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Deploying RFID for Value Across the Enterprise Presented at AIDC 100 October 15, 2008.

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Presentation on theme: "Deploying RFID for Value Across the Enterprise Presented at AIDC 100 October 15, 2008."— Presentation transcript:

1 Deploying RFID for Value Across the Enterprise Presented at AIDC 100 October 15, 2008

2 © 2008, Reva Systems Corporation Slide 2 Introduction Hello – Peter Blair Reva Systems Director of Marketing ext. 213 Agenda Some Industry Perspective Reva Background Global Enterprise Use Cases HP Perspective & Programs

3 © 2008, Reva Systems Corporation Slide 3 Some Industry Perspective: METRO Group

4 © 2008, Reva Systems Corporation Slide 4 ______ Outlook for Innovative Technology Challenges of the future in Retail –Take advantage of greater services emphasis –Create real-time transparency –Use information anytime, anywhere Key technologies –Hands-free data communication –Unique identification –Rapid access to process data for supply chain participants Customer Services –Better product availability –Better quality & freshness control of goods (temp, sell by, etc.) –Product pedigree –More information for customers Process Improvement & Cost Reduction –Inventory –Labor –Asset Utilization –Employee & Public Safety RFID = key optimizer for Metro’s Future Enterprise Substitute DHL & 3PL / Logistics Substitute Dole & Food Processing Substitute HP & Consumer Electronics Substitute Pratt & Whitney in Aerospace Substitute ETC…you get the picture

5 © 2008, Reva Systems Corporation Slide 5 RFID is key optimizer for Metro’s Future Enterprise Value Propositions for RFID –Right goods, right place, right time –Accurate & timely back end systems –Product quality –Process efficiency –Supply chain transparency –Consumer confidence and safety –Consumer information and enhanced experiences Requirements for RFID are NOW MET –Standards-based technology –Interoperable tags & readers –Globally capable solutions –High performing implementations –Manageable installations –Cost effective deployments

6 May 4, HP’s Perspective: RFID Can Address Business Problems Supply Chain –Contains large proportion of serialized product –Requires careful tracking Use of multiple vendors at multiple supply chain points –Requires identification of items and their location –Performance monitoring and hand offs Barcodes provide this capability today BUT –Physical limitations limit where and how often it can be applied without unbearable additional costs

7 May 15 7 HP RFID Geographic Scope RFID impacts businesses, operations and customers in all Regions. Therefore program scope is global and pan HP in nature. Commercial sites Retail sites 30+ sites now RFID capable

8 May 4, Proposed Solution Could HP use RFID to enhance the flow of goods in our Supply Chain by: –Automating identification of items through the process flow –Eliminating manual effort –Increasing granularity of item, location, and time data –Identifying an item as the consequence of another process –Eliminating processes which only identified items –Eliminating dwell time between processes –Using RFID based data to radically change processes –Carry key data on an item for faster local processing

9 May 4, Existing Processes – Quite Manual even with Bar Codes He is scanning every printer engine to capture the serial number And he is applying a barcode label by hand

10 May 4, Refining Existing Processes – Integrating with RFID RFID capable printer Shop Floor system creates EPC code to integrate into tag Serial number is associated to EPC number

11 May 4, Shipping Prep – Prior to RFID Forklift selects full pallet for shipment, picks the pallet from storage, then takes it to a shipping dock Tells warehouse staff that pallet is ready Warehouse staff then scan pallet contents WMS system confirms pallet to order and prints shipping label Operator retrieves address labels and apply to pallets

12 May 4, Shipping Prep – With RFID Forklift selects full pallet for shipment, picks the pallet from storage Forklift approaches ship preparation tunnel, photoeye triggers process Antenna reads EPC pallet tag and EPC case tags on the pallet System verifies pallet and prints shipping label and tag Label ready by the time forklift reaches end of tunnel Pallet taken directly to outbound staging Idle time from staging eliminated completely

13 May 4, Mixed/Partial Pallets – Prior to RFID Less than full pallet quantity One or more products Barcode labels on each individual box must be scanned manually Dense pallets can only be barcode scanned by unstacking pallet

14 May 4, Mixed/Partial Pallets – With RFID Pallet rotates on shrink wrap machine Read case EPC’s from each box Reva integrated with WMS automatically verifies product and quantity Eliminates manual scan step Reduces cycle time incorporating scanning with wrapping operation

15 May 4, Performs the full range implementation for Latin American market: manufacturing + completion process + distribution center (inbound & outbound) + reverse distribution (DOA & warranty repair) 1.Tagging Printer Chassis prior to build 2.Gathering Key data during Build (Product DNA) 3.Materials level control using Tags Sao Paolo : e2e implementation

16 May 4,

17 RFiD Tag at printer Chassis Writing EPC & HP Serial number in RFiD Tag Writing test results: Building product DNA

18 May 4, Writing Country destinationWriting Pen expiration date – Consolidating Product DNA Building pallets automatically controlled

19 May 4, Is RFID Worthwhile? - Yes …. but it’s not always obvious as to why and how. The key advantages are : –Labor Savings –Process Accuracy –Inventory Accuracy –Proof Of Delivery –Improved Operational Data –Improved Operational Performance –Advanced Ship Notice ( Dispatch Advice ) –Predictive Event Management –Common Shared Data

20 May 4, Is RFID Worthwhile? - Yes It is the combination of these factors which makes RFID so powerful and worthwhile The most common mistake is to look at just one or a few of them and decide that RFID isn’t worthwhile Barcodes took off seriously when folks realized that benefits could be accrued by everyone throughout the process chain Can’t get all benefits from the start up. You have to make enough investment initially to cover a critical mass of the process chain. Need to approach RFID as an enabling infrastructure

21 Reva Background Awards Customers Standards Product of the Year

22 © 2006, Reva Systems Corporation Slide 22 RFID Network Infrastructure Facility-wide visibility Redundant Scalable © 2008, Reva Systems CorporationSlide 22

23 Reva’s Product Portfolio Reva Multi-site Manager (RMM) Tag Acquisition Processor (TAP) RFID Network Appliances Accurate, reliable, location data Reader system optimization Facility-wide visibility Redundant, scalable Standards-based Interfaces TAP 721 Dynamic Facilities Up to 128 Readers Up to 1,024 read-points TAP 331 Remote Facilities Up to 8 Readers Up to 32 read-points Reva Management Console (RMC) Multiple site management and monitoring Powerful alerts Enterprise health views Drill down to individual sites Network-wide reader upgrades Site mapping and configuration tools RF Modeling Facility virtualization Scaled, automated deployment Single site management and monitoring

24 © 2008, Reva Systems Corporation Slide 24 Reva Platform Benefits for Enterprise Customers Improves RFID performance –More reliable reads and higher read rates –Most accurate location information –Continuous availability with fault tolerance and failover –Remote configuration, management and monitoring Provides a facility infrastructure that scales –Flexibility to add fixed and mobile readers from different vendors –Supports seamless integration with IBM, Oracle and other applications –Simply integrate additional applications Lowers facility Investment in the ROI equation –Designed for rapid, repeatable deployments –Choose the right mix of readers for the job –Lower operations costs through swift problem identification and resolution

25 25 Customer Overview Metro is one of the larger retailers in France with 90 Cash & Carry Stores. The logistics and warehouses for the stores are managed by DHL. There are 5 warehouses. Total of 154 dock doors. Aggregate traffic of 1.5 million tags per year. The backend is Oracle based. Customer Challenges Multi-site management of the RFID infrastructure The stores and warehouses are difficult RFID environments with cross-reads and ambient tags. The backend systems depend on 100% ‘accurate’ RFID reads. Ability to operate a diverse set of devices with real-time implications: RFID readers, printers, lightstacks, buzzer. Different networking setup (firewalls etc) in DHL warehouses and Metro stores. Reva Solution Reva TAP 701s at the DCs and 331s at the stores. RMM for centralized management and monitoring The entire workflow was developed by systems integrator NBGID with Reva guidance and training. Workflow developed by Partner Interface to backend Operation of the lightstack, buzzers, control of gathering cycles Additional filtering Case Study – DHL & Metro France Pallet Level Tracking at 5 DCs and 90 Stores Customer Initiatives RFID-enable all the Stores and Warehouses Pallet level tracking DC outbound shipping to stores Store goods receiving from DCs The system should scale to support case- level tracking in the future. Customer Initiatives RFID-enable all the Stores and Warehouses Pallet level tracking DC outbound shipping to stores Store goods receiving from DCs The system should scale to support case- level tracking in the future.

26 26 Customer Overview Manor is the second largest retailer in Switzerland. Total of 70 department stores and 2 DCs in Switzerland. The first RFID phase involves 8 stores and 2 DCs. Backend system is Oracle based. Customer Challenges Very tough environment with RFID portals at close vicinity to each other. 100% accurate reads required at binders and wrappers. <100% but accurate reads required at the shipping and receiving. Introduction of RFID alters some of the processes – how to keep it user-friendly and efficient. Reva Solution Reva 331 for the stores, and 701s for the DCs. Reva developed the workflow for this project. Worked with systems integrator Rodata who delivered the end- to-end solution including portals and project management Workflow Development by Reva Backend interface with Oracle Innovative filtering logic to tackle some special cases of locationing requirements at the facilities Process-related functionality Iteratively developed through series of extensive testing and learning Case Study – Manor Pallet, Case and Item Level Tracking from DCs to Stores Customer Initiatives Manor Stores operate in Switzerland Automate the pallet, case and item tracking from DCs to Stores. Reduce errors Customer Initiatives Manor Stores operate in Switzerland Automate the pallet, case and item tracking from DCs to Stores. Reduce errors

27 27 Customer Overview National postal services for the country of Spain Operates 100’s of mail depots and local community post offices In the past - has used HF RFID tags to conduct modest quality tracking through their distribution network NOW – is implementing extensive mail quality and asset tracking programs using UHF RFID tags, Gen2 Readers and Reva RFID Network Infrastructure Phase 1: 37 DCs with 207 portals. Backend is IBM Customer Challenges Reading all the trays in a roll cage can be difficult if there are many trays in the cage and if the cage contains a lot of metal Operating 10s or 100s of RFID readers in a facility can create a lot of RF noise, thereby reducing read rates Activity on adjacent dock doors may be hard to decipher since the RFID readers will observe moving trays/cages and static trays/cages Reva Solution Reva 701s for the large DCs and 331s for the small ones. Reva developed workflow logic to interface with IBM MQ over proprietary XML. End-to-end solution delivered by systems integrator Aida Centre based in Spain Case Study – Correos Mail Quality and Asset Tracking using UHF RFID Customer Initiative Closed loop Asset Tracking: Roll Cages, carts & totes Mail tracking: Mail trays & bags Truck Load/Destination verification Mail Sort Verification Service Level Monitoring / Assurance Customer Initiative Closed loop Asset Tracking: Roll Cages, carts & totes Mail tracking: Mail trays & bags Truck Load/Destination verification Mail Sort Verification Service Level Monitoring / Assurance

28 28 Customer Overview Sony is known for high quality consumer electronics. The Sony distribution center in The Netherlands ships televisions, CD players, and other consumer electronics to retail and wholesale customers in Germany and other northern European countries. Sony uses SAP for their warehouse management system. Customer Challenges Needed to lower inventory shrink and lessen claims associated with orders & shipments Needed to streamline claims processing procedures Implement RFID to improve accuracy and combined with Video records to document proof of shipment for their claims process Needed 100% RFID read rates on order pallets and zero cross reads in order to create accurate video records The distribution environment presents many RF challenges Reva Solution A Reva TAP controls all 20+ RFID readers in the facility The TAP determines which tags are actually in which locations with 100% read rates, even at the 6 closely spaced shrink- wrapper- video recording stations while eliminating cross reads During shipping operations, the TAP determines which tags are being loaded on which trucks and presents visual feedback to the load operators indicating good and bad pallets Customer Benefits Reduced shipping process time by 4 hours on average per day Eliminated overtime labor for all by peak-peak times Increased order & shipment accuracy Reduced shrink and claims Reduced time to process claims Case Study – Sony Logistics RFID enhanced Order Processing and Shipment Verification combined with Digital Video Recording Customer Initiatives Sony consumer electronics distribution center that serves northern Europe Tag and track cases during order fulfillment, create video record proof-of- shipment with Tag ID’s embedded Automate shipment checking for shipment accuracy Reduce order and shipment errors, prevent loss and lower claims volume Customer Initiatives Sony consumer electronics distribution center that serves northern Europe Tag and track cases during order fulfillment, create video record proof-of- shipment with Tag ID’s embedded Automate shipment checking for shipment accuracy Reduce order and shipment errors, prevent loss and lower claims volume

29 Actual ROI so far… Reduced shipping process by 4 hours on average per day Eliminated overtime labor for all but Peak-Peak times Increased fulfillment accuracy Decreased claims

30 30 Customer Overview Dow Corning is a multi-national chemical and alternative energy manufacturing company that is a joint venture between the Dow Chemical and Corning. Adhesives plants mix temperature controlled chemicals to create individual products that are packaged and re-packaged for use and sale. Dow Corning uses SAP for ERP and manufacturing execution. Customer Challenges Handling hazardous materials & maintaining employee safety Product quality is effected by temperature during production and storage Manufacturing environment is not RF-friendly Reva Solution Interface with readers and portals Aggregate RFID data Determine accurate item location by work area and temperature zone Eliminate cross reads and false-positive reads Push clean RFID data to multiple applications Customer Benefits More efficient material handling / stream lined operations Eliminated need to purchase additional equipment Better labor planning resulting in labor savings Inventory Management Improved product quality Case Study – Dow Corning RFID enabled WIP tracking, IT asset tracking & yard management Customer Initiatives Dow Corning Adhesives Plants in Michigan and Kentucky Tag and track WIP and select components used in chemical manufacturing process. Tag and track IT assets (laptops, servers, etc.) Manage trucks and containers in the yard with RFID for check-in/out and storage Customer Initiatives Dow Corning Adhesives Plants in Michigan and Kentucky Tag and track WIP and select components used in chemical manufacturing process. Tag and track IT assets (laptops, servers, etc.) Manage trucks and containers in the yard with RFID for check-in/out and storage

31 The Results It works (Avery Dennison, Motorola, Reva & Lowry) Lots of data created and analyzed Operators now rely on system feedback at critical steps (they trust the RFID enhanced process) The business now depends on the data Dow is now tracking IT assets using the same infrastructure at several plants Dow has added truck yard management at the original plant (using UHF passive) –Automatic check in / out at multiple gates –Eliminated the need to purchase additional equipment –Improved labor planning to unload trucks –Improved shipment visibility (transit time ‘holes’)

32 Thank You Ashley Stephenson Reva Systems, Chairman

33 Appendix METRO Group Case Study

34 © 2008, Reva Systems Corporation Slide 34 Europe’s Largest Rollout for RFID Enabled Shipping and Receiving at about 400 Stores and Distribution Centers in Germany Hypermarkets The world’s most complete, standards-based, live supplier-distribution to in- store point-of-sale item level RFID deployment Cash & Carry

35 © 2008, Reva Systems Corporation Slide 35 How Metro Deploys RFID UHF Gen2 Readers (fixed, portal, mobile, handheld) UHF Gen2 Tags RFID Network Infrastructure (TAPs) Enterprise Integration & Data Repositories Applications Other Applications Runs Centrally at MGI Data Centers Installed at all RFID Facilities ***** Multiple Vendors in Stores and Distribution Centers Many Tags

36 © 2008, Reva Systems Corporation Slide 36 Retail Supply Chain Program  About 70 Metro Cash & Carry and about 100 Real stores in Germany (first phase, 2007)  Additional 200 Real stores (second phase, 2008)  15 Distribution Centers  Phase 1: July – September 2007  Phase 2: March – July 2008  Fixed and Portal readers from Sirit, Intermec & Checkpoint  Reva TAP 331s at Stores and TAP 701s at DCs  IBM WebSphere integration at MGI Headquarters  Dock Doors at Distribution Centers  Dock Doors at Stores  Some Back to Front of Store Portals  Some Processing Zones Sites Project Time RFID technology Coverage Areas Process Areas  DC inbound goods receiving from suppliers  DC outbound shipping to stores  Store goods receiving from DCs and some direct suppliers  Some store tracking of goods backroom to front room  Some tracking of perishable goods (meat)

37 © 2006, Reva Systems Corporation Slide 37 Distribution Center Operations Ensure the right goods loaded on right truck Give operator feedback in time if right or wrong

38 © 20086, Reva Systems Corporation Slide 38 Store Operations Receiving Dock Transition Door Automatic goods receiving Some perishables tracking Backroom to front room tracking

39 © 2008, Reva Systems Corporation Slide 39 Item-Level Store Project  Galeria Kaufhof in Essen,  Men´s Fashion, 3rd floor  September Passive transponders, fixed & handheld from multiple vendors running the LLRP interface, controlled by Reva TAPs RFID-Readers at portals for incoming goods, intersection areas, dressing rooms and check-outs RFID Shelves, Racks, Fixtures Changing Rooms Point-of-Sale Escalators, Elevators, Walls Store Project start RFID technology Coverage Areas Application Objectives  Inventory Management  Customer Experience  Retail Analytics

40 © 2008, Reva Systems Corporation Slide 40 3rd Floor with Antenna Positions Escalator/ Floor Sales Floor Cash Desk Backstore Fitting Rooms Exit Gardeur-Shop Key Data 64 readers 208 antennas 30,000 articles 500 product carriers

41 © 2008, Reva Systems Corporation Slide 41 Store Set up in Reva Management Console > 60 readers

42 © 2008, Reva Systems Corporation Slide 42 Why this Item-Level RFID Deployment Matters ? 1.First standards-based item-level retail deployment of its scale and it works 2.EPC standards compliant network layered architecture 3.Heavy use of near-field UHF 4.Excellent systems performance in very dense reader environment 5.Cutting edge consumer facing applications This was NOT possible until 2007

43 © 2008, Reva Systems Corporation Slide 43 Many Read Points & Heavy Use of Near-field UHF Deliver Consumer Facing Applications

44 © 2008, Reva Systems Corporation Slide 44 Also Reads at Point-of-Sale

45 © 2008, Reva Systems Corporation Slide 45 Combined EAS with UHF for Loss Prevention

46 © 20086, Reva Systems Corporation Slide 46 The Benefits to Date Supplier Support: within 3 months > 40% of pallets received at Markets were tagged Improved accuracy in shipments to the correct Markets Improved shelf availability in Markets Increased frequency of stock taking in shelves in Department Store = accuracy Better visibility of RFID operations centrally 1 Employee manages the RFID infrastructure centrally for 100s of sites / 1,000s of readers


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