Publix MIT RFID convocation.ppt

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Publix MIT RFID convocation.ppt

  1. 1. A Strategic Approach to RFID Terri Crawford, Business IT Manager, Distribution, Publix Super Markets, Inc.
  2. 2. Publix Super Markets, Inc. <ul><li>Largest employee owned supermarket chain in the US – over 129,000 associates </li></ul><ul><li>2005 retail sales of $20.5 billion </li></ul><ul><li>Over 850 supermarkets in the Southeast United States </li></ul><ul><li>Eight distribution centers (22 warehouses) shipped over 640,000,000 cases in 2005 </li></ul><ul><li>Manufacturing Facilities </li></ul><ul><ul><li>2 Bakery Plants,3 Dairy Plants, 3 Fresh Foods, Deli Kitchen and Printing services </li></ul></ul>
  3. 3. Publix RFID Initiative <ul><li>Member of EPCglobal in since June 2004, participating in the FMCG and HLS BAG </li></ul><ul><li>Support the adoption of RFID and the EPC network within the supply chain </li></ul><ul><li>Currently have a Strategy and Architecture project underway to define our RFID Roadmap </li></ul>
  4. 4. Publix and the University of Florida <ul><li>Member of the Advisory Board to the UF/IFAS CFDR </li></ul><ul><li>Committed to working with the Center in several research initiatives </li></ul><ul><li>One of the many research initiatives we are interested in is RFID </li></ul><ul><li>Beginning a joint research project with UF and 3 of our produce suppliers V2 - Visibility Validated in the Perishable Supply Chain </li></ul>
  5. 5. RFID Impact on Retail Industry <ul><li>Product tagging and tracking has implications to all Supply Chain processes </li></ul><ul><li>The technology has the potential to revolutionize the supply chain </li></ul><ul><li>All processes and technology systems associated with product information and movement are potentially impacted </li></ul>
  6. 6. RFID Strategy and Architecture Project at Publix <ul><li>Correct approach is essential to achieve maximum benefit to our business processes </li></ul><ul><li>Will use our Strategy and Architecture Methodology </li></ul><ul><li>3 – 5 year horizon </li></ul><ul><li>Define the business processes, application, data and infrastructure as-is and to-be models </li></ul><ul><li>Assess the readiness and timing for implementing RFID in identified processes </li></ul><ul><li>Build the business case for implementation </li></ul><ul><li>Develop Adoption Roadmap </li></ul>
  7. 7. Scope of RFID S&A <ul><li>Our S&A project is focused on the EPC and EPC Network </li></ul><ul><li>Includes all Supply Chain Processes from Suppliers and in-house manufacturing to retail stores </li></ul><ul><li>Considering the applicability of Pallet, Case and Item tagging in each area </li></ul><ul><li>Process benefit divided into direct benefit (i.e. labor savings, process or process step elimination) or visibility benefit (i.e. new or improved data availability, more accurate or timely data) </li></ul><ul><li>Functional areas </li></ul><ul><ul><li>Manufacturing </li></ul></ul><ul><ul><li>Distribution </li></ul></ul><ul><ul><li>Retailing </li></ul></ul><ul><ul><li>DSD </li></ul></ul><ul><ul><li>In Store Production </li></ul></ul><ul><ul><li>Purchasing and Procurement </li></ul></ul><ul><li>Facilities </li></ul><ul><ul><li>Manufacturing </li></ul></ul><ul><ul><li>Distribution Warehouse </li></ul></ul><ul><ul><li>Stores </li></ul></ul>
  8. 8. Approach for RFID S&A Project Validate Identify key internal and external dependencies and refine business case based on feedback Plan Evaluate Implementation Options and Develop Roadmap for Implementation Quantify Identify Costs and Quantifiable Benefits. Develop High Level Biz Case and roadmap Define Define future state of Process, Application, Technology, Infrastructure Assess Review current state of Process, Application, Technology, Infrastructure Process Stream Technology & Infrastructure Stream Phase 1 Program Management Phase 2 Phase 4 Application & Information Stream Sponsorship Change Management & Communication Risk Management Phase 3
  9. 9. RFID S&A Project – Iterative Approach Iterative Phases 2. CPG –Cold Chain 3. Pharmacy 4. Fresh Areas Incorporate learning's, and Best Practices Phase 2, Phase 3 and Phase 4 Quantify, Survey-Validate Assumptions And Finalize Implementation Roadmap Phase 1 Assess-Define 1. CPG – Dry
  10. 10. Key Deliverables <ul><li>Future Solution State </li></ul><ul><ul><li>EPC-RFID Enabled, High-level Process Future State </li></ul></ul><ul><ul><li>High-level application Future State – updated supply chain application architecture </li></ul></ul><ul><ul><li>High-level technical Future State </li></ul></ul><ul><ul><li>Suggested approach with package software suppliers </li></ul></ul><ul><li>Implementation Roadmap and Strategy </li></ul><ul><ul><li>Business case for RFID implementation, including high-level cost and benefit estimates </li></ul></ul><ul><ul><li>Key opportunities mapped against dependencies </li></ul></ul><ul><ul><li>3-5 year Adoption Roadmap to include pilot/rollout sequencing and triggers for project kickoff </li></ul></ul><ul><ul><li>Publix positioning and focus at standards forum </li></ul></ul>
  11. 11. V2 Project Objectives <ul><li>Approached by UF to participate, jointly developed the vision and objectives of the project – focus on business processes and the EPC Network </li></ul><ul><li>To expand the research of the Center from a controlled lab environment to a production operations environment </li></ul><ul><li>To prove the EPC network viability and validate the benefit of the additional visibility of product through the supply chain </li></ul><ul><li>Gain knowledge of the technology and process issues that will be associated with implementing RFID </li></ul>
  12. 12. V2 RFID Project with UF CFDR <ul><li>Testing with three produce suppliers; Del Monte, Tanimura & Antle, and Duda </li></ul><ul><li>Contributors to the project include: Alien, Franwell, Ingersoll Rand/Thermo King, RedTail, Symbol, VeriSign </li></ul><ul><li>Produce suppliers are shipping designated loads to Publix with pallet and case level RFID tags </li></ul><ul><li>3 receiving door portals are installed at the Publix produce warehouse in Lakeland, Florida </li></ul>
  13. 13. V2 Project, continued <ul><li>All information is posted to an EPCIS </li></ul><ul><li>Developing a visibility dashboard to be used by all participants </li></ul><ul><li>First Shipment with full visibility was completed on 1/18/06 </li></ul><ul><li>Each supplier and Publix have customized the dashboard for their individual business needs through specific parameters </li></ul>
  14. 14. V2 Project, continued <ul><li>UF CFDR has a full view of each participants data and will aggregate appropriate information to be shared with all partners </li></ul><ul><li>UF CFDR will evaluate and document the project results, benefits and opportunities </li></ul><ul><li>Next phase will be determined based on the results of the first phase </li></ul><ul><li>Expect to finish the first phase by May 2006 </li></ul>
  15. 15. Thank you

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