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RFID Delivers Total Business Visibility


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RFID Delivers Total Business Visibility. Case studie around the world by Mark Robert, Founder and editor RFID Journal.

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RFID Delivers Total Business Visibility

  1. 1. RADIO FREQUENCY IDENTIFICATION RFID Delivers Total Business Visibility Case Studies from Around the World By Mark Roberti Founder & Editor RFID Journal
  2. 2. Case Study 1: Kimberly Clark y y Goal: •To increase sales of promotional items •RFID provides real-time visibility into the location of promotional displays •Making sure displays are on the sales floor when promotions are advertised would increase sales
  3. 3. Challenges g • Displays are packaged by 3rd party • Some 3rd party packagers have no Internet access or even electricity in facilities • How do you tag items and track them?
  4. 4. KC Developed a Mobile RFID System p y • Laptop running OATSystems software • Handheld RFID reader • Tag dispenser worn on the belt • USB Wi-Fi unit
  5. 5. How the System Works y • Product and packaging is shipped to 3rd party • RFID kit shipped to 3rd party • Workers assemble promotional displays • Using belt-unit, workers tag each display
  6. 6. How the System Works y • Another worker uses a handheld RFID reader to capture the IDs • Data is transferred to the laptop via Wi-Fi
  7. 7. How the System Works y • When the promotional display arrives at the retailer, the tag is scanned • When the display is moved to the sales floor the tag is scanned again • The data is transferred to Kimberly Clark
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  9. 9. Turning Data into Useful Information g • Software can analyze the RFID data • Compare when a promotional display arrived at the store vs when it was supposed to arrive • Compare when a display was put on the sales floor vs when it was put on the floor • Alert merchandises when display is not out on time
  10. 10. Use the “As of Date” to see what the status was on 03/07/2006, 5 days before the event start. Note more exceptions. Red stores, promotion items Yellow stores, promotion items expected, but received, but still in backroom. not received. Source: OAT Systems 10
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  12. 12. Results • Execution of promotional program improves from 50-60% to 80-90% 50 60% 80 90% • Sales of promotional items rise by 20 percent or more • ROI in less than 1 year
  13. 13. Case Study 2: American Apparel y pp
  14. 14. Case Study 2: American Apparel y pp • US apparel retailer •300 retail stores in 12 countries •10,000+ employees •One manufacturing facility in Los Angeles
  15. 15. Operational characteristics p • Closed-loop; quick inventory turns • Boutique sales floor (1 of every item) • Display more items (37,000+ SKUs) • Labor-intensive Labor intensive inventory management
  16. 16. Achieving 99% p g product availability y Goals: • AA needed visibility into what was happening in the store • AA needed visibility into what was happening in the supply chain • AA needed visibility into what was y happening at manufacturing
  17. 17. Challenges g • Locate the estimated 10 percent of items not represented on the sales floor • Provide real-time visibility to stock room employees about what needs to be p y replenished
  18. 18. Step 1: Tagging items • Every item is tagged with a hangtag that has an Avery Dennison transponder in it • Tags are applied before shipping, just as bar-code labels were applied pp • No additional costs beyond the 12 cents for the transponder
  19. 19. Step 2: Receiving at store p g • Product is received at a receiving station • Each item is automatically identified • Items are stored in the back of the store until they need to be replenished
  20. 20. Step 3: Fill Station p • When an item needs to be replenished, it is brought to a “fill station” fill station • Smart table identifies items and confirms the right items are being brought to the g g g sales floor
  21. 21. Step 4: Validation Point p • Items are scanned at a “validation point” between the backroom and sales floor • It will let the employee know if they got all the right items or a missing some or have some items that are wrong
  22. 22. Step 5: Point of sale • Items are automatically identified at the point of sale (speeding up checkout) • The RFID system automatically indicates the item needs to be replenished p
  23. 23. Step 6: Periodic Inventory Counts • Employees take inventory with a handheld to validate the inventory • Using bar codes takes 5 people 6 hours each (30 hours total) ( ) • Using with RFID takes 1 person 2 hours
  24. 24. Benefits RFID has delivered to AA • 99% Inventory Visibility •S l i Sales increase of 14 36% in RFID stores f 14.36% i t • Labor reduction of 168 man hours per store per month th • ROI in 4 months per store
  25. 25. Case Study 3: UCSD Medical Center y 2 hospital system in San Diego, CA • 1,250 assets are trackedover 1 million sq ft • 750 assets are tracked over 238 792 sq ft 238,792 • Equipment is shared between the campuses
  26. 26. Goals: • Lower rental costs • Reduce staff time searching f equipment R d ff i hi for i • Minimize equipment theft and loss q p • Reduce equipment inventory requirements • Improve maintenance processes I i t
  27. 27. Selected Awarepoint Zigbee RTLS p g • Provides enterprise, multi-building coverage • Off Offers room-level accuracy or accuracy t l l to within 1.5 meters in open areas • No disruption during installation • No burden for maintenance and easy to use • Offered a low risk business model – scalable as hospital adds locations and assets
  28. 28. Selected Awarepoint Zigbee RTLS p g
  29. 29. Some of Most Commonly Tracked Items y • IV pumps • Crash Carts • Gurneys • Feeding pumps • Beds • PCA Pumps • Trays that are sterilized • Carts, C t scopes, computers, monitors, doctor- t it d t specific equipment, blood transport coolers
  30. 30. Benefits achieved Infusion Pump Rental Fees • Month rentals down from nearly $8,000 in March 2007 to $2,000 in June 2007 • Month rental has stabilized at about $2,300/month $2 300/month for more than 18 months • Over $70,000 year in savings—on pump rentals alone
  31. 31. Benefits achieved Analysis of equipment usage identified unneeded replacement i d d l t inventory and rentals t d t l • Idle equipment monitoring q p g • Equipment usage patterns • Staff St ff could not readily find available equipment ld t dil fi d il bl i t • Capital budget savings of approximately $450,000 for 2008
  32. 32. You can learn more about the many benefits of RFID at: RFID Journal LIVE! 2010 8th Annual Conference & Exhibition April 14-16, 2010 Orange County Convention Center Orlando, Florida
  33. 33. Thank you y For more information, contact Mark R b ti Editor, M k Roberti, Edit RFID J Journal l