Inventory & Asset Management How Wireless Technology Can Add Values 2005 Wireless & Mobile WorldExpo Victor Chen Bell Canada Enterprise Wireless Solutions

Wireless Technologies and Business Applications Data Collection RFID Inventory Management Barcode EPC Standard Mobility Wireless Switch Wireless LAN Data Communication Supply Chain Fixed Readers Asset Tracking Active Tags Access Ports Mobile Devices

Bridging Wireless Technologies and Business Applications Handheld Devices, RFID, Barcode WLAN Infrastructure WWAN Network Application Software Asset Management Asset & Location Tracking Inventory Management in Supply Chain Wireless Data Collection Wireless Data Communication Data Management and Processing Applying Mobility to Business and Operational Process

Restrictive “Mobile” Tools Enterprise Asset Management Managing assets that are owned or leased by organizations Production Assets Needs and Challenges Manage all assets critical to the performance of the organizations. Keep the organization’s assets operate at optimum efficiency. Address budgetary and services issues. Protect significant investment in assets. To be aware of the location, condition, availability and utilization of equipment and capital assets. Improve asset accountability and regulatory requirement (e.g. Sarbanes-Oxley). IT Equipment Restrictive “Mobile” Tools Fleet Facilities

Customer’s Justification for an Effective Enterprise Asset Management Solution Physical Assets Legal Requirement Comply with health and safety requirements Achieve higher service levels with the same or lower budget and resources Reduce asset acquisition costs Manage costs to budget Improve efficiency of operation Reduce maintenance backlog Managed 3rd parties operating or maintaining assets Comply with regulations Reduce risk of non-compliance Retain knowledge of workforce Improve employee satisfaction Improve customer satisfaction Improve public record/image Create a better work place Revenue Enhancement Cost Reduction Outsourcing Initiative Risk Mitigation Competitive Advantage

Wireless Enterprise Asset Management (EAM) Solution Mobile Portion EAM Portion Applies enterprise mobility to the EAM process to improve productivity. Keep the organization’s assets and operations at optimum efficiency. Mobile EAM solution provides workers with critical information at the point of activity. Enable faster and accurate distributed assets information to transmitted back to the EAM system. Access Ports Wireless Switch Switch 802.11 WLAN EAM System Server EAM Application Software Key Components Enterprise Asset Management or similar function backend software Rugged Mobile Computers: WLAN 802.11 enabled WLAN Infrastructure: Access Ports and Wireless Switches OR RFID Infrastructure: Readers and Tags Rugged Mobile Computers (Barcode and./or RFID) Enterprise Resource Planning (ERP) System

Case: Managing Mobile Firefight Equipment Customer Type: Forest Fire Suppression Agency Problem Required to respond quickly to forest fire Equipment were manually identified, and individually counted and recorded Lengthy asset management process Time consuming and error-pronged Wasting fire fighting recourses Lost or misplaces mobile equipment Solution An Active Tag RFID solution capable of close to 100% read accuracy. Solution comprises of an Active RFID tag, Mobile and Fixed RFID readers and custom developed software. Benefits to Customer Enable customer to efficiently track its assets across the province Provide a real-time inventory view of all its assets – with single press of a button Improve asset tracking and management capability Improve resource usage

Asset and Location Tracking (Wi-Fi/WLAN based)

Why assets tracking is needed? Ensure availability of assets critical to operations Where is it Now ? Where is the closest piece of equipment I need ? What was its last location ? History ? Utilization ? How many of each type of equipment are out there and where are they ? Impact on business and operations Productivity loss Increase in capital and expense Jeopardizing customer service

Asset and Location Tracking Solution Access Ports Combines the 802.11 wireless networking technology with location information. Leverages standard WLAN access points without the need for RF antennas and receivers. Location capability: up to 1m average accuracy (4 to 6 access point signals) Fast deployment and lower system deployment cost. Wireless Switch Switch 802.11 WLAN Applications Server Asset Tracking and Locating Software Key Components Wi-Fi location tracking tag (battery powered active radio tag) Positioning Engine software 802.11 WLAN Infrastructure: Access Ports and Wireless Switch Wi-Fi Tracking Tag

Tracking Assets and Patients in Hospital Improve patient care and increase productivity of medical staff Medical Equipment Tracking Find misplaced equipment, increase utilization and reduce new purchases Monitor utilization and long-term needs Reduce theft and accidental losses Patients Tracking Being used in a long-term care facility to track over 100 patients. Improve “wanderers” quality of life by reducing lock downs requirement. Receive alarms based on patient movements and profiles.

Location Tracking Applications Warehousing and Manufacturing Healthcare Tracking portable medical equipment Tracking patients and caregivers Location-enabling hand-held bar code scanners Tracking lift trucks, personnel for improved workflows Increase asset and equipment visibility Security Airports Visitor Management Personnel Assignment Asset Alarming Visitor guidance Personnel tracking Truck/baggage cart tracking LOCATION DATA VOICE WLAN 802.11

Inventory Management in Supply Chain

Supply Chain and Inventory Management Raw Material Facilities Manufacturing Plants Distribution Centers and Warehouses Retail Stores Consumers Inventory Flow in a Supply Chain (Raw materials, work-in-progress and finished inventory) To achieve objectives of SCM Supplying the right products In the right quantities At the right moment At minimal cost

Key Solution Components Business Applications What is Driving RFID today? Key Drivers New Technology Key Solution Components Tags (or Transponders) : Active vs. Passive Read Only vs. Read/Write Frequency (LF, HF, UHF, Microwave) Read Range Data Capacity Readers Middleware Application Software New Standards Industry Mandates New Economics Business Applications

EPC/RFID Solutions Solutions Description EPC (Electronic Product Code) RFID (Radio Frequency Identification) Solutions can help organizations boost productivity, improve customer service, and lower costs Solutions Description High value items and highly regulated items that require data gathered at various points in the production line are excellent targets for RFID tagging. Record safety test data at each step in the process, automatically. Manufacturing - Work-In-Process Tracking Tagging items at the case and pallet level with RFID tags. Readers placed at warehouse dock doors record the items loaded and unloaded from trucks; backend system verifies contents against PO and ASN. Warehousing - Automated Shipping & Receiving Retail - Item-Level Shelf Monitoring Tagging at the item-level, along with ‘smart shelves’ – units with RFID readers built in, provide immediate feedback for replenishment, in addition to notification of misplaced items.

Application of RFID in Inventory Management EPC Class 1 Label Packaged Product Encode/Apply Printer Manufacturing (Crate/Box Level) EPC RFID Portal and EPC RFID tags Warehouses and Distribution Center (Pallet Level) Shelves Retail Outlet (Unit Level) ExpressVu boxes with EPC Class 1 Labels Antennas

Why are Organizations Looking at EPC/RFID? Component Levers Impacted Variables Benefits Inventory Inventory days on hand Safety stock Transit inventory Recurring inventory carrying costs Promotion management Visibility of real time info Decrease in supply chain volatility Lead time reduction Improved supply chain throughput Shrink Error related shrink Internal/external theft Better tracking and tracing of high value items Access to real time info flow Reduced human error Labour Labour productivity Supply chain throughput More time to complete manual processes Improved validation and audit processes Assets Utilization of assets Depreciation of charge on distribution owned Total distribution of asset base Brand management Increased throughput Better tracking and tracing of assets Fewer assets required Transport Freight costs Reverse logistics costs Access to outbound load density through better information, planning and improved throughput There are many benefits companies today can receive from the deployment of RFID solutions. Inventory Levers Impacted Inventory days on hand Safety stock Transit inventory including yard inventory Recurring inventory carrying costs Promotion management Variables Benefits Visibility of real time information Volatility in supply chain Lead time reduction Supply chain throughput (increased cross dock). Shrink Error related shrink Internal/external theft Tracking and tracing high value items Real time information flow Reduced human error Labour Labour productivity Supply chain throughput Time to complete manual processes (receive, sort, put-away, pick, ship) Validation and audit processes Assets Utilization of assets Depreciation of charge on distribution owned Total distribution of asset base Detention penalties on 3rd party assets Brand management Increased throughput Tracking and tracing assets Fewer assets required – lower asset base and depreciation charge Transportation Freight costs Reverse logistics costs Outbound load density through better information, planning and improved throughput (cross dock).

The Power of Wireless Technologies Data Collection & Communication Technologies Applications Software Business Applications Major Customer Benefits Increase asset management efficiency Asset Management Enhance assets tracking capability RFID Enterprise Asset Management Software Warehouse Management Systems Software To deliver Increase Supply Chain Management efficiency Combining with To support Asset & Location Tracking Barcode Increase workers’ productivity WLAN WWAN Inventory Management in Supply Chain Increase data recording accuracy Increase inventory control efficiency Applying Mobility to Business and Operational Process Reduce inventory cost

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