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2024 RFID State of the Industry with Justin Patton (Part 1)
Episode 2213th November 2024 • Supply Chain LEAD Podcast • Supply Chain LEAD Podcast
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Justin Patton, Director of Auburn University's RFID lab, sat down with host Mike Graan and discussed the evolution and future of RFID technology in retail and other industries. He emphasized the importance of proper item setup, technology readiness, and execution for accurate inventory management.

Patton highlighted the challenges in achieving serialized inventory and the need for multi-sensor systems. He mentioned initiatives like the chip and integration pilot and the executive committee involving Walmart, Delta Airlines, UPS, and McDonald's to drive technology adoption and knowledge sharing across verticals. Patton also stressed the importance of open standards and the need for mature technology solutions to improve supply chain visibility and efficiency.

Transcripts

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Presented by AllAccessRetail.com, welcome to

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Conversations on Retail. Join Mike Graen as he sits down with

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Justin Patton, Director of Auburn University's RFID lab, to

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discuss what is new in RFID for retail this year and beyond.

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Let's get started.

Mike Graen:

Hey. Good morning, good afternoon, good evening,

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everybody. Mike Graen here with another podcast with Justin

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Patton from the Auburn RFID lab. Just has been working on the lab

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and RFID back when he was a student at the University of

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Arkansas, and I guess Justin started the lab in 2005 was

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there for several years. Now, you're it got moved to the

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Auburn facility, which, ironically enough, Auburn and

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Arkansas just played football, and that didn't turn out so well

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from Auburn. But hey, we're glad we finally got a win, because we

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never beat Auburn at anything. So thank you very much for being

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here. We really do appreciate it. We're going to talk about

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everything RFID and what are the new thick capabilities in 2024

Mike Graen:

So Justin, welcome to the podcast.

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Thank you, Mike. Thank you for having me.

Mike Graen:

All right, dude. Well, we've done lots of these,

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so you know, you know the drill. Sent you the questions ahead of

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time. I'm just kind of looking for, okay, we did this last

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year. What's new? What's hot? Anything you can share. I'm just

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trying to me there's, there's two things that, in my opinion,

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are starting to pick up. One is food, not QSR, but I mean

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really, RFID and food. The other one is people are starting to

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finally get outside of the store and start to look at things up

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the supply chain. Those are the two big walls for me that, gosh,

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it's taken a long time, but we're starting to make some

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progress. But anything you want to be sharing about, hey, here

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are the trends of the industry, and the way that Auburn can help

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the industry with that, that would be super because I think

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this helps people understand exactly what Auburn does.

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Sure, you know one of the things we haven't

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talked about before, and we really try to, there's three

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fundamental things that we're trying to do with RFID, with

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barcodes, with human counts, any any system, I don't care what it

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is, any technology, when we're trying to manage inventory, you

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have a certain amount of physical stuff that is in a

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space. It's reality, okay? And then you have some type of

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system of record, whether it's a computer or clipboard or

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whatever you may have. So all these systems all this time are

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constantly trying to reconcile, like, what do we have in our

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system versus what is physically there. So in any of those

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systems we have to have, we have to establish three things beyond

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a shadow of a doubt, to know that whatever we have counted is

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what is actually there, so that we can upgrade it to our our

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system. One thing that we have to know is that we have to have

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the items set up properly. Okay? So if it's a barcode, then the

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item has to be barcoded and registered so that we can

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recognize it as a SKU if it's an RFID tag, it has to have the

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right RFID tag on the product. And it has to be encoded

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properly. It's serialized so that we can recognize it. If

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it's some type of an active tag, it has to have their thing on

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there. Even if it's just a hand count, it has to have a label on

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there, like it's jeans, so that the person who's looking at it

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can say, Oh, this is the size and color and style of jeez, to

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mark it down the list. So, so one thing we have to know is

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that the item is set up properly. The second thing that

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we have to know is whatever technology that we're using is

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fundamentally capable of doing what we ask it to do. So if it's

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a barcode scanner, then it is the correct kind of barcode

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scanner, laser or whatever, so that we can actually scan that

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thing. If it's an RFID scanner, then we have to know that we

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have got the right tags in the in the readers, so that we can

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scan those things when we do them, or the right type of

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overhead, or the right type of robot. Doesn't matter what it

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is, it's a physics, right? So whatever that system is, it has

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to be capable if it's a human that's out there counting it. I

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mean, if you need glasses, like me, you better have your glasses

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on, because you don't have the capability to capture that

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properly. So making sure the items set up properly, making

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sure that we have the physics, the physical capability to

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capture those things. And the third thing that we have to

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prove is execution, so that we're executing fully. So again,

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going back to those counting systems. Did they actually count

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everything? Did they go through the whole area, if it's an RFID

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count, did they actually walk the whole space? Or if it's an

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overhead or a robot that doesn't require human intervention, was

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that thing active in the inventory was moved through

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there, or did the robot go around, or whatever? So if you

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can prove fully and verify that the items are set up properly.

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Really that you have the right tech solution in place that's

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capable of counting those things, and that you have

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executed fully on everything you need to execute to make sure

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that that happens. Once those three things are established,

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then you know that you have a good inventory counting, good

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inventory system. So from there, that's where everything drives.

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So from the lab, we have whole programs set up on the physics

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side of that's the art program. We have a whole program set up

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on the supplier compliance side of it. That's the Alec program.

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And then the execution piece is a lot of the data and the audits

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and stuff and back and forth and everything too. So no matter

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what the industry is and what it is, and I was a long way to

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answer your question, we've been trying to firmly establish and

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find ways to preach that message. Of these are the things

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that you have to keep your eye on the ball if you want to make

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sure that your system works. And the nice thing is, in all these

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systems, you can independently monitor those, and there's ways

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to independently monitor those. So that's how we build

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confidence and consistency and counts and make sure that

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everything's is the way it's supposed to be.

Mike Graen:

That's great perspective, and that's really

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helpful. The challenge becomes, if you're a pure play retailer,

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you could probably leverage RFID to do that. If you're a great,

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big mass merchandiser, you're going to have RFID, you're going

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to have scanning, you're going to have computer vision, you're

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going to have all these other stuff. How in the world to put

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all that together? That, to me, is the trick of that, because

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every single item will have to have some signal that says,

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Here, I'm here, I'm here, I'm here. They could be different

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across the big retailer, like a Walmart or a Target or something

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like that. How do you combine all that stuff together? That,

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to me, is the hard part. This

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is, this is a key point, I think, with these multi

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sensor systems, is we do not talk enough, and we still have

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not crossed that hump into true serialized inventory. So like we

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are operating in a world where we are all wandering around in a

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fog of our uncertainty when it comes to inventory, and I'm not

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talking about warehouses or restaurants or retail stores.

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I'm just talking about life. I mean, if you look around your

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office or look around your house, and I I'm fond of saying

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this to people like you, ask somebody, how many pair of shoes

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do you own? Nine people out 10 can't answer. One lady did

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answer very directly. She had a very detailed inventory of

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everything she owned was very impressive, but, but most

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people, they don't know. They don't know how many shoes they

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have. You know how many plates you have. You know how many

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tools you have in your garage. If anybody's ever lived through

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any kind of a catastrophic event like a flood or a fire, you know

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how hard it is to deal with the insurance company, because most

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people just don't know what we have. How many times if y'all

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bought stuff because that you already have at home, because

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you forgot you got it, whether it's a tool or a socket or

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something else too. And, and we live in a world of of

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uncertainty when it comes to the things that are around us, and

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we're used to it. And, you know, we carry that into all the

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aspects of our lives, to whether it's a work or whatever it may

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be and and the reality is, I don't know. It doesn't not

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matter what your job is. Even if your job is working from a

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laptop, from home, you have an inventory like you have at least

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a laptop or a computer, or a pencil or pen or something like

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that too. So we are not to the point yet to where we are

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applying a specific identity to all of those items. Once we do,

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it does not matter what type of sensor you apply to it does not

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matter if you use a computer vision, it does not matter if

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you're using RFID, barcode, nothing, serial number, as long

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as it's able to reconcile back to one specific item, then we're

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dealing in a world of specificity. And then it's not

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just a matter of groups of things appear and disappear.

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It's a matter of individual items that we're tracking

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through and and really, at its fundamental core, most of what

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we're doing here, Mike, is it's not technology, it's accounting,

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right? So it's changing accounting standards and

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practices, which a lot of people are very familiar with, if

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they've ever tried to do annualized inventory audits for

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their financial reporting or anything like that too. But it's

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just a different way of of counting things, more so than a

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different all the technologies that you see on the surface.

Mike Graen:

Yeah, we, we have not posted it yet, but we had a

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really good conversation with Joe Cole, Vice President of

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asset protection with Macy's and Randy Dunn from Zebra, who's

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been literally looking at asset protection and from sensor Matic

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and a zebra perspective for a long time. One of the things

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that we talked about is combining technologies together

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for a single item, and the use case was using RFID for asset

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protection. Literally, you can measure what went through the

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register versus what left the store. The problem is that most

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people are saying, Here's what left the register at a G 10

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level, so at UPC level, if you will, what left the store is at

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a serialized level. So five. Got sold. 10 left the store. Five of

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them probably got taken for whatever reason. But you can't

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tell me which five, right? And so we started talking about,

Mike Graen:

well, I know you and I've talked about, potentially, every single

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item maybe have a different signal, one being RFID and one

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being a GS, one, 2d, barcode. The key is, they've got to have

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the same serial number. We're going to have a chaos, right?

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Complete chaos. But do you see more of that happening where we

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literally have, you know, redundant signals for a single

Mike Graen:

item that help capture it at different points in the supply chain?

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Yeah, we're getting there. And I think you

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see people coming in from different angles that don't even

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realize. So, you know, GS one talks about sunrise, which is

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their concept of moving us over to they've kind of changed the

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wording on a little bit, but some type of a 2d data matrix or

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identifier, moving away from a direct 1d bar code, I kind of

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like to strengthen the messaging to like, we're looking for a

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serialized inventory future. So in the world you're describing,

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Puma was the first company, I think, to fully integrate their

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2d barcode with their RFID tag. Now, Nike and under armor and

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others in the past have done a good job of linking the 2d bar

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codes, or the QR codes, or the anti counterfeiting identifiers,

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with the SG 10 on the RFID tag and the UPC. My understanding is

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that Puma is the first one that has actually has the same SG 10

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on the 2d bar code that's on that particular product and that

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that is fully linked on the back end, so that no matter which way

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you pull those, you're going to pull the same number back off of

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that item. And then we've got other people are going on that

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same path. So, you know, two drivers for sunrise, PNG was

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been a big driver of that. You know, a lot of png products you

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picked up and, you know, and love so well, Mike, you'll start

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seeing QR codes on the back of those. Coca Cola is driving some

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of that too, Pepsi. Pepsi, for sure, Pepsi, and they're not

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serialized yet, right? We're heading down that road of we all

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see where this is going quickly. So we don't matter how we get

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there, whatever puts that identity on there first at a per

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unit level is fine, as long as all those sensors are using it

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appropriately and consistently and and it really makes it very

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easy to see the future when it comes to technology a lot of

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ways, because you deal with this too. And I see this every day. I

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got people asking me about 57 new technologies and, and you

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know, a lot of them are data services. The first question you

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can ask yourself, the easy one, and what's going to stick and

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what's not, is it a proprietary numbering system? It's out. It's

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not gonna happen. So if it's if it's on open standards, great,

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even if it's in a vertical org or something like that, in the

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long term, you're just making life hard on yourself. So as

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long as you're operating on consistent, open industry

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standards, because you're going to be stacking those sensors

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together, the single sensor, you know, system is a thing of the

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past. And the second thing that people, we ask people when

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they're evaluating a new technology, if they tell you

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that they're replacing or competing with another

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technology, again, they missed a point. It's out, I don't know

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how many times we've gone to like a POS system or something

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like that, and we say, Oh, we're doing this. They say, God, we

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don't need that. We already have that with some RFID. We already

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have that with CV. I said, if you think that you are going to

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do this with one sensor, then you missed the point. Whole

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point is to have multiple sensor confirmation on a serialized

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unit level identity. We start stacking that confidence layer

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on there, and then that's the true, flexible future I guess.

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Mike Graen:

So Auburn University, specifically the

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RFID lab, led an initiative in 2018 which I was absolutely

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thrilled to be part of called chip and integration pilot, and

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it was a nice way of saying as we've really leveraged RFID and

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serialized data at the store level to know what we have and

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where is located. For the most part, we're almost going back to

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2005 when we started RFID at Walmart, which is tracking

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things throughout the supply chain, and the business drivers

Mike Graen:

were basically claims, elimination, product

Mike Graen:

authentication and shrink. Those numbers were out there, and they

Mike Graen:

were huge, and we were looking at EPCIS and blockchain and all

Mike Graen:

that kind of stuff. We fast forward to 20. 24 I think both

Mike Graen:

of us would agree we haven't made as much progress as we

Mike Graen:

would like to, but it feels like the industry is very primed to

Mike Graen:

be starting to take advantage of some of this due capability.

Mike Graen:

Where do you think this is really, really because it's an

Mike Graen:

incredible concept, but it's also extremely difficult to do.

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Yeah, I haven't. I've thought about this a lot

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like the tags are there on a lot a large segment of the supply

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chain. There's a lot of stuff that's been tagged for a very,

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very long time. And, you know, we have opportunities to have

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been leveraging those within DC and supply chain operations that

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are often people just don't avail themselves of but I also

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know that, like, I don't mean to single anybody out in

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particular, but if you go to a lot of DCs, the way that we run

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DCS is not modern a lot. I mean, you'll see a lot of barcode

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scanners, and you hear about ws systems and things like that

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too. But, uh, we don't tend to mess with DCS and then covid,

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even though it uncovered a lot of, you know, holes in supply

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chain, I think what it really did is make a lot of people

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turtle down and say, Hey, let's just get a process we know and

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love and stick with it, and then, you know, just force our

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way through when it comes to the labor component of that. So I

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think we're starting to see some forward thinking suppliers that

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are really kind of getting a handle on that polo and Ralph

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Lauren, you know, jockey, and some of the others too. Haynes,

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like a lot of folks on the apparel side, they're they're

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pushing volume that are really interested in it, that are

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starting to develop those solutions. But I also think

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that, uh, we're suffering from a lack of mature technic

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technology solutions in the supply chain, especially in the

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RFID world, and even in the CV world too. I think it's, it's

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the wheel, right? Like you said, we started in oh five with all

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this case and pallet level stuff, and a lot of that went

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away, and now we're coming back to it. But the tech is been so

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store focused. I mean, if you want to do RFID in a retail

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store right now. You go buy yourself a handheld, and you

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start cycle counting. You can do that today. If you look at a DC,

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you're going to get nine different answers to how should

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I light up this DC? And they're not, I feel sometimes direct

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value driven. They're more focused on selling a lot of

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hardware. So we don't have enough good success stories out

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there where people have showed that you can really lock down

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and trust this tech to be able to transition it from partner to

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partner. And I think it's just kind of a lack of imagination on

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some of the solution providers, and, you know, hardware provider

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space, and then also a lack of imagination, I think, on the

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part of some of the product manufacturers there, I see

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imagination, just knowledge of what you can do with having unit

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level visibility and trust that this is going to be something

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besides something that your retail customer asked you to do

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as a cost of business. How do they embrace it? Start using it

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to enhance their their operational value?

Mike Graen:

Yeah, well, the demo you had built at the lab, and

Mike Graen:

I'm not sure if it's still up and running or not, but the chip

Mike Graen:

demo that you had in the lab opened a lot of people's eyes

Mike Graen:

about what the opportunity was. Man, if I transmit serialized

Mike Graen:

data. And I shipped 20 pairs of jeans that I you ordered, and I

Mike Graen:

ship them all. And you come back and go, I only got 10. I'm going

Mike Graen:

to claim them. You go, nope. Here's the 20 I sent you. Here's

Mike Graen:

the license plates, the serial numbers of each one of them. I'm

Mike Graen:

not paying you $1 because I could prove when I put them on

Mike Graen:

the truck, they were there. That seems like a logical place for

Mike Graen:

most retailers to start from a receiving that Pro, that

Mike Graen:

product, directly from the supplier, for two reasons.

Mike Graen:

Number one, the called the whole claims measurement. Number two,

Mike Graen:

if you're going to find some product that's incorrectly RFID

Mike Graen:

encoded, that's where you want to catch it. You don't want to

Mike Graen:

go all the way through the DCS to 100 stores and go, Oh crap.

Mike Graen:

We got some stuff that's incorrectly tagged. I can't

Mike Graen:

figure out why, at the point of receiving at a distribution

Mike Graen:

center, why retailers aren't investing heavily in trying to,

Mike Graen:

you know, basically, when you when it transfers from the

Mike Graen:

supplier to them, they wouldn't want to capture that information

Mike Graen:

and push it through the supply chain. Is it just, is it the

Mike Graen:

technical issue that you said, or is it just no business

Mike Graen:

drivers or, you know, because it was, again, we did this in 2008

Mike Graen:

sorry, real long, 18,018 right? And now we're at 2024 I just

Mike Graen:

haven't seen the industry adopt what you guys had laid out,

Mike Graen:

which I think made all the sense in the world.

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With a lot of just talking about RFID in

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particular here, there's a time component to these systems

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that's discounted a lot of times. So if you cycle count a

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warehouse, or you cycle kind of store, you cycle, count it once

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a week, twice a week, you know, once every two weeks, whatever

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it may be. But there's a repetition factor to this. So

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RFID is not a camera flash. Where we flash the room, and

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then here's everything in there. It's more of, you know, it's a

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strobe. So we're constantly, like, lighting that space up and

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counting stuff in there. It's it's not a shout, it's a drum

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beat, right? So, like when you cycle count over time, the value

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of the cycle counts was, instead of doing an inventory count once

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a year or twice a year, we're doing an inventory count once a

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week, once every two weeks, so we get a lot of different shots

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at these items, and I think that helps increase confidence,

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because going back to those three things we talked about

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with supplier execution, the store execution, and then also

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the Technology Readiness, the more you repeat those, the

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better you can build confidence in those. I think one of the

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issues we've had at the DC is that we don't have mature

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systems for receiving. Yet, even at the store, a lot of times we

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treat it like you got one shot when it goes to that doctor, or

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we gotta scan everything that's in there, and then once it's

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past that doctor, then it's gone. So then you try to match

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up a count there that happened in, you know, maybe one to two

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seconds with all the stuff upstream, and we're putting too

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much of a constraint or a choke on there. So I think what we're

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seeing in, you know, especially the stores with fixed

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infrastructure. I mean, you've seen this mic like it ain't

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about just the readers at the receiving door. It's all the

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readers throughout the space that are going to pick up those

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items as they move throughout the store or throughout the

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warehouse or throughout the restaurant. And then that's how

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you kind of build out a mature, full picture of what's

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happening, rather than trying to compress this down to a big,

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giant wad of stuff and expect that to all scan at one

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particular point in time. And I think it does require a little

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bit more trust and maturity in all these systems to have that

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full infrastructure out there to where you're ready to use it,

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because not everybody's shipping boxes of towels where it's easy

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to scan at a doctor. So I think that are, there has been a

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little bit of, again, it's just, we're not it's just going to

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take a while for for all of the technology to get out there and

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get enough sensors in that space to where it really, really is

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working.

Mike Graen:

Yeah, and you just uncovered something that that

Mike Graen:

we've really learned the hard way in the retail space, which

Mike Graen:

is they used to call, what I would call things like choke

Mike Graen:

points. That was that word that they use. Hey, it's a single

Mike Graen:

kind of portal right here. Run it through here, and you'll

Mike Graen:

count everything. Yeah, it's probably not going to happen,

Mike Graen:

right? You're not going to catch it all. So the way I've seen it

Mike Graen:

be successful is maybe it's a term that industry uses, which

Mike Graen:

is control point, which is probably a single portal, plus

Mike Graen:

another couple readers, plus another couple readers. You need

Mike Graen:

to build up a enough readers and antenna that basically say, I've

Mike Graen:

got a number of times to catch this and establish what I would

Mike Graen:

consider to be some kind of a minimum viable read point, which

Mike Graen:

is, I want to be able to read at least 98% or 97% of the things

Mike Graen:

that are in the box, even if it's really tightly compressed.

Mike Graen:

That doesn't mean just putting one reader over door, and call

Mike Graen:

it a good because you may get 75% you're not going to get

Mike Graen:

anywhere close to where you probably have to be to have

Mike Graen:

accounting grade kind of accuracy. Would you agree with that?

Video Playing:

The greatest disservice that I ever

Video Playing:

personally did to this space, and I was guilty of it for

Video Playing:

years, is that that doctor portal demo we had down at the

Video Playing:

Arkansas lab, at the first lab, and the second one, and even ran

Video Playing:

in years like we, I don't know how many years we spent like

Video Playing:

staying up readers at a loading dock door and then showing

Video Playing:

people pushing, you know, a pallet full of T shirts in

Video Playing:

there, and saying, look, there's 200 T shirts in this palette.

Video Playing:

And look, you can see them all on my screen. And it came from

Video Playing:

the concept of, like, Hey, we're showing how quickly you can scan

Video Playing:

these things. But we gave people, I think, the wrong

Video Playing:

impression that, you know, the reality is, and everybody

Video Playing:

listening, I'm happy to stand up on the mountain say this, if you

Video Playing:

were using a loading dock door, the purpose of a loading dock

Video Playing:

door with RFID is you need pallet level or case level

Video Playing:

visibility? Yep, you are not going to see unit level

Video Playing:

visibility at loading dock doors, especially for a large

Video Playing:

load of stuff coming down through there. And somebody's

Video Playing:

going to tell you, I'm wrong and that they've seen it before. I

Video Playing:

ask go look at it then, because I've been doing this for 19

Video Playing:

years and I haven't seen one. So I don't think the Detect kind of

Video Playing:

works. It's not a drum beat that's a flashing time. So I

Video Playing:

think that helping people understand that the value of

Video Playing:

nested visibility, helping people understand like, when is

Video Playing:

the appropriate time to scan these things, and helping make

Video Playing:

sure that we have redundancy and operations, especially in these

Video Playing:

scanning operations, as much as possible, is very helpful to do

Video Playing:

that too. But I feel like we have kind of focused on what

Video Playing:

happened is in oh five, when we were really focused on these

Video Playing:

case level and pallet level dock door scans, we took some of

Video Playing:

those same techniques over into the item level world when that

Video Playing:

was the wrong lever to pull, when we started moving on on

Video Playing:

item level RFID, and that became apparent, because think about

Video Playing:

this way you it's not gonna take you long to learn that a

Video Playing:

handheld is not an awesome solution for a loading doctor

Video Playing:

or, I mean, it's not made for it, right? Um, it's great for

Video Playing:

item level and on a shelf. Not great for loading doctor or same

Video Playing:

thing for some of those, uh, doctors when it comes to, uh,

Video Playing:

getting old stuff, too different tools are made for different

Video Playing:

jobs, I guess, if you will.

Mike Graen:

Now, in fairness, there's some there's some people

Mike Graen:

out there doing it, but they have a different approach, which

Mike Graen:

is they have a hierarchy. All these 30 items are in this box.

Mike Graen:

All these boxes are on this palette. They know that in

Mike Graen:

childhood, parent relationship. So if I read a palette, I can

Mike Graen:

deduce what's all in the box, in the cases and in the items. So I

Mike Graen:

don't want to say you can't do that, but there's a lot of

Mike Graen:

forethought that has to go into I know what items are in which

Mike Graen:

box, which boxes are and which palette, and be able to do that,

Mike Graen:

because passing it through one single portal, you're not going

Mike Graen:

to read every single item in that in no way.

Justin Patton:

And that's a great point. So there's

Justin Patton:

discovery and there's validation. Okay? So discovery

Justin Patton:

means I don't know what all these unit level or serialized

Justin Patton:

numbers are there, and I'm going to discover everything that's in

Justin Patton:

that space, right? And that takes a little bit effort.

Justin Patton:

Validation to your point, is like, Okay, I already have this

Justin Patton:

case, and it has a 128, case code on. There can be a barcode,

Justin Patton:

and then these EPCs or RFID numbers are assigned to that. I

Justin Patton:

don't have to see all of them. I can just see one or two units

Justin Patton:

preaching those boxes to assume that that box is there, and that

Justin Patton:

will help. And I think that we, I can give a real, live example

Justin Patton:

that airplanes. So when commercial aviation, before they

Justin Patton:

take off on a on a flight, they go out there and they do a cycle

Justin Patton:

count of the safety equipment in the cabin. Now they're not

Justin Patton:

discovering all the RFID tags on all the lifejackets and the

Justin Patton:

safety equipment in that cabin. They already know everything

Justin Patton:

that's supposed to be there. So when they're scanning that,

Justin Patton:

they're that scanning off a list and saying, Okay, there's 312

Justin Patton:

pieces of safety equipment in here. I just scan through here,

Justin Patton:

and it looks like I got, you know, 311 Oh, which one's

Justin Patton:

missing? Oh, well, I'm supposed to have a life vest on row 12 s.

Justin Patton:

It looks like I don't see one. Oh, let's go back to 12 F and

Justin Patton:

see what happened. So that's not discovery, that's validation.

Justin Patton:

And I think, to your point like there are some good solutions

Justin Patton:

that can be based on, like validating or proving that

Justin Patton:

something is where it was supposed to be, but that's more

Justin Patton:

about making a state change in location, rather than taking a

Justin Patton:

or creating a new inventory identity into a space, if you will.

Mike Graen:

That's a huge way that distinguishing between

Mike Graen:

discovery and validating is a huge unlock. They sound like the

Mike Graen:

same words, but they are absolutely different. One is, I

Mike Graen:

don't know what I got. Let me see it. The other one is, I

Mike Graen:

expect these things, and which ones didn't I get? And I think

Mike Graen:

you're exactly right. Well, you kind of love the segue. I mean,

Mike Graen:

the the reality is, you've been involved with RFID at retail

Mike Graen:

since literally 2005 since I've known you and been part of the

Mike Graen:

lab, but you're now getting into a lot of different verticals. A

Mike Graen:

matter of fact, you started an executive committee which

Mike Graen:

includes air travel, quick service restaurants, package,

Mike Graen:

you know, patch, I don't know what you call a package

Mike Graen:

distribution, basically, UPS, FedEx, etc, and retail, what?

Mike Graen:

What's the purpose of that? Why are you? Why are you getting all

Mike Graen:

of those folks to to work together? Are there common

Mike Graen:

business needs across them, as it's a set priorities, what

Mike Graen:

exactly are you open to get out of that?

Justin Patton:

It's a good question. So the executive

Justin Patton:

committee, it consists of the prime movers and four verticals,

Justin Patton:

like you said, and then also Dr Hargrave, who's kind of our

Justin Patton:

academic lead, or chair of that committee. So, you know, in the

Justin Patton:

retail world, we've got Walmart on the executive committee.

Justin Patton:

That's Matt Alexander. He's been a driver for supplier compliance

Justin Patton:

for a long time. And you know, there's a lot of retailers out

Justin Patton:

there, but in terms of pushing volume, you know, Walmart was

Justin Patton:

the first one, the case and pilot level stuff, and they kind

Justin Patton:

of help trend out some of the directions in the future. And

Justin Patton:

then in aviation, we have Delta Airlines. Delta's been a great

Justin Patton:

partner of ours. And again, they're kind of the prime mover

Justin Patton:

for innovation, especially in RFID and and their arena for

Justin Patton:

aerospace and aviation, for packaging and logistics. We got

Justin Patton:

ups. UPS has been in the news quite a bit about their plans

Justin Patton:

for RFID, and they're kind of the most focal, I think, out

Justin Patton:

there in that packaging logistics space. And they're

Justin Patton:

pretty good represented for that part of the market. And then

Justin Patton:

also for food and qsrs. We have McDonald's that's Sue Fang, I

Justin Patton:

guess I should say Demetra Daniels. Is it Delta Airlines

Justin Patton:

and then John Bell at UPS and Sue Fang McDonald's. So and

Justin Patton:

McDonald's is kind of like of them as a restaurant. They're

Justin Patton:

pretty big in terms of mover, especially when it plans for

Justin Patton:

RFID world. So between those four, what we're trying to do

Justin Patton:

is, in the past, we've treated these technologies, especially

Justin Patton:

RFID, as one vertical versus one vertical versus one vertical.

Justin Patton:

Mike, we're coming up on 20 years of my involvement in that

Justin Patton:

space and c1, g2, RFID has been around as long as I've been in

Justin Patton:

the. Industry, right? So how many versions of Bluetooth and

Justin Patton:

Wi Fi and I mean, we can improve things in 20 years, surely,

Justin Patton:

especially from a technology perspective. So there's better

Justin Patton:

techniques that we have for source tagging, there's better

Justin Patton:

techniques we have for scanning things. I think that there's

Justin Patton:

some real fundamental changes that we can make to UHF

Justin Patton:

technology itself to make it better. A lot of the stuff that

Justin Patton:

we loaded into these tags and chips back in 2005 when this was

Justin Patton:

a few million tag market are not really relevant in 2024 2025 now

Justin Patton:

that we're looking at a 50 billion unit market, so I think

Justin Patton:

that that group can help leverage a little bit more of

Justin Patton:

collective interest to drive the things that we don't have a

Justin Patton:

heavy focus on, especially attention to data and data

Justin Patton:

transfer, and then also things like driving technology

Justin Patton:

adoption. From a bigger perspective, we went to some of

Justin Patton:

the companies that are doing a lot of the back end data

Justin Patton:

systems, and at a very large data company. We went and asked

Justin Patton:

them at one point about helping set up some more mature systems

Justin Patton:

for transitioning serialized data. EPCIS is a great standard.

Justin Patton:

Now we need to make sure that we have ways to actually, you know,

Justin Patton:

send stuff around, whether it was like chip project or

Justin Patton:

whatever. And this person kind of spent a long time explaining

Justin Patton:

to me why he didn't think that we would see RFID at an item

Justin Patton:

level on electronics and toys and home goods and a lot of

Justin Patton:

things. I'm like, sorry, tag buddy. So like, I feel like that

Justin Patton:

there's a lack of knowledge and education and maturity outside

Justin Patton:

of our space. There's a real lack of knowledge outside of of

Justin Patton:

the world of you know, UHF, RFID, and then even within it,

Justin Patton:

there's not enough coordination to kind of go after some of the

Justin Patton:

easier wins.

Mike Graen:

But those four verticals that we just kind of

Mike Graen:

laid out, they have some common interests as well. I mean, when

Mike Graen:

you get right down to it, they want to know what they have and

Mike Graen:

what they want to know where it is, right? I mean, that's that's

Mike Graen:

true in all of those verticals. So are you able to leverage

Mike Graen:

information the things you learned in one vertical, across

Mike Graen:

those verticals, pretty effectively?

Video Playing:

Oh, absolutely. I mean, we, every time we have one

Video Playing:

of those meetings, there's so many things that one will learn

Video Playing:

that is immediately applicable to another space that you just

Video Playing:

wouldn't think about, you know, trying to think of a great

Video Playing:

example off the top. But there's a lot more in common between a

Video Playing:

baggage handling and an airline operation and a package handling

Video Playing:

and, you know, a ground shipping operation, or especially air

Video Playing:

shipping operation. And you might think like you know, if

Video Playing:

you're putting boxes on on a shipment from an online retailer

Video Playing:

to a person's house, that's not terribly dissimilar from someone

Video Playing:

who's checking a bag on an airline from one destination

Video Playing:

point to another. So these systems that are designed for

Video Playing:

one may be valuable to another. Bag handling operations

Video Playing:

underneath an airport. You should have been down on those

Video Playing:

things. It's wild. It's like, you know, only thing I saw for

Video Playing:

aircraft operations growing up was die hard too, when he's

Video Playing:

running around into the airport and not like that. But like, you

Video Playing:

know, there's a lot of automation stuff, which is

Video Playing:

pretty similar to what you would see in the DC, in the retail

Video Playing:

world, in the retail space, too, and and a lot of the hard

Video Playing:

lessons we've learned about supplier compliance and getting

Video Playing:

a lot of suppliers to tag things, I think are very

Video Playing:

practical when you're moving into the food space, because

Video Playing:

they also have a lot of suppliers that need to leverage

Video Playing:

value out of this, and they don't want to have to learn the

Video Playing:

same hard lessons about printers and application and

Video Playing:

serialization things like that too. So beyond the real simple

Video Playing:

like, just knowledge sharing pieces of like this is how we

Video Playing:

can help you and help you and help you. I think we're really

Video Playing:

trying to learn how to leverage the the weight of all of those

Video Playing:

industries together to drive to drive it forward. I think what's

Video Playing:

happened now is a lot of these industries are very reactive to

Video Playing:

the technologies available in the space. What do you got out

Video Playing:

there? How can I implement it? Whereas, you know, 1015, years

Video Playing:

ago, they were very proactive. I think a lot of these industry

Video Playing:

are going out there and saying, This doesn't exist, yes, but I

Video Playing:

want it. That's how we got the first infrastructure systems and

Video Playing:

things like that. So we're trying to recapture that spirit

Video Playing:

of less plant the flag and move towards it, rather than just sit

Video Playing:

back and to try to figure out how we're going to use what's

Video Playing:

what's being.

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