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Pk lim optimising sustainable strategies



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  • 1. Optimizing Sustainable Strategies with Innovation and Technology for the Industry 5 October 2010 112 Years of Change Crown Soda Machine 1898 Today Coca Cola opened its first bottling Soft drinks bottling plant plant in 1899 - 6 people - 150 people - 2,000 units per minute - around 200,000 bottles a year - almost 400 million bottles per year
  • 2. FMCG Growth • The FMCG industry is huge – around €700bn in Europe and USD$1.5 trillion globally (at retail value). This compares with about USD$480bn for the global automotive manufacturing industry » Sequoia Partnership Change Agent • Change is Constant • Always adopting new management techniques – Blue Ocean – LEAN – JIT • Always adopting new technologies – Auto-ID technologies like Bar code and RFID
  • 3. Recognize by You • Working Together to Fulfill Consumer Wishes Better, Faster and at Less Cost » Efficient Consumer Response Leader in Change
  • 4. Customs Air/Sea/Land Customs Distribution Retailer & Raw Material Manufacturer Warehouse Check Point Transport Check Point Warehouse Consumers Flow of Money Logistics Priorities • 11 percent of company revenues devoted to logistics • Perfect order fulfillment (87 percent) • Rapidly sensing and responding to changes in consumer demand (83 percent) • Shortening new product time-to-market and supply chain integration (81 percent) » Based on the 15th Annual Third-Party Logistics Study from Capgemini Consulting, Georgia Institute of Technology and Panalpina on September 27, 2010
  • 5. End to End Visibility with EPCIS for Supply Chain Customs Air/Sea/Land Customs Distribution Retailer & Raw Material Manufacturer Warehouse Check Point Transport Check Point Warehouse Consumers RFID or Sensors or Barcode or Labels EPCIS EPCIS • A Repository of item-level event data. • Sharing item-level event data between business partners in a standardized way. • Provides Visibility of item-level that allows Traceability. • Allow Business intelligence to detect inefficiencies in supply chains. • Provides Visualization of EPCIS repository data.
  • 6. Saving in traceability costs Saving in Saving in transport cost disposal costs Traceability Costs 61.5% Saving in Saving in costs for turnover tracking and tracing losses operations 0 50 100 Saving Percentage(%) On the impact of RFID and EPCIS on traceability management: a mathematical model by Eleonora Bottani ROI RFID Model BUSINESS Low Service Level OBJECTIVES Costs Quality Operational Track & DRIVERS Efficiency Trace Manual operations Materials Detailed Lead times Standards KEY reduction and flow distribution reduction based FACTORS automation enhancement routes RFID Automatic and real time Global Distribution Inventory level and Scanning and IMPACT location in real time Standards information Conciliations RFID Automatic Real time Unique Real time BENEFITS scanning locations Information Serial Numbers access visibility Peru
  • 7. Call for Volunteers 1 Day RFID System Study worth RM10,000 & iPod Shuffle Auto-ID Technology Usage Finished Goods Tracking Current system relies very heavily on barcode & serial no. When there is order, warehouse ship out the right goods with the right model and amount. It is challenging when production/order is at peak times. Wrong shipment and double handling of cargo has been proven to be costly for manufacturers. RFID comes into play!
  • 8. Barcode Process Flow doorway out of Physical Tally production line area Loading Production production line conveyor belt Palletization Barcode Scan LOADING BAY Printing and sticking of barcode label done at this point manual barcode scan (handheld) done at PALLETIZATION this point AREA RFID Process Flow RFID doorway Loading scan out of production line area RFID scan done at gate- OUT Production production line LOADING BAY conveyor belt Palletization RFID Check-out Scan Printing and sticking of barcode with RFID label PALLETIZATION done at this AREA point
  • 9. Optimized Process Flow Typical Process Flow Palletizatio Bar Code Physical Production n Scanning Tally Improved Flow with RFID Palletizatio RFID Production n Scan LOADING Example of RFID Usage Loading Bay System Factory and Warehouse are normally some distance apart. Some even 10-15 mins away. Wrong shipment to the wrong bay, and wrong amount of materials are common. The Solution: Install RFID Reader at Guard House / Main Entrance Scan container with RFID, compare with order with system, BIG display of LCD Screen to show which bay to go to. At bay, RFID reader will scan, if wrong container coming in, buzzer will alarm.
  • 10. Example of RFID Usage Container Tracking Some factory practice Just-In-Time (JIT) manufacturing process where raw materials are delivered to factory area 2 hours before consumption. Sometimes, materials arrived late or insufficient amount were delivered. In addition, mechanical seal is applied for every shipment to/fro, costly in the long run. The Solution: Use RFID re-useable e-Seal (safe cost) Containers leaving/entering warehouse or factory is scanned; we know the cargo arrives late/early everytime. If wrong materials is send, give alarm, action taken immediately. RFID Tag EPCIS in Supply Chain
  • 11. e-Logistic Tracking 1 2 Container Truck RFID Cargo shipment Tag 3 Handheld with Central Server Active Reader 1. Truck is affixed with RFID Seal at the warehouse after stuffing. 2. Handheld reader is used to initialize outgoing container e-seal or verify incoming shipment of container with RFID Seal. 3. Information are transmitted via GPRS or WiFi to Smartack™ server Tracking at Check Points Seal Status: Lock Seal Status: Lock Tempered: YES Tempered: No Within Allowed Time: Yes Within Allowed Time: NO TEMPERED! Retain for Suspicious! Exceed Checking allowed travel time Seal Status: Lock Tempered: No Within Allowed Time: Yes CLEAR TO GO Check Point 1 Check Point 2
  • 12. Example of RFID Usage Trolley Tracking Trolleys / RTIs are most common asset in the factory. Like others, they go missing too. Misplaced, “Mislocated”, etc.. The Solution: Install RFID Reader as Choke Points/Portal in Warehouse & Factory Scan trolleys going IN/OUT of the two premises, and store information in backend database. Web user interface provides management with statistics of tracking real-time. Thank you “USE US TO GET AHEAD”