0
RFID and the Electronic Product Code MIT Enterprise Forum RFID SIG October 3, 2005 Kenneth R. Traub, PhD CTO, ConnecTerra ...
Speaker Background <ul><li>CTO of ConnecTerra, Inc. </li></ul><ul><ul><li>ConnecTerra makes infrastructure software for RF...
Agenda <ul><li>EPC / RFID – vision </li></ul><ul><li>EPCglobal Standards </li></ul><ul><li>Current Deployments </li></ul><...
Auto-ID Vision <ul><li>The Electronic Product Code (EPC) </li></ul><ul><ul><li>Gives a unique identity to individual physi...
Application:  Retail Promotions <ul><li>Give unique EPC to each case of promotion-packaged item, on RFID tag </li></ul><ul...
Typical CPG Use Case Store Dist Ctr Manufacturer Retailer Store Store Dist Ctr Dist Ctr Dist Ctr Factory Q: when does prod...
Key Standards <ul><li>Electronic Product Code (EPC) </li></ul><ul><ul><li>Unique identity to physical objects </li></ul></...
Electronic Product Code <ul><li>Every item has distinct serial number </li></ul><ul><li>Capacity for 200 billion serial nu...
EPC Information Services (EPCIS) <ul><li>Exchange of business-level EPC data: </li></ul><ul><ul><li>“ What, where, when, a...
Data Creation Example – Palletizer Reader Filtering & Collection Palletizer Capture App Enterprise App Reader Protocol Rea...
EPC-enabled Operational Processes RFID Tag@Ship Workstation Warehouse Shelving: RFID-enabled “Smart Space” Forklift: RFID-...
RFID Capture Apps EPCIS Events EPC Capture Apps Palletizer Portal Portal Portal Portal Shelving Commission Observe Observe...
EPC Data – A Global Resource EPCIS Events Commission Observe Observe Aggregate Observe Observe Observe Disaggregate Observ...
Challenges Addressed in Current Pilots <ul><li>EPCIS data must be meaningful to partners </li></ul><ul><ul><li>Capture app...
How This Works Today (CPG) <ul><li>Large retailers require case- and pallet-level EPCs on RFID tags </li></ul><ul><ul><li>...
CPG Retailer Supply Chain – Supplier’s View Supplier Retailer Factory Distribution Ctr Distribution Ctr Retail Stores EPC ...
Deployment View – Retailer Example Dist Center Retail Store Retail Store Enterprise-wide Data Center Rdr Mware Portal EPCI...
Deployment View – Supplier Example <ul><li>Focus for suppliers is getting tags onto products.  Not as simple as it sounds…...
Tagging Process – Phase 1 Factory Tag Printing Station Distribution Center Sort Lane Picking Station Sorter 1.  Product wa...
Tagging Process – Phase 2 Factory Tag Printing Station Distribution Center Sort Lane Picking Station Sorter 1.  Product wa...
Tagging Process – Phase 3 (long term) Factory Tag Printing Station Distribution Center Sort Lane Picking Station Sorter 1....
Supplier Benefits – Increased In-stock <ul><li>Key performance indicator for supplier: are goods in stock at retail stores...
Supplier Benefits – Discrepancy Reconciliation <ul><li>Discrepancy arises when shipment contents not immediately confirmed...
Supplier Benefits – New Product / Promotions Execution <ul><li>Large manufacturer sees only 70% of promotional displays re...
Summary <ul><li>EPC and RFID a reality in CPG supply chain today </li></ul><ul><ul><li>Most suppliers to major retailers i...
Upcoming SlideShare
Loading in...5
×

© 2005 ConnecTerra, Inc. RFID and the Electronic Product Code

397

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
397
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "© 2005 ConnecTerra, Inc. RFID and the Electronic Product Code"

  1. 1. RFID and the Electronic Product Code MIT Enterprise Forum RFID SIG October 3, 2005 Kenneth R. Traub, PhD CTO, ConnecTerra Inc.
  2. 2. Speaker Background <ul><li>CTO of ConnecTerra, Inc. </li></ul><ul><ul><li>ConnecTerra makes infrastructure software for RFID and other device computing applications </li></ul></ul><ul><li>Leader in EPCglobal, the worldwide standards body for RFID and Electronic Product Code technology: </li></ul><ul><ul><li>Co-founder of Software Action Group </li></ul></ul><ul><ul><li>Co-author of most EPCglobal software specs </li></ul></ul><ul><ul><li>Member of EPCglobal Architecture Review Committee </li></ul></ul>
  3. 3. Agenda <ul><li>EPC / RFID – vision </li></ul><ul><li>EPCglobal Standards </li></ul><ul><li>Current Deployments </li></ul><ul><ul><li>Retailer </li></ul></ul><ul><ul><li>Supplier </li></ul></ul><ul><li>Business Benefits </li></ul>
  4. 4. Auto-ID Vision <ul><li>The Electronic Product Code (EPC) </li></ul><ul><ul><li>Gives a unique identity to individual physical objects: items, cases, pallets, locations, loads, assets, etc </li></ul></ul><ul><li>Radio Frequency Identification (RFID) </li></ul><ul><ul><li>Cheap sensing of object EPC codes </li></ul></ul><ul><li>The Yin and the Yang </li></ul><ul><ul><li>EPC enables new, value-creating business processes </li></ul></ul><ul><ul><li>RFID makes those processes practical </li></ul></ul>EPC RFID
  5. 5. Application: Retail Promotions <ul><li>Give unique EPC to each case of promotion-packaged item, on RFID tag </li></ul><ul><li>Equip facilities with RFID readers: loading dock doors, trucks, retail back-room door, dumpster </li></ul><ul><li>Can now measure & drive promotion: </li></ul><ul><ul><li>Timeliness: is promotional packaging reaching consumer in time? </li></ul></ul><ul><ul><li>Effectiveness: is promotional item selling better? </li></ul></ul>Manufacturing Mfr’s Distribution Center Retail Store Retailer’s Distribution Center
  6. 6. Typical CPG Use Case Store Dist Ctr Manufacturer Retailer Store Store Dist Ctr Dist Ctr Dist Ctr Factory Q: when does product reach sales floor? Q: when was missing product shipped?
  7. 7. Key Standards <ul><li>Electronic Product Code (EPC) </li></ul><ul><ul><li>Unique identity to physical objects </li></ul></ul><ul><li>RFID tag/reader protocol </li></ul><ul><ul><li>Tag applied by Company A readable by Company B </li></ul></ul><ul><li>EPC Information Services (EPCIS) </li></ul><ul><ul><li>Exchange of detailed information about EPC observations between trading partners </li></ul></ul>
  8. 8. Electronic Product Code <ul><li>Every item has distinct serial number </li></ul><ul><li>Capacity for 200 billion serial numbers per item class (on 96-bit tag) </li></ul><ul><li>New business processes based on tracking individual things </li></ul>1732050807 + Company Code Product Code Unique Serial Number = EPC
  9. 9. EPC Information Services (EPCIS) <ul><li>Exchange of business-level EPC data: </li></ul><ul><ul><li>“ What, where, when, and why” </li></ul></ul><ul><ul><li>At business process level </li></ul></ul><ul><ul><li>Within enterprise and across enterprises </li></ul></ul><ul><li>Key technical challenges: </li></ul><ul><ul><li>Generate data in form meaningful to partners </li></ul></ul><ul><ul><li>Create value through data exchange </li></ul></ul>
  10. 10. Data Creation Example – Palletizer Reader Filtering & Collection Palletizer Capture App Enterprise App Reader Protocol Reader ALE EPCIS dozens of individual tag read events from specific antenna “ between the time the case crossed the first beam and the second beam at location L, the following tag was read” “ at time T, the association of the following case tags to the following pallet tag was created at palletizer #3, to fulfill order #1234” R R What, Where, When What, Where, When, Why
  11. 11. EPC-enabled Operational Processes RFID Tag@Ship Workstation Warehouse Shelving: RFID-enabled “Smart Space” Forklift: RFID-enabled “Smart Mover” Loading Dock Door: RFID-enabled “Smart Portal”
  12. 12. RFID Capture Apps EPCIS Events EPC Capture Apps Palletizer Portal Portal Portal Portal Shelving Commission Observe Observe Aggregate Observe Observe Observe Disaggregate Observe Observe Doorway Observe Manufacturer Retailer Dist Ctr Dist Ctr Store Tagging Station
  13. 13. EPC Data – A Global Resource EPCIS Events Commission Observe Observe Aggregate Observe Observe Observe Disaggregate Observe Observe Observe Manufacturer Retailer Dist Ctr Dist Ctr Store Global EPC Data Case #123 of Cherry Hydro Observe Retail Store #5 front room 2/8 5:23pm Receiving Retail Store #5 back room 2/7 4:28am Shipping Mfr DC #2 2/5 1:23pm
  14. 14. Challenges Addressed in Current Pilots <ul><li>EPCIS data must be meaningful to partners </li></ul><ul><ul><li>Capture apps must abstract away from operational details. </li></ul></ul><ul><li>Partners must share understanding </li></ul><ul><ul><li>Agreed terminology for business steps (“receiving”) </li></ul></ul><ul><ul><li>Master data to interpret location identifiers (“store #23 back room”) </li></ul></ul><ul><li>Global EPCIS “cloud” implemented by data exchange operations </li></ul>EPCIS Association Event Time 3:14pm 1/1/2005 EPCs 123, 124, 125, … Location DC #2 inbound Biz Step Receiving Data Center EPCIS Repository EPCIS Capture Interface EPCIS Query Interface Internal Apps Data Center EPCIS Repository EPCIS Capture EPCIS Query Internal Apps Manufacturer Retailer Dist Center
  15. 15. How This Works Today (CPG) <ul><li>Large retailers require case- and pallet-level EPCs on RFID tags </li></ul><ul><ul><li>Wal*Mart, Target, Albertsons, … </li></ul></ul><ul><li>200+ suppliers currently comply </li></ul><ul><li>Retailer ROI: </li></ul><ul><ul><li>Improved operational efficiency within own walls </li></ul></ul><ul><li>Supplier ROI: </li></ul><ul><ul><li>Several opportunities based on retailer-provided data </li></ul></ul>
  16. 16. CPG Retailer Supply Chain – Supplier’s View Supplier Retailer Factory Distribution Ctr Distribution Ctr Retail Stores EPC Database EPC Database 1. EPC data collected during tagging and shipping 2. EPC observations collected as product moves 3. Retailer data shared with supplier via retailer’s network 4. Combined data used to gain business benefits
  17. 17. Deployment View – Retailer Example Dist Center Retail Store Retail Store Enterprise-wide Data Center Rdr Mware Portal EPCIS Trading partners EPCIS Capture ALE Rdr Prot EPCIS Capture EPCIS Query
  18. 18. Deployment View – Supplier Example <ul><li>Focus for suppliers is getting tags onto products. Not as simple as it sounds… </li></ul><ul><li>[email_address] </li></ul><ul><ul><li>Least invasive, enabled per shipment </li></ul></ul><ul><li>[email_address] </li></ul><ul><ul><li>Also enabled per shipment, less material handling </li></ul></ul><ul><li>[email_address] </li></ul><ul><ul><li>Least labor, but all customers receive tags </li></ul></ul>
  19. 19. Tagging Process – Phase 1 Factory Tag Printing Station Distribution Center Sort Lane Picking Station Sorter 1. Product warehoused 2. Case EPC labels printed, stored on rolls 3. Labels applied during pick 4. Sorted by barcode 5. EPCs read and associated 6. Pallet EPC label printed 7. Pallet shipped ConnecTerra Middleware & Tagging Software WMS R P
  20. 20. Tagging Process – Phase 2 Factory Tag Printing Station Distribution Center Sort Lane Picking Station Sorter 1. Product warehoused 2. Case EPC labels printed, stored on rolls 3. Labels applied during pick 4. Sorted by barcode 5. EPCs read and associated 6. Pallet EPC label printed 7. Pallet shipped ConnecTerra Middleware & Tagging Software WMS R P 4. Sorted by RFID and associated 5. Pallet EPC label printed 6. Pallet shipped
  21. 21. Tagging Process – Phase 3 (long term) Factory Tag Printing Station Distribution Center Sort Lane Picking Station Sorter 1. Product warehoused 2. Case EPC labels printed, stored on rolls 3. Labels applied during pick ConnecTerra Middleware & Tagging Software WMS P 4. Sorted by RFID and associated Packaging Mfr 1. Case EPC labels delivered on packaging 2. Product warehoused 3. Sorted by RFID and associated 5. Pallet EPC label printed 6. Pallet shipped 4. Pallet EPC label printed 5. Pallet shipped R R R R Additional visibility
  22. 22. Supplier Benefits – Increased In-stock <ul><li>Key performance indicator for supplier: are goods in stock at retail stores? </li></ul><ul><ul><li>Can’t sell product if it’s not where the consumer can find it </li></ul></ul><ul><ul><li>Key metric for retailer’s rating of supplier </li></ul></ul><ul><li>Supplier believes an increase in their in-stock rate is possible by using EPC data to examine supply chain: </li></ul><ul><ul><li>Gather ~6 months of baseline data </li></ul></ul><ul><ul><li>Alert if deviation arises; e.g., abnormal delay in shipping from retailer DC to retailer store </li></ul></ul><ul><ul><li>Take appropriate action in response to alert </li></ul></ul>
  23. 23. Supplier Benefits – Discrepancy Reconciliation <ul><li>Discrepancy arises when shipment contents not immediately confirmed; e.g., concern that </li></ul><ul><ul><li>Wrong product shipped </li></ul></ul><ul><ul><li>Too few products shipped </li></ul></ul><ul><li>Most resolved successfully, but resolution process takes time </li></ul><ul><li>Within two months of commencing RFID operations: </li></ul><ul><ul><li>Far fewer than the usual 80% of RFID shipments reported discrepancies </li></ul></ul><ul><ul><li>Several shipments with discrepancies had retailer reads </li></ul></ul><ul><ul><li> minutes to file for resolution, instead of days </li></ul></ul>
  24. 24. Supplier Benefits – New Product / Promotions Execution <ul><li>Large manufacturer sees only 70% of promotional displays reaching sales floor in time to coincide with advertising. </li></ul><ul><li>Merely tagging display items yields instant ROI: </li></ul><ul><ul><li>Recovery of incentive fees paid to retailers </li></ul></ul><ul><ul><li>Better prediction of transit time to store front </li></ul></ul><ul><ul><li>Ability to course-correct mid-promotion </li></ul></ul>
  25. 25. Summary <ul><li>EPC and RFID a reality in CPG supply chain today </li></ul><ul><ul><li>Most suppliers to major retailers in compliance </li></ul></ul><ul><ul><li>Many tagging every SKU </li></ul></ul><ul><ul><li>Retailers sharing data to suppliers </li></ul></ul><ul><li>Immediate benefits from RFID/EPC data sharing: </li></ul><ul><ul><li>Increased In-Stock Percentage </li></ul></ul><ul><ul><li>Reduced discrepancies </li></ul></ul><ul><ul><li>Illumination of inside of supply chain </li></ul></ul><ul><ul><li>New product / promotions </li></ul></ul><ul><li>Longer-term benefits expected: </li></ul><ul><ul><li>Increased in-stock </li></ul></ul><ul><ul><li>Increased operational efficiency </li></ul></ul><ul><li>Obstacles: </li></ul><ul><ul><li>Tag cost </li></ul></ul><ul><ul><li>Emerging Technology </li></ul></ul>
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×