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GS1 EPC/RFID Advisory Group Launch 9 November 2006
©2005 GS1 2 Making our Vision a Reality Agenda 9.00amWelcome Maria Palazzolo, GS1 CEO 9.15amGlobal experienceBill McLeer, EPCglobal US 9.30amAdvisory Group scope & objectives Mark Fuller, GS1 COO 10.30amTea Break 11.00amKeynote: EPCglobal ProgressBill McLeer, EPC Global US 12.00pmPanel SessionBill McLeer Malcolm McKeith - ADF Bruce Grant - P&G Fiona Wilson - GS pmAdvisory Group Wrap-upRichard Jones, GS1 GM Ser Del 12.40pmLunch – SCKC RFID moduleTours 1.45pmTechnology Group LaunchMaria Palazzolo Bill McLeer Fiona Wilson 3.30pmClose
EPC/RFID Advisory Group Launch Welcome Maria Palazzolo CEO GS1 Australia
©2005 GS1 4 Making our Vision a Reality EAN and UCC is now GS1 A single Global Organisation incorporating EPCglobal and GDSN Inc ( Global Data Synchronisation Network) All GS1 Member Organisations are the Sole Agents of the EPCglobal Standards in their territory GS1 Australia administers the EPC standard in Australia
©2005 GS1 5 Making our Vision a Reality The GS1 Vision for EPC/RFID EPCglobal leads the development of industry driven standards for the Electronic Product Code (EPC) to support the use of RFID in today’s fast moving information rich, trading networks. Our Goal is to increase the visibility and efficiency throughout the supply chain and ensure high quality information flow between companies and their trading partners
©2005 GS1 6 Making our Vision a Reality GS1: a diversified portfolio GS1 has a full portfolio of products and solutions Global standards for electronic business messaging Rapid, efficient & accurate business data exchange The environment for global data synchronisation Standardised, reliable data for effective business transactions Global standards for automatic identification Rapid and accurate item, asset or location identification Global standards for RFID-based identification More accurate, immediate and cost effective visibility of information
©2005 GS1 7 Making our Vision a Reality Why we are here today….. Currently no mandates in Australia Adoption is slow and opportunities are being lost Early adopters mostly targeting improved management of assets and logistics items We still have a window of opportunity to examine the EPC network and it’s benefits before mandates occur Use learning’s from Overseas experiences EPC Network Australian Demonstrator Project Other pilots Begin to learn, experiment, evaluate, adopt
EPC/RFID What the world’s been up to…
©2005 GS1 9 Making our Vision a Reality 1,000 Wal-Mart stores will use EPC/RFID by June 2007, along with 600 of their largest supplier companies to track cartons & pallets 32% Reduction in out-of-stocks at the shelf 62% Reduction for faster moving items OOS for EPC tagged products replenished 3 x faster Manual orders reduced by 10%. EPC/RFID – What’s been happening
©2005 GS1 10 Making our Vision a Reality Metro Group (the fourth largest retailer in the world) will roll out dock-door RFID receiving gates across 150 locations by mid Potential savings 8.5m Euro (in Germany) from RFID tagged pallets through goods exit gate. UK retailer Marks & Spencer has expanded its item- level RFID tagging trial to 53 locations and expects EPC/RFID to help them deliver 100% stock accuracy. EPC/RFID – What’s been happening
©2005 GS1 11 Making our Vision a Reality Heineken is using EPC/RFID to speed up customs processing by tracking 10 containers loaded with beer as they travel through Europe. Procter & Gamble saw a 20% uplift in sales in its first RFID-enabled new-product launch this year. EPC/RFID – What’s been happening
©2005 GS1 12 Making our Vision a Reality AT Kearney reported that retailers who introduced RFID received: Reduced inventory leading to a one-time cash savings estimated at 5% of total inventory. A reduction in out of stock items resulting in a recurring annual benefit of $700,000 per $1 billion in annual sales EPC/RFID – What’s been happening
©2005 GS1 13 Making our Vision a Reality Item-level RFID tagging deployment in one store increased sales by 12% over eight weeks. BGN predicts that RFID will materially boost sales: "I expect additional annual revenue of 3.8 million Euro". Lemmi Fashion: Stock turnover before tagging 5,000 to 10,000 items per day Stock turnover after tagging 20,000 items per day Increase 250% to 300% in receipt and shipment of goods EPC/RFID – What’s been happening BGN is a Dutch chain of bookshops with a yearly turnover of € 166 million.
©2005 GS1 14 Making our Vision a Reality IDTechEx predict that the healthcare industry’s demand for RFID will reach US $2.1 billion by Health Industry Insights has identified that the RFID market in Life Sciences will exceed $14 billion over the next 3 years. Australian Department of Defence will spend up to $650 million over the next 8 yrs on RFID Supply Chain Technology. EPC/RFID – What’s been happening
©2005 GS1 15 Making our Vision a Reality The Opportunity……. Real benefits of EPC/RFID will come from business process improvement opportunities which can only be realised through effective collaboration with industry GS1 provides the global standards and wants to support Australian Industries and solution providers to ensure cost effective industry adoption of EPC/RFID
©2005 GS1 16 Making our Vision a Reality In summary… EPCglobal evolving effectively to meet expanding membership Core work continues its rapid progress but…….it’s about the “solutions” not “technology” Incredible commitment/drive within the EPCglobal community Closer integration of activity across GS1 Clear change over last 12 months as organizations have Started tomove from preparation to implementation Started to really understand potential to transform their competitiveness
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