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Ingram Micro Logistics EPC/RFID Webinar

Ingram Micro Logistics EPC/RFID Webinar. Presented by: The Ingram Micro Logistics RFID Team May 17,2005. Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. Electronic Product Code (EPC)

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Ingram Micro Logistics EPC/RFID Webinar

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  1. Ingram Micro Logistics EPC/RFID Webinar Presented by: The Ingram Micro Logistics RFID Team May 17,2005 Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission.

  2. Electronic Product Code (EPC) SSCC (64/96) – adoption into EPC for the RFID tag and electronic messaging SGTIN – adoption into EPC for the RFID tag and electronic messaging Future applications will adopt GLN and GRAI as industries define business cases for RFID Tag Types Active Pending EPC action group findings Passive Consumer/package goods Semi-Passive Consumer/package goods with difficult read rate (ie liquids and metals) Class 0 (C0), Class 1 (C1) and Generation 2 Tags (Gen 2) SSCC – Serialized Shipping Container Code Primary used in the ASN transaction for ASN receiving GTIN – Global Trade Item Number Primary used for product/service identification GLN – Global Location Number Primary used in the ASN transaction for cross dock routing and store receiving (identification of corporations and locations) GRAI – Global Returnable Asset Identifier Primary used for reverse logistics processing (mark and track returnable assets) IM-L has generated 4,753,133 shipments in 2004 that meets these standards IM-L currently manages 11 different company prefix to generate GTIN and SSCC for different clients Ingram Micro Logistics has always enabled UCC standards in the supply chain and EPC is the natural evolution for these standards

  3. Ingram Micro Logistics will meet the next generation standards • Ingram Micro Logistics is a EPC member and will allow us to build outbound solution via the SSCC (64/96 bit) version • SGTIN will require the client to be an EPC member and will be part of Ingram Micro Logistics’ solution set in the near future • Future capabilities to provide SGTIN will require the client collaboration to determine business case and process review (will be required for unit level tagging) • EPC standards are based on the passive tags specifically • C0, C1, Gen 2 • C0, and C1 tags will be supported during pilot and initial rollout for retail mandates • Gen 2 tags will be supported in 2006

  4. Data Carrier Highlights ePC seal ePC number (SSCC) SSCC barcode for UCC standards

  5. RFID Industry Mandates

  6. RFID Industry Mandates • Wal-Mart – Requires top 200 vendors to RFID tag cartons and pallets shipping into 3 distribution centers by Jan 2005, 10 distribution centers by June 2005 and 12 distribution centers by October 2005 • Wal-Mart declares first months a success at ProMat in Chicago • 57 suppliers for cases and pallets • Real obstacles • Poor compliance • Low read-rates • Broken machines (high maintenance) • DoD – Required tagging of cartons and pallets by class of good for 2 depots by Jan 2005 • Postponed RFID by 6 months at DoD RFID Summit 2005 • Target – Requires tagging of cartons and pallets by Spring 2007 • Rollout schedule to start in June ’05 • Best Buy – Requires vendors to RFID label cartons and pallets in their pilot starting Sept. 2005 into two facilities • Pre-pilot scheduled to start in Sep ‘05 RFID programs are collaborative, long, and an evolutionary process

  7. RFID Industry Mandates Wal-Mart Requirements • Industry leadership position with ePC Global in passive RFID standards • Standards • Cases and pallets • Wal-Mart will support C0, C1 and Gen 2 (when available), tag size standard is 96 bit but, 64 bit will be supported until mid 2005 • Case and pallet shipments will require SGTIN-96 or SSCC-96 • 100% read rate required • Dock Door – read distance up to 10 feet • Conveyor – read at a speed of 600 FPM • Hand Held – read distance up to 6 – 8 feet • ASN/EDI • Timeline/Location • 2005 • Cases and pallets will be RFID tagged beginning on Jan. 1, 2005 for top 100 suppliers • 3 DC’s, 104 stores and 36 clubs • 2006 • Rollout expanded to the next 200 suppliers by Jan. 1, 2006 • Additional DC’s, stores and clubs • 2007 • All DC’s, stores and clubs

  8. RFID Industry Mandates Department of Defense (DoD) Requirements • 15 years experience with RFID technology • Standards • Cases and pallets • DoD will support C0, C1 and Gen 2 (when available) 96 and 64 bit • Case and pallet shipments will require SGTIN-64/96 or SSCC-64/96 • 100% read rate required • Portal – read distance up to 3 meters at a speed of 10 MPH • Conveyor – read distance up to 1 meter at a speed of 600 FPM • All RFID tagged shipments also require an ASN be submitted through the DoD’s electronic commerce capability called Wide Area Work Flow (WAWF) • EDI • Web-based • User defined format • Timeline/Location • 2005 • Cases and pallets will be tagged beginning on Jan. 1, 2005 • 2 locations, defined product classes • Delayed due to Defense Federal Acquisition Regulation Supplement (DFARS) release • 2006 • Expand to 32 additional depots and additional product classes • 2007 • All classes, all locations

  9. RFID Industry Mandates Target Requirements • Follows Wal-Mart’s leadership and standards • Standards • Cases and pallets • Target will support C0, C1 and Gen 2 (when available) 96 and 64 bit • 100% read rate required • Conveyor – read at a speed of 600 FPM • ASN/EDI • Timeline/Location • 2005 • Cases and pallets • Tyler, Texas RDC and 10 stores expanding to 50+ stores by June • 2007 • RFID tagging by all vendors into all locations

  10. RFID Industry Mandates BestBuy Requirements • Follows Wal-Mart’s leadership and standards • Standards • Cases and pallets • Best Buy will support C0, C1 and Gen 2 (when available) 96 and 64 bit • 100% read rate required • Dock Door – read distance up to 3 – 6 feet • Conveyor – read distance up to 2 – 5 feet at a speed of 600 FPM • Hand Held – read distance up to 2 – 4 feet • ASN/EDI following the ANSI x.12 version 4030 standard • Timeline/Location • 2005 • Cases and pallets • Limited SKU set • RDC #70 and DDC #78 in Bloomington, MN • 2006 • Expanded SKU set and facilities • 2007 • Item level pilot

  11. Solution Suppliers Interrogators&Readers Middleware Printers Tags

  12. Nimax offers a full line card of mobile and stationary products intended to fulfill all your AIDC requirements, including Radio Frequency Identification (RFID) tags, readers/interrogators and printers, from the following vendors:

  13. RF Express is a division within Nimax that focuses on AIDC and the hardware that supports such applications. Nimax's RF Express is dedicated to providing our customers with the best range of services in the industry. Our goal is to help you gain a competitive advantage in selling and supporting AIDC systems. RF Express prides ourselves on staying on top of new vendor technologies, by attending all necessary training and carrying the necessary CERTIFICATIONS to ensure the integrity of the support we offer. • On Site & Web Based Training • Access To Demo Equipment • Hardware Installations • System Consulting • Technical Support • Site Surveys & Assessments • Configuration Assistance raymond.chirayath@ingrammicro.com

  14. Ingram Micro Logistics’ Timeline Q1 ‘06 2007 Q4 ‘06 Q2 ‘05 Q3 ‘05 Q2 ‘06 Q4 ‘05 Q3 ‘06 Evaluation and Selection of Equipment Develop and Test Systems Enhancements Major Retailer Pre-Pilot Major Retailer Pilot Major Retailer Unit Level Pilot One IML North American Site Deployment Legend: Additional North American Site Deployments IML IML Unit Level program development Major Retailer

  15. Ingram Micro Logistics vs. Industry Requirements

  16. Ingram Micro Logistics Process Map

  17. Ingram Micro Logistics Service Offering • Ingram Micro Logistics’ solution to be developed in collaboration with the client based on Ingram Micro Logistics’ capabilities, pilot results, and the client’s defined requirements • Client discovery session • Client completes Ingram Micro Logistics’ requirements document • Ingram Micro Logistics generates solution for client • Pilot install occurs • RFID Implementation for client • Post-implementation support of solution (feedback sessions, closed loop communication with client and retailers, etc.)

  18. Next Steps • Client collaboration & requirement definition: • Client/prospect assigns RFID champion/contact to Ingram Micro Logistics • Client completes Ingram Micro Logistics’ RFI with requirements/volumes • Client and Ingram Micro Logistics document discovery session • Pilot study & service/process definition: • Ingram Micro Logistics derives results from internal 2005 pilot • Ingram Micro Logistics publishes Service Offering Guidelines • Client Solution: • Ingram Micro Logistics creates solution and determines timelines for client/prospect. • Client/prospect determines participation with Ingram Micro Logistics • Ingram Micro Logistics assigns a project manager for pilot and implementation based on timeline and agreement.

  19. Q & A Please go to www.im-logistics.com and follow the RFID link on our home page for a copy of the presentation materials and our RFID FAQ.

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