from rfid to intelligent supply chains - key4biz · fimproved inventory control at the retailer’s...
TRANSCRIPT
1
www.vil.be
From RFID toIntelligent
Supply Chains
From RFID to Intelligent Supply Chains
www.vil.be
Vlaams Instituut voor de Logistiek (VIL)Flanders Institute for Logistics
Jordaenskaai 25B‐2000 Antwerpen (Belgium)
T: +32 (0) 3 229 05 00F: +32 (0) 3 229 05 10
2
www.vil.be
From RFID toIntelligent
Supply Chains
3
www.vil.be
From RFID toIntelligent
Supply Chains
Physical and digital world are converging
Source: Forrester Research
4
www.vil.be
From RFID toIntelligent
Supply Chains
RFID Principle
RF-antennaRF-reader
RF-tag
Corporate Information System
5
www.vil.be
From RFID toIntelligent
Supply Chains
RFID in the supply chain
6
www.vil.be
From RFID toIntelligent
Supply Chains
RFID in the supply chain
7
www.vil.be
From RFID toIntelligent
Supply Chains
Added Value of RFID for SCM Cross supply chain applications
Inventory: visibility – forecasting – replenishmentTracking & tracingSecurity
Warehousing and transportReceptionWarehousing operationsInventory visibilityCountingTransitValue added logisticsDelivery
OtherYard managementAsset managementTheft prevention
Distribution management
8
www.vil.be
From RFID toIntelligent
Supply Chains
Why RFID?
Demand-driven SCM: pull to pushShift of buying power downstream the supply chainPressure on inventory reductionBetter cost managementIncreased regulation and legislation (e.g. food, terrorism,…) Need for connectivity en transparencyOther:
Me tooAuthenticationShrink
9
www.vil.be
From RFID toIntelligent
Supply Chains
ROI of RFID
Increasedoperational profit
Increased revenue Higher ROCE
Reduced (operational) costs
Increased market share Less assets
Reduced cost of goodssold
Increased volume Increased workingcapital
reduced wasteimproved customer servicereduced inventory costsreduced costs of warehousing, distributionand transportation
improved inventorycontrol at the retailer’sshorter delivery timesless shrink due to less theftand losses
increased RTI rotationspeedreduced RTI lossesreduced safety stockreduced slow movingSKU’s
10
www.vil.be
From RFID toIntelligent
Supply Chains
EDI/XML
RFID – EPC Global
Internet
11
www.vil.be
From RFID toIntelligent
Supply Chains
EPC (Electronic product code)
Open global standaard (EPC-Global)Unique key and content for a tagUnique key for item information
Manufacturer 28 bits (> 268 million)
Version 8 bits Product 24 bits (> 16 million)
Serial no. 24 bits (> 16 million)
RFID – EPC Global
12
www.vil.be
From RFID toIntelligent
Supply Chains
RFID Evolution
ITEM Tags
CASE Tags
RTI Tags
Inbound/OutboundprocessesWarehousing automationOrder pickingError reductionInventory managementReal time product visibilityTheft prevention
Warehouse countingOrder pickingInventory assignmentBetter planning & matching of supply & demandShelf availabilityPODTraceabilityTheft prevention
Interaction with end consumerDynamic promotionsAnalysis of customerbehaviorAutomatic counter paymentRetail applicationsLink with paymentOrder controle on item levelNew types of quality controlProduct traceabilityTheft prevention
2005 2008
Potential advantages
13
www.vil.be
From RFID toIntelligent
Supply Chains
RFID → Intelligent Supply Chains
NowCentralized intelligencePassive RFtagsNo intelligence in infrastructure
14
www.vil.be
From RFID toIntelligent
Supply Chains
RFID → Intelligent Supply Chains
Near futureCentral and localintelligenceActive RFtagsIntelligence in infrastructure
15
www.vil.be
From RFID toIntelligent
Supply Chains
RFID → Intelligent Supply Chains
Not so near futureIntelligence in supplychainDecision at local level, in infrastructure or RFtagsIntelligence in infrastructure
16
www.vil.be
From RFID toIntelligent
Supply Chains
www.vil.be
Vlaams Instituut voor de Logistiek (VIL)Flanders Institute for Logistics
Jordaenskaai 25B‐2000 Antwerpen (Belgium)
T: +32 (0) 3 229 05 00F: +32 (0) 3 229 05 10