are ‘read’ by radio transceivers. RFID can be used to provide information about a product and track its location and update that information wherever a powered read/write unit is located.

RFID tag and label manufacturer FineLine Technologies has built a global reputation for its work in the tire, aviation, entertainment, and retail industries.

George Hoffman, chairman and CEO of FineLine Technologies, says RFID is revolutionizing how items are tracked throughout the supply chain; at the source, distribution center, warehouse and at the point of use. ‘RFID tag and label technology enables superior track and trace capabilities and dramatically shortens the time required for inventory management while increasing accuracy to near-perfect levels. As tires leave the manufacturer, they can now be tracked throughout the supply chain and into warehouses. From there, tires can be tracked through distribution, resale and even in the field. Finally, at the end of a tire’s lifecycle, the tire can be tracked all the way through recycling, re-manufacturing, or to the point of becoming waste material—leading to reducing carbon footprint.’

“RFID tags can be implemented across various components of an automobile starting from tires, seats, bumpers as well as some decorative elements in the interior of a car. Today everything is possible with a little innovation and customization”

According to tire manufacturer Goodyear, RFID provides numerous advantages over barcodes, including more information storage, better durability and the ability to retrieve data from a distance.

Beyond the obvious supply chain benefits, Goodyear sees value for the consumer. The tiremaker has been collaborating with Siemens VDO to provide tire electronics through the TireIQ system. It relays specific tire information to drivers through a custom ‘tire tag’, composed of a computer chip and sensor built into the tire. The system provides the driver with warnings when improper inflation is detected.

Goodyear’s investment in RFID has also led to more efficient supply chain operations, improved business processes and lower operating costs.

Intelligent labels have a profound impact on the automotive supply chain by providing real-time visibility into the movement of parts and components. It helps companies to track inventory levels, monitor the location of assets and identify potential bottlenecks in the supply chain. By leveraging this data, automotive companies can make informed decisions to optimize their supply chain operations and improve overall efficiency.

‘The automotive industry has long been a pioneer when it comes to RFID transponders, deploying the technology for use across a range of demanding and rigorous scenarios,’ shares Lauri Hyytinen, market development manager for automotive at Avery Dennison. ‘Our work with partners supports the innovation initiatives of leading automotive players, providing them with more than just accurate and reliable tracking. Today everything is possible with a little innovation and customization.’

Ricardo Lobo, CEO of RFID chip manufacturer Beontag, agrees: ‘Going forward, we are seeing more and more parts of the vehicle subject to supply chain traceability requirements, and this will see both NFC and RFID tags used across the many separate elements that make up a final vehicle – be that tires, seats, or technology systems.’

The automotive industry is expanding the use cases for RFID.

Prototype testing: When testing prototypes, Porsche requires that drivers fill out paperwork and speak with employees at the gate to exit the facility. By using a RAIN RFID enabled access, Porsche eliminated this hassle and increased security around its prototype operations. As a vehicle approaches the gates, readers capture the tag attached to its windshield, recording the location and ID number. If the vehicle was approved to leave, the system permits it. The process is repeated upon re-entry.

Storage and shipping: Another German automaker, Audi, deployed Avery Dennison Smartrac’s Dogbone UHF tags, attached to the inside of the front bumper, to record information about each car’s position in the finishing, storage and shipping processes. This resulted in reduced labor for drivers who locate and transport the vehicles, as well as increased visibility for production management.

Racing performance improvements: Bridgestone Japan and Sumitomo Rubber Industries motorsport department selected Avery Dennison Maxdura Tire Tag for endurance racing applications. Avery Dennison’s Hyytinen states that teams benefit from a range of data to help them prepare and improve race performance. ‘Since a unique identifier can be assigned to each tire, information can be read automatically and used by the teams and the organizers to identify precisely which tires are in use. This automation enables teams to optimize real-time inventory, logistics and make the race more interesting for spectators. Providing a unique ID for each tire also improves reuse and recycling processes after the race to make events more sustainable.’

Elevating customer satisfaction: Nemak, a global automotive parts manufacturing company headquartered in México, partnered with Teklynx International to implement the Teklynx Central enterprise label management system. Comments Nick Recht, Teklynx Americas sales manager: ‘The technology helped Nemak automate label printing from SAP integration to eliminate manual errors and achieve 98 percent improvement in labeling accuracy and 100 percent improvement in labeling efficiency—which ultimately led to an increase in Nemak’s customer satisfaction rating by 75 percent.’

Payment transactions: Engineering and technology company Honeywell has developed a windshield-mounted IT70 RFID tag that can be used for highway tolling applications and electronic vehicle registration, as well as vehicle access and parking or fuel payment systems. According to Honeywell, the tag incorporates a range of cryptographic devices to provide two-way authentication and data security with up to six access keys with fully configurable privileges. Although commonly used for toll lanes and parking bays, the RFID tags could also be used for other electronic payment transactions such as buying gas without having to leave the car.

Anti-counterfeiting: In 2021 alone 1.86 million counterfeit Mercedes Benz products were seized in 650 customs raids. The sale of counterfeit car parts and components not only has financial repercussions but also affects the safety of drivers and passengers. Popular among the counterfeited parts are brake pads, airbags, windshields, lights and wheels. The company’s solution involved a combination of UHF RFID tags, crypto-signatures, holograms and barcodes.

Personalization and customization: RFID technology allows automotive manufacturers to manufacture personalized and customizable vehicles. RFID tags can store customer preferences and desired configurations, allowing manufacturers to tailor vehicles according to individual needs. From interior settings to infotainment options, RFID-driven personalization enhances the customer experience and builds brand loyalty. Using Impinj RAIN RFID, Volvo manages the production of custom cars made to meet individual customer requests. RAIN RFID tags are permanently mounted on the chassis of the car at the beginning of the manufacturing process, and are used to uniquely identify each vehicle and reliably track it through the production process. It ensures custom orders are built correctly. Volvo also uses Beontag tags to steer the timing of the ‘just in time’ automated production line at their manufacturing plants, where production of every car. Today, Beontag tags have played a part in the accuracy and efficiency of the manufacturing of more than 10 million Volvo cars around the world, the chip manufacturer says.

Enhancing user experience: RFID technology can transform the driving experience, making it more seamless and user-friendly. Keyless entry and ignition systems using RFID tags simplify vehicle access for owners, enhancing convenience. Additionally, RFID-labeled infotainment systems and smart controls makes driving more interactive and engaging. The ease of using RFID-based features enhances customer satisfaction and fosters brand loyalty.

Smart after-sales service: RFID enables more intelligent and efficient after-sales service. By equipping vehicles with RFID tags, manufacturers and service centers can remotely access real-time diagnostic data, identifying potential issues before they escalate. Proactive maintenance reminders and remote diagnostics streamline the servicing process, reducing downtime and customer inconvenience. RFID-driven smart after-sales services lead to increased customer loyalty and retention.

Sustainability: Bridgestone Tires is planning to help reduce the carbon footprint of its commercial vehicle line of tires by producing RFID-tagged tires in 2024. Tires on vehicles like trucks and buses will be linked to a cloud-based system that is designed to help clients maximize the tires’ lifespan and minimize their carbon footprint. RFID tags now have many other uses in the auto industry, from warning lights alerting technicians to particular problems to automated systems that can correctly track inventory levels across production lines.

RFID labels and tags offer a wide various other benefits:

Integration with loT: The integration of RFID with the Internet of Things (IoT) opens up new possibilities in transportation management. By combining RFID technology with sensors and other IoT devices, transportation companies can gather a wealth of data and gain valuable insights. For instance, RFID-enabled tags or labels can monitor temperature and humidity levels in perishable goods during transit, ensuring their quality and freshness. This integration enhances safety, reduces waste, and allows for proactive maintenance of vehicles and infrastructure. As the IoT develops, the benefits of smart tagging with RFID will become more apparent. It will provide new opportunities to increase customer convenience and safety, and offer label converters a way to differentiate their products and improve the operational efficiency of their customers.

“We believe in a future where every item will have a unique digital identity and a digital life, benefiting both consumers and brands, with relevant and contextual information”

Collaboration with ecosystem partners: Collaboration between RFID tech providers, automotive manufacturers and logistics services will lead to the development of a new range of customized applications.

For example, Avery Dennison is working with Wiliot to create a sticker-sized Bluetooth sensor tag incorporating an ARM processor powered solely by scavenging energy from ambient radio frequencies.

Wiliot’s strategy for battery-free Bluetooth transponders, which sense and communicate without needing specific action by consumers, is very relevant to Avery Dennison’s intelligent RFID label strategy,’ explains Hyytinen. ‘We believein a future where every item will have a unique digital identity and a digital life, benefiting both consumers and brands, with relevant and contextual information. We see this as an extension to our RFID solutions, enabling consumers to connect with products through multiple smartphone and IoT devices from end to end.’

Emerging markets: Rapid industrialization, urbanization and rising disposable income has led to more consumption and sale of vehicles in emerging markets. As per McKinsey, over the last 10 years, automotive sales in emerging markets, such as China, India and Brazil, have proved not only resilient but also, until recently, more robust than many experts would have predicted.

Electronic vehicles (EVs) are expected to account for 26 percent of global vehicle sales by 2030, with China leading the way as the largest EV market in the world. This has presented significant growth opportunities for the automotive RFID market.

Technological advancements: Traditionally, RFID tags were rigid, limiting their application to flat, non-flexible surfaces. However, the advent of flexible RFID tags has revolutionized the industry. These soft RFID tags, made from materials like special plastics, paper or fabrics, are suitable for curved surfaces or applications requiring a certain level of flexibility.

In the automotive and electronics industries, a specialized type of soft RFID tag is increasingly being utilized. These tags’ unique antenna designs allow them to adhere to and function on metal surfaces like car engines and electronic device casings, overcoming traditional RFID limitations.

RFID technology in industrial manufacturing can significantly speed up production and reduce manual labor. However, it is not without its challenges.

“Regulatory standards help to establishda level playing field for automotive companies and ensure that consumers can trust the labels on automotive products”

The RFID tags must be durable enough to withstand the extreme pressures and temperatures of car assembly.

Beontag’s Lobo notes: ‘One of the main challenges of RFID implementation in the automotive industry is that the tags must be incredibly durable and resilient to do their job (communicating data) during the many phases of production that a car must go through to become showroom ready. For this, we have made sure to create and deploy tags that can withstand the heat and pressure of assembly, painting and finishing to play their role in the full deployment of each new vehicle.’

Hoffman, of FineLine Technologies, adds: ‘They might not be readable at these temperatures, but they will survive and can be read back when at operating temperature.’

Furthermore, RFID systems can be vulnerable to radio frequency jamming, particularly in crowded spaces. In a crowded environment, multiple RFID tags operating in close proximity can interfere with each other and cause collision issues. This can lead to difficulties in accurately identifying and tracking individual tags

‘In most cases, we can find workarounds that allow the labels to work appropriately,’ comments Hyytinen. ‘For example, by carefully positioning and tuning the reader’s signal, you can ensure it is not blocked or is in any way interfered with.By using FlagTag or foam tags on a metal surface, we make sure that the tags can backscatter without signal disturbance.’

Finally, RFID tags have a limited range of data transmission, which means they are unable to capture and transmit information when used at a distance.

Explains Hyytinen: ‘Most RFID labels have a read range of 10 meters or more, provided nothing interferes with the radio signals; but for every reading point, you must fine-tune the reader to the optimum settings. Sometimes this involves reducing the power and the reading range.’

Intelligent labels are transforming the automotive industry by providing enhanced supply chain visibility, improved inventory management, and increased efficiency.

As the market for automotive labels continues to grow, driven by trends such as Industry 4.0, integration of IoT and the increasing demand for sustainable labeling, there are significant opportunities for growth and innovation in the industry.

By embracing intelligent labels, automotive companies can improve their operations, enhance their brand image, and stay competitive in a rapidly evolving market.

RFID will be a significant feature in the educational sessions at Labelexpo Americas 2024.

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