Radio Frequency Identification

Radio Frequency Identification PowerPoint PPT Presentation


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Today's Goals. Real World View of RFIDDiscuss RFID ApplicationsBusiness Perspective. Agenda. Importance of supply Chain ManagementCouncil of Supply Chain Management Professionals

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Radio Frequency Identification

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1. Radio Frequency Identification 28th October 2004

2. Today’s Goals Real World View of RFID Discuss RFID Applications Business Perspective

3. Agenda Importance of supply Chain Management Council of Supply Chain Management Professionals – Mentor Day ModusLink Overview History of RFID Future ? Benefits Components Technology Challenges Conclusion

4. CSCMP – Council of Supply Management Professionals Global Organization Formerly CSCMP – Council of Logistics Management CSCMP Mission To lead the evolving Supply Chain Management profession by developing, advancing, and dissemination Supply Chain knowledge and research. CSCMP exists to: Provide opportunities for supply chain professionals to communicate in order to develop and improve their supply chain management skills. Identify and conduct research which adds to the knowledge base of supply chain theory and practice. Create awareness of the significance of supply chain to business and to the economy. www.cscmp.org

5. CSCMP – Membership Benefits   Professional Visibility CSCMP Resume Network Six issues of CSCMP - Logistics Comment Five issues of CSCMP-Explores Member Discounts Local Roundtable Meetings Access to CSCMPresearch Access to The Journal of Business Logistics Others  

6. Background – Mel Davis

7. Typical Reverse Supply Chain

8. MODUSLINK OVERVIEW

9. ModusLink Corporate Overview $1 Billion dollars*, the leader in global supply chain services More than 20 years operational experience Over 3,900 skilled employees Strongest management strength in the industry Division of CMGI The result of the merger of SalesLink and Modus. Award winning solutions portfolio World-class global footprint Americas: 19 Centers EMEA: 10 Centers Asia: 13 Centers Blue chip technology clients Best-in-Class systems strategy

10. Size and Scope ModusLink’s global footprint and scalability are part of our unique value offering for our clients. Over US$25 Billion of Client Revenue passes through ModusLink. To put our business in perspective here are some operational statistics ModusLink managed: Hardware Units Shipped 150 million Software Units Shipped 300 million Part Number Transactions 2 billion Active Part Numbers 400,000 Currencies Transacted 36 E-Mails Responded 1.5 million Inbound Calls 9 million Outbound Calls 1 million Web Transactions 2 million Call Center Seats 0ver 1000 Languages Supported 16

11. Business Model

12. World-Class Global Footprint

14. RFID Where Did it Come? RFID technology been around since WWII Business needed something that went beyond: Direct line of site barcode scanning No real time Supply Chain Visibility Retail supply chains need better inventory balancing MIT’s Auto ID lab hatched a plan and a consortium with retailers/suppliers/technology vendors EPC Global purchased rights to intellectual property RFID technology been around since WWII Direct Line of Site barcode Scanning very pervasive today Limitations: No Supply Chain Visibility Multiple Standards No interoperability across trading partners Retail supply chains need better inventory balancing Missed sales from stock-outs Perishables Poor promotions planning MIT’s Auto ID lab hatched a plan and a consortium with retailers/suppliers/technology vendors EPC Global purchased rights to intellectual property RFID technology been around since WWII Direct Line of Site barcode Scanning very pervasive today Limitations: No Supply Chain Visibility Multiple Standards No interoperability across trading partners Retail supply chains need better inventory balancing Missed sales from stock-outs Perishables Poor promotions planning MIT’s Auto ID lab hatched a plan and a consortium with retailers/suppliers/technology vendors EPC Global purchased rights to intellectual property

15. Auto-ID is Much More Than Track & Trace (e.g Product: Battery)

16. RFID Where is it going? Evolution versus Revolution PC Example …PCs were only evolving during the 1980s – Excel and Quattro, WordPerfect and Word were driving business purchases. The Revolution in PCs Started By the Internet The Internet Causes Adoption to Go Up, Prices Then Go Down … Lower Prices Spur Even Greater Adoption, Higher Adoption Causes Prices to Lower, the Revolution Begins

17. Traditional Manufacturing

18. World of Demand-Driven Manufacturing

19. The Start When Wal-Mart insists its top 100 consumer packaged goods suppliers attached RFID tags cases and pallets by 2005. Such a move could benefit Wal-Mart by enhancing order accuracy, inventory control, operation efficiency, and material managements Wal-Mart currently conduct test on PEC labels and RFID tags in Dallas, Texas.

20. Major Initiatives

21. Barcode Thermal Transfer Printing Direct Thermal Printing Optical technology Biometric GPS Tag Card Smart chips Magnetic Stripe RFID Auto ID Technologies - AI

22. Are You Currently Evaluating Auto-ID/RFID Solutions You will need answers to two very fundamental questions: How can I use this technology to improve my business? Where Do I begin?

23. Where is RFID Adoption?

24. RFID Value Proposition Enables End to End Business Process Integration Recognition of real-time transactions and operations, via an Automatic Identification Data Capture system. Eliminate Work Duplication in terms of data collection and data documentation Automation of manual processes through technology Knowledge Retention for manual operations Streamlined warehouse operations processes and improved order turnaround Enable Warehouse operations automation to meet changes in customer demand, market opportunities and external events. Recognition of exceptional events in daily operations Provides Real-Time Inventory Diversion Improved supplier and customer relationships

27. RFID Business Application areas Traditional RFID Applications Security/Traditional Access Control Mass Transit Library Access Toll Collection Animal Identification Emerging RFID Application Warehouse Management Supply Chain Reverse Logistics Asset Tracking Retails Management Document Tracking Anti-counterfeit Advance Access Control Mass Transit – Monthly and Single Trip Airline Baggage Handling Regulatory Compliance

28. U.S. RFID for the Retail Supply Chain, 2002-2008

29. U.S. RFID for the Retail Supply Chain, Long View

30. Benefits

31. The ROI

32. Enhanced WMS Opportunity Warehouse Labour Hours 10-30% Inventory Write-offs 5-10% Total Inventory 5% Shipping Errors 80-100% Management Time 50% Inventory Counting Hours 80-100%

33. RFID Benefits Speed distribution throughout the supply chain utilizing hands off reading technology Greater visibility and real-time inventory management capabilities Reduced product tampering, theft, and counterfeiting Introduction to Smart Shelf technology Easier product tracking and recalls

34. Real Benefits are Being Derived A UK Retailer a 10% reduction in shrinkage will create a 1 year ROI Reduced truck unload times from 18 minutes to 3 minutes A distributor cut energy charges by 25% by synchronizing the opening and closing of its refrigerated warehouse doors with arriving and departing trucks A 3PL cut the average time it took to unload trucks a truck at a DC from 3 hours to 1 hour

35. Real Benefits are Being Derived A global fashion clothes manufacturer and supplier increased inventory accuracy levels from 85% to over 99% and sales rose more than 5% Wal-Mart claims reducing stock-outs by 1% is an additional $1B USD in sales Wal-Mart estimates every bar code replaced will save 5 cents

36. You Can Enjoy RFID Benefits Right Now … … if your company has the following attributes or charters: Not dependent on technology and hardware standards High Dollar SKUs Heavy asset based industry Real time location of parts Authentication to deter counterfeiting Maintenance, repair and returns RFID Enabled Enterprise Software Not dependent on technology and hardware standards … if you must wait and can wait, then wait. BUT … remember to look at solutions outside of logistics … “Beyond the Dock Door.” High Dollar SKUs – High priced fashions, hi-tech components, Heavy asset based industries – Healthcare, Industrial Manufacturing, IT Hardware Real time location of parts Authentication to deter counterfeiting – Pharmaceuticals, DVDs, Security Maintenance, repair and returns – Especially important in the area of returns Demand Driven ManufacturingNot dependent on technology and hardware standards … if you must wait and can wait, then wait. BUT … remember to look at solutions outside of logistics … “Beyond the Dock Door.” High Dollar SKUs – High priced fashions, hi-tech components, Heavy asset based industries – Healthcare, Industrial Manufacturing, IT Hardware Real time location of parts Authentication to deter counterfeiting – Pharmaceuticals, DVDs, Security Maintenance, repair and returns – Especially important in the area of returns Demand Driven Manufacturing

37. Benefits to Manufacturing BUSINESS PROCESS Inventory management and logistics Production Maintenance and Service

38. Benefits to Warehousing BUSINESS PROCESS Receiving and Shipping Product storage and selection and order fulfillment Task and resource management

39. Benefits to Transportation BUSINESS PROCESS Asset management and routing Yard Management Contract compliance

40. Benefits to Store Operations BUSINESS PROCESS Receiving Store Planning and Inventory management Checkout Returns and reverse logistics After-sales support

41. COMPONENTS

42. RFID Components Three Basic Components A transceiver (with decoder), commonly refer as RFID Reader. Antenna A transponder, commonly refer as RFID label A smart asset tracking solution consists of label and a reader connected to an information system

43. What is a Smart Label?

44. RFID Components – Type of Labels Active labels With battery Hyper frequency Expensive Greater in size Limited operational life (10years) Passive Labels Without battery Low or high frequency Low cost Smaller in size Virtually unlimited operational life

45. Types of Tags

46. Tags Class

47. TECHNOLOGY

48. RFID Technology Possible Frequency Low frequency : 10KHz to 200KHz High frequency: 13.56MHz Microwave: 2.45GHz to 2.5GHz UHF : Singapore (866~869MHz), Europe (860~869MHz), US (902~928MHz). Singapore is proposing 923~925MHz.

49. RFID Tags (Smart Tags) are the next step beyond barcodes, supporting the promise of an intelligent supply chain.

50. CHALLENGES

51. Technical Challenges

52. Challenges Standards Drive to world-wide standards Consumer / Shopper Respond to consumer concerns (e.g. Privacy, Health & Safety) Costs Tag and reader cost reduction Technology Development to address Tag and Reader interoperability Cost / Performance balance Country specific regulations IT infrastructure requirements RF properties with metals and liquids Crown Cork & Seal Ozarka

53. CONCLUSION

54. Business thinking RFID cannot transform your company RFID is not a strategy RFID is… Key Technology Enabler

55. 10 RFID Myths to uncover RFID is a “talking” bar code You can read every RFID tag every time You can take inventory with a push of the button RFID delivers perfect information You can buy tags for five cents The tag cost is critical to making any deployment payoff RFID is primarily a supply chain technology Deploying RFID means the end of privacy RFID is easy to deploy We can afford to wait

56. Career Management Never Stop Learning Deliver Results / Money Volunteer Have Fun Network Find a Mentor TEAM first ME Second Be Patient Diversify Skills Values Repeat Cycle

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