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1 Welcome RFID: The Future of Intelligent Logistics February 10, 2006 Heljä Salomaa, Logistics Director, Finland Post Tomi Pienimäki, Chief Technology.

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Presentation on theme: "1 Welcome RFID: The Future of Intelligent Logistics February 10, 2006 Heljä Salomaa, Logistics Director, Finland Post Tomi Pienimäki, Chief Technology."— Presentation transcript:

1 1 Welcome RFID: The Future of Intelligent Logistics February 10, 2006 Heljä Salomaa, Logistics Director, Finland Post Tomi Pienimäki, Chief Technology Officer Mika Lindholm, Business Development Director, Capgemini Mark Prichard, Product Director, EMEA Ian Broughton, Business Development, EMEA

2 2 Agenda 10:00 – 10:05Welcome 10:05 – 10:20BEA: Overview Mark Prichard, Product Director, BEA Systems 10:20 – 10:50 Finland Post: RFID: Providing Information not Data for Intelligent Logistics Heljä Salomaa, Logistics Director, Finland Post Corporation 10:50 – 11:05The BEA Approach to RFID Ian Broughton, Business Development, BEA Systems 11:05 – 11:25COFFEE BREAK 11:25 – 11:50Proven Process of Deployment Mika Lindholm, Business Development Director, Capgemini 11:50 – 12:00The Future is Intelligent Logistics Tomi Pienimäki, Chief Technology Officer 12:00 – 12:30Q & A / Lunch 12:30 – 1:30 Tour (optional)

3 3 BEA Systems: Overview February 10, 2006 Mark Prichard, Product Director

4 4 Company Overview Who We Are & What Do We Do: World leader in enterprise infrastructure software Simplify enterprise computing Improve business responsiveness through a service- oriented architecture (SOA) approach The Objective: Align IT with business needs – providing the right information to those that need it.

5 5 Company Background Customer Base & Financial Strength & Stability > $1B in Sales 31 consecutive quarters of positive cash flow 15,000+ customers worldwide, including majority of Fortune Global 500 Acquired more than 30 companies in 10 years: including ConnecTerra for RFID Global Presence 75 offices in 36 countries Over 3,000 employees Strategic Industry Influence More than 1,300 systems integrators, independent software vendors, and application service providers Driving innovation into standards – Active EPCglobal Member

6 6 Service Orientated Architecture: The Power of a New Approach Support Customers Engineering General ServicesEnterprise ApplicationsDatabases Sales B2C Partners B2E Shared Services Management and Security Standards-based Connectivity Shared Application and Business Services Service-Oriented Architecture is an IT strategy that organizes the discrete functions contained in enterprise applications into interoperable, standards-based services that can be combined and reused quickly to meet business needs.


8 8 Alignment of RFID with an SOA Strategy Allows RFID data to be enriched and delivered as information services Build once, re-use many times - leverage existing RFID services e.g. workflows to highlight mis-shipments through a portal Reduced development times for new projects – RFID Accelerator Kit Reduces cost and risk for integration with internal systems such as WMS & ERP as well as external data repositories. Allows business to respond quicker to new RFID requirements that demonstrate value & relevant information for intelligent logistics.

9 9 Finland Post Corporation RFID: Providing Information not Data for Intelligent Logistics February 10, 2006 Heljä Salomaa Business Director in Logistics

10 10 Finland Post Background Distribution network, post offices Finland Post Group Messaging 808,0 million Information logistics 176,0 million Logistics million Net turnover of 1235,2 million 23,297 postal employees 2.6 billion items per year 7000 standard delivery routes covered/day 2.5 million delivery addresses 25 million parcels per year 5,500 vehicles

11 11 Three Key Trends in Operating Environment Inter- nationalisation Digitalization of processes Enhancing operation efficiency

12 12 Challenges for Postis Businesses Customers and other operators are expecting increasingly detailed and proactive information on supply chain status Finland Post is constantly looking to improve operational processes that improve customer service and reduce costs Physical or electronic delivery Recipient Delivery process management Information management Sender I N T E L L I G E N T L O G I S T IC S Client bases Databases Profile data

13 13 Background to the Pilot Initial RFID discussions took place 18 months ago BEA wanted to understand Finland Posts thinking on RFID and its potential uses within their environment Was Reusable Asset Tracking an issue and did the business case stack up? Capgemini & BEAs RFID assessment included: Prove the business case existed around Reusable Asset Tracking Provided answers to the following questions: 1. Is there a business case? 2. Will it give Finland Post the information it needed? 3. How could it be deployed? 4. How long would it take? 5. How much would it cost?

14 14 The Business Case: Developed Around… Reducing Shrinkage Losing over 17,000 cages per annum 1.3 million euros per year in replacement costs Increasing visibility of roll cage movements: Major dwell times of roll cages at customer sites No visibility of cycle times Increasing availability and utilisation of the assets

15 15 Improving customer service at peak times. SLAs were suffering due to lack of these assets Opportunity to uncover Value Added services The Business Case: Developed Around…

16 16 Project Scope The project was carried out by Finland Post in co-operation with Capgemini and BEA Systems Oy

17 17 Objectives of the Pilot To evaluate the technologies and pilot RFID process To use RFID technology within the production process as standalone systems (i.e. without integration into the normal production systems) How well would the technologies work: Functioning of tags, antennas, readers (Long range and hand-held) Usability of hand-held readers (software and hardware) Endurance of readers and tags in the different climatic conditions Determine the best options for tags, packaging and tag location on Roll cages How to attach the tags as easy and fast as possible Minimize breaking and losing the tags

18 18 Objectives of the Pilot Identify Roll Cage Movements Increase visibility of roll cage movements: Identify dwell times of roll cages at customer sites Obtain info about how long a roll cage had been in service Increasing availability and utilisation of the assets To take the data from the readers and expose that as information – to identify: Usability and usefulness of collected tracking information Added value of new collected information compared with present tracking information

19 19 RFID Pilot Layout & Process: 3 Doors and 300 Tagged Roll Cages Sorting areas Transport routes Roll cages movement in the Post Terminal Long range readers Pilot Roll cage storing Post office Helsinki Post Terminal Logistics Centre, Vantaa 1 Customer Hand-held readers 2 3

20 20 Pilot Environment: Read Rates UHF RFID portal was used to track Roll cages automatically 100 % reception with every long range reader tested, Tags designed especially for Finnish Post metal Roll cages 93% of empty trays (plastics letterboxes) inside of a Roll cage with standard tags were seen by the readers (without optimizing the tuning or antenna design of the letter box tag) some changes to the tag would enable 100% reads

21 21 Overview of Technical Architecture The BEA RFID Solution WLAN WLI WS RFID Device Edge-Server DBControl Custom Control JPF BEA WebLogic Portal Server BPM RFID tags FixedTag Long range reader HHT reader DB LAN BEA WebLogic Integration Server

22 22 Data Collected in the Pilot In the pilot limited amount of information was collected: Day and time Driver id Roll cage id Customer id Event pick-up / delivery load / unload empty / full Roll cage License plate on the tag – cheaper & more secure

23 23 Benefits Improve asset management through visibility Reduce total cost of ownership Improving control, availability and maintenance costs Ensuring assets in the right place, right time, right quantity Accurately charge customers for their use of roll cages Analytically information on: Asset cycle times Dwell times Utilisation rates Shrinkage points

24 24 Turning Data into Meaningful Information Finland Post now has total visibility of roll cages Information is available via the online portal providing information such as: Circulation of Roll cages Number of events per customer or per route Number of Roll cages per customer during a day Demand of Roll cages per day / week / route / customer Example Portal Information >>

25 25 Summary of Roll Cages at each site. Ideal for identifying those customers who are hoarding roll cages.

26 26 Finland Post: Operations Portal This screen shows individual roll cage events for a given tag id It can be used to track the movements of an individual roll cage. Provides information on error tracking and helps with rollcage hunts.

27 27 Long Term: Postis Answer to Customer Expectations zz20xx200x RFID process pilot with Roll cages Implementation of RFID everywhere in Finland – to every Post Terminal and all kinds of containers RFID tag in deliveries (e.g. parcels, value letters), increases transparency of the process Process control with RFID, guidance and sender information storage in the tag Time BenefitsShared standards

28 28 The BEA Approach to RFID February 10, 2006 Ian Broughton, Business Development, EMEA


30 30 21 of the these companies use BEA products Why Is BEA Investing In RFID? Many existing customers want a single sw infrastructure vendor Retail Federal US Army US DHS USAF UK HMRC Schering- Plough Pharma US DLA Counterfeit Reduction Diversion Control 3PL Services Asset Tracking Supply Chain Visibility Asset Tracking Standardize on WebLogic Reduce Out-of-Stocks Reduce Shrinkage Logistics


32 32 Market Analysis $26.23 billion Global Market* $2.71 billion Global Market* Contributory Factors Reducing Tag/Inlay prices Reducing reader prices Increasing Focus on the Business Case and less on Market Hype RFID Forecasts, Players & Opportunities 2006 – 2016, IDTechEx * = includes software & services

33 33 Focus on Business Case / ROI RFID Market Research, Conducted by KRC Research on behalf of BEA Systems Which of the following do you think your company would be focused on most in implementing RFID? (% saying…)

34 34 Small Steps Lead to Big Benefits Understanding & Awareness of RFID & where it could be used with chance of positive business case Investigate Business Case Achieve Simple RFID Proof of Concept – no integration Pilot the Process – with integration and supporting infrastructure Awareness & Understanding RFID Assessment RFID Laboratory Wide Scale Deployment Pilot Integration Cost, Effectiveness & Value Time & Experience Required Roll-out and Collaborate based on Information not Data Repeatable Deployment Low Cost Low Risk …but in which direction? A journey of a thousand miles begins with a single step. Lao-tzu, The Way of Lao-tzu Chinese Philosopher (604 BC BC)

35 35 Assessment & Laboratory Hardware Technology Definition Operational Processes Benefits & Cost Development Assessment – Flexible Phase Approach Laboratory / Pre Pilot Study Progress to Pilot & Then Roll Out

36 36 What Questions Does this Answer? Quite simply:- 1.Is there a business case? 2.Will it give me the information I need? 3.How can it be deployed? 4.How long will it take? 5.How much will it cost? 1.GO 2.NO GO

37 37 Coffee Break February 10, 2006

38 38 Proven Process of Deployment February 10, 2006 Mika Lindholm, Business Development Director, Capgemini Mark Prichard, Product Director, EMEA

39 39 Transformation Consulting Business Technology Architecture Services Systems Architecture Solution Design Systems Integration Application Packages Development & Integration Services Data & Content Services Infrastructure Services Systems Engineering Network Engineering Security BusinessOutsourcing Business Process Outsourcing IT Outsourcing Applications Management Infrastructure Management Network Outsourcing OTACE Over 94% on Time 92% meeting or exceeding customer expectations ASE/ADC Design Shop ASE/ADC Design Shop TM Process Consulting Customer Relationship Management Supply Chain Management Finance & Employee Transformation

40 Post Office. 2. Distribution Centre Vehicle Distribution Centre. Scanned Out using Handheld Scanners & Scan-In through Portals Gates 5. Sender Vehicle UnLoaded. Scan-Out Full Roll Cage Deliveries & Scan-In Empty Roll Cage Collection In-Transit Finland Post: The Requirement Internal Process Control not part of the initial Pilot. Roll cages are not lost here! Pilot focuses on activities that are outside direct Posti Control.

41 41 The process of moving forward RFID is not like purchasing a new HP printer that can be taken out of the box connected to a PC and it works. Select a reliable experienced partner to guide you through an RFID adoption programme. You need to understand the technology before you can exploit it. Business case development (barcodes will be around for many years to come), take it in baby steps… Realise benefits and progress to next stage. Do not select RFID based on price. Your environment, your processes and business applications will dictate the RFID technology selection thats right for you. Do not under estimate the importance of Operator training.

42 42 Assessment & Laboratory Hardware Technology Definition Operational Processes Benefits & Cost Development Assessment – Flexible Phase Approach Laboratory / Pre Pilot Study Progress to Pilot & Then Roll Out

43 43 Assessment & Laboratory What Areas Were Covered? Roll Cage Uses. Roll Cage Dimensions. Roll Cage Handling. Roll Cage RFID Reader Considerations (I) Roll Cage Potential Tag Positions. Roll Cage RFID Reader Considerations (II) Roll Cage Typical Damage. Post Environment. Roll Cage RFID Recommendations.

44 44 RFID: Key message. RFID Tags & Readers are very complementary, they will happily work alongside other Auto-id and RF wireless technologies. In combination with other such technologies, very compelling IT solutions are possible providing business users opportunities to track and trace assets and obtain real-time data not previously possible with barcode technology. GPS Technology Auto-id Technology GSM/GPRS Technology RFID Reader Software Application Software (WMS/Track & trace etc). IT Infrastructure EAI Integration Business Process Transformation Financial Transformation RFID is simply a very good enabling technology

45 45 RFID: The Future is Intelligent Logistics February 10, 2006 Tomi Pienimäki, Chief Technology Officer

46 46 Themes for Technology Adoption Location Based Systems Solutions For Reaching Production Efficiency Emerging Opportunities Mobility Enabling Innovative Customer Solutions Intelligent Logistics Event Management

47 47 Combining RFID, Location Based Systems and 2-D symbols RFID and Location Based Systems will be essential technologies in the future RFID should be combined with other technologies: Location Based Systems, 2-D symbols (and barcodes) => Comprehensive technology roadmap Posti Strategy: Small scale deployments as technology matures Piloting technologies with limited investments would ensure competitiveness in the future

48 48 RFID Usage Areas and Effects in Posti RFID Foundation Process control, efficiency and quality Removing manual work, Efficient work governance RFID in Posti Transportation facilities tracking Transparency - Shipment tracking

49 49 RFID Roadmap Draft: Wide tracking of transports and shipments Process control and optimization Dynamic process control Tracking of selected shipments on item level Real time tracking and reporting of shipments and transports for clients Tagging of other transport units Wider integration to customer processes Technology roadmap Demo-/test environment to gen2 level Architectural readiness Tracking of selected transportation units Tracking of high value deliveries

50 50 Summary of Morning Session

51 51 In Summary BEA is committed to RFID Scaleable & robust infrastructure is central to a successful RFID deployment Transform RFID data into relevant & timely information to improve decision making Use a proven process of deployment Experienced & knowledgeable partners are a must to make it happen.

52 52 Q & A / Tour

53 53 Tour: A Top Level Overview

54 54 RFID Pilot Layout: 3 Doors and 300 Tagged Roll Cages Sorting areas Transport routes Roll cages movement in the Post Terminal Long range readers Pilot Roll cage storing Post office Helsinki Post Terminal Logistics Centre, Vantaa 1 Customer Hand-held readers 2 3

55 55 Lunch & Close

56 56 Portal Reader & Antenna Antenna & Reader Portal LED Counter BAC K

57 57 Handheld Readers Roll cage tag Customers Tag Hand-held Terminal BAC K

58 58 Posti Roll Cages BAC K

59 59 Posti Roll Cage Dimensions SIDE VEIWFRONT VEIW 15 mm 35 mm 1425 mm 1560 mm 835 mm 680 mm 505 mm 520 mm Wheel diameter 100 mm 135 mm BAC K

60 60 Delivering small and large format letters. Delivering letter transportation units. Posti Roll Cage Uses Plus a Variety of other Consignments. BAC K

61 61 Posti Roll Cage Handling There are numerous Roll cage weighing and tipping machines in operation. Roll cages are moved with speed and in numbers using a range of fork lift trucks. From this picture it can be seen that up to 12 empty Roll cages can be moved at the same time using a single vehicle. BAC K

62 62 Posti Roll Cage Typical Damage Roll cage base becomes saturated with snow/ice after being left outside for prolonged periods. The base and wheels have to be replaced regularly. BAC K

63 63 Roll Cage Potential RFID Tag Positions 6 RFID tag positions have been considered; SIDE VEIWFRONT VEIW 135 mm 1560 mm Position 6. Position 3. Position 1. Position 2. Position 4. Position 2. Position 3. Position 5. BAC K

64 64 RFID Reader Considerations. Read Range & Speed Distance from Reader to tag. Size of portal to be covered by reader. Tag read data requirements (i.e. how much data stored on tag). Maximum speed the tag will pass the reader. Anti-collision requirements. Number of Tags in the reader field to be read at the same time. Reader Position/Environment. Mobile or fixed position. Local environment, floors, ceiling and wall construction. Potential sources of RF interference, inc. items tags attached to or being moved on. RFID Tag Type Passive or Active. Low Frequency (125KHz to 134KHz), High Frequency (13.56 MHz), Ultra High Frequency (868 MHz) or Microwave Frequency (>1GHz). BAC K

65 65 Read Range, Speed & Anti- Collision Requirements Helsinki Post Office Posti Vehicle Roll Cage Stacking BAC K

66 66 Reader Position/Environment Large metal pipe-work, electric motors, metal roller doors, Electric Fan heaters with large metal heat exchanger matrix, power cables etc…. BAC K

67 67 RFID Recommendations. Tag Position on Roll Cage. We recommend that Position 5 and 6 should be evaluated within the Posti operational environment. The RFID pilot will aim to establish the read performance based on the tag position and ability to address the RFID tag by Posti operators. We recommend UHF RFID technology to be deployed by Posti UHF (868.5 MHz). The RFID technology selection criteria has taken into account many factors, including the operational and physical specification requirements identified during the Posti process reviews. Most importantly it has taken a view of the RFID technology support and purchase costs for both readers and tags both today and in the future. Position 5Position 6 BAC K

68 68 Review of assets/containers & compatibility with RFID Tag positioning and tag attachment methods Definition of RFID tagging strategy (when/who/how) Reader requirements - read range and read speeds An outline RFID IT architecture definition Existing data collection technologies with recommendations for RFID integration Assessment Hardware Technology Definition 1.GO 2.NO GO Back

69 69 Current Process Map and Procedures RFID Enabled Process Map and Procedures GAP analysis Review security, along with operator training Health and safety issues - strategies comply with corporate strategy and legal requirements. How is the change going to be managed? RFID Operational Processes Assessment 1.GO 2.NO GO Back

70 70 RFID hardware technology costs (pilot/roll-out) RFID software integration costs (pilot/roll-out) RFID implementation costs (pilot/roll-out) RFID Business benefit definition, immediate/future development A total investment summary for both Pilot and roll- out implementation RFID Benefits & Cost Development Assessment 1.GO 2.NO GO Back

71 71 RFID Laboratory/Pre-Pilot Testing Objectives Establish best performing hardware vendors Appropriate tag format, position & mounting method Assessment of readers to track other items using a range of operational scenarios. Stable solution to take on-site Reduce Risk Increase Experience Back

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