Joint white paper by George Schmitt, Impinj, Lyngsoe Systems and UPM Raflatac

1. RFID for
BAGGage
Tagging
Reducing costs and improving operations, worldwide.
99.8% read accuracy rates
Reduces system costs (including labor and hardware)
Enables efficient locating of individual bags
Reduces manual sorting requirements
Improves security

2. Why Use RFID Technology
for Baggage Handling?
Most airlines struggle day to day with a variety of issues related to survival—issues such as unpredictable fuel costs,
uncertain global economies, and tight finances. To combat these challenges, airlines continuously seek to better their
operations, and RFID technology is at the forefront of process improvement.
RFID technology can aid and assist in multiple areas to reduce costs and requirements dropped to annual. RFID has the added benefit of being globally
increase operating revenue through improved asset visibility, consumable interoperable—the same tag works as well in Hong Kong as it would hours
inventory management, food and beverage delivery management, retail item later in Las Vegas, or Lisbon.
inventory, sales management, and baggage handling efficiency. This white
paper addresses baggage handling. So why hasn’t the industry just adopted and implemented the technology?
Limited funding is one answer, but the penchant for believing that benefits
Estimates by the International Air Transport Association (IATA) put will not be realized until adoption is comprehensive (bags tracked along
mishandled baggage costs at approximately $US 2.5 billion for 2009 all segments of a journey) also persists. This belief has led many airports,
alone-equivalent to the cost of nearly 50 Boeing 737-600s. This industry handlers and airlines to delay implementation until mandated. But proactive
problem spans cities, regions and continents. While many assume full airport management teams who have taken a hard look at their process have
participation by all parties is necessary to completely rectify the problem, determined that performance improvements and savings resulting in a real
RFID-enabled baggage tagging efforts already in place show that local or return on investment are possible even with local implementation. And in
regional implementation of RFID on baggage can have significant benefit, an age where consumers face increasing fees (such as checked baggage
resulting in improved service, substantial cost reductions or savings, and charges), the ability to provide improved service while reducing costs can go a
increased customer satisfaction. long way toward improving an airline’s reputation and building brand loyalty.
Each airline has its own way of dealing with the baggage handling issue, with
You Can’t Fix What You Don’t Understand
some having better results than others. RFID has had significant impact on
visibility and missed baggage in airports such as Hong Kong International, It is best to first clearly identify goals. Where are the baggage handling
Italy’s Milano Malpensa, Lisbon, and Denmark’s Aalborg International. problems areas? What are the system loading and capacity point limits? Are
Where barcode technologies were providing read rates as low as 60%, RFID there certain times during the day, particular weeks, or even months when
read rates came in as high as 99.8 %, and weekly equipment maintenance more problems occur? Most operations people already have some idea of
problem areas and are a good resource when considering where to begin.
It is possible to extract data from existing barcode baggage systems to help
determine problem areas, but it will not address all processes.
“Estimates by IATA put As it turns out, RFID technology can provide visibility into processes without
incurring the cost of a full implementation. With an RFID-enabled baggage
mishandled baggage quality measurement system that involves tagging a statistically significant
percentage of the checked baggage, installing read points (both fixed
costs at approximately and mobile) at critical areas throughout the baggage handling process,
and providing unbiased data through an easily accessible interface, all
$US 3.8 billion for participating parties have immediate visibility into problem areas. Through an
iterative process, these parties can cooperate to fine tune the process. The
2009 alone.” readers, tags, and software needed for such a quality measurement system
are generally off-the-shelf and readily available.
Another benefit of beginning with a quality measurement approach is that
organizations gain familiarity with the technology, see the benefits first
hand, and can help clearly define the ROI for full implementation using
real, unbiased measurement data. It’s a cost effective, low risk process
improvement approach that the automotive industry has used with great
success for over 30 years.
2 RFID Baggage Tagging

3. for details about an airline’s or airport’s performance, the need to improve
customer service and build a brand known for that service is paramount to
RFID has unique capabilities that support process
survival. Plus, the global standards necessary for success in an industry that
improvement by enabling far greater visibility into
spans the world are already in place and actively being advanced. Outlined
operations than ever before. RFID tags:
below are things to know when considering an RFID implementation.
• do not require line-of-sight reading as do barcodes
• can be read accurately from a distance The Tag
• can uniquely identify the item to which they are attached An RFID tag comprises an integrated circuit (tag chip) mounted on a
• may be read simultaneously substrate along with an antenna. This resulting “inlay” is then “converted”
• may be updated in the field by being sandwiched between a label and its adhesive backing to yield a
• have read accuracy advantages over barcodes printable label (or in case of the baggage handling application, a printable
baggage tag). These ingredients and steps often involve multiple vendors,
whose expertise varies. IATA has created recommended practices for RFID
technology, and it pays to respect their specifications.
Problem Understood, Now What?
A measurement system provides process improvement insight and helps to As in all technologies, there are leaders and followers. For tag chips, Impinj
build the business case for RFID, as it clearly demonstrates the advantages leads in innovation, performance, and in the development of standards.
RFID technology has over barcodes. The next stage is implementing RFID- Impinj’s highly reliable tag chips result from a combination of high read and
enabled tagging to track, trace, and control the travel of bags from ticket write sensitivity and excellent noise interference rejection. In addition, a unique
counter check-in to their final destination, which in the case of localized RFID dual antenna input structure supports omni-directional tags, which help solve
implementation remains within the confines of the airport. The goals are to application impediments that often limit overall system performance.
eliminate miss-sorts, improve read rates and visibility, reduce maintenance
costs and manual labour, reduce delivery delays to and from the aircraft, The antenna inlay assembly, a key element responsible for harvesting RF
and—perhaps most importantly—improve customer satisfaction. energy and communicating information, is also critical to system performance.
Antenna designs are many and varied, as different applications require
This stage is more complex to implement and requires careful planning, an different approaches. Regardless of the application, most important is the
in-depth understanding of baggage handling logic and controls, and familiarity vendor’s ability to produce a high quality and reliable product in high volume.
with the environment. Success depends on a clear understanding of radio This process is capital intensive and vendors must have the skills and
frequency (RF) communications, channel planning, RF propagation issues expertise for application of ultra low pitch component placement, bonding, die
related to the technology of choice, and ISO 18000-6C compliant technology. cutting, and automated processing. There are few vendors that have these
Careful selection of all the components along with application and installation skills and capability. UPM Raflatac is one of those few, having the financial
of the technology is key to success. Working with companies experienced depth, skills, and technology needed to provide quality inlays in volume. They
in the field, including integrators, label converters, tag inlay and tag chip have a portfolio of products to address most applications, are continually
suppliers, and reader vendors is critical to meeting cost and delivery targets. inventing new solutions based on customer demand, and provide inlays with
Impinj tag chips.
Implementing RFID to Improve Passenger Service The third component, the bag tag, carries the substrate/tag chip/antenna
RFID technology has been around since World War II. Why is now the perfect inlay, and provides a means for presenting human readable text as well
time to implement an RFID-enabled system? For starters, the technology has as barcode symbols. In baggage tag form, the inlay becomes pliable,
evolved over the last decade to a point where a return on investment is viable. applicable, and relevant. Baggage tag quality, consistency, and construction
And customer satisfaction cannot be overlooked. At a time when air travel are critical for this application. The baggage tag must survive a trip where
has been economically hit and consumers need only look on the Internet potential rough handling and exposure to a variety of environmental
RFID Baggage Tagging 3

4. conditions such as rain, snow, sleet, hail, etc. are possible. The baggage tag
must protect the inlay, provide a background for printing symbols, and have an
adhesive that will ensure the tag remains attached to the baggage. Because About George Schmitt & Company
RFID tag conversion (creating a baggage tag from the inlay) is also a capital George Schmitt & Co. is a globally recognized, experienced, and
intensive industry, only a few vendors have the depth and experience needed for certified RFID label converter and high security printer. Schmitt
consistent success. George Schmitt & Company not only has the capability and provides customized RFID solutions utilizing its patented and
experience with conversion of RFID inlays, they also have a considerable history proprietary testing and assembly equipment and systems.
of supplying baggage tags to the airline industry.
George Schmitt & Company
251 Boston Post Road
The Read Station Guilford, Connecticut 06437
The read stations provide visibility, tracking the position of the baggage on the USA
conveyor, belt, or tilt-tray. Simply said, but difficult to do with high reliability and Telephone: 203-453-4334
accuracy. A read station comprises a high performance ISO 18000-6C compliant www.georgeschmitt.com
reader, multiple suitable fixed antennas, control middleware, reader management
middleware, and system software. The reader must have the ability to provide About Impinj, Inc.
propagation characteristics of the reflected data as well as the tag identification Impinj develops award-winning radio frequency identification (RFID)
(TID) number. Among the few reader vendors that can provide the performance technologies that are at the heart of many of the world’s most
needed, Impinj stands out again with a discrete, high performance, compact reader efficient supply chain, asset management, and retail operations.
solution. The reader management middleware must be able to process and filter
Impinj, Inc.
tag data in real time, as well as manage multiple readers. It needs to communicate 701 N. 34th Street, Suite 300
with conveyor control middleware, and pass ID and system information to the Seattle, WA 98103
system software. There are few companies with expertise in this area, and fewer USA
with real experience and an off-the-shelf product. Lyngsoe Systems is one of those Telephone: +1 206 517 5300
companies, with product and installation experience incorporated in Hong Kong www.impinj.com
International Airport, Italy’s Milano Malpensa Airport, Portugal’s Lisbon Airport, and
Denmark’s Aalborg International Airport. About Lyngsoe Systems
Lyngsoe Systems’ Airport division is a world leader for RFID
Final Thoughts on baggage solutions including consultancy and systems
Innovative improvement of the baggage handling process is a holistic task that integration. References include Hong Kong, Malpensa, Lisbon,
requires a firm understanding of the business, organizational, technical, and and Aalborg airports.
political aspects of baggage handling. Communication between airport, handler, Lyngsoe Systems A/S
airline, and the leading providers of baggage handling systems is critical for Lyngsø Allé 3
process improvement success. For more information about RFID-enabled DK-9600 Aars
baggage handling, or any RFID application, contact any of the companies Denmark
mentioned in this white paper: George Schmitt & Company, Impinj, Inc., Lyngsoe Telephone: +45 96 980 980
Systems, and UPM Raflatac Inc. www.lyngsoesystems.com
About UPM Raflatac, Inc.
UPM Raflatac, part of UPM’s Engineered Materials business
group, is one of the world’s leading suppliers of self-adhesive label
materials and the world’s number one producer of HF and UHF
RFID tags and inlays.
UPM Raflatac, Inc.
267 Cane Creek Road
Fletcher, NC 28732
USA
Telephone: +1 828 651 4800
www.upmrfid.com
4 RFID Baggage Tagging ©2010 George Schmitt & Company, Impinj, Inc., Lyngsoe Systems and UPM Raflatac, Inc.