The Business Case for AIDC Solutions Throughout the Supply Chain AIDC 100 - “Evolution of an RFID Revolution” October 15th...
Savi Group Overview Savi Logistics Systems <ul><li>FOCUS:  Customized decision-support logistics solutions for situational...
Vision <ul><li>Every Conveyance and Mobile Asset Will be Tracked  Using Some Type of AIDC Technology </li></ul><ul><ul><li...
Evolution of the AIDC Revolution <ul><li>Solving Customer Problems using the right technologies </li></ul><ul><li>Work Col...
Requirements for Each Layer The Right Technology for the Right Application Layer 5: Movement Vehicle Layer 4: Container La...
Driving Value Making AIDC Information Accessible & Actionable <ul><li>Transform visibility in value creating execution at ...
J. Craig Casto <ul><li>Global Auto ID Leader </li></ul><ul><li>The Dow Chemical Company </li></ul>
RFID/GPS Program Management
Dow Most Effective Technology (MET)
RFID/GPS Strategy <ul><li>VOC with 100 Dow Business Leaders </li></ul><ul><li>Level set technology and used Six Sigma tech...
Dow RFID / GPS Prioritized Opportunities Facilities, Location, Physical Structure Tagging Internal asset utilization & los...
Supply Chain Scope <ul><li>3,500 global employees </li></ul><ul><li>2.5 million shipments each year </li></ul><ul><li>45,0...
Container Tracking MET at 50,000 Feet Savi   Technologies Internet based ASP  (GIS Mapping and Event Mgt) Railcar Tracking...
Savi Web Portal DowTrak.com
Container Tracking  – Railcars with RFID & GPS <ul><li>RFID on NA rail cars since 90’s </li></ul><ul><ul><li>Car location ...
The User Interface <ul><li>Powered By Google Earth </li></ul><ul><li>Defined Geo-Fences for </li></ul><ul><ul><li>High Thr...
RFID and GPS Container Tracking  Intermodal Containers <ul><li>Savi Pilot – RFID Based with Ship GPS: </li></ul><ul><ul><l...
RFID Container Tracking  -  Intermodal Containers with RFID & GPS <ul><li>Savi Networks - RFID </li></ul><ul><ul><li>Freep...
Heartbeat Tracking  Visibility Rotterdam to  Antwerp by Barge Houston to Rotterdam
Environmental Conditions  Monitoring Inside Container
Bar Code Tracking  Cylinders and Small Containers <ul><li>Vikane </li></ul><ul><ul><li>Hosting environment upgrade </li></...
Improved Shipment Visibility Benefits (Estimates) <ul><li>50% improvement in response time to identify and resolve in-tran...
Next Generation AIDC Solutions Selective Services Base Services Networks of  Heterogeneous technologies: RFID, GPS, GPRS, ...
The Business Case for AIDC Solutions  Throughout the Supply Chain <ul><li>Any Questions ? </li></ul><ul><li>David Shannon,...
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  • I really think we should focus on the Post Wal Mart era and how the Auto ID business case focus is moving away from just cost reductions and experiments into business process innovation because Wal Mart made it seem like a revolution and now it has evolved into more of a business process improvement vision.  I have attached some things we can steal from. In 1991, Geoffrey Moore wrote a book entitled &amp;quot;Crossing the Chasm&amp;quot; that talked about the gap between early adopters of a technology and acceptance by the mainstream market.  He describes is a void in the middle that he terms the chasm.  Where do you see RFID in relation to this chasm? With some exceptions, which have matured earlier, my view is that the bulk of the RFID market is sitting squarely astride the chasm with one foot on the wrong side of the chasm and one foot on the right side of the chasm.  The characterization that the market takes on once it is fully across the chasm is that the most pragmatic mainstream, even conservative, buyers have no further real reservations about investing in the technology.  They understand it to be fully proven, they have found lots of examples of their colleagues in the industry using the technology and generating bottom-line business results, and the majority of engagements that suppliers have with prospective customers are with business people that have business problems to solve and not with people who are first and foremost interested in the technology and understanding what the current state of it is. If you look back perhaps a year, year-and-a-half, two years ago, the market I think was entirely on the wrong side of the chasm.  Almost every discussion was with technology people who were interested in RFID and proving it out and experimenting with it and seeing if in fact it could work in their environment.  There were relatively few business driven dialogues.  If we look a year or two into the future -- two years in particular -- I think we&apos;ll find that the majority of engagements and discussions with prospective clients will, in fact, be with those business people and the technology will have, at least in some important number of use cases, be fully proven out to be effective in a bottom-line business sense. I think we&apos;re in about a one-to-two year transition period between now and then where an increasing number of engagements are of that mainstream character but not all of them yet.  The market is still not coming to the suppliers in that mode, we&apos;re having to go and get them.  I think the key for the RFID industry is to in fact focus on those target use cases where the business benefits are most compelling and then proving out that the technology generates bottom-line business results -- not that it just works as a technology but that it realizes the business benefits that our early adopter customers are seeking. We feel that if we&apos;re able to prove that customer success, that will generate the base of support within the broader, more pragmatic, more conservative business buying community that will lead to &amp;quot;main street&amp;quot; adoption which will then generate the dynamics that bring the market fully across the chasm. As the market moves across the chasm, where do you see extended capability RFID going over the next few years? I think it&apos;s going to be a major force in driving the market across the chasm because I think it&apos;s tied to exactly those high value business applications and solutions that will lead the market across the chasm.  If you can generate an incremental return, a marginal improvement in your operation based on use of a technology that&apos;s &amp;quot;nice.&amp;quot;  But if you can solve a business problem that just isn&apos;t possible using other technologies, that&apos;s compelling.  I think that&apos;s what extended capability does.
  • Solving Customer Problems using the right technologies Match the right AIDC technology to the right application; often, as in the case with Dow, there’s a mixture or convergence of AIDCs Work Collaboratively with Customers Process begins with collaborative business case validation, problem analysis, solution definition and then deployment Evolving to Solutions not just point Technology Maximize the value of AIDC technologies through integration at the enterprise, or even inter-enterprise level Provide End to End Capabilities Information delivery method also is key:  application or web-hosted (portal) managed information service Evolution now is to maximize the value of AIDC technologies through integration/collaboration software at the enterprise, or even inter-enterprise level THE MARKET WILL RATIONALAIZE - SLIDE Systems Integrators Winners – Leverage Vertical Market Expertise to Create Repeatable Industry Solutions Based on Value Not Mandates “ Me Too” – Minimal Competitive Advantage In RFID Implementation Skills ERP/RFID Enabled/Supply Chain Applications/ RFID Enabled Asset Management Winners - Optimize Inventory and Assets , Sense and respond on Top of Planning and Execution, Solve Extended Supply Chain Business – Network Effect, Supportive of All AIDC Technologies “ Me Too” Competitors - RFID Event Enabled Transactions Minimal Competitive Advantage, Most Have Enabled Passive RFID Only and Need to Re-engineer Next Generation, “Enterprise” Definition Will Limit Supply Chain Reach and Value RFID Enterprise Middleware/ RFID Enabled EAI/ RFID Enabled App Server Winners – Architecture Enables Distributed Functions &amp; Business Logic That Can Span Extended Supply Chain - Supports Multiple AIDC Technologies “ Me Too” - Minimal Competitive Advantage- Struggle to Expand to Other Segments Site Managers / Edge Servers Passive Will Be Commoditized Market Current EPC Edge Functionality Absorbed Into Smart Readers &amp; Routers Winners – Architecture Enables , Distributed Functions &amp; Business Logic , Supports Multiple AIDC Technologies Active Tag/Reader Emerging Standards will Commoditise Basic Tags and Readers. Winners will Differentiate on Low Cost Extensible Platforms For Higher Functionality. e.g. Sensors Passive Tag/Reader Commoditized Market – Best Silicon Wins Tags. Cheapest “Smart” Reader Wins.
  • 1) ISO has grouped SC into logistic unit hierarchy 2) Each type of object has different properties and is handheld differently 3) Each type of object requires a different technology
  • Notes: This slide builds out one category at a time when in Slide Show; click mouse to display first &amp; subsequent category columns.
  • Overview

    1. 1. The Business Case for AIDC Solutions Throughout the Supply Chain AIDC 100 - “Evolution of an RFID Revolution” October 15th 2008 David Shannon, SVP Marketing SAVI/Lockheed Martin J. Craig Casto, Global Auto ID Leader Dow Chemical Company
    2. 2. Savi Group Overview Savi Logistics Systems <ul><li>FOCUS: Customized decision-support logistics solutions for situational awareness, in-transit asset visibility and management, planning, collaboration and optimization. </li></ul><ul><li>MARKET: Large programs and projects for the U.S. DoD and other Federal Agencies. </li></ul><ul><li>PROGRAMS: Global Transportation Network and Business Systems Modernization Center. </li></ul>Savi Networks <ul><li>FOCUS: Real-time information service that automatically tracks, manages and secures intermodal container assets and inventory throughout the global supply chain. </li></ul><ul><li>MARKET: Commercial shipper manufacturers, 3PLs and freight forwarders. </li></ul><ul><li>CUSTOMERS: J&J, Western Digital, Emprevi, PNL Networks. </li></ul>Savi Technology <ul><li>FOCUS: Complete products, solutions & services leveraging RFID and AIT technologies for end-to-end supply chain asset management & security. </li></ul><ul><li>MARKET: Defense, defense suppliers & governments worldwide. </li></ul><ul><li>CUSTOMERS: DoD, NATO and defense forces in the UK, Australia, Denmark, Spain, Sweden, Poland. </li></ul>Savi Managed Services (Initiative) <ul><li>FOCUS: Develop and deploy integrated, transaction-based information service to make supply chain information accessible and actionable while driving effective decision-making and defined outcomes. </li></ul><ul><li>MARKET: Commercial and government shipper-manufacturers, government and logistics service providers. </li></ul>
    3. 3. Vision <ul><li>Every Conveyance and Mobile Asset Will be Tracked Using Some Type of AIDC Technology </li></ul><ul><ul><li>Connect People with Things </li></ul></ul><ul><ul><li>Interoperable Networks Leveraging Bar Codes, Passive and Active RFID, GPS </li></ul></ul><ul><li>Networks Will Be Integrated with Complete Solutions, Services and Apps </li></ul><ul><ul><li>AIDC is the Enabler within the Network </li></ul></ul><ul><li>Dynamic Management of Supply Chains </li></ul><ul><ul><li>Tracking Conveyances and Their Contents </li></ul></ul><ul><ul><li>RFID’s Real Value is Tracking and Securing Assets End-to-End – Not just within The four walls or point-to-point </li></ul></ul>Everything Will be Tracked Wirelessly in 10 Years
    4. 4. Evolution of the AIDC Revolution <ul><li>Solving Customer Problems using the right technologies </li></ul><ul><li>Work Collaboratively with Customers </li></ul><ul><li>Evolving to Solutions not just point Technology </li></ul><ul><li>Provide End to End Capabilities </li></ul>
    5. 5. Requirements for Each Layer The Right Technology for the Right Application Layer 5: Movement Vehicle Layer 4: Container Layer 3: Unit Load Layer 2: Transport Unit Layer 1: Packaging Layer 0: Item Barcode <ul><li>Long range (300+ft) </li></ul><ul><li>High metal environment </li></ul><ul><li>Omni directional </li></ul><ul><li>Real Time Assured Data </li></ul><ul><li>Sensor / Security enabled </li></ul><ul><li>Affordable </li></ul><ul><li>Line of sight </li></ul><ul><li>Global location </li></ul><ul><li>Short range (3-15ft) </li></ul><ul><li>Lower cost tags </li></ul><ul><li>Read/write </li></ul><ul><li>Non line of sight </li></ul><ul><li>Very short range (1ft) </li></ul><ul><li>Ultra Low cost </li></ul><ul><li>Read only </li></ul>Barcode Passive RFID Active RFID GPS/SatCom Cost Functionality
    6. 6. Driving Value Making AIDC Information Accessible & Actionable <ul><li>Transform visibility in value creating execution at the operational & tactical level </li></ul>Road Transport Consolidator/ Distribution Center Road Transport Vessel Transit Port Vessel Port of Discharge Distribution Center Road Transport Consumer Factory Rail Transport
    7. 7. J. Craig Casto <ul><li>Global Auto ID Leader </li></ul><ul><li>The Dow Chemical Company </li></ul>
    8. 8. RFID/GPS Program Management
    9. 9. Dow Most Effective Technology (MET)
    10. 10. RFID/GPS Strategy <ul><li>VOC with 100 Dow Business Leaders </li></ul><ul><li>Level set technology and used Six Sigma techniques/tools </li></ul><ul><li>450 Ideas </li></ul><ul><li>50 Prioritized Project Areas </li></ul><ul><li>10 Selected for Generation 1 Implementation </li></ul><ul><li>Validated with Technology Advisory Board of Dow Key Suppliers </li></ul><ul><li>Leverage Auto-ID Expertise Center to own MET </li></ul><ul><li>Leverage PSC processes and disciplines for project execution </li></ul><ul><li>Connect to the industry players to drive standards adoption </li></ul><ul><li>Link investments to Dow’s IT strategy </li></ul><ul><li>Communicate with internal stakeholders to align opportunities </li></ul>
    11. 11. Dow RFID / GPS Prioritized Opportunities Facilities, Location, Physical Structure Tagging Internal asset utilization & loss prevention Asset Management Product Inventory & Warehouse Mgmt Warehouse inventory management / location management Product Handling Validation Product Labeling Product Consignment Inventory Management Container & Product Tracking Container Tracking Cylinder Tracking Railcar Monitoring & Tracking Tank Truck Tracking Intermodal Container Tracking Marine Pack Cargo Monitoring & Tracking Tracking of all Dow shipments & receipts Container Historical Info / Compatibility Electronic Seals Container Maintenance Tracking Product Condition Monitoring Electronic Documents/ Info Accompanying Product Emergency Response Information Track Pipeline Workers Maintenance parts identification and inventory management Maintenance (MRO) Locate Maintenance Parts & Spares Match Maintenance Parts to Specifications Locate key expensive mobile equipment within a plant / whse Locate key Managed Service supplied equipment within plant / whse Track Tool & Equipment utilization & loss prevention Asset Maintenance Lifecycle Tracking Asset Lifecycle Tracking Accuracy Manufacturing RFID/GPS support of plant construction activity Whse Inv Mgmt / Location Mgmt Dow Personnel / Regular Contractor Location Monitoring on site RFID use to identify worker training and ability to enter specific areas Ad hoc personnel location monitoring on site Material identification and staging during manufacturing process (Auto BOM, Recipe) Material identification and staging during manufacturing process (Pull, Replenish) Material management & tracking within Dow sites Hazardous Materials Tracking on Sites Hazardous Materials Tracking on Sites - Custody Plant conditions (emissions) monitoring Plant conditions and data collection – Gen 2 RFID use to identify worker training and ability to execute processes / use equipment Railcar Optimization Transportation & Logistics Optimization Onsite Container Optimization Container / Vehicle Fleet Optimization Transportation Security & Fleet Optimization
    12. 12. Supply Chain Scope <ul><li>3,500 global employees </li></ul><ul><li>2.5 million shipments each year </li></ul><ul><li>45,000 customer ship-to locations </li></ul><ul><li>200 shipping sites </li></ul><ul><li>130 billion lbs of product shipped each year </li></ul><ul><li>20% of shipments involve international border crossings </li></ul>
    13. 13. Container Tracking MET at 50,000 Feet Savi Technologies Internet based ASP (GIS Mapping and Event Mgt) Railcar Tracking Business Objects Cylinder Tracking Intermodal Container Tracking
    14. 14. Savi Web Portal DowTrak.com
    15. 15. Container Tracking – Railcars with RFID & GPS <ul><li>RFID on NA rail cars since 90’s </li></ul><ul><ul><li>Car location supplied to car owners multiple times per day </li></ul></ul><ul><ul><li>Used to project ETA’s </li></ul></ul><ul><ul><li>Utilized at plants to collect SAP transactional data </li></ul></ul><ul><li>GPS/SatCom/Sensors </li></ul><ul><ul><li>TIH & Flammable Gases </li></ul></ul><ul><ul><li>Next Generation Railcal </li></ul></ul><ul><ul><ul><li>Sensor needs (liquid level, pressure, etc) </li></ul></ul></ul><ul><ul><ul><li>Power needs (Rahall Institute power plant) </li></ul></ul></ul>
    16. 16. The User Interface <ul><li>Powered By Google Earth </li></ul><ul><li>Defined Geo-Fences for </li></ul><ul><ul><li>High Threat Urban Areas </li></ul></ul><ul><ul><li>Dow Sites </li></ul></ul><ul><ul><ul><li>Load Racks </li></ul></ul></ul><ul><ul><ul><li>Unload Racks </li></ul></ul></ul><ul><ul><ul><li>Maintenance Tracks </li></ul></ul></ul><ul><ul><ul><li>Maintenance Shops </li></ul></ul></ul><ul><ul><li>Customer Sites </li></ul></ul>
    17. 17. RFID and GPS Container Tracking Intermodal Containers <ul><li>Savi Pilot – RFID Based with Ship GPS: </li></ul><ul><ul><li>Use RFID tags with Sensors on containers with Savi port tag reading infrastructure </li></ul></ul><ul><ul><li>Pull GPS coordinates from carriers on ship location carrying Dow intermodal containers into Savi ASP </li></ul></ul><ul><li>IBM Pilot – GPS on Container Only: </li></ul><ul><ul><li>Use GPS tracking devices with sensors on containers and track position and environmental data without port infrastructure </li></ul></ul><ul><ul><li>Tracking location of container throughout the voyage </li></ul></ul><ul><li>Value: </li></ul><ul><ul><li>In-transit monitoring of floating inventory </li></ul></ul><ul><ul><li>Flexibility in diverting in-transit inventory to meet customer needs </li></ul></ul><ul><ul><li>Improvement in knowing what’s where </li></ul></ul>
    18. 18. RFID Container Tracking - Intermodal Containers with RFID & GPS <ul><li>Savi Networks - RFID </li></ul><ul><ul><li>Freeport to Shatian, China </li></ul></ul><ul><ul><li>Houston to India </li></ul></ul><ul><ul><li>Value: </li></ul></ul><ul><ul><ul><li>Inventory visibility of in-transit product </li></ul></ul></ul><ul><ul><ul><li>Container level security monitoring </li></ul></ul></ul><ul><ul><ul><li>In-transit Environmental Monitoring </li></ul></ul></ul><ul><ul><ul><li>Customs clearance </li></ul></ul></ul><ul><li>IBM – GPS </li></ul><ul><ul><li>Exel Houston to KTN Antwerp </li></ul></ul><ul><ul><li>Savi integration </li></ul></ul><ul><ul><li>GPS tracking devices & sensors </li></ul></ul><ul><ul><ul><li>In Port with cellular coverage use GSM </li></ul></ul></ul><ul><ul><ul><li>At Sea use Satellite GPS coverage </li></ul></ul></ul>
    19. 19. Heartbeat Tracking Visibility Rotterdam to Antwerp by Barge Houston to Rotterdam
    20. 20. Environmental Conditions Monitoring Inside Container
    21. 21. Bar Code Tracking Cylinders and Small Containers <ul><li>Vikane </li></ul><ul><ul><li>Hosting environment upgrade </li></ul></ul><ul><ul><li>Vikane software version upgrade </li></ul></ul><ul><ul><li>Vikane software enhancements </li></ul></ul><ul><li>SafeChem </li></ul><ul><ul><li>Chlorinated Solvents </li></ul></ul><ul><ul><li>38 locations throughout Europe </li></ul></ul><ul><ul><li>Metal cleaning application only </li></ul></ul><ul><ul><li>4Q 2008 </li></ul></ul><ul><li>DAS Herbicides </li></ul><ul><ul><li>2009 Implementation </li></ul></ul><ul><ul><li>5,500,000 containers annually </li></ul></ul><ul><ul><li>4 European production sites </li></ul></ul><ul><li>Chlorine </li></ul><ul><ul><li>Site tracking requirement </li></ul></ul><ul><li>Other Intellitrack </li></ul><ul><ul><li>DBS - Marietta Georgia </li></ul></ul><ul><ul><li>Dow Automotive – Midland </li></ul></ul><ul><ul><li>DBS – Wilmington, IL </li></ul></ul><ul><ul><li>R&D Warehouse – Shanghai, China </li></ul></ul><ul><ul><li>Michigan Ops Site Logistics </li></ul></ul>} } MET Level 1 Global Tracking MET Level 2 Site Tracking
    22. 22. Improved Shipment Visibility Benefits (Estimates) <ul><li>50% improvement in response time to identify and resolve in-transit problems </li></ul><ul><li>20% reduction in excess product / safety stock inventory </li></ul><ul><li>20% reduction in container fleet </li></ul><ul><li>Up to 90% improvement in reliability of delivery time windows </li></ul><ul><li>Elimination / early detection of product theft </li></ul><ul><li>Elimination of the historical 10-15% human error rate associated with manual work processes to capture and enter data </li></ul>Railcar Tracking
    23. 23. Next Generation AIDC Solutions Selective Services Base Services Networks of Heterogeneous technologies: RFID, GPS, GPRS, SatCom. Barcode <ul><li>Service Platform </li></ul><ul><li>Info Assurance </li></ul><ul><li>SOA </li></ul><ul><li>Data Rights Mgmt </li></ul><ul><li>Multi-hypothesis Tracking </li></ul><ul><li>Interface Integration </li></ul>Road Transport Consolidator/ Distribution Center Road Transport Vessel Transit Port Vessel Port of Discharge Distribution Center Road Transport Retail Store Factory Rail Transport
    24. 24. The Business Case for AIDC Solutions Throughout the Supply Chain <ul><li>Any Questions ? </li></ul><ul><li>David Shannon, SVP Marketing </li></ul><ul><li>SAVI/Lockheed Martin </li></ul><ul><li>+1-650-316-4738 </li></ul><ul><li>[email_address] </li></ul><ul><li>J. Craig Casto, Global Auto ID Leader </li></ul><ul><li>The Dow Chemical Company </li></ul><ul><li>+1 304-747-7019 </li></ul><ul><li>[email_address] </li></ul>

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