Chapter 5: Rfid in Warehouse Management: Objectives

Chapter 5: RFID in Warehouse Management
CHAPTER 5: RFID IN WAREHOUSE MANAGEMENT

Objectives
The objectives are:
• Describe Radio Frequency Identification (RFID) technology.

• List the benefits of RFID.
• Review the set up for RFID.
• Receive goods by using RFID.
• Process picking, packing, and shipping by using RFID.
Introduction
Radio Frequency Identification (RFID) technology helps manufacturers and
distributors gain improved visibility into their supply chain by increasing the
number of data capture points in their supply chain.
The goal is to put RFID tags on pallets, cases, and items so that they can be
uniquely identified and tracked in the supply chain. The tracking is performed by
collecting data when a unique pallet/case/item is registered at a specific location.
This data is collected by an RFID application and sent to Microsoft Dynamics®

AX 2012 where it is processed accordingly.
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Warehouse Management in Microsoft Dynamics® AX 2012
Scenario
An experienced software consultant is implementing RFID technology for the
Contoso Company that receives and ships goods. The consultant must set
Microsoft Dynamics AX 2012 defaults and parameters according to the needs of
the company.
As soon as the technology is installed and configured, the shipping and receiving
personnel will receive goods and tag them for RFID tracking in the warehouse.
The RFID tags are used to keep track of inventory and product movement in the
warehouse. This technology is also used to pick, pack, and ship products.
RFID Technology
RFID is a generic term for automatic identification technologies that use radio
waves to identify objects.
A RFID system typically consists of tags, and devices that will read and write tag
information.
How RFID Works

The transponder or tag consists of a chip and an antenna that is attached to
objects such as pallets, cases or individual items. The tag is encoded with a
unique identifier that serves as the unique license number plate for the object.
The second component is a reader. The reader contains an antenna that

communicates with the tag. This creates a radio frequency field that detects radio
waves. Do not be confused by the term 'reader.' In RFID, a reader is a device that
can both read data from the tag and write data that is provided by the middleware
back to the tag.
The middleware reads and writes data to and from the tags through the reader. It
filters, stores and evaluates obtained data against business processes and sends
that information to a system such as Microsoft Dynamics AX 2012.
When an object is identified, the following actions will occur.
• A tag passes through the radio frequency field generated by the

reader.
• The tag reflects back to the reader the identifying information about
the object.
• A middleware component uses the unique identifier as a pointer to
additional information associated with the object in an internal
application or database.
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RFID Technology Benefits

RFID technology can provide the following benefits over traditional bar codes.
• Line of sight is not required to read the RFID tag and multiple tags
can be read instantly leading to a less labor-intensive process.
• RFID tags are less susceptible to damage.
• Significantly more data can be captured such as expiration dates and
service records.
• RFID data can be rewritten and then it can be reused.
EPC Numbers
The Electronic Product Code (EPC) is an alternative method of product
identification by using RFID technology. The EPC is a simple, compact license
plate that uniquely identifies objects in the supply chain such as the following.
• Items
• Cases
• Pallets
• Locations in the supply chain
EPC numbers identify the manufacturer and product type. With this technology
that you can find products in a specific area (for example, shopping cart, shrink
wrapped pallet, defined area of the warehouse, or a track passing under a scan
station). The serial number uniquely identifies the unit and ties it to transactions
such as when it is received, associated purchase orders, sales orders and
customers.
EPC is built around a basic hierarchical idea that can be used to express many
existing numbering systems, such as the European Article Numbering-Uniform
Code Council (EAN-UCC) System Keys, Unique ID (UID), and Vehicle
Identification Number (VIN).
Like many current numbering schemes used in commerce, the EPC is divided
into numbers that identify the manufacturer and product type. However, the EPC
uses an additional set of digits, a serial number, to identify unique items. The
EPC is the key to information about the product it identifies that is located in the
EPC global network.
An EPC number consists of the following components.
• A header that identifies the length, type, structure, version and

generation of the EPC.
• A manager number that identifies the company or company entity.
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• An object class, similar to a stock keeping unit (SKU).

• A serial number that is the specific instance of the Object Class
being tagged.
Additional fields can also be used as part of the EPC to correctly encode and
decode information from different numbering systems into their native (human
readable) forms.
• Serial Shipping Container Code. The SSCC is a standard European

Assistance Network (EAN) identification number that consists of 18
digits. It is used for the unique identification of logistic (transport,
storage, or both) units.
• A logistic unit is an item of any composition established for transport
and storage that must be managed through the supply chain.
By scanning the SSCC marked on each logistic unit, the physical movement of
each unit is enabled to be individually tracked and traced by providing a link
between the physical movement of items and the associated information flow. It
can also be used for many applications such as the following.
• Cross docking
• Shipment routing
• Automated receiving
RFID Administration
Before you can use the RFID feature in Microsoft Dynamics AX 2012, you must
set up the RFID servers and configure the system to retrieve, process, and
validate the RFID transactions.
NOTE: An RFID server is not installed in the Hyper-V training environment.

Therefore, you cannot process any RFID transactions in the classroom.
The following topics review the set up and administration of RFID in Microsoft
Dynamics AX 2012. These steps are typically performed by the system
implementer or system administrator.
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RFID Servers Form

Open Inventory and warehouse management > Setup > RFID > RFID
servers.
FIGURE 5.1 RFID SERVERS FORM
Use this form to set up the RFID middleware server in Microsoft Dynamics AX.
Click New to create a new RFID server, and then enter a unique identifier for the
server in the Server ID field, and enter a description in the Server field. In the
Host field, enter the name of the computer that is hosting the RFID server. If the
RFID server is positioned in a domain other than the Microsoft Dynamics AX
server, enter the Domain name.
You can use the Devices button to display a list of all the devices for the selected
RFID server. You can use the Processes button to display a list of all the
processes for the selected RFID server.
NOTE: For more information about RFID servers, refer to the F1 help or
TechNet (http://go.microsoft.com/fwlink/?LinkId=247727).
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RFID Parameters
The Inventory and warehouse management parameters form contains several
parameters for managing RFID and EPC numbers. To view and maintain the
parameters open Inventory and warehouse management > Setup > Inventory
and warehouse management parameters. Then click the RFID tab.
FIGURE 5.2 INVENTORY AND WAREHOUSE MANAGEMENT PARAMETERS

FORM - RFID TAB
The following table describes the fields that are available.
Field Description
Logging level Select the level of logging. When the field is set to
anything other than No logging, you must enter the file
path where you want the messages to be saved.
BEST PRACTICE: It is not recommend that you leave
logging on for long periods of time as the file can grow
large.
File name The file location where messages are saved.
EPC partition Defines the length of the EPC manager and the object.
EPC header Select the type of EPC number to be generated.
EPC manager Enter the EPC manager of the item.
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Synchronization
Because Microsoft Dynamics AX requires data to be in chronological order, you
must synchronize the time between servers.
Open Inventory and warehouse management > Setup > Inventory and
warehouse management parameters. Click RFID, and then click
Synchronization.
FIGURE 5.3 SYNCHRONIZATION DIALOG BOX
Use this form to change the time for the last synchronization between Microsoft
Dynamics AX and the middleware server.
NOTE: If you have already synchronized transactions one time, transactions will
be duplicated if you set the time back.
Synchronization Example
Your company has three servers, and the connection to server 1 is temporarily
lost. Now the connection works again. You can now exclude server 2 and server
3 from the system, and set the time for the latest synchronization back to
immediately before server 1 lost the connection.
You will retrieve the transactions from server 1 when you synchronize.
Remember to set the time back again before you include server 2 and server 3.
NOTE: Synchronization is controlled by having all middleware servers use the

Windows Time service and the same time server. The Windows Time service is
not controlled from inside Microsoft Dynamics AX.
Retrieve RFID Transactions

After you have set up and configured the RFID servers, you must set the system
up to retrieve the RFID transactions. You can use the Get transactions batch job
to receive transactions from the radio frequency identification (RFID) servers.
The communication with the servers consists of three processes that can run from
the batch journal. This process stores the data in Microsoft Dynamics AX as raw
data and puts the transactions in Draft mode.
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Open Inventory and warehouse management > Periodic > RFID > Get
transactions.
FIGURE 5.4 GET TRANSACTIONS DIALOG BOX
Select the Continuous check box to restart the job until there is no more data to
process.
Process RFID Transactions

After the transactions are retrieved by the Get transactions batch job, they must
be processed. You do this with the Process transactions batch job. You can use
the Process transactions batch job to process the transaction from the RFID
servers.
The communication with the server consists of three processes that can run from
the batch journal. If the transaction matches with a business process, the
transaction is put into the In progress state. When the business process ends
correctly, the transaction is set to the Archived state. If the business process fails,
the transaction can remain as In progress or it will return to the Released state.
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Open Inventory and warehouse management > Periodic > RFID > Process
transactions.
FIGURE 5.5 PROCESS TRANSACTIONS DIALOG BOX
Select the Continuous check box to restart the job until there is no more data to
process.
Validate RFID Transactions

You can use the Validate transactions batch job form to validate transactions
from the radio frequency identification (RFID) servers.
The communication with the servers consists of three processes that can run from
the batch journal. The tag information is divided into separate fields. If the
transactions pass validation, they are in Released mode. Otherwise, they are set
to Error and put in the RFID exceptions form.
Open Inventory and warehouse management > Periodic > RFID > Validate
transactions.
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Manage RFID Exceptions

When an RFID transaction has an error it is displayed in the RFID exceptions
form. Open Inventory and warehouse management > Inquiries > RFID >
RFID exceptions.
FIGURE 5.6 RFID EXCEPTIONS FORM
You can use the Origin button to view the original transaction that created the
RFID transaction.
After you have corrected the cause of the error message, you can use the Retry
button to reprocess the RFID transaction.
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Receiving with RFID

The following scenario and topics, describe how to use RFID tagging at the case
and pallet levels.
Scenario
Warehouse personnel at the Contoso Company can tag pallets, cases, or items at
the end of the production line. Warehouse personnel should tag at the end of the
production line while the pallets, cases, or items are labeled with bar codes.
The tagging operation must be included in the routing and the physical tag has to
be included in the bill of material (BOM structure to make sure that the cost of
the tag is applied to the finished goods.
As soon as a pallet, case, or item (in this example the BOM) is at the tagging
work station, the system generates an Electronic Product Code (EPC) number for
the tag and writes this EPC number to the tag. The EPC number is generated as a
serial number by using the typical routine to allocate serial numbers in Microsoft
Dynamics AX 2012.
If no tag is present at the reader, the system requires the platform to generate an
error message. This alert is displayed to inform the worker that there is a tag
missing or a bad tag present. A new tag can then be positioned and the write
operation can recommence. The warehouse worker must be present at the reader.
When a new pallet of cases or items is complete an EPC number must be

generated for that pallet. The EPC number contains the Global Trade
Identification Number (GTIN) of the pallet. When the pallet is at the writing
station the EPC number is written to the tag as described previously. An EPC
number is assigned to finished goods that are manufactured. The tagging can be
in two levels:
• Case or item level

• Pallet level
NOTE: In Microsoft Dynamics AX 2012, the RFID system works only with the
GTIN tag type.
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Procedure: Tagging Products

The following steps define the process of tagging products for the previously
described receiving goods scenario.
During operation number 30 a warehouse worker applies a tag to the finished

goods and starts the writing of the serial number to the tag.
1. In the Production input journal (Inventory and warehouse

management > Journals > Item arrival > Production input) that
is created, select the production order number for the finished good
in the Default values tab.
2. Click Functions > Create lines. This creates a line for the quantity
on the production order for the finished goods.
3. Click Function > Pallet ID. The system populates the Pallet ID
field.
4. Enter the warehouse and location manually or enable the system to
calculate it when you post the journal.
5. Post the journal. The finished goods are transferred to the desired
warehouse and location, or a transport order is created by using the
desired warehouse and location as the destination.
Logistic Unit
Logistic units are handled by many partners along the supply chain and many
cross industry and national boundaries. Efficient supply chains require a label
and associated Electronic Data Interface (EDI) messages that follow international
and multi-industry standards.
Global Standards One (GS1) provides a standard for the numbering and bar
coding of logistic units: the UCC/EAN Logistics Label. The UCC/EAN Logistics
Label combines a world- wide unique reference number: the Serial Shipping
Container Code (SSCC) with a secure bar code symbology, UCC/EAN-128.
With this combination, all participants in the supply chain can use a common,
standard solution for their tracking and tracing needs.
Procedure: Process an Item Arrival Journal by Using RFID

To receive tagged goods by using an item arrival journal, follow these steps.
1. Open Inventory and warehouse management > Journals > Item

arrival > Item arrival.
2. Click New to start a new journal.
3. Select WArr in the Journal name field.
4. Click the Default values tab.
5. Select the appropriate entry in the Account number field.
6. In the Reference field, verify that Purchase order is selected.
7. In the Number field, select the appropriate purchase order number.
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8. In the Site field, select the appropriate site.

9. In the Warehouse field, select the appropriate warehouse.
10. In the Location field, select an inbound dock location type.
11. Click Functions > Create lines to retrieve the purchase order. The
Create journal lines for location journal form is displayed. (If you
want to transfer the quantity from the purchase order, select the
Initialize quantity check box. Microsoft Dynamics AX 2012 creates
the lines that corresponds to the quantity of items that fits onto a
pallet.)
12. The lines appear in the Journal lines form. Enter the pallet ID in the
Journal lines form. Pallet numbering can be done in two ways.
a. Select the number of the pallet in the Pallet ID field for the line.
b. Use a consecutive pallet numbering system developed by the
company. A series of numbers is used to obtain consecutive
pallet numbers. Click Functions > Pallet ID to create a new
number.
13. Click Functions > RFID mapping to map RFID tags to the lines.
14. Use the form to map RFID tag reads to inventory transactions for
arrival journal lines. In the top pane of the form, you can filter on
processes and dates so only tag IDs from the selected interval are
shown.
15. Click Apply.
16. Check the journal, correct any mistakes, and post the journal.
Following posting, the inventory transaction has the status Arrived, and the item
is registered at the inbound dock.
Receiving Tagged Products Without an Advanced

Shipping Notice
An Advanced Shipment Notice (ASN) is an electronic notification of pending
deliveries; an electronic packing list. Its use is currently mandated by many
companies. It contains information that the shipper communicates before the
arrival of goods, such as shipping date and shipping quantity.
Some companies require suppliers to send an ASN to provide the association

between the unique identification encoded on the RFID tag(s) and the product
information at the applicable case and pallet level.
Occasionally, goods must be received without the arrival of an ASN. The item
arrival journal has the check boxes for the fields Check for pallet tag and Check
for item tag selected. These two parameters are copied onto every line in the
journal for validation.
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Procedure: Receive Tagged Products without an ASN

To receive tagged items without an ASN, follow these steps.
1. Scan the items as they are received.

2. Make the entries in the item arrival journal.
3. After all journal lines are entered, click RFID mapping.
FIGURE 5.7 RFID MAPPING FORM
4. A mapping form opens that shows all lines from the arrival journal
and all the reads from the inbound dock which have the state ready.
Then map the arrival lines to the corresponding read either by
dragging or by marking and clicking a button.
5. If a matching read is not found, you can put the goods by a reader
and then click Read. The value of the Device field determines the
device to use for the read process. The detected reads are then
displayed in the list of available reads.
The arrival journal lines are updated with tag data when the form is closed. Upon
posting and validation of the journal, all lines are checked according to the two
check parameters.
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RFID Mapping Form

The RFID Mapping form can be accessed from several places. The user
accessing the form must pass a list of records to the form. These records are
displayed in the left pane of the form. By default, the right pane displays all tag
reads with the status Ready. The records are mapped either by dragging or by
marking and clicking a button.
The RFID Mapping form has some parameters that can be set by the user to
ease the mapping process.
• Business process: The records are filtered based on this value. For
example, only reads from all shipment processes are shown.
• Process: All defined processes of the selected process type. The
records are filtered based on this value. For example, only reads from
a specific process are shown registered in the system.
• Server ID: A list of RFID servers.
• Device name: A list of devices registered in the system. The selected
device is used when the Read tag is clicked.
• From date and To date: The records are filtered where the date is
between the selected values.
The form also has the following buttons.
• Automap: Suggestion of mapped records is shown.

• Read tag: Reads from the specified device and displays the detected
reads in the right pane.
Receiving Non-Tagged Products

When receiving non-tagged products, an item arrival journal is created. If tagging
is needed, click Write tag. The Write tag form that shows all the lines from the
arrival journal is open. The user can use either a device or a printer for writing
tags.
When all tags are written the user closes the form and the arrival lines are
updated with the new tag data.
Write Tag Form

The tag writing device must pass a list of records that contains tag information to
the form. These records are displayed in a grid.
The user can use either a device or a printer to write the tags for each record in
the grid.
• Printer: There are the printed tags for all selected lines in the grid
when Print is clicked.
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• Device: The user must select a device in the Device field before any
write can occur. The field shows a list of devices marked as write
enabled. The device writes a tag when Write tag is clicked. Only
one tag can be written at a time. The outcome of a write is shown in
a status box underneath the Device field. The value can be either Tag
written successfully or Write failed.
A list that contains all records, for which a tag is written, is returned to the user
when the form is closed. It is then up to the user to update the records in the
database.
Picking, Packing, and Shipping with RFID

A group for RFID information is located on the Invoice and Delivery FastTab of
the Customers form. The group consists of the Item tagging, Case tagging and
Pallet tagging fields. The default settings of these fields are defined in the
Customers form.
FIGURE 5.8 CUSTOMER DETAILS FORM - INVOICE AND DELIVERY

FASTTAB
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Activate Tagging on a Sales Order

The fields in the Line details FastTab of the Sales order form in the RFID
tagging field group of the Packing tab define if the customer uses item, case, or
pallet tags.
FIGURE 5.9 SALES ORDER FORM - LINE DETAILS FASTTAB - PACKING

TAB
When the user starts the picking, the fields are defaulted from the sales lines onto
the corresponding shipment base.
Procedure: Picking Tagged Products

The following steps in the picking of tagged items assume that reading and
writing of tags will occur at a separate tagging station with a fixed reader
(Inventory and warehouse management > Common > Picking routes).
1. The warehouse worker ends the pick round at a tagging station.

o The pick list shows which items or cases need tagging.
o If the items are selected for tagging the warehouse worker cannot
approve the pick list line until tag information is added to the
line.
2. The warehouse worker places the items at the reader and performs
the read operation.
3. The warehouse worker then clicks either Read tag or Write tag and
the RFID mapping form is displayed.
4. The warehouse worker then matches the reads with the lines in the
picking specification. If the item quantity on a line is more than one
item the line splits. The reads are matched when all lines contain a
quantity of one.
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Procedure: Picking Non-Tagged Products

If the system does not have tag information on the serial number each item must
be positioned by the reader one by one. The system then tries to read the tag and
if no information is returned the system generates a tag and writes the
information to the tag.
If the system cannot read a tag an error message is shown and the warehouse
worker must decide whether to overwrite the existing tag. If the tag cannot be
rewritten an error message will occur.
Summary
RFID technology is a technology that helps manufacturers and distributors to
increase inventory accuracy and ease the collecting of real time inventory
information.
To make sure that you have RFID functionality, the appropriate RFID server
version must be set up in inventory parameters in your system.
An RFID system consists of tags and readers.
Tagging pallets, cases and items offers a unique way to identify and track objects
throughout the supply chain. RFID tags are less susceptible to damage. Errors in
inventory levels can be significantly reduced and personnel in the supply chain
can quickly know where inventory is located. RFID data can be rewritten and
then it can be reused.
The Electronic Product Code (EPC) is an alternative method of product

identification that uses RFID technology. EPC numbers identify the manufacturer
and product type. You can use this technology to find products in a specified area
quickly and at a low cost.
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Test Your Knowledge

Test your knowledge with the following questions.
1. What type of tags can be used in Microsoft Dynamics AX 2012 within the
RFID system?
( ) SGIN
( ) EPC numbering
( ) Vehicle Identification Number
( ) EAN/UCC System Keys
2. RFID tags have which of the following advantages over traditional bar
codes?
( ) RFID tags can be reused
( ) RFID tags are resistant to harsh conditions
( ) RFID tags do not require a line of sight
( ) All the these
3. What are the main components of RFID technology? (Select all that apply)
( ) Tags
( ) Readers
( ) Writers
( ) Middleware
4. Which document shows the warehouse worker the items that must be tagged?
( ) Picking list
( ) Shipment list
( ) Sales order
( ) Purchase order
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Quick Interaction: Lessons Learned

Take a moment and write down three key points you have learned from this
chapter
1.
2.
3.
5-20
Solutions
Test Your Knowledge
1. What type of tags can be used in Microsoft Dynamics AX 2012 within the
RFID system?
(•) SGIN
( ) EPC numbering
( ) Vehicle Identification Number
( ) EAN/UCC System Keys
2. RFID tags have which of the following advantages over traditional bar
codes?
( ) RFID tags can be reused
( ) RFID tags are resistant to harsh conditions
( ) RFID tags do not require a line of sight
(•) All the these
3. What are the main components of RFID technology? (Select all that apply)
(√) Tags
(√) Readers
(√) Writers
(√) Middleware
4. Which document shows the warehouse worker the items that must be tagged?
(•) Picking list
( ) Shipment list
( ) Sales order
( ) Purchase order
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Chapter 5: RFID in Warehouse Management

CHAPTER 5: RFID IN WAREHOUSE MANAGEMENT

• Describe Radio Frequency Identification (RFID) technology.

This data is collected by an RFID application and sent to Microsoft Dynamics®

How RFID Works

The second component is a reader. The reader contains an antenna that

When an object is identified, the following actions will occur.

• A tag passes through the radio frequency field generated by the

RFID Technology Benefits

An EPC number consists of the following components.

• A header that identifies the length, type, structure, version and

• An object class, similar to a stock keeping unit (SKU).

• Serial Shipping Container Code. The SSCC is a standard European

NOTE: An RFID server is not installed in the Hyper-V training environment.

RFID Servers Form

FIGURE 5.1 RFID SERVERS FORM

FIGURE 5.2 INVENTORY AND WAREHOUSE MANAGEMENT PARAMETERS

The following table describes the fields that are available.

FIGURE 5.3 SYNCHRONIZATION DIALOG BOX

NOTE: Synchronization is controlled by having all middleware servers use the

Retrieve RFID Transactions

FIGURE 5.4 GET TRANSACTIONS DIALOG BOX

Process RFID Transactions

FIGURE 5.5 PROCESS TRANSACTIONS DIALOG BOX

Validate RFID Transactions

Manage RFID Exceptions

FIGURE 5.6 RFID EXCEPTIONS FORM

Receiving with RFID

When a new pallet of cases or items is complete an EPC number must be

• Case or item level

Procedure: Tagging Products

During operation number 30 a warehouse worker applies a tag to the finished

1. In the Production input journal (Inventory and warehouse

Procedure: Process an Item Arrival Journal by Using RFID

1. Open Inventory and warehouse management > Journals > Item

8. In the Site field, select the appropriate site.

Receiving Tagged Products Without an Advanced

Some companies require suppliers to send an ASN to provide the association

Procedure: Receive Tagged Products without an ASN

1. Scan the items as they are received.

FIGURE 5.7 RFID MAPPING FORM

RFID Mapping Form

The form also has the following buttons.

• Automap: Suggestion of mapped records is shown.

Receiving Non-Tagged Products

Write Tag Form

Picking, Packing, and Shipping with RFID

FIGURE 5.8 CUSTOMER DETAILS FORM - INVOICE AND DELIVERY

Activate Tagging on a Sales Order

FIGURE 5.9 SALES ORDER FORM - LINE DETAILS FASTTAB - PACKING

Procedure: Picking Tagged Products

1. The warehouse worker ends the pick round at a tagging station.

Procedure: Picking Non-Tagged Products

An RFID system consists of tags and readers.

The Electronic Product Code (EPC) is an alternative method of product

Test Your Knowledge

Quick Interaction: Lessons Learned

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