A Project Aiming at
the Further Expansionof Utilizing RFID

GS1 Japan, along with METI, major convenience
store chain operators and some manufacturers, hasbeen engaged in a project to expand the use of RFIDtags.
On April 18th, 2017, METI and five major
convenience store operators in Japan (Seven-Eleven
Japan Co., Ltd., FamilyMart Co., Ltd., Lawson, Inc.,
Ministop Co., Ltd., and JR East Retail Net Co., Ltd.)agreed to introduce RFID tags for all of the items
sold in their stores (estimated to be 100 billion itemsper year) by 2025, under the condition that all issues
identified in the research project are resolved. Basedon this agreement, METI and the companies jointly
formulated a statement called “Declaration of Plan toIntroduce 100 Billion RFID Tags for Products inConvenience Stores (*1).”

Research Project for Expanding the Utilization ofRFID in FY2016
Background

Japan has been experiencing various socialtransformations, an aging population, a declining
fertility rate, increases in online purchases byconsumers, a growing number of high-mix lowvolume products responding to more diversified*1 http://www.meti.go.jp/english/press/2017/0418_003.htmllifestyles, and increases in the frequency ofdeliveries. As a result of these changes, the transportand logistics industry in Japan has been facing
serious problems such as labor shortages andgreater personal costs these days.
RFID is expected to play a critical role in addressingthese issues. If RFID tags are attached to every trade
item, real-time item-level visibility can be provided.
Moreover, sharing this visibility data in the entire
supply chain can enhance location and quality
management across the supply chain, and also
pinpoint bottlenecks in logistical networks.
Discussion

In this research project, experts had working-levelmeetings to sort out the required processes andchallenges to expand the use of RFID. The
participants discussed the progress and results of ademonstration test of the autonomous cashiersystem with RFID, which Lawson was concurrently
working on.
GS1 Japan participated in the meetings as anobserver and shared information about Electronic
Product Code (EPC), which is used to encode thedata onto RFID tags.

Challenges Uncovered in the Project

Activities in FY2017

Based on the discussion at the meetings, thefollowing challenges for the future were identified. Aroadmap was created after main players and target
dates to solve each of those challenges wereestablished.
This roadmap includes the following items to besolved in the future:• Reducing the price of RFID tags
➢ Lowering the prices of prevailing RFID tag
models to 1 yen or less per piece-D evelopment of alternative novel technologies
is also expected• Expanding the introduction of the standard
identification➢ Recommending the use of EPC➢ Designing additional specifications (if necessary)• Improving the performance and function of RFID
tags and their operating method➢ Developing tags for products that contain large
amounts of metal or liquid➢ Developing tags for products that can be heatedin a microwave oven- Tags
that can avoid arcing (sparks) even if they
are left attached to products and heated in amicrowave oven

The theme discussed in FY2017 was how to shareand use the bulk data obtained by reading RFID tagsin the entire supply chain.
Based on this theme, a series of demonstration tests
on data linkage were performed at three
convenience stores in Tokyo in February 2018. In thetests, RFID tags attached at the manufacturers wereread on incoming/outgoing deliveries and sales atmanufacturers, wholesalers, and retailers. These readdata were shared with each companies in the supply
chain via the platform for data linkage, which wasestablished for the test.
On this platform for data sharing, EPC Information
Services (EPICS), a standard of GS1, was adopted.
When stakeholders within the supply chain can sharethe data in a common and understandable form byusing this EPCIS standard, not only individualcompanies, but all participants within the entire
supply chain can enjoy its benefits including
realization of traceability and data utilization formarketing.
GS1 Japan will keep contributing to this project tosupport establishing the standard across industries
related to RFID tag utilization and data sharing.

Fig. 1 Future Image of RFID Utilization in Supply Chain

Smart Information Platform
Manufacturers

Manufacturing
Information

Delivery Trailers
Information

Carriers andWholesalers

Logistical
Information

Retailers

Inventory
Information

Sales
Information

Consumers

LossesInformation

Shelf-life
Information

Consumption
Information*

Merchandise with RFID tags, while being delivered in the market, automatically obtains information within the supply
chain.
RFID tags are attached
to products at themanufacturing plant.

The location of products isidentiﬁed when RFID tags
pass through the gates placedat plants and warehouses oron roads.

RFID tags quickly capture
every movement of productsin their delivery inspection,inventory, payment at thecashier, and other occasions.

Refrigerators or closets thatcan recognize RFID tags let
their users know the internal
condition easily.

*Since consumers’ records of handling goods are privacy information, this platform uses
a system in which consumers voluntarily control their own information.
Reference: METI “Declaration of Introducing 100 Billion Electronic Tags for Products in Convenience Stores” Appendix

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