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EPC – new identification technology and applications in Europe Stephane Pique PowerPoint Presentation
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EPC – new identification technology and applications in Europe Stephane Pique

EPC – new identification technology and applications in Europe Stephane Pique

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EPC – new identification technology and applications in Europe Stephane Pique

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  1. EPC – new identification technology and applications in EuropeStephane Pique

  2. Agenda • Introduction GS1/EPCglobal • EPC Standards • Introduction EPCIS • RFID in Europe • EPC/RFID Business Cases • Retail in Europe

  3. Introduction GS1

  4. EPCglobal subscribers • Over 1000 Companies with $3 Trillion in Revenues • 20 out of Top 31 Fortune 500 • Over 390 out of Global 2000 • Over 12 Major Industries and 51 industry segments • Over 350 Solution Providers • Over 3,000 global participants in standardisation process

  5. EPCglobal membership in June 2007 • Each EPCglobal member joins once in the location of their head office

  6. EPCglobal membership in Europe

  7. Agenda • Introduction GS1/EPCglobal • EPC Standards • Introduction EPCIS • RFID in Europe • EPC/RFID Business Cases • Retail in Europe

  8. 1 2 3 4 5 6 7 Electronic Product Code (EPC) GTIN 1 2 3 4 5 6 Trade Item Reference Company Prefix EPC 3 1 2 3 4 5 6 7 1 2 3 4 5 8 0000000123456 Header EPC Manager Number Trade Item Reference Serial Number GTIN The EPC can only be interpreted in combination with the corresponding data base

  9. Network standards (Overseen by ARC) Secure Internet Exchange Event Registries Search & Discovery ONS Authentication & Authorisation EPC IS EPC IS Internal Systems ERP, WMS, etc. Internal Systems ERP, WMS, etc. EPC MW EPC MW EPC Gen2 Reader EPC Gen2 Reader Enterprise System Enterprise System EPC Gen2 Tags with EPC EPC Gen2 Tags with EPC

  10. Requested Provision Industry Action Groups (optional opt-in/IP) Level 1 Retail SCFMCG/AFF HLS CE TLS Information Business Drivers and Use Cases Joint Requirement Groups (opt-in/IP) Cross Industry Adoption & Implementation Groups (no opt-in/IP) Active Tagging Item Level Tagging Level 2 Tag Data Reusable Transport Item Sensors & Batteries Implementation Sharing Adoption Programmes Data Exchange Requirements Information Technical Action Groups (opt-in/IP) Level 3 Software Action Group Hardware Action Group EPCglobal Standards Development Structure Discussion Groups (no opt-in/IP and open to everybody) Level 0 Aerospace & Defense Packaging Chemical Automotive

  11. Agenda • Introduction GS1/EPCglobal • EPC Standards • Introduction EPCIS • RFID in Europe • EPC/RFID Business Cases • Retail in Europe

  12. Supply chains are simple… right? • Even “Simple” supply chains have multiple touch points and handlers before reaching a final destination. • Complex supply chains, with multiple product owners, have a greater need to locate products and ensure they were sold through the proper channels.

  13. EPCIS provides visibility • When can I expect my product delivery? • Where did my product come from? • Can the chain of custody be trusted? • Where is my product located now? • Was my product sold and distributed via the expected channels? • Have counterfeit products entered the supply chain? • Has the product been authenticated? • Have the products reached the needed intermediate locations? • Where are the products in the lot that I need to recall now? • And many more…

  14. What is EPCIS? • • EPCIS = EPC Information Services • A new EPCglobal standard • Data model for events in life of uniquely identified objects • Interfaces for capture and query of events • Ratified 12 April 2007 • • Industry and application agnostic • Cross-industry framework • Cross-industry and industry-specific vocabularies and extensions • • Supports GS1 EPC and converted GS1 barcodes • Communicates via GS1 XML standard

  15. Network standards (Overseen by ARC) Secure Internet Exchange Event Registries Search & Discovery ONS Authentication & Authorisation EPC IS EPC IS Internal Systems ERP, WMS, etc. Internal Systems ERP, WMS, etc. EPC MW EPC MW EPC Gen2 Reader EPC Gen2 Reader Enterprise System Enterprise System EPC Gen2 Tags with EPC EPC Gen2 Tags with EPC

  16. What is EPCIS data?

  17. Core EPCIS event types (1/2) • Object EventsObservation of a collection of EPCs during business step at a location & time:This list of objects was observed entering DC #9 at 10:01AM, during Receiving • Aggregation EventsPhysical association of a set of EPCs with a parent EPC along with a business step at a location & time:This list of objects was just Palletized with this Pallet ID at Palletizer #27 at 12:32PM

  18. Core EPCIS event types (2/2) • Quantity EventsStatements about an object Class (not individual objects), a quantity, a location & time:There were 200 bottles of Brand X cola in store #4123 backroom at 3:20PM • Transaction EventsRecords objects associated with a business transaction:Order number 123 was fulfilled with objects x, y and z

  19. Query Query Query Query Query EPCIS EPCIS EPCIS EPCIS EPCIS Capture Capture Capture Capture Capture How does EPCIS data sharing works? EPCIS instances at each enterprise communicate via the EPCIS Query Interface Manufacturer 3PL Customs Carrier Importer Today, trading partner know each otherIn the future Discovery Services will find the corresponding partners

  20. Example EPCIS analysis in Pharma

  21. Agenda • Introduction GS1/EPCglobal • EPC Standards • Introduction EPCIS • RFID in Europe • EPC/RFID Business Cases • Retail in Europe

  22. Major challenges in Europe for passive RFID • The maturity of passive RFID technology is still not sufficient for many applications. It still requires significant effort to develop solutions that meet specific requirements. Using passive RFID for baggage tracking for example requires different tag and reader design from tracking pallets in a warehouse. It simply takes time for the industry to develop these application-specific solutions. • European regulations did it difficult to use many UHF readers in lose proximity. This has clearly been a major issue for companies such as Tesco and Metro in their supply chain implementations. • Current implementation costs remain prohibitive for many business cases. Despite recent cost reductions, especially in tag prices, many business applications will only take off at lower hardware prices. • The distribution of costs and benefits between companies in an open environment remains complex. This has clearly been a problem in the retail and consumer goods supply chain. Source: BRIDGE report, European passive RFID Market Size 2007-2022, Fevruary 2007

  23. Passive RFID Market Europe in 2007 & 2012 Source: BRIDGE report, European passive RFID Market Size 2007-2022, Fevruary 2007

  24. Agenda • Introduction GS1/EPCglobal • EPC Standards • Introduction EPCIS • RFID in Europe • EPC/RFID Business Cases • Retail in Europe

  25. - Automatic reorder • - Shrink control • - Improved warehouse operations • - Improved DSD control • - Inventory reduction • - Sales increase Soft Benefits 0.2% to 3.4% - Faster check-out - Reduced check-out errors/loss - Prevention - Elimination of price marking Hard Benefits 3.1% to 3.5% Percent of Sales Costs -2.5% to -1.3% 1975 (McKinsey) 1997 (PwC) Barcode business case • The 1975 barcode business case proved to be too conservative • Final benefits were double than anticipated • Final costs were half than anticipated Source: Ahold

  26. RFID business case • The RFID business case could also be too conservative (?) • Final benefits could also be double than anticipated (?) • Final costs could also be half than anticipated (?) Soft Benefits Hard Benefits Percent of Sales Costs Today Future

  27. Hard Benefits Higher Quality Tracking Increased Outcome Traceability Control Automation ReduceCost Increase Security Increased Visibility Authentication Fulfill Require ments Generate Value New Service Law New Product Feature CRM Mandate Soft Benefits Drivers and benefits © Stephane Pique

  28. What is the True Out-of-Stock? 7.2% No RFID Data. Only Retail OOS Report 0.9% 8.0% 2.7% 6.0% 4.0% 3.6% 3.6% 2.0% 0.0% OOS Without RFID OOS With RFID Reported Store OOS Floor OOS Additional Store OOS Shelf visibility RFID data captures additional OOS above what retailer reported 3.6% additional OOS found with RFID

  29. Product placement analysis

  30. Retail promotions • Give unique EPC to each case of promotion-packaged item, on RFID tag • Equip facilities with RFID readers: loading dock doors, trucks, retail back-room door, dumpster • Can now measure & drive promotion: • Timeliness: is promotional packaging reaching consumer in time? • Effectiveness: is promotional item selling better? Mfr’s DistributionCenter Retailer’sDistributionCenter Manufacturing Retail Store

  31. RFID benefits at METRO Group • Increased process efficiency by 12% to 17% (incoming merch. and shelving) • Reduction of loss/theft by 11% to 18% (depends on category) • Increased goods availability by 9% to 14% (reduction OOS) • Incoming goods cost reduction of € 8.5mio (German estimation only)

  32. Agenda • Introduction GS1/EPCglobal • EPC Standards • Introduction EPCIS • RFID in Europe • EPC/RFID Business Cases • Retail in Europe

  33. Ahold • Roll out of RTI for Pharmacy Supply Chain • Roll out of Crates Identification within Ahold SC • Proof of concept with Roll Cages • Proof of concept with Crates for Fresh Food in open system • Feasibility study with SRS pallets in open system

  34. Carrefour • Pilot planned with games CD and software CD involving one store and warehouse • Trial planned to track and trace tagged pallets between DC and store • Planned trial on item level in Belgium

  35. DELHAIZE • Reusable plastic containers (RPCs) are valuable assets • Tracking of these assets is a costly activity • RPC can be tagged and tracked like items within the supply chain • RPC are owned by Delhaize and therefore the full scope of the project is under control

  36. METRO Group • Roll out in October 07 with with 150 suppliers, 180 stores and 10 DCs for incoming and outgoing goods • Promotion execution excellence tests in 3 stores • Pilot in October at one of the men department at Kaufhof to tag items • Test with RFID enabled forklifts and RTIs • Feasibility study with sensor based temperature tracking of cool chain • Prototype at order picking

  37. REWE Group • Roll out with 150 suppliers by tagging trolley and pallets involving 500 stores and one DC • Pilot to track and trace RTIs from slaugther house up to store

  38. TESCO • High value items (razor blades) on smart shelves • Entertainment (DVD’s) on smart shelves • Trial with 37 stores and one DC in Ireland involving 70k cages for tracking of the loading and delivery to store • Trial of asset tracking with milk supplier

  39. Contact details Stephane Pique European Director EPC/RFID M +49 163 771 2938 E stephane.pique@gs1eu.org W www.gs1eu.org and www.epcglobalinc.org