session #2

Deploying RFID for Value Across the

Enterprise

Presented at AIDC 100October 15, 2008

© 2008, Reva Systems Corporation Slide 2

Introduction• Hello –

Peter BlairReva SystemsDirector of Marketing978-244-0010 ext. [email protected]

• Agenda

Some Industry Perspective

Reva Background

Global Enterprise Use Cases

HP Perspective & Programs


Some Industry Perspective: METRO Group


______ Outlook for Innovative Technology

• Challenges of the future in Retail– Take advantage of greater services emphasis– Create real-time transparency– Use information anytime, anywhere

• Key technologies– Hands-free data communication– Unique identification– Rapid access to process data for supply chain participants

• Customer Services– Better product availability– Better quality & freshness control of goods (temp, sell by, etc.)– Product pedigree– More information for customers

• Process Improvement & Cost Reduction– Inventory– Labor– Asset Utilization– Employee & Public Safety

• RFID = key optimizer for Metro’s Future Enterprise

SubstituteDHL & 3PL / Logistics

SubstituteDole & Food Processing

SubstituteHP & Consumer Electronics

SubstitutePratt & Whitney in Aerospace

SubstituteETC…you get the picture


RFID is key optimizer for Metro’s Future Enterprise

• Value Propositions for RFID– Right goods, right place, right time– Accurate & timely back end systems– Product quality– Process efficiency– Supply chain transparency – Consumer confidence and safety– Consumer information and enhanced experiences

• Requirements for RFID are NOW MET– Standards-based technology– Interoperable tags & readers– Globally capable solutions– High performing implementations– Manageable installations– Cost effective deployments

April 10, 2023 6

HP’s Perspective: RFID Can Address Business Problems

• Supply Chain– Contains large proportion of serialized product– Requires careful tracking

• Use of multiple vendors at multiple supply chain points– Requires identification of items and their

location– Performance monitoring and hand offs

• Barcodes provide this capability today BUT– Physical limitations limit where and how often it

can be applied without unbearable additional costs

Apr 10, 2023 7

HP RFID Geographic Scope

RFID impacts businesses, operations and customers in all Regions. Therefore program scope is global and pan HP in nature.

Commercial sites

Retail sites 30+ sites now RFID capable

April 10, 2023 8

Proposed Solution• Could HP use RFID to enhance the flow of

goods in our Supply Chain by:

– Automating identification of items through the process flow

– Eliminating manual effort– Increasing granularity of item, location, and time data– Identifying an item as the consequence of another

process– Eliminating processes which only identified items– Eliminating dwell time between processes– Using RFID based data to radically change processes– Carry key data on an item for faster local processing

April 10, 2023 9

Existing Processes – Quite Manual even with Bar Codes

He is scanning every printer

engine to capture the

serial numberAnd he is applying a

barcode label by hand

April 10, 2023 10

Refining Existing Processes – Integrating

with RFID RFID capable

printer

Shop Floor system creates

EPC code to integrate into tag

Serial number is associated to

EPC number

April 10, 2023 11

Shipping Prep – Prior to RFID •Forklift selects full pallet for shipment, picks the pallet from storage, then takes it to a shipping dock

•Tells warehouse staff that pallet is ready

•Warehouse staff then scan pallet contents

•WMS system confirms pallet to order and prints shipping label

•Operator retrieves address labels and apply to pallets

April 10, 2023 12

Shipping Prep – With RFID •Forklift selects full pallet for shipment, picks the pallet from storage

•Forklift approaches ship preparation tunnel, photoeye triggers process

•Antenna reads EPC pallet tag and EPC case tags on the pallet

•System verifies pallet and prints shipping label and tag

•Label ready by the time forklift reaches end of tunnel

•Pallet taken directly to outbound staging

•Idle time from staging eliminated completely

April 10, 2023 13

Mixed/Partial Pallets – Prior to RFID

• Less than full pallet quantity

• One or more products

• Barcode labels on each individual box must be scanned manually

• Dense pallets can only be barcode scanned by unstacking pallet

April 10, 2023 14

Mixed/Partial Pallets – With RFID

• Pallet rotates on shrink wrap machine

• Read case EPC’s from each box

• Reva integrated with WMS automatically verifies product and quantity

• Eliminates manual scan step

• Reduces cycle time incorporating scanning with wrapping operation

April 10, 2023 15

Performs the full range implementation for Latin American market:

• manufacturing +• completion process +• distribution center (inbound & outbound) +• reverse distribution (DOA & warranty repair)

1.Tagging Printer Chassis prior to build2.Gathering Key data during Build (Product

DNA)3.Materials level control using Tags

Sao Paolo : e2e implementationSao Paolo : e2e implementation

April 10, 2023 16

RFiD Tag at printer ChassisWriting EPC & HP Serial

number inRFiD Tag

Writing test results:Building product DNA

April 10, 2023 18

Writing Country destination Writing Pen expiration date –

Consolidating Product DNA

Building pallets automatically

controlled

April 10, 2023 19

Is RFID Worthwhile? - Yes…. but it’s not always obvious as to why and

how. The key advantages are :

– Labor Savings– Process Accuracy– Inventory Accuracy– Proof Of Delivery– Improved Operational Data– Improved Operational Performance– Advanced Ship Notice ( Dispatch Advice ) – Predictive Event Management– Common Shared Data

April 10, 2023 20

Is RFID Worthwhile? - Yes• It is the combination of these factors which makes

RFID so powerful and worthwhile

• The most common mistake is to look at just one or a few of them and decide that RFID isn’t worthwhile

• Barcodes took off seriously when folks realized that benefits could be accrued by everyone throughout the process chain

• Can’t get all benefits from the start up. You have to make enough investment initially to cover a critical mass of the process chain.

• Need to approach RFID as an enabling infrastructure

Reva BackgroundAwardsCustomers

Standards

Product of the Year


RFID Network Infrastructure

Facility-wide visibility

Redundant

Scalable


Reva’s Product Portfolio

Reva Multi-site Manager (RMM)

Tag Acquisition Processor (TAP)

• RFID Network Appliances• Accurate, reliable, location data• Reader system optimization• Facility-wide visibility• Redundant, scalable• Standards-based Interfaces

TAP 721•Dynamic Facilities

•Up to 128 Readers

•Up to 1,024 read-points

TAP 331•Remote Facilities

•Up to 8 Readers

•Up to 32 read-points

Reva Management Console (RMC)• Multiple site management

and monitoring• Powerful alerts• Enterprise health views• Drill down to individual

sites• Network-wide reader

upgrades

• Site mapping and configuration tools

• RF Modeling• Facility virtualization• Scaled, automated

deployment• Single site management

and monitoring


Reva Platform Benefits for Enterprise Customers

• Improves RFID performance– More reliable reads and higher read rates– Most accurate location information– Continuous availability with fault tolerance and failover– Remote configuration, management and monitoring

• Provides a facility infrastructure that scales– Flexibility to add fixed and mobile readers from different vendors – Supports seamless integration with IBM, Oracle and other

applications– Simply integrate additional applications

• Lowers facility Investment in the ROI equation– Designed for rapid, repeatable deployments– Choose the right mix of readers for the job– Lower operations costs through swift problem identification and

resolution

25

Customer Overview• Metro is one of the larger retailers in France with 90 Cash &

Carry Stores.

• The logistics and warehouses for the stores are managed by DHL. There are 5 warehouses.

• Total of 154 dock doors.

• Aggregate traffic of 1.5 million tags per year.

• The backend is Oracle based.

Customer Challenges• Multi-site management of the RFID infrastructure

• The stores and warehouses are difficult RFID environments with cross-reads and ambient tags. The backend systems depend on 100% ‘accurate’ RFID reads.

• Ability to operate a diverse set of devices with real-time implications: RFID readers, printers, lightstacks, buzzer.

• Different networking setup (firewalls etc) in DHL warehouses and Metro stores.

Reva Solution • Reva TAP 701s at the DCs and 331s at the stores.

• RMM for centralized management and monitoring

• The entire workflow was developed by systems integrator NBGID with Reva guidance and training.

Workflow developed by Partner• Interface to backend

• Operation of the lightstack, buzzers, control of gathering cycles

• Additional filtering

Case Study – DHL & Metro France

Pallet Level Tracking at 5 DCs and 90 Stores

Customer Initiatives• RFID-enable all the Stores and

Warehouses

• Pallet level tracking

• DC outbound shipping to stores

• Store goods receiving from DCs

• The system should scale to support case-level tracking in the future.

Customer Initiatives• RFID-enable all the Stores and

Warehouses

• Pallet level tracking

• DC outbound shipping to stores

• Store goods receiving from DCs

• The system should scale to support case-level tracking in the future.

26

Customer Overview• Manor is the second largest retailer in Switzerland.

• Total of 70 department stores and 2 DCs in Switzerland.

• The first RFID phase involves 8 stores and 2 DCs.

• Backend system is Oracle based.

Customer Challenges• Very tough environment with RFID portals at close vicinity to

each other.

• 100% accurate reads required at binders and wrappers.

• <100% but accurate reads required at the shipping and receiving.

• Introduction of RFID alters some of the processes – how to keep it user-friendly and efficient.

Reva Solution • Reva 331 for the stores, and 701s for the DCs.

• Reva developed the workflow for this project.

• Worked with systems integrator Rodata who delivered the end-to-end solution including portals and project management

Workflow Development by Reva• Backend interface with Oracle

• Innovative filtering logic to tackle some special cases of locationing requirements at the facilities

• Process-related functionality

• Iteratively developed through series of extensive testing and learning

Case Study – ManorPallet, Case and Item Level Tracking from DCs to Stores

Customer Initiatives• Manor Stores operate in Switzerland

• Automate the pallet, case and item tracking from DCs to Stores.

• Reduce errors

Customer Initiatives• Manor Stores operate in Switzerland

• Automate the pallet, case and item tracking from DCs to Stores.

• Reduce errors

27

Customer Overview• National postal services for the country of Spain

• Operates 100’s of mail depots and local community post offices

• In the past - has used HF RFID tags to conduct modest quality tracking through their distribution network

• NOW – is implementing extensive mail quality and asset tracking programs using UHF RFID tags, Gen2 Readers and Reva RFID Network Infrastructure

• Phase 1: 37 DCs with 207 portals.

• Backend is IBM

Customer Challenges• Reading all the trays in a roll cage can be difficult if there are

many trays in the cage and if the cage contains a lot of metal

• Operating 10s or 100s of RFID readers in a facility can create a lot of RF noise, thereby reducing read rates

• Activity on adjacent dock doors may be hard to decipher since the RFID readers will observe moving trays/cages and static trays/cages

Reva Solution • Reva 701s for the large DCs and 331s for the small ones.

• Reva developed workflow logic to interface with IBM MQ over proprietary XML.

• End-to-end solution delivered by systems integrator Aida Centre based in Spain

Case Study – CorreosMail Quality and Asset Tracking using UHF RFID

Customer Initiative• Closed loop• Asset Tracking: Roll Cages, carts &

totes• Mail tracking: Mail trays & bags• Truck Load/Destination verification• Mail Sort Verification• Service Level Monitoring / Assurance

Customer Initiative• Closed loop• Asset Tracking: Roll Cages, carts &

totes• Mail tracking: Mail trays & bags• Truck Load/Destination verification• Mail Sort Verification• Service Level Monitoring / Assurance

28

Customer Overview• Sony is known for high quality consumer electronics.

• The Sony distribution center in The Netherlands ships televisions, CD players, and other consumer electronics to retail and wholesale customers in Germany and other northern European countries.

• Sony uses SAP for their warehouse management system.

Customer Challenges• Needed to lower inventory shrink and lessen claims associated

with orders & shipments

• Needed to streamline claims processing procedures

• Implement RFID to improve accuracy and combined with Video records to document proof of shipment for their claims process

• Needed 100% RFID read rates on order pallets and zero cross reads in order to create accurate video records

• The distribution environment presents many RF challenges

Reva Solution • A Reva TAP controls all 20+ RFID readers in the facility

• The TAP determines which tags are actually in which locations with 100% read rates, even at the 6 closely spaced shrink-wrapper- video recording stations while eliminating cross reads

• During shipping operations, the TAP determines which tags are being loaded on which trucks and presents visual feedback to the load operators indicating good and bad pallets

Customer Benefits• Reduced shipping process time by 4 hours on average per day

• Eliminated overtime labor for all by peak-peak times

• Increased order & shipment accuracy

• Reduced shrink and claims

• Reduced time to process claims

Case Study – Sony LogisticsRFID enhanced Order Processing and Shipment Verification

combined with Digital Video Recording

Customer Initiatives• Sony consumer electronics distribution

center that serves northern Europe

• Tag and track cases during order fulfillment, create video record proof-of-shipment with Tag ID’s embedded

• Automate shipment checking for shipment accuracy

• Reduce order and shipment errors, prevent loss and lower claims volume

Customer Initiatives• Sony consumer electronics distribution

center that serves northern Europe

• Tag and track cases during order fulfillment, create video record proof-of-shipment with Tag ID’s embedded

• Automate shipment checking for shipment accuracy

• Reduce order and shipment errors, prevent loss and lower claims volume

Actual ROI so far…

• Reduced shipping process by 4 hours on average per day

• Eliminated overtime labor for all but Peak-Peak times

• Increased fulfillment accuracy

• Decreased claims

30

Customer Overview• Dow Corning is a multi-national chemical and alternative

energy manufacturing company that is a joint venture between the Dow Chemical and Corning.

• Adhesives plants mix temperature controlled chemicals to create individual products that are packaged and re-packaged for use and sale.

• Dow Corning uses SAP for ERP and manufacturing execution.

Customer Challenges• Handling hazardous materials & maintaining employee safety

• Product quality is effected by temperature during production and storage

• Manufacturing environment is not RF-friendly

Reva Solution • Interface with readers and portals

• Aggregate RFID data

• Determine accurate item location by work area and temperature zone

• Eliminate cross reads and false-positive reads

• Push clean RFID data to multiple applications

Customer Benefits• More efficient material handling / stream lined operations

• Eliminated need to purchase additional equipment

• Better labor planning resulting in labor savings

• Inventory Management

• Improved product quality

Case Study – Dow CorningRFID enabled WIP tracking, IT asset tracking & yard

management

Customer Initiatives• Dow Corning Adhesives Plants in

Michigan and Kentucky

• Tag and track WIP and select components used in chemical manufacturing process.

• Tag and track IT assets (laptops, servers, etc.)

• Manage trucks and containers in the yard with RFID for check-in/out and storage

Customer Initiatives• Dow Corning Adhesives Plants in

Michigan and Kentucky

• Tag and track WIP and select components used in chemical manufacturing process.

• Tag and track IT assets (laptops, servers, etc.)

• Manage trucks and containers in the yard with RFID for check-in/out and storage

The Results

• It works (Avery Dennison, Motorola, Reva & Lowry)• Lots of data created and analyzed• Operators now rely on system feedback at critical

steps (they trust the RFID enhanced process)• The business now depends on the data• Dow is now tracking IT assets using the same

infrastructure at several plants• Dow has added truck yard management at the

original plant (using UHF passive)– Automatic check in / out at multiple gates– Eliminated the need to purchase additional equipment– Improved labor planning to unload trucks– Improved shipment visibility (transit time ‘holes’)

Thank You Ashley Stephenson

Reva Systems, Chairman

[email protected]

Appendix

METRO Group Case Study


Europe’s Largest Rollout for RFID Enabled Shipping and Receiving at about 400 Stores and Distribution Centers in Germany

Hypermarkets

The world’s most complete, standards-based, live supplier-distribution to in-store point-of-sale item level RFID deployment

Cash & Carry


How Metro Deploys RFID

UHF Gen2 Readers(fixed, portal, mobile, handheld)

UHF Gen2 Tags

RFID Network Infrastructure(TAPs)

Enterprise Integration &

Data Repositories

ApplicationsOther

ApplicationsRuns Centrally

at MGI Data

Centers

Installed at all RFID Facilities

*****

Multiple Vendors in Stores and Distribution

Centers Many Tags


Retail Supply Chain Program About 70 Metro Cash & Carry and about 100 Real stores in

Germany (first phase, 2007) Additional 200 Real stores (second phase, 2008) 15 Distribution Centers

Phase 1: July – September 2007 Phase 2: March – July 2008

Fixed and Portal readers from Sirit, Intermec & Checkpoint Reva TAP 331s at Stores and TAP 701s at DCs IBM WebSphere integration at MGI Headquarters

Dock Doors at Distribution Centers Dock Doors at Stores Some Back to Front of Store Portals Some Processing Zones

Sites

Project Time

RFID technology

Coverage Areas

Process Areas

DC inbound goods receiving from suppliersDC outbound shipping to storesStore goods receiving from DCs and some direct suppliersSome store tracking of goods backroom to front roomSome tracking of perishable goods (meat)


Distribution Center Operations

•Ensure the right goods loaded on right truck

•Give operator feedback in time if right or wrong


Store Operations

Receiving Dock

Transition Door

•Automatic goods receiving

•Some perishables tracking

•Backroom to front room tracking


Item-Level Store Project

Galeria Kaufhof in Essen,

Men´s Fashion, 3rd floor

September 2007

60+ Passive transponders, fixed & handheld from multiple vendors running the LLRP interface, controlled by Reva TAPs

RFID-Readers at portals for incoming goods, intersection areas, dressing rooms and check-outs

• RFID Shelves, Racks, Fixtures• Changing Rooms• Point-of-Sale• Escalators, Elevators, Walls

Store

Project start

RFID technology

Coverage Areas

Application Objectives

Inventory Management

Customer Experience

Retail Analytics


3rd Floor with Antenna Positions

Escalator/ Floor

Sales Floor

Cash Desk

Backstore

Fitting Rooms

Exit

Gardeur-Shop

Key Data

64 readers

208 antennas

30,000 articles

500 product carriers


Store Set up in Reva Management Console

> 60> 60readersreaders


Why this Item-Level RFID Deployment

Matters ?1. First standards-based item-level retail deployment of its scale and it works

2. EPC standards compliant network layered architecture3. Heavy use of near-field UHF4. Excellent systems performance in very dense reader

environment5. Cutting edge consumer facing applications

This was NOT possible until 2007


Many Read Points & Heavy Use of Near-field UHF Deliver

Consumer Facing Applications


Also Reads at Point-of-Sale


Combined EAS with UHF for Loss Prevention


The Benefits to Date• Supplier Support: within 3 months > 40% of pallets

received at Markets were tagged

• Improved accuracy in shipments to the correct Markets

• Improved shelf availability in Markets

• Increased frequency of stock taking in shelves in Department Store = accuracy

• Better visibility of RFID operations centrally

• 1 Employee manages the RFID infrastructure centrally for 100s of sites / 1,000s of readers

session #2

Business

rfid pallet

rfid forklift

hp use rfid

pallet system

rfid right goods

epc pallet tag

pallet quantity

unstacking pallet