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Real-time Automatic Identification and Data Collection Technology Capabilities Level of Automation Cost ($) Other Satellite GPS Real-time locating systems (RTLS) Two-way active RFID Active beacon RFID Short range passive RFID Very short range passive RFID Bar code Manual entry
Value is to Combine Technology Clusters Together to Feed a Network Integrated RFID-Based AIDC Networks Cost ($) Level of Automation Software Applications Integration Software Network Hardware Network Active RFID Satellite Passive RFID BarCode
A Typical RFID Network Includes… Applications for user interaction Enterprise systems for coordinated decision making Local systems for site coordination RFID readers RFID tags (Active or EPC/Passive) ZONES APPLICATIONS Distribution Center Warehouse Manufacturer Store Web Browser Alerts Enterprise Software ENTERPRISE Other Enterprise SITES ASSETS
“ The most important metrics in driving ROI include reducing inventory costs and cycle times along with improving fill rates and the visibility of information on production, delivery, shipment and maintenance.”
“ Supply Chain Software Yields ROI: But It Takes Time,” AMR Research
Market Drivers - Wal-Mart “ Capturing data is one thing – using it to improve business processes is the key. In order to be successful – data has to be in sync.” – Wal-Mart RFID Guidelines
RFID is being pervasively implemented throughout the value chain. Denotes RFID Benefit RFID and the Extended Supply Chain Suppliers Mfg. Plant Sales & Marketing Mfg. Supply Chain Management Product Development Manufacturing 3PL/Direct Logistics Retailers Sales & Marketing Store Operations Inventory Management Purchasing Reduce inventory shrinkage Increase asset visibility Reduce missed sales opportunities Improve buying experience Improve distribution efficiency Lower WIP and safety stock Backend Inventory Backend Inventory Mfg. Plant Mfg. Plant
The solutions will provide end-to-end capabilities throughout the supply chain, across organizational boundaries and across multiple database platforms.
Software applications will support highly complex manufacturing environments
Dynamic modeling, monitoring and management of all resources
Comprehensive decision management support at all levels
Real-time synchronization amongst offices, manufacturing and supply chain partners
Visibility into real-time status of production resources
Real-time manufacturing applications to manage closed loop automation
RFID and Manufacturing
Technology Value Pyramid Required Data Legacy and/or ERP Structure/Format Which Technologies ? Mobility, RFID, Bio-metrics, GPS etc. Value From + People Data Technology Process Work Flow vs. ERP Distributive Decision making Behavior & Education Supply Chain Applications Partners Map collaborative processes Improved cost/revenue performance Technology like RFID by itself cannot accomplish anything without integrating with Data, People, and Processes
The management of the raw data generated by ththe RFID system and the manner in which it is delivered to the end-user is critical in order to marry the solution to the business objectives
Characteristics of an Enterprise Class RFID Platform
Scalability for Future Growth
Seamless Integration of real-world data and events with enterprise services
Methodology for Selecting RFID app’s
Measuring process improvements
Value Proposition – Supply Chain Execution Solutions for NLM using RFID
Increase customer service levels
Lower network disruptions
Reduce obsolescence costs
Reduce technician overtime
Lower parts inventory
Reduce service costs
Better Service Asset Management
Improved Spares and Strategic MRO Management
The Flow of the Global Supply Chain in a Perfect World Road Transport Consolidator / Distribution Center Road Transport Port of Loading Vessel Transit Port Vessel Port of Discharge Retail Distribution Center Road Transport Retail Store Factory Main Distribution Hub Supply Demand Road Carrier Road Carrier Port Operator Ocean Carrier Ocean Carrier Road Carrier Road Carrier Port Operator Port Operator Road Carrier Supplier Forwarder Customs Agent Customs Agent 3PL Operator 3PL Operator Information Flow
The Flow of the Global Supply Chain in the Real World Email EDI Fax Phone Flat File Events Often Collected After the Fact By Data Entry Because of Limited Automated Data Capture Road Transport Consolidator / Distribution Center Road Transport Port of Loading Vessel Transit Port Vessel Port of Discharge Retail Distribution Center Road Transport Retail Store Factory Main Distribution Hub Information Flow Fill Order Dispatch Load P.O,D, Receipt Load Sail Dock Load Dispatch P.O,D, Receipt Stage Load Customs Unload Stage Load Customs Customs Sail Dock Sail Sail Unload Stage Load Customs Customs Load Dispatch P.O,D, Receipt Stage Fill Load Dispatch P.O,D, Receipt Stage Fill Load Dispatch P.O,D, Receipt Stage Fill Load Dispatch P.O,D,
Value of tightly linking the Physical Flow with Information Flow
Requires integration of automatic identification and real-time identification technologies
Real time status and location enable visibility
Visibility and transparency drives efficiencies and opportunities for all network participants
Road Transport Consolidator / Distribution Center Road Transport Port of Loading Vessel Transit Port Vessel Port of Discharge Retail Distribution Center Road Transport Retail Store Factory Main Distribution Hub Demand (purchase order) Physical Flow and Events Information Flow are tightly coupled to
“We must reaffirm the importance of knowing your customers and consider the overall “air-tightness” of your supply chain, from factory floor, to loading dock, to transportation, to our border. Every single link in the chain must be made more secure against terrorist attack.”
“Implementation of RFID across the Department of Defense has the potential to greatly enhance our visibility into the supply chain, reduce supply inventories, and produce significant savings in both cost and manpower.”
- Michael W. Wynne
Under Secretary of Defense
Lesson Learned – DoD Real World RFID Deployments
Global asset Tracking – TAV
Program life cycle support
US DoD Total Asset Visibility Network Defense and Commercial Defense Suppliers
Total Asset Visibility Network
Business Problem : Poor visibility of containers/supplies to theatre. Lost manifests, manual inventory management, extreme safety stock requirements.
Solution: Global visibility network with RFID solutions for tracking materials. Integrated with complementary technologies (sensors, GPS, scanners, biometric, and handheld devices).
Project Brief: Open network, international (ISO) and technology standards-based system.
Lessons Learned: Total Inventory Visibility.
Reduced containers and supplies used for recent gulf war by 90%
Reduced “in-theater” inventory from six months to seven days
Estimated to have saved the US DoD over $350M in the first year of the Iraqi conflict
Business Problem : Annual loss of parts/equipment is high. High labor costs searching for parts.
Solution: Asset Management Solution and RFID Network provide inventory and item level tracking of aircraft parts. Wireless Network of Readers record part arrival and departure at each shop.
Project Brief: Install facility-wide item location tracking. Provide location tracking through the repair cycle process. Integrated tracking of components and end items. Enhance repair cycle management and efficiency – maintain database of repair history, cost of repair, and configuration.
Lessons Learned: Reduced annual investment in locating parts by tens of millions of dollars annually
Business Problem : Unable to provide wagons to customer for movement of materials. Poor visibility of assets.
Solution: Asset Management Solution and RFID Network provide data on status and location of rolling stock and their contents.
Project Brief: Pilot phase for specific cargo and tradelanes, moving to roll-out phase. Partnership with local companies and support from UN Conference on Trade and Development (UNCTAD).
Asset utilization improved by 400+%
Customer Service/On-time Deliveries improved by 150%
Improved security and almost complete elimination of $20M+ annual theft and loss problem.
19,000 Miles of track
Our Solution: RFID study and testing of different vendors User requirements study and process analysis RFID Tag testing of 10 different Hasbro products Solution proposal for Pilot project Our Customer: Hasbro – East Longmeadow, CT Wal-Mart RFID compliance Challenges: New technology, uncertain which RFID vendor to choose No testing facility to evaluate different vendors Benefits: Thorough testing and analysis done by experts Product analysis, conveyor tests, pallet tests, shrink wrap tests Vendor selection based on own product and pallet configuration and Wal-Mart compliance requirements Short turnaround time of the vendor selection Immediate follow-up with RFID Pilot proposal Steve Marcolini, : “ We were able to make a RFID Vendor selection based on facts and figures presented in excellent reports. We will be among the first to comply to Wal-Mart’s mandate”
Our Solution: CATAMARAN application tailored to customer needs User friendly solution, only few hours operator training required Barcode and RFID technology combined in one solution Our Customer: Thomasville Furniture – Appomattox, VA Target RFID compliance Challenges: Unattended RFID tag validation at shipping time to Target Complex exception handling at stretch-wrap RFID read point 100 % RFID reads required Benefits: Short project turn-around time Use of Stack-lights to display RFID read status, alerts to operators in case of exceptions Partner approach brought both RFID technology expertise as well as process and integration expertise Jeff Kuhnlein: “ We are very happy with the CATAMARAN solution. Odin and Shipcom did an excellent job. We were able to successfully ship our first RFID labeled products to Target, in time” Implementation together with our partner
Our Solution: CATAMARAN based RFID container tracking application Automatic tracking and recording of all container movements between the plants Integration of 2 photo eyes per dock-door to determine container movement direction Our Customer: John Deere plants at Waterloo and Fargo RFID Container tracking Challenges: Lack of information where containers are between the John Deere Fargo and Waterloo plants Automatic detection of direction of container movements (inbound or outbound) Benefits: Accurate, real time information on container shipments History of all container shipments available in SQL database Easy reporting capabilities Unattended operation, no burden on operators Robert Barrett : “ We now have accurate, real time information on the location and status of all container shipments between our two plants. The Catamaran solution was realized in only a few weeks”
Our Solution: One CATAMARAN Enterprise RFID solution at Ryder’s corporate Data Center in Atlanta that serves a number of local CATAMARAN Edge servers at Philips CE sites at Roanoke, TX and Groveport, OH and HP’s site at Ontario, CA Our Customers: Ryder/Philips Consumer Electronics/HP Enterprise Best Buy RFID compliance solution Challenge: As 3PL provider Ryder Logistics needed one Enterprise RFID solution that can serve all it’s corporate customers at different locations. Integration with many different WMS systems like PkMS, Warehouse Express through one CATAMARAN-SeeBeyond connector Benefits: One Enterprise solution for many different customers, that can be replicated to other customers in a short time Integration of the solution with various WMS packages through one SeeBeyond connector Frank Tikle: “ After we implemented the Shipcom solution for ourselves at Ryder we decided to offer this solution to our customers as well. We have created an Enterprise wide RFID solution that can benefit each of our customers. Philips and HP are the first ones to benefit from the CATAMARAN solution”.
Our Customer: Bell Sports – Rantoul, IL Wal-Mart RFID compliance Our Solution: CATAMARAN-RFID solution tailored to Bell Sports needs High performance round-robin printing to multiple printers Flexible commissioning/decommissioning with history kept in SQL tables Challenges: High volume RFID Label printing, very complex RFID printer management of multiple printers RFID Tag commissioning and de-commissioning incl. RFID print and re-print functions Batch RFID Pallet Tag validation Combination of Barcode and RFID technology Benefits: In time delivery of RFID tagged products to satisfy Wal-Mart’s RFID compliance program Bell Sports Workflows could be realized without coding Data integration with Bell Sports backend systems Solution is scaleable and ready for deployment to Bell Sports DC in York, PA Implementation together with our partner Jeff Gregg, VP & CFO: “ Our primary reason for selecting Shipcom was the fact that CATAMARAN was a configurable system with no predefined workflow, which allowed us to construct our workflow without coding”.
Our Solution: CATAMARAN RFID solution to track gas meters at each process gate, from American meter to consumer. Integration with SAP for ASN, Quality Inspection, receiving etc. Our Customer: Sempra – San Diego, CA Gas Meter tracking with RFID (Pilot) Challenges: No visibility of gas meters in the supply chain from the Manufacturer (American Meter) to the consumer. Sometimes gas meters got “lost” (but were installed), resulting in lost revenues for gas delivered to consumers Benefits: Full visibility of Gas meters in the Supply chain, location of each meter known at any time (American Meter, in transit, in QC, in Stock, in transit, installed at customer). Elimination of “lost” gas meters and consequent loss of revenues Automatic registration of all goods movements in SAP Jim Pilant: “ We were successfully using CATAMARAN already in 11 of our warehouses using barcode technology. The addition of RFID capabilities to CATAMARAN make it an even more versatile solution”
CATAMARAN RFID application to track chassis at the Brampton terminal.
When trailer enters or exit the yard, the movement will be automatically registered
The relationship between the different equipment will also be tracked,
which tires and wheel assemblies belong to which chassis
Interface with CN-Rail backend through IBM Websphere MQ
Our Customer: CN-Rail – Brampton Intermodal Terminal, Toronto Asset tracking of Intermodal equipment Challenges: Whereabouts of intermodal equipment (chassis, tires, wheel assemblies) is a mystery. Inter-exchangeability of equipment between competitors means new equipment goes out, but old equipment comes back in Benefits: Exact location of intermodal equipment can be tracked Avoid exchange of new equipment by old equipment from competitors Automatic registration in CN-Rail’s back-end system Developed in partnership with Bell Canada
Live demo’s of Gen 2 hardware, software, systems and business applications in a lab setting. Hands-on RFID workshop designed to give users detailed knowledge of upgrades in supply chain, warehouse, logistics, receiving, shipping, packaging and labeling systems.