Radio Frequency Identification 28 th  October 2004
Today’s Goals <ul><li>Real World View of RFID </li></ul><ul><li>Discuss RFID Applications </li></ul><ul><li>Business Persp...
Agenda <ul><li>Importance of supply Chain Management </li></ul><ul><li>Council of Supply Chain Management Professionals – ...
CSCMP –  Council of Supply Management Professionals <ul><li>Global Organization  </li></ul><ul><li>Formerly CSCMP – Counci...
CSCMP – Membership Benefits <ul><li>  </li></ul><ul><li>Professional Visibility </li></ul><ul><li>CSCMP Resume  </li></ul>...
Background – Mel Davis $100 Reverse Logistics RFID Global Services Director Modus Transportation Warehousing Systems Consu...
Typical Reverse Supply Chain ODM OEM Retail Store Tech Support Gate Keeping Warranty Validation Reverse $ Transactions Up ...
<ul><li>MODUSLINK </li></ul><ul><li>OVERVIEW </li></ul>
ModusLink Corporate Overview <ul><li>$1 Billion dollars*, the leader in global supply chain services </li></ul><ul><ul><li...
Size and Scope <ul><li>ModusLink’s global footprint and scalability are part of our unique value offering for our clients....
Business Model
World-Class Global Footprint Charlestown, MA Memphis,   TN Guadalajara, Mexico (2) Santa Clara, CA Newark, CA San Diego, C...
Blue Chip Client Portfolio ISV Computing Hardware Telecom/ Wireless EMS / ODM Consumer
RFID Where Did it Come? <ul><li>RFID technology been around since WWII </li></ul><ul><li>Business needed something that we...
Auto-ID is Much More Than Track & Trace (e.g Product:  Battery) Source : RFID ROI Seminar organized by AutoScan Technology...
RFID Where is it going?  Evolution versus Revolution <ul><li>PC Example …PCs were only evolving during the 1980s – Excel a...
Traditional Manufacturing
World of Demand-Driven Manufacturing Fundamental shift of power to the customer
The Start <ul><li>When  Wal-Mart insists its top 100 consumer packaged goods suppliers attached RFID tags cases and pallet...
Major Initiatives <ul><li>Mandating RFID </li></ul><ul><li>Top 100 suppliers by Jan’05, all by end 2006 </li></ul><ul><li>...
<ul><li>Barcode </li></ul><ul><ul><li>Thermal Transfer Printing </li></ul></ul><ul><ul><li>Direct Thermal Printing </li></...
Are You Currently Evaluating  Auto-ID/RFID Solutions <ul><li>You will need answers to two very fundamental questions: </li...
Where is RFID Adoption? Innovators Early Adopters Early Majority Late Majority Laggards Conservatives Hold on! Skeptics No...
RFID Value Proposition <ul><li>Enables End to End Business Process Integration </li></ul><ul><li>Recognition of real-time ...
Material Flow Information Flow Manufacturer Transport Raw Materials Consolidated Distribution Center  (CDC) Brand  owner M...
Automatic Data Collection Manufacturer Transport Raw Materials Consolidated Distribution Center  (CDC ) Brand  owner Marke...
RFID Business Application areas <ul><li>Traditional RFID Applications </li></ul><ul><ul><li>Security/Traditional Access Co...
U.S. RFID for the Retail Supply Chain, 2002-2008 2002 2003 2004 2005 2006 2007 2008 $1.3B $1.27B $91.5M $M 1,400 1,200 1,0...
U.S. RFID for the Retail Supply Chain, Long View 2002 2008 2020 Pallet & case Level Boom Pallet & case Level Peak Item-lev...
<ul><li>Benefits </li></ul>
The ROI The MOST important return on investment your company hopes to realize from investing in RFID Technology. Based on ...
Enhanced WMS Opportunity <ul><li>Warehouse Labour Hours 10-30% </li></ul><ul><li>Inventory Write-offs 5-10% </li></ul><ul>...
RFID Benefits <ul><li>Speed distribution throughout the supply chain utilizing hands off reading technology </li></ul><ul>...
Real Benefits are Being Derived <ul><li>A UK Retailer </li></ul><ul><ul><li>a 10% reduction in shrinkage will create a 1 y...
Real Benefits are Being Derived <ul><li>A global fashion clothes manufacturer and supplier increased inventory accuracy le...
You Can Enjoy RFID Benefits Right Now  … <ul><li>…  if your company has the following attributes or charters: </li></ul><u...
Benefits to Manufacturing <ul><li>BUSINESS PROCESS </li></ul><ul><li>Inventory management and logistics </li></ul><ul><li>...
Benefits to Warehousing <ul><li>BUSINESS PROCESS </li></ul><ul><li>Receiving and Shipping </li></ul><ul><li>Product storag...
Benefits to Transportation <ul><li>BUSINESS PROCESS </li></ul><ul><li>Asset management and routing </li></ul><ul><li>Yard ...
Benefits to Store Operations <ul><li>BUSINESS PROCESS </li></ul><ul><li>Receiving </li></ul><ul><li>Store Planning and Inv...
<ul><li>COMPONENTS </li></ul>
RFID Components <ul><li>Three Basic Components </li></ul><ul><li>A transceiver (with decoder), commonly refer as RFID Read...
What is a Smart Label? A paper label with RFID inside An antenna, printed, etched or stamped… … on a substrate e.g. a plas...
RFID Components – Type of Labels <ul><li>Active labels </li></ul><ul><ul><li>With  battery </li></ul></ul><ul><ul><li>Hype...
Types of Tags Source : RFID ROI Seminar organized by AutoScan Technology Up to 288kb Up to 288kb Memory Variable Variable ...
Tags Class Source : RFID ROI Seminar organized by AutoScan Technology Remarks: Currently most  implementation is for Class...
<ul><li>TECHNOLOGY </li></ul>
RFID Technology <ul><li>Possible Frequency </li></ul><ul><li>Low frequency : 10KHz to 200KHz </li></ul><ul><li>High freque...
RFID Tags (Smart Tags) are the next step beyond barcodes, supporting the promise of an intelligent supply chain. Source : ...
<ul><li>CHALLENGES </li></ul><ul><li>Usability </li></ul><ul><ul><li>Crown Cork and Seal </li></ul></ul><ul><ul><li>Ozarka...
Technical Challenges Source : RFID ROI Seminar organized by AutoScan Technology <ul><li>How to tag problem products </li><...
Challenges <ul><li>Standards </li></ul><ul><li>Drive to world-wide standards </li></ul><ul><li>Consumer / Shopper </li></u...
<ul><li>CONCLUSION </li></ul>
Business thinking <ul><li>RFID cannot  transform  your company  </li></ul><ul><li>RFID is not a  strategy </li></ul><ul><l...
10 RFID Myths to uncover <ul><li>RFID is a “talking” bar code </li></ul><ul><li>You can read every RFID tag every time </l...
Career Management <ul><li>Never Stop Learning </li></ul><ul><li>Deliver Results / Money </li></ul><ul><li>Volunteer </li><...
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  • RFID technology been around since WWII Direct Line of Site barcode Scanning very pervasive today Limitations: No Supply Chain Visibility Multiple Standards No interoperability across trading partners Retail supply chains need better inventory balancing Missed sales from stock-outs Perishables Poor promotions planning MIT’s Auto ID lab hatched a plan and a consortium with retailers/suppliers/technology vendors EPC Global purchased rights to intellectual property
  • Not dependent on technology and hardware standards … if you must wait and can wait, then wait. BUT … remember to look at solutions outside of logistics … “Beyond the Dock Door.” High Dollar SKUs – High priced fashions, hi-tech components, Heavy asset based industries – Healthcare, Industrial Manufacturing, IT Hardware Real time location of parts Authentication to deter counterfeiting – Pharmaceuticals, DVDs, Security Maintenance, repair and returns – Especially important in the area of returns Demand Driven Manufacturing
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    1. 1. Radio Frequency Identification 28 th October 2004
    2. 2. Today’s Goals <ul><li>Real World View of RFID </li></ul><ul><li>Discuss RFID Applications </li></ul><ul><li>Business Perspective </li></ul>
    3. 3. Agenda <ul><li>Importance of supply Chain Management </li></ul><ul><li>Council of Supply Chain Management Professionals – Mentor Day </li></ul><ul><li>ModusLink Overview </li></ul><ul><li>History of RFID </li></ul><ul><li>Future ? </li></ul><ul><li>Benefits </li></ul><ul><li>Components </li></ul><ul><li>Technology </li></ul><ul><li>Challenges </li></ul><ul><li>Conclusion </li></ul>
    4. 4. CSCMP – Council of Supply Management Professionals <ul><li>Global Organization </li></ul><ul><li>Formerly CSCMP – Council of Logistics Management </li></ul><ul><li>CSCMP Mission </li></ul><ul><li>To lead the evolving Supply Chain Management profession by developing, advancing, and dissemination Supply Chain knowledge and research. </li></ul><ul><li>CSCMP exists to: </li></ul><ul><li>Provide opportunities for supply chain professionals to communicate in order to develop and improve their supply chain management skills. </li></ul><ul><li>Identify and conduct research which adds to the knowledge base of supply chain theory and practice. </li></ul><ul><li>Create awareness of the significance of supply chain to business and to the economy. </li></ul><ul><li>www.cscmp.org </li></ul>
    5. 5. CSCMP – Membership Benefits <ul><li>  </li></ul><ul><li>Professional Visibility </li></ul><ul><li>CSCMP Resume </li></ul><ul><li>Network </li></ul><ul><li>Six issues of CSCMP - Logistics Comment </li></ul><ul><li>Five issues of CSCMP-Explores </li></ul><ul><li>Member Discounts </li></ul><ul><li>Local Roundtable Meetings </li></ul><ul><li>Access to CSCMPresearch </li></ul><ul><li>Access to The Journal of Business Logistics </li></ul><ul><li>Others </li></ul><ul><li>  </li></ul>
    6. 6. Background – Mel Davis $100 Reverse Logistics RFID Global Services Director Modus Transportation Warehousing Systems Consulting Compaq / HP 10 DCs US & Mexico 10 Sales Reps / Same Territory 1,000,000 Sq. Ft. Operations Sales, Ops, HR, Safety, Finance, etc Duties $5 + President / Owner Visar Logistics – 2 years $150 GM / GAE Modus – 18 months $400 $75 Reg. Ops Manager Reg. Sales Manager Ashland Chemical – 3 Years Operations 2 Years Sales $35 Million GM Exel Logistics - 8 years Revenue Position Company BBA – Finance MBA – Finance & Org. Behavior / HR Certified ISO-9000-2000 Auditor Education & Training Married 12 years - Sam 3 Children – Tucker 6, Carson 2, Peyton 3 months Hobbies: Golf, Hunting & Fishing, Exercise, Reading Personal Electronics, Chemical, Industrial, Plastics, Consumer goods, Apparel, Foods, Automotive, and Beverage. Industry Experience
    7. 7. Typical Reverse Supply Chain ODM OEM Retail Store Tech Support Gate Keeping Warranty Validation Reverse $ Transactions Up Sell Cross Sell Repair L2 , L3 Sort De-Kit De-Mfg Test Repair L1 Screen Spare Parts Mgt Warranty Validation Liquidation Secondary Market Customers Scrap Re Marketer CRM ARS Repair Depot RMS Field Service
    8. 8. <ul><li>MODUSLINK </li></ul><ul><li>OVERVIEW </li></ul>
    9. 9. ModusLink Corporate Overview <ul><li>$1 Billion dollars*, the leader in global supply chain services </li></ul><ul><ul><li>More than 20 years operational experience </li></ul></ul><ul><ul><li>Over 3,900 skilled employees </li></ul></ul><ul><ul><li>Strongest management strength in the industry </li></ul></ul><ul><ul><li>Division of CMGI </li></ul></ul><ul><ul><li>The result of the merger of SalesLink and Modus. </li></ul></ul><ul><li>Award winning solutions portfolio </li></ul><ul><li>World-class global footprint </li></ul><ul><ul><li>Americas: 19 Centers </li></ul></ul><ul><ul><li>EMEA: 10 Centers </li></ul></ul><ul><ul><li>Asia: 13 Centers </li></ul></ul><ul><li>Blue chip technology clients </li></ul><ul><li>Best-in-Class systems strategy </li></ul>*Note: CMGI Pro forma Revenue for year ended July 31, 2003 Computing Consumer Electronics Software Telecommunications/Wireless DSL / Broadband Networking Forward Supply Chain Professional Services/SCO Orders mgmt & Fulfillment Reverse Logistics Electronic Software Distribution EMS/ODMs Customer Service Digital Content Replication Americas – 19 Centers Europe– 10 Centers Asia– 13 Centers Service Line Geographies Vertical Markets
    10. 10. Size and Scope <ul><li>ModusLink’s global footprint and scalability are part of our unique value offering for our clients. </li></ul><ul><li>Over US$25 Billion of Client Revenue passes through ModusLink. </li></ul><ul><li>To put our business in perspective here are some operational statistics ModusLink managed: </li></ul><ul><ul><li>Hardware Units Shipped 150 million </li></ul></ul><ul><ul><li>Software Units Shipped 300 million </li></ul></ul><ul><ul><li>Part Number Transactions 2 billion </li></ul></ul><ul><ul><li>Active Part Numbers 400,000 </li></ul></ul><ul><ul><li>Currencies Transacted 36 </li></ul></ul><ul><ul><li>E-Mails Responded 1.5 million </li></ul></ul><ul><ul><li>Inbound Calls 9 million </li></ul></ul><ul><ul><li>Outbound Calls 1 million </li></ul></ul><ul><ul><li>Web Transactions 2 million </li></ul></ul><ul><ul><li>Call Center Seats 0ver 1000 </li></ul></ul><ul><ul><li>Languages Supported 16 </li></ul></ul>
    11. 11. Business Model
    12. 12. World-Class Global Footprint Charlestown, MA Memphis, TN Guadalajara, Mexico (2) Santa Clara, CA Newark, CA San Diego, CA Fountain, CO Indianapolis, IN Miami, FL Penang, Malaysia (2) Singapore (2) Tilburg, The Netherlands Lindon, UT Raleigh, NC Austin, TX Nashville, TN Monterrey, Mexico Salt Lake City, UT Chicago, IL Waltham, MA HQ Fukashima, Japan Taipei, Taiwan (2) Shenzhen, China Shanghai, China Futian, China KunShan, China SongJiang, China Budapest, Hungary Apeldoorn, The Netherlands Orléans, France Kildare, Ireland Dublin, Ireland (2) Limerick, Ireland Angers, France Miskolc, Hungary Cumbernauld, Scotland Saitama, Japan Kanagawa, Japan Kyunggi-do, Korea Beijing, China Hong Kong, China Hillsboro,OR New York, NY Houston, TX Korea LLC Tokyo, Japan Shimane, Japan Chiba, Japan
    13. 13. Blue Chip Client Portfolio ISV Computing Hardware Telecom/ Wireless EMS / ODM Consumer
    14. 14. RFID Where Did it Come? <ul><li>RFID technology been around since WWII </li></ul><ul><li>Business needed something that went beyond: </li></ul><ul><ul><li>Direct line of site barcode scanning </li></ul></ul><ul><ul><li>No real time Supply Chain Visibility </li></ul></ul><ul><li>Retail supply chains need better inventory balancing </li></ul><ul><li>MIT’s Auto ID lab hatched a plan and a consortium with retailers/suppliers/technology vendors </li></ul><ul><li>EPC Global purchased rights to intellectual property </li></ul>
    15. 15. Auto-ID is Much More Than Track & Trace (e.g Product: Battery) Source : RFID ROI Seminar organized by AutoScan Technology “ I’m a 8-pack of AA Dry Cell batteries and I will expire in 2007 “ I was made on assembly line 5 of plant ABC in Shenzen on January 22, 2004” “ I am currently sitting in Warehouse B, Aisle 5” “ I am bound for XYZ” / “I have arrived at XYZ” “ I have just been removed from the Retail / Warehouse shelf” “ I have not been paid for by the customer” “ I was purchased from Store A in Town B” “ This is how you should use, handle and store me” “ This is what I’m made of” / “These are my design features” “ Here are complementary products” “ I am the real deal…not a counterfeit” “ I have not been tampered with”
    16. 16. RFID Where is it going? Evolution versus Revolution <ul><li>PC Example …PCs were only evolving during the 1980s – Excel and Quattro, WordPerfect and Word were driving business purchases. </li></ul><ul><li>The Revolution in PCs Started By the Internet </li></ul><ul><li>The Internet Causes Adoption to Go Up, Prices Then Go Down … Lower Prices Spur Even Greater Adoption, Higher Adoption Causes Prices to Lower, the Revolution Begins </li></ul>
    17. 17. Traditional Manufacturing
    18. 18. World of Demand-Driven Manufacturing Fundamental shift of power to the customer
    19. 19. The Start <ul><li>When Wal-Mart insists its top 100 consumer packaged goods suppliers attached RFID tags cases and pallets by 2005 . </li></ul><ul><li>Such a move could benefit Wal-Mart by enhancing order accuracy, inventory control, operation efficiency, and material managements </li></ul><ul><li>Wal-Mart currently conduct test on PEC labels and RFID tags in Dallas, Te xas. </li></ul>
    20. 20. Major Initiatives <ul><li>Mandating RFID </li></ul><ul><li>Top 100 suppliers by Jan’05, all by end 2006 </li></ul><ul><li>Case and pallet level </li></ul><ul><li>Mandating RFID </li></ul><ul><li>All suppliers of selected items by Jan’05 </li></ul><ul><li>Case, pallet and item level </li></ul><ul><li>Mandating RFID </li></ul><ul><li>Top suppliers by Nov’04 </li></ul><ul><li>Case, pallet and selected item level </li></ul>Source : RFID ROI Seminar organized by AutoScan Technology (Philips Semiconductors) Who is next?
    21. 21. <ul><li>Barcode </li></ul><ul><ul><li>Thermal Transfer Printing </li></ul></ul><ul><ul><li>Direct Thermal Printing </li></ul></ul><ul><ul><li>Optical technology </li></ul></ul><ul><li>Biometric </li></ul><ul><li>GPS Tag </li></ul><ul><li>Card </li></ul><ul><ul><li>Smart chips </li></ul></ul><ul><ul><li>Magnetic Stripe </li></ul></ul><ul><li>RFID </li></ul>Auto ID Technologies - AI Source : RFID ROI Seminar organized by AutoScan Technology
    22. 22. Are You Currently Evaluating Auto-ID/RFID Solutions <ul><li>You will need answers to two very fundamental questions: </li></ul><ul><li>How can I use this technology to improve my business? </li></ul><ul><li>Where Do I begin? </li></ul>Raw Material Supplier Component Supplier Primary Manufacturer Distribution Warehouse Retailer Source : RFID ROI Seminar organized by AutoScan Technology
    23. 23. Where is RFID Adoption? Innovators Early Adopters Early Majority Late Majority Laggards Conservatives Hold on! Skeptics No way! Visionaries Get ahead of the herd! Pragmatists Stick with the herd! Techies Try it! Pragmatists create the dynamics of high-tech market development We Are Here Source : RFID ROI Seminar organized by AutoScan Technology (Philips Semiconductors)
    24. 24. RFID Value Proposition <ul><li>Enables End to End Business Process Integration </li></ul><ul><li>Recognition of real-time transactions and operations, via an Automatic Identification Data Capture system. </li></ul><ul><li>Eliminate Work Duplication in terms of data collection and data documentation </li></ul><ul><li>Automation of manual processes through technology </li></ul><ul><li>Knowledge Retention for manual operations </li></ul><ul><li>Streamlined warehouse operations processes and improved order turnaround </li></ul><ul><li>Enable Warehouse operations automation to meet changes in customer demand, market opportunities and external events. </li></ul><ul><li>Recognition of exceptional events in daily operations </li></ul><ul><li>Provides Real-Time Inventory Diversion </li></ul><ul><li>Improved supplier and customer relationships </li></ul>Source : RFID ROI Seminar organized by AutoScan Technology
    25. 25. Material Flow Information Flow Manufacturer Transport Raw Materials Consolidated Distribution Center (CDC) Brand owner Marketing / Sales Customers Container Shipping 3PL Warehouse Source : RFID ROI Seminar organized by AutoScan Technology
    26. 26. Automatic Data Collection Manufacturer Transport Raw Materials Consolidated Distribution Center (CDC ) Brand owner Marketing /Sales Customers Container Shipping 3PL Warehouse
    27. 27. RFID Business Application areas <ul><li>Traditional RFID Applications </li></ul><ul><ul><li>Security/Traditional Access Control </li></ul></ul><ul><ul><li>Mass Transit </li></ul></ul><ul><ul><li>Library Access </li></ul></ul><ul><ul><li>Toll Collection </li></ul></ul><ul><ul><li>Animal Identification </li></ul></ul><ul><li>Emerging RFID Application </li></ul><ul><ul><li>Warehouse Management </li></ul></ul><ul><ul><li>Supply Chain </li></ul></ul><ul><ul><li>Reverse Logistics </li></ul></ul><ul><ul><li>Asset Tracking </li></ul></ul><ul><ul><li>Retails Management </li></ul></ul><ul><ul><li>Document Tracking </li></ul></ul><ul><ul><li>Anti-counterfeit </li></ul></ul><ul><ul><li>Advance Access Control </li></ul></ul><ul><ul><li>Mass Transit – Monthly and Single Trip </li></ul></ul><ul><ul><li>Airline Baggage Handling </li></ul></ul><ul><ul><li>Regulatory Compliance </li></ul></ul>Source : RFID ROI Seminar organized by AutoScan Technology
    28. 28. U.S. RFID for the Retail Supply Chain, 2002-2008 2002 2003 2004 2005 2006 2007 2008 $1.3B $1.27B $91.5M $M 1,400 1,200 1,000 800 600 400 200 0 Source: IDC, 2004 (#30490, U.S. RFID for the Retail Supply Chain Spending Forecast and Analysis, 2003-2008) Hardware Software Services Source : RFID ROI Seminar organized by AutoScan Technology (Philips Semiconductors)
    29. 29. U.S. RFID for the Retail Supply Chain, Long View 2002 2008 2020 Pallet & case Level Boom Pallet & case Level Peak Item-level Begins Item-level Takes Off Source: IDC, 2004 Source : RFID ROI Seminar organized by AutoScan Technology (Philips Semiconductors)
    30. 30. <ul><li>Benefits </li></ul>
    31. 31. The ROI The MOST important return on investment your company hopes to realize from investing in RFID Technology. Based on retailers using or planning to use RFID (n=71 retailers) - AMR Research Product tempering / counterfeit reduction 17% Theft Reduction 21% OOS Reduction 11% Labor Savings 38% Inventory Reduction 13% Source : RFID ROI Seminar organized by AutoScan Technology (Philips Semiconductors)
    32. 32. Enhanced WMS Opportunity <ul><li>Warehouse Labour Hours 10-30% </li></ul><ul><li>Inventory Write-offs 5-10% </li></ul><ul><li>Total Inventory 5% </li></ul><ul><li>Shipping Errors 80-100% </li></ul><ul><li>Management Time 50% </li></ul><ul><li>Inventory Counting Hours 80-100% </li></ul>Source : RFID ROI Seminar organized by AutoScan Technology
    33. 33. RFID Benefits <ul><li>Speed distribution throughout the supply chain utilizing hands off reading technology </li></ul><ul><li>Greater visibility and real-time inventory management capabilities </li></ul><ul><li>Reduced product tampering, theft, and counterfeiting </li></ul><ul><li>Introduction to Smart Shelf technology </li></ul><ul><li>Easier product tracking and recalls </li></ul>
    34. 34. Real Benefits are Being Derived <ul><li>A UK Retailer </li></ul><ul><ul><li>a 10% reduction in shrinkage will create a 1 year ROI </li></ul></ul><ul><ul><li>Reduced truck unload times from 18 minutes to 3 minutes </li></ul></ul><ul><li>A distributor cut energy charges by 25% by synchronizing the opening and closing of its refrigerated warehouse doors with arriving and departing trucks </li></ul><ul><li>A 3PL cut the average time it took to unload trucks a truck at a DC from 3 hours to 1 hour </li></ul>
    35. 35. Real Benefits are Being Derived <ul><li>A global fashion clothes manufacturer and supplier increased inventory accuracy levels from 85% to over 99% and sales rose more than 5% </li></ul><ul><li>Wal-Mart claims reducing stock-outs by 1% is an additional $1B USD in sales </li></ul><ul><li>Wal-Mart estimates every bar code replaced will save 5 cents </li></ul>“ You can move forward with some things (projects) now while the (RFID) technology progresses and the details get worked out.” - AMR.
    36. 36. You Can Enjoy RFID Benefits Right Now … <ul><li>… if your company has the following attributes or charters: </li></ul><ul><li>Not dependent on technology and hardware standards </li></ul><ul><li>High Dollar SKUs </li></ul><ul><li>Heavy asset based industry </li></ul><ul><li>Real time location of parts </li></ul><ul><li>Authentication to deter counterfeiting </li></ul><ul><li>Maintenance, repair and returns </li></ul><ul><li>RFID Enabled Enterprise Software </li></ul>“… look for places inside the business where traditional data collection technologies have failed … “ - Gartner
    37. 37. Benefits to Manufacturing <ul><li>BUSINESS PROCESS </li></ul><ul><li>Inventory management and logistics </li></ul><ul><li>Production </li></ul><ul><li>Maintenance and Service </li></ul><ul><li>BENEFITS </li></ul><ul><li>Reduced order lead times and errors </li></ul><ul><li>Inbound and outbound order visibility </li></ul><ul><li>Better capacity utilization </li></ul><ul><li>Less shrinkage and loss </li></ul><ul><li>Gray-market tracking </li></ul><ul><li>Better capacity utilization and sequencing of materials </li></ul><ul><li>Improved product quality and fewer errors </li></ul><ul><li>Tracking of work in progress for production components </li></ul><ul><li>Better subassembly identification and tracking </li></ul><ul><li>Automatic component matching and assembly </li></ul><ul><li>Improved recipe management </li></ul><ul><li>Faster order cycles </li></ul><ul><li>Improved building to order and building to demand </li></ul><ul><li>Reduced counterfeiting </li></ul><ul><li>Better tracking of warranties, service and end-of-life processes, spare-parts and recalls </li></ul><ul><li>Improved maintenance and repair through increased visibility and correct part ID’s </li></ul><ul><li>Easier tracking for life and expiration dates for managing asset returns </li></ul><ul><li>POTENTIAL SAVINGS </li></ul><ul><li>Save the 0.22% to 0.73% of annual revenues that is typically lost on theft </li></ul><ul><li>Reduce transportation costs by up to 3% </li></ul><ul><li>Increase revenues up to 1% by improving product quality and service </li></ul><ul><li>Reduce fixed assets costs by 1% to 5% as a result of better equipment utilization </li></ul><ul><li>Gain 7% in margin by tagging at the subassembly level </li></ul><ul><li>Gain 12% in margin by tagging at the pallet level </li></ul><ul><li>Gain 18% in margin by tagging at the unit level </li></ul><ul><li>Avoid the erosion of nearly 30% of potential annual revenues that is caused by markdowns on old or unusable inventory. </li></ul>Source : RFID ROI Seminar organized by AutoScan Technology (SAP)
    38. 38. Benefits to Warehousing <ul><li>BUSINESS PROCESS </li></ul><ul><li>Receiving and Shipping </li></ul><ul><li>Product storage and selection and order fulfillment </li></ul><ul><li>Task and resource management </li></ul><ul><li>BENEFITS </li></ul><ul><li>Automated processing of loading and unloading </li></ul><ul><li>Reduced labor requirements </li></ul><ul><li>Faster processing </li></ul><ul><li>Automatic cross-docking </li></ul><ul><li>Automatic generation of 100% accurate electronic manifests </li></ul><ul><li>Correct product storage locations </li></ul><ul><li>Faster product retrieval </li></ul><ul><li>Fewer order errors </li></ul><ul><li>Reduced losses and shrinkage of assets </li></ul><ul><li>Improved order fill rates and times </li></ul><ul><li>Less safety stock required </li></ul><ul><li>Automatic updating of tasks for each resource </li></ul><ul><li>Improved automation and accuracy of flow control </li></ul><ul><li>Improved real-time monitoring of operations </li></ul><ul><li>Automatic conveyance and sorting </li></ul><ul><li>Automatic and accurate picking and packaging </li></ul><ul><li>POTENTIAL SAVINGS </li></ul><ul><li>Reduced receiving costs by 20% to 30% </li></ul><ul><li>Reduced shipping costs by 15% to 25%% </li></ul><ul><li>Reduce picking costs by 40% to 50% </li></ul><ul><li>Reduce working capital by 8% to 12% </li></ul><ul><li>Increase cross-docking by 45% </li></ul>Source : RFID ROI Seminar organized by AutoScan Technology (SAP)
    39. 39. Benefits to Transportation <ul><li>BUSINESS PROCESS </li></ul><ul><li>Asset management and routing </li></ul><ul><li>Yard Management </li></ul><ul><li>Contract compliance </li></ul><ul><li>BENEFITS </li></ul><ul><li>Increased asset utilization </li></ul><ul><li>Reduced loss and shrinkage </li></ul><ul><li>Pricing based on actual asset usage </li></ul><ul><li>Reduced labor costs </li></ul><ul><li>Optimized route planning and backhauling </li></ul><ul><li>Automated advance shipping notices </li></ul><ul><li>Visibility of drop shipments </li></ul><ul><li>Automatic identification and location </li></ul><ul><li>Increased throughput </li></ul><ul><li>Decreased errors and exceptions </li></ul><ul><li>Improved customer service </li></ul><ul><li>POTENTIAL SAVINGS </li></ul><ul><li>Achieve 25% to 40% higher profits due to improved logistics for returns </li></ul><ul><li>Speed pickup and delivery by 10% </li></ul><ul><li>Reduce labor costs by 30% </li></ul><ul><li>Reduce demurrage by 60% </li></ul><ul><li>Increase throughput by 20% </li></ul><ul><li>Reduce bad-data costs by up to $100 million </li></ul><ul><li>Reduce claims from lost packages by 98% </li></ul>Source : RFID ROI Seminar organized by AutoScan Technology (SAP)
    40. 40. Benefits to Store Operations <ul><li>BUSINESS PROCESS </li></ul><ul><li>Receiving </li></ul><ul><li>Store Planning and Inventory management </li></ul><ul><li>Checkout </li></ul><ul><li>Returns and reverse logistics </li></ul><ul><li>After-sales support </li></ul><ul><li>BENEFITS </li></ul><ul><li>Faster load processing </li></ul><ul><li>Automated shipment confirmation and payment </li></ul><ul><li>Improved order accuracy and less shrinkage </li></ul><ul><li>Improved on-shelf availability of products </li></ul><ul><li>Correct product compliance with the plan- </li></ul><ul><li>Mobile inventory tracking, velocity measurement and monitoring </li></ul><ul><li>Improved product turns and shelf life management </li></ul><ul><li>Out-of-stock notification and alerts </li></ul><ul><li>Multichannel retailing </li></ul><ul><li>Automatic compliance with expiration dates and recalls </li></ul><ul><li>Automatic inventory counts </li></ul><ul><li>Less labour and time </li></ul><ul><li>Faster and more accurate checkout using Auto-ID </li></ul><ul><li>Instant sales data by SKU and EPC </li></ul><ul><li>Higher productivity and less labour </li></ul><ul><li>Instant cross-setting and up-selling and promotions to member customers </li></ul><ul><li>Improved customer satisfaction </li></ul><ul><li>Prevention of fraud in returns </li></ul><ul><li>More accurate return refunds </li></ul><ul><li>Faster disposal and backhauling </li></ul><ul><li>Automatic warranty information associated with each item and personalized for each purchase </li></ul><ul><li>Better warranty compliance and repairs processing </li></ul><ul><li>POTENTIAL SAVINGS </li></ul><ul><li>Reduce labour costs by up to 65%, stocking costs by up to 25% and cycle counting by up to 25% </li></ul><ul><li>Reduce losses due to theft by 40% to 50% </li></ul><ul><li>Improve stock availability by 5% to 10% </li></ul><ul><li>Increased sales by 3% to 7% due to improved stock availability </li></ul><ul><li>Reduce spoilage and obsolescence write-offs by up to 20% </li></ul><ul><li>Increase customer retention by 0.3% to 0.5% </li></ul><ul><li>Increase revenue by 1% to 2% due to improved returns management </li></ul><ul><li>N/A </li></ul>Source : RFID ROI Seminar organized by AutoScan Technology (SAP)
    41. 41. <ul><li>COMPONENTS </li></ul>
    42. 42. RFID Components <ul><li>Three Basic Components </li></ul><ul><li>A transceiver (with decoder), commonly refer as RFID Reader. </li></ul><ul><li>Antenna </li></ul><ul><li>A transponder, commonly refer as RFID label </li></ul><ul><li>A smart asset tracking solution consists of label and a reader connected to an </li></ul><ul><li>information system </li></ul>Source : Grand-flo Systems (s) Pte Ltd Label Antenna Reader
    43. 43. What is a Smart Label? A paper label with RFID inside An antenna, printed, etched or stamped… … on a substrate e.g. a plastic foil… … and a chip attached to it. Source : RFID ROI Seminar organized by AutoScan Technology (Philips Semiconductors)
    44. 44. RFID Components – Type of Labels <ul><li>Active labels </li></ul><ul><ul><li>With battery </li></ul></ul><ul><ul><li>Hyper frequency </li></ul></ul><ul><ul><li>Expensive </li></ul></ul><ul><ul><li>Greater in size </li></ul></ul><ul><ul><li>Limited operational life (10years) </li></ul></ul><ul><li>Passive Labels </li></ul><ul><ul><li>Without battery </li></ul></ul><ul><ul><li>Low or high frequency </li></ul></ul><ul><ul><li>Low cost </li></ul></ul><ul><ul><li>Smaller in size </li></ul></ul><ul><ul><li>Virtually unlimited operational life </li></ul></ul>Note : Both Active and Passive labels can read/write Source : Grand-flo Systems (s) Pte Ltd <ul><li>Read only </li></ul><ul><ul><li>Data (ID) is fixed by the manufacturer </li></ul></ul><ul><ul><li>Can be sufficient </li></ul></ul><ul><ul><li>64 bits memory </li></ul></ul><ul><li>Read / Write </li></ul><ul><ul><li>Enter data, re-enter, modify </li></ul></ul><ul><ul><li>An infinite number of times </li></ul></ul><ul><ul><li>2kbits EEPROM – equivalent to 150 barcodes </li></ul></ul>
    45. 45. Types of Tags Source : RFID ROI Seminar organized by AutoScan Technology Up to 288kb Up to 288kb Memory Variable Variable Data Transfer Rate Not applicable 303, 433 MHz Low (125, 134 KHz) High (13.56 MHz) Ultra High (868 to 930 MHz) Microware (2.4 GHz) Frequency 0 0, 3, 4 Class <=15 to 30 feet (10 meters) <=1,500 feet (500 meters) Read Range Inductive Battery Power Source Passive Active Characteristic
    46. 46. Tags Class Source : RFID ROI Seminar organized by AutoScan Technology Remarks: Currently most implementation is for Class 0 & 1 only Active, Networking Tags 4 Active, Multi Write / Read 3 Passive, Multi Write / Read 2 Passive, Write once, Read many 1 Passive, Read only 0 Description Class
    47. 47. <ul><li>TECHNOLOGY </li></ul>
    48. 48. RFID Technology <ul><li>Possible Frequency </li></ul><ul><li>Low frequency : 10KHz to 200KHz </li></ul><ul><li>High frequency: 13.56MHz </li></ul><ul><li>Microwave: 2.45GHz to 2.5GHz </li></ul><ul><li>UHF : Singapore (866~869MHz), Europe (860~869MHz), US (902~928MHz). Singapore is proposing 923~925MHz. </li></ul>Source : Grand-flow Systems (s) Pte Ltd < 150 kHz 13.56 MHz UHF 2.45 GHz Typical achievable reading range 1 m 1 m plus 3 m 2 m Reading speed <5 kbit/s 80 kbit/s >100 kbit/s > 100 kbit/s Immunity to metal environment Fair Medium Poor Poor Immunity to electro- magnetic noise Poor Medium Fair Fair Immunity to water Fair Fair Poor Poor Short Range Medium Range Long Read Long Read
    49. 49. RFID Tags (Smart Tags) are the next step beyond barcodes, supporting the promise of an intelligent supply chain. Source : RFID ROI Seminar organized by AutoScan Technology RFID has not been widely adopted due to high implementation costs and a lack of standards – EPC Global was created specially to address three issues. Tags less susceptible to damage Labels susceptible to damage Dependability Ability to read multiple tags simultaneously (without line of sight) Ability to read one tag at one time Efficiency Potential for read/write capability (allows tags to be reusable) Static Information Flexibility Significantly higher data capacity and memory Limited data can be stored Data Capacity RFID / Auto-ID Barcode / UPC
    50. 50. <ul><li>CHALLENGES </li></ul><ul><li>Usability </li></ul><ul><ul><li>Crown Cork and Seal </li></ul></ul><ul><ul><li>Ozarka </li></ul></ul><ul><li>Tag Placement </li></ul>
    51. 51. Technical Challenges Source : RFID ROI Seminar organized by AutoScan Technology <ul><li>How to tag problem products </li></ul><ul><li>Consider tag and reader antenna placement </li></ul><ul><li>Choose the right tag and reader antennas </li></ul>Gillette puts a tag where there’s an air gap in the case
    52. 52. Challenges <ul><li>Standards </li></ul><ul><li>Drive to world-wide standards </li></ul><ul><li>Consumer / Shopper </li></ul><ul><li>Respond to consumer concerns (e.g. Privacy, Health & Safety) </li></ul><ul><li>Costs </li></ul><ul><li>Tag and reader cost reduction </li></ul><ul><li>Technology Development to address </li></ul><ul><li>Tag and Reader interoperability </li></ul><ul><li>Cost / Performance balance </li></ul><ul><li>Country specific regulations </li></ul><ul><li>IT infrastructure requirements </li></ul><ul><li>RF properties with metals and liquids </li></ul><ul><ul><li>Crown Cork & Seal </li></ul></ul><ul><ul><li>Ozarka </li></ul></ul>Source : RFID ROI Seminar organized by AutoScan Technology (Philips Semiconductors)
    53. 53. <ul><li>CONCLUSION </li></ul>
    54. 54. Business thinking <ul><li>RFID cannot transform your company </li></ul><ul><li>RFID is not a strategy </li></ul><ul><li>RFID is… </li></ul><ul><li>Key Technology Enabler </li></ul>Source : RFID ROI Seminar organized by AutoScan Technology
    55. 55. 10 RFID Myths to uncover <ul><li>RFID is a “talking” bar code </li></ul><ul><li>You can read every RFID tag every time </li></ul><ul><li>You can take inventory with a push of the button </li></ul><ul><li>RFID delivers perfect information </li></ul><ul><li>You can buy tags for five cents </li></ul><ul><li>The tag cost is critical to making any deployment payoff </li></ul><ul><li>RFID is primarily a supply chain technology </li></ul><ul><li>Deploying RFID means the end of privacy </li></ul><ul><li>RFID is easy to deploy </li></ul><ul><li>We can afford to wait </li></ul>Source : RFID ROI Seminar organized by AutoScan Technology
    56. 56. Career Management <ul><li>Never Stop Learning </li></ul><ul><li>Deliver Results / Money </li></ul><ul><li>Volunteer </li></ul><ul><li>Have Fun </li></ul><ul><li>Network </li></ul><ul><li>Find a Mentor </li></ul><ul><li>TEAM first ME Second </li></ul><ul><li>Be Patient </li></ul><ul><li>Diversify Skills </li></ul><ul><li>Values </li></ul><ul><li>Repeat Cycle </li></ul>
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