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Radio Frequency Identification Policy & Implementation Strategy April 5, 2005

Radio Frequency Identification Policy & Implementation Strategy April 5, 2005. Transformation is a Requirement. “To win the global war on terror, the armed forces simply have to be more flexible, more agile, so that our forces can respond more quickly. ”. United States Secretary of Defense

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Radio Frequency Identification Policy & Implementation Strategy April 5, 2005

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  1. Radio Frequency Identification Policy & Implementation StrategyApril 5, 2005

  2. Transformation is a Requirement “To win the global war on terror, the armed forces simply have to be more flexible, more agile, so that our forces can respond more quickly. ” United States Secretary of Defense Donald Rumsfeld, March 6, 2003 The static approaches of the Cold War are obsolete. 2

  3. Operation Iraqi Freedom: a different kind of engagement A lighter, more lethal force . . . Theater Distribution Center OIF data through Jan 04 . . . with logistics challenges in forward areas. More of an emphasis on flow, less of an emphasis on inventory. 3

  4. Ad hoc In-theater Capabilities A route sheet at the Theater Distribution Center, a deployed break bulk and cross dock operation. 4 4

  5. LSA Diamondback 200 miles LSA Anaconda (Balad) Al Kut AB Baghdad International Airport LSA Adder, FLB Cedar (Tallil) 350 miles LSA Bushmaster LSA Viper Navastar Camps Arifjan, Fox, Doha, PA, Udari, NY, NJ, VA Ash Shuwayk Al Shuaybah Kuwaiti Naval Base Al Jaber Airbase Kuwait International Airport Theater Distribution Center Building a network while on the move 3 weeks later Approximate distances Washington, DC to Chicago: 595 miles London to Berlin: 600 miles Kuwait City to Mosul: 700 miles Pre-combat 5

  6. Our Response • Synchronize Moves Across Global Chain • Reform Joint Theater Distribution • Take RFID to the Next Level 6

  7. Service Reps Deployment & Distribution Operations Center National Partners Unity of Effort Joint Effects • DDOC-FWD Mission Statement: • Executes US Central Command (CENTCOM) deployment and distribution priorities • Validates/directs mode selection of intra-theater with Land, Air, and Maritime Component Commanders • Adjudicates identified CENTCOM distribution and intra-theater shortfalls • Coordinates additional US Transportation Command support • Provides TAV and ITV for inter and intra-theater forces and materiel • Synchronizes effective theater retrograde Connecting to the theater. 7

  8. Pure Pallets…Improving Theater Distribution • Before: Mixed Pallet • Multiple services • Multiple locations • Requires break bulk in forward area • After: Pure Pallet • Unit load for a single destination • Seamless flow to the warfighter • Standard after 3 Nov 03 26th FSB 26th FSB 1st TFW USAF 1st MARDIV USMC 26th FSB 26th FSB 426th FSB 101st ABN 123rd MSB 1st AD Shipping pallets configured for delivery from the United States. 8

  9. Take RFID to the next level… Visibility is Critical to Effective Logistics Support 9

  10. The RFID Vision Implement knowledge-enabled logistics through fully automated visibility and management of assets in support of the warfighter 10

  11. DoD RFID Goals • Increase Warfighter/Customer Confidence in the Reliability of the DoD Supply Chain • Improve Visibility of Information and Assets throughout the DoD Supply Chain • Improve Process Efficiency of Shipping, Receiving and Inventory Management • Reduce Order Ship Time and Customer Wait Time 11

  12. Timely and Accurate Data An Enabler to the Integrated DoD Supply Chain Cases/Pallets are labeled with passive RFID tags. Cases are associated to pallet Cases/Pallets are read as they are received and new shipments are labeled. Orders are verified for accuracy Cases/Pallets are associated with Active RFID to provide TAV. Data is timely and accurate via network of linked readers allowing asset visibility along the entire supply chain Manufacturers/Suppliers Customer Distribution Centers/Depots/TDCs Commercial/Military Carriers TMO/Supply/Theater Depots The cases/pallets are automatically received with few disputes and info is shared with the AISs. Reconfigured shipments receive a new RFID Tag. When shipments are reconfigured a new RFID Tag is created for the pallet and associated with cases on that pallet Customers have visibility of requisitions and are confident in the status provided by the system 12

  13. RFID Scope/Standards Active RFID – freight containers, air pallets • SAVI 433 Mhz readers • SAVI tags • DoD tag data formats • Suppliers rarely obligated to apply tags Passive RFID – case & pallet (all items), item packaging (UID items) • EPC std UHF readers • EPC Class 0 & 1 std tags • Migration to EPC UHF Generation 2 std • EPC and DoD tag data formats • Suppliers will be contractually obligated to apply tags 13

  14. Global Standards Key to Success • DoD adopted EPCglobal standards for passive RFID • Leverages the marketplace • Government and Commercial sectors on same standard • Consistent standard anywhere the Department operates in the world • Consistent standard with all suppliers • Drive for consistent standards and interoperability with Allies 14

  15. Complementary use across the logistics supply chain Transportation/Supply/Theater Depots/TDCs Manufacturers/Suppliers Customers Distribution Centers/Depots POEs/PODs PASSIVE ACTIVE PASSIVE 15

  16. January 1, 2005 Classes of Supply: • II, VI, IX, I (PORs/MREs) Level of Tagging: • Shipping Containers, Palletized Unit Loads, Exterior Containers Ship to locations: • San Joaquin, Susquehanna Passive RFID Implementation Plan for DoD Suppliers January 1, 2006 60,000 DoD Manufacturers/Suppliers Classes of Supply: • Begin All Classes Level of Tagging: • Shipping Containers, Palletized Unit Loads, Exterior Containers Ship to locations: • Strategic CONUS DLA Depots, TRANSCOM Facilities & Service Maintenance Facilities New and revised contracts Classes of Supply Level of Tagging Ship to Locations January 1, 2007 Classes of Supply: • All Classes Level of Tagging: • Shipping Containers, Palletized Unit Loads, Exterior Containers, UID Item Unit Pack Ship to locations: All Locations 16

  17. Steps to Implementation • Begin implementation at key sites • Develop Contractual Requirements • Develop the Data Transaction & Transmission Capability 17

  18. Key Operational Passive RFID Sites • Distribution Centers at Susquehanna PA and San Joaquin CA • Fleet and Industrial Supply Center Ocean Terminal in Norfolk VA • 2nd Force Service Support Group at Camp Lejeune NC • In progress….shipments between operating units in Iraq 18

  19. Contractual Requirement • Two Major Requirements for Suppliers • Passive Tagging at the case and pallet level in accordance with the Implementation Plan • Advance Ship Notice (ASN) • DFAR clause references the MIL-STD 129P (3) for implementation details • Definitions • Tag Data Standards • Tag Placement • Performance Requirements 19

  20. RFID Data Flow Manufacturers/Suppliers WAWF 856 UDF FTP Web Entry ASN RFID Middle-ware DSS Distribution Centers/Depots DDSP and DDJC 20

  21. Implementation Lessons Learned • Business process changes required to capture real benefit and business value • RFID improved timeliness and accuracy of receiving and shipping by 3% • User training improved performance • Technology is reliable • Read rates around 96% • Equipment ready to use just 33 days after decision on technology • Equipment operational 100% of the time 21

  22. Benefits Across the Supply Chain Transportation/Supply/Theater Depots/TDCs Manufacturers/Suppliers Customers Distribution Centers/Depots POEs/PODs Improve Intransit and Asset Visibility Initial benefit areas Improve Shipping/Receiving/Transportation Timeliness Improve Shipping/Receiving/Transportation Accuracy Improved Inv Mgt Improved Inventory Mgt Reduced Costs Improved Labor Productivity Other benefit areas Reduce NISs Reduced Pipeline Pipeline Reduction Eliminates dup Speed Payment Process Automated Receipt Automated Receipt and Acceptance Reduce Shrinkage Reduce Shrinkage Demand/ Information Flow 22

  23. Next Steps • Publish DFARS Rule for passive RFID • Provide Education and Outreach to the Acquisition Community • Perform Safety Certification Testing for passive RFID • Receive and Ship Tagged Materiel 23

  24. discussing the potential of the barcode in 1975* *“Scanning Hits a Snag,” Progressive Grocer, December 1975, p. 47 Don’t get stuck in the box “I think the industry has sold itself on a program that offers so little return that it simply won’t be worth the trouble and expense.” A Midwestern Grocery Chain Executive 24

  25. For Your Information • For further information that can assist you with compliance, visit: http://www.dodrfid.org • DoD RFID Policy • DoD RFID Supplier Implementation Plan • DoD Suppliers’ Passive RFID Information Guide • MIL-STD 129P(3) (Updated with RFID changes) • Draft Wide Area Workflow (WAWF) Implementation Convention (IC) Guides • Frequently Asked Questions (FAQ) • Schedule of RFID Events where DoD RFID personnel will be speaking • You can ask the team any RFID-related question through the following email address: info@dodrfid.org 25

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