Enhancing ERP System with RFID: Logistic Process Integration and Exception Handling Dickson K. W. CHIU Senior Member, IEEE Eleanna Kafeza Athens University of Economics & Business Tai Pui Wong Kai Pan Mark Dept. of Computing Hong Kong Polytechnic University RFID-ERP - 1

RFID-ERP - 2 Introduction Traditional stand-alone ERP systems are inadequate to handle the current requirements of logistics applications Solution: integration of RFID and mobile technologies with Web-enabled applications Enables management to utilize accurate information for analyzing business performance and quick decision Help the integration of logistic processes and the handling of exceptions in key business processes

Dickson Chiu 2006RFID-3 What is RFID? Radio Frequency Identification A generic term for technologies that use radio waves to automatically identify people or objects a technology that uses radio-frequency waves to transfer data between a reader and a movable item to identify, categorize, track... There are several methods of identification but the most common is to store a serial number that identifies a person or object on a microchip that is attached to an antenna The antenna enables the chip to transmit the identification information to a reader The reader converts the radio waves reflected back from the RFID tag into digital information that can then be passed on to computer systems

Dickson Chiu 2006RFID-4 RFID API Software (Communicates with the RFID Reader) Customer-Specific Application Software Host Computer Host Memory Space Reader Antenna Application Program Interface (API) Application Program Interface (API) Components of an RFID System

Dickson Chiu 2006RFID-5 Tag Insert Antenna Reader Firmware Customer’s MIS Host Application Software API TCP/IP Power ~ Asset Asset/Tag RFID System Components (block diagram)

Stakeholders RFID-ERP - 6

Process integration conceptual model RFID-ERP - 7

Web-enabled system with Mobile Users Infrastructure RFID-ERP - 8

Integration of RFID with ERP System RFID-ERP - 9

Overall system integration RFID-ERP - 10

Selected data integration scheme RFID-ERP - 11

Receiving process with RFID RFID-ERP - 12

Shipping process with RFID RFID-ERP - 13

Typical system flow RFID-ERP - 14

Example exceptions handling Scenarios/EventsException Handling 1. Order, delivery location or schedule delivery date is confirmed, but amendment on order, delivery location, or schedule delivery date is needed. As stocks are not checked out yet, only amendment of order is needed. 2. Stocks are checked out at Warehouse, but amendment on the order, delivery location or schedule delivery date (if not delivered) is needed. As the stocks are reserved, the warehouse needs to release the order to go back to the normal situation so that Stock Administration Department can amend the order. During this release operation, the ERP Engine will update stock availability status and RFID tags information through the RFID Engine. After the order is confirmed again by the Stock Administration Department, if items are added or the quantity is changed, warehouse staff needs to run the operation again as shown in Figure Stocks are checked out at Warehouse, but order cancellation (if not delivered) is needed. As the stocks are reserved, warehouse needs to release the order back to normal situation so that Stock Administration Department can cancel the order. During cancellation, the ERP Engine updates the Stock availability status, cancels the reserved quantity, and updates the RFID tags information through the RFID Engine. RFID-ERP - 15

Example exceptions handling (2) Scenarios/EventsException Handling 4. Stocks are checked out at Warehouse, but amendment on the order, delivery location or schedule delivery date (if stocks are on the way) is needed. Order status is updated as "Pending" by warehouse staff. During the "Pending" status, external warehouse staff is permitted to delay delivery of the goods to the customer location until further notice and the goods need to be sent back to warehouse for further actions. 5. Stocks are checked out at Warehouse, but cancellation of order (if stocks are on the way) is needed. As the stocks are reserved, the warehouse needs to release the order back to the normal situation so that the Stock Administration Department can cancel the order. During cancellation, the ERP Engine updates the Stock available status, cancels the reserved quantity, and updates the RFID tags information through the RFID Engine. RFID-ERP - 16

Example exceptions handling (3) Scenarios/EventsException Handling 6. Stocks are delivered; external warehouse staff has not updated the order status yet, but amendment /cancellation of order is needed. External warehouse staff needs to update the order status to "Completed". No other action is carried out. For additional items or change in quantity, the Stock Administration Department needs to revise the contract and amend the related items quantity and create separate delivery order or collection note. For cancellation, refer to case (8). 7. Stocks are delivered; external warehouse staff has updated the order status already, but amendment/cancellation of order is needed. The Stock Administration Department needs to revise the contract and amend the related items quantity and create a revised delivery order or collection note. For cancellation, refer to case (8). 8. Stocks are delivered, but order cancellation is needed. The Stock Administration Department needs to create a collection note and send to the Warehouse. Warehouse staff then goes to the customer’s premise to collect the stock and then uses a RFID Reader/Scanner to scan the RFID tags for that package lot. While updating the collection note order status, the ERP Engine updates the quantity in the Warehouse and also the RFID tag's information through the RFID Engine. RFID-ERP - 17

RFID-ERP - 18 Summary  User benefits  Powerful and user friendly to perform their daily operations.  Improved organizational interoperability and connectivity  Anytime anywhere system and information access  Overcome tedious and error-prone manual exception handling  Management’s benefits  Costs against the benefits - productivity  Customer service quality - consistent handling of the exceptions  IT Staff’s benefits  System development and maintenance efforts improved  Systematic fine-grained requirements elicitation (of exceptions)  Capturing requirements from domain specific knowledge (of exceptions)

RFID-ERP - 19 Future Work  Performance measurement  Other unexpected exceptions and events  Artificial intelligence in handling the exception events  Agent-based assistance to internal staff and external users  Empirical measurements of the improvement of staff performance and customer satisfaction

RFID-ERP - 20 Question and Answer Thank you! Contact: