thomas reese, sr. director, business development, intelleflex corp

SHM PowerPoint Template Guidelines 03.15.10Intelleflex Corporation

On-Demand, Data Visibility Solutions

Tom Reese

Sr. Director, Business Development


• Intelleflex Introduction and Overview

• Technology Overview: Long Range RFID (BAP Class 3)

• Enabling the Intelligent Supply Chain

• Retail Food and Managing the Fresh Supply Chain

Agenda


XC3 Technology Platform

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Solutions enabled by platform• Reader and Tag must balance performance and

functionality to deliver best system• Intelleflex delivers the complete solution, where other

RFID companies develop a single component (i.e. reader, tag or IC) delivering a compromised solution

• Layering value from tag (product tracking) up through data services

• Intelligent Supply Chain enabled through remotely managed smart devices (no IT networking).

Readers Tags Tag ICs


Technology Overview:

Long Range RFID (BAP Class 3)

SHM PowerPoint Template Guidelines 03.15.10Intelleflex Overview | December 2011

XC3 RFID - The Best of Both Worlds

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Passive RFID XC3 Technology Active RFID

PROS• Reader talks first

communications• Low power passive

backscatter• Low overhead, simple

communications protocol

• Low cost• Standards Based

Combines the best of bothPassive and Active to deliver…• Long read/write range

(>100m)• Reliable in RF challenging

environments• Ability to add sensors and

store data• Security: Multi-layer

memory access control• Reader talks first

communications• Low power passive

backscatter• Low overhead, simple

communications protocol• Significantly lower cost than

active tags• Standards Based

PROS• Long read range

(>100m)• Reliable in RF

challenging environments

• Ability to add sensors and store data.

CONS• Shorter read range• Even shorter write

range• Unreliable in RF

challenging environments

• Minimal sensor support

CONS• Tag talks first

(beacons) comms• Higher power

requirements• Slow inventory, poor

counting at portals• Relatively high cost• Proprietary technology

SHM PowerPoint Template Guidelines 03.15.10Intelleflex Overview | May 2011

Distance Matters - 450’ versus 40’

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Passive RFID

IntelleflexXC3 Technology


• Support for EPCglobal C1G2, ISO 18000-6C Class 3.

• Read range up to 100 meters in free space.

• Memory: 60 kbits of extended memory for Sensor, User and WayPoint Data. User configurable.

• Security: User Access, Block Memory Access, Air Interface and Tag Authentication.

• Sampling Interval: 1 minute to 127 days, user configurable.

• Alarms: Two high/two low temperature alarms.

• Logging Modes: 5 User selectable logging modes.

• Temperature Range: -30ºC to +70ºC.

• Temp. Sensor Resolution: 0.1ºC (1/10th degree) over full temperature range.

• Food Grade Safe Plastic Enclosure

XC3 TMT-8500 Temperature Sensor Tag


Enabling the Intelligent Supply Chain

SHM PowerPoint Template Guidelines 03.15.10Intelleflex Overview – April 2012

Actionable Data• To achieve full efficiency, the supply chain needs

secure, accurate, timely and location aware data on product inventory status and condition

The Intelligent Supply Chain

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Highly available, actionable data must span supply chain• ROI from this increased data visibility must:

• be compelling within each trading partner’s operations• easily extend strategic value through data sharing with other

trading partners• Must be easy to deploy/maintain, even in remote locations• Must be Standards-based to deliver value in open market• Must support EPC/GS1 traceability, with complete granularity


The Intelligent Supply ChainShared Access Across Supply Chain to Actionable Data

Raw Materials

Processing Transit DC Transit RetailerTransit

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Tactical & Strategic Local, mobile & web based applications

Remote Management

Data Analytics

ZEST Data Service enables efficient, secure, documented data exchange in a low cost, flexible and future-proof architecture that is a foundation for multiple types of applications.


The Intelligent Supply ChainSimplifying the Integration of Technology in the Supply Chain

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• “Smart” RTI conveyance platforms enabled though XC3 RFID Sensing Technology

• Seamlessly monitor product condition for Quality, Food Safety and Traceability purposes

• Intelleflex is working with 3 of the largest RTI providers


Retail Food and Managing the Fresh Supply Chain

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Cold Chain by the Numbers

Each year, perishables suppliers ship over five billion pallets valued at $2.6

trillion of chilled meats, seafood, cheese, produce, temperature sensitive pharmaceutical and biomed products.

(EPCglobal)

On an industry-wide level, losses due to spoilage and shrinkage translate into

$32 billion for chilled meats, seafood, and cheese; $34 billion for produce;

and $5.4 billion for pharmaceutical and biomed products.

(EPCGlobal)


• Leading berry brand owner averaged 7% internal shrink in 2010 for blackberries shipping from Mexico.

• This 7% Internal shrink equates to approx. 2 pallets for every truckload (27 pallets per load), or 5,760 6oz clamshells, not being sold to the retailer customer.

• This does not capture the shrink at the retailer, which can be 2x – 3x that seen by the brand owner.

Perishable Produce:Putting Shrink Numbers in Perspective

Approx. 2 pallets on every truckload did not make it to the retailer.


Today’s Supply Chain is Based on Blind Trust

Raw Materials

Processing Transit DC Transit RetailerTransit

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• Today’s supply chain is complex and fragmented, with very little information exchanged, especially quality data.

• Temperature abuse can - and does - occur throughout entire supply chain, leading to food safety issues and reduced shelf life, impacting trading partners and consumers further down the supply chain.

• Segments of supply chain are “monitored” for claims/insurance purposes and limited visual QC inspections attempt to check quality. Significant portions of the supply chain go unmonitored, seriously impacting the product’s Delivered Freshness & Quality.

• Inventory is managed by FIFO – blind to invisible shelf life loss and other product quality issues. • Actionable Data does not exist to “manage” product quality throughout supply chain, “You can’t

manage what you don’t measure.”

QC QC QC


Market/Industry Dynamics are Driving Innovation

Drivers for Change:• The food supply chain has changed from domestically sourced to

globally sourced over the last 15 years and continues to move in this direction.

• Food safety issues are causing major disruptions globally and seriously impacting business bottom lines.

• Regulations requiring traceability, food safety and security are being implemented globally.

• The demand for year round product availability has lead to longer transit times and is impacting product shelf life and quality.

• Competition among suppliers and retailers is driving innovation.


Most common reasons:• Mishandling• Temperature abuses

Critical Factors Driving Shrink

SHM PowerPoint Template Guidelines 03.15.10Intelleflex Corporation (Nunes et al. 2000-2006)

How Important is Temperature

SHM PowerPoint Template Guidelines 03.15.10Intelleflex Corporation(Emond et al. 2000-2006)

0

1

2

3

4

5

0 2 4 6 8 10 12 14

Days

Quality Index 0oC

5oC

10oC

Strawberries

How Important is Temperature


Standard Data Logger Monitoring TodayMeasures ONLY the Trailer Ambient Air Temperature

IDEAL

This is the standard reefer ambient air temperature monitor

The truck was in transit for 5 days and there was nothing alarming about the ambient temperature in the reefer


Seeing Inside the Box for Every Pallet Paints a Very Different View!

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Impact of Insufficient

Precool

IDEAL

Ambient Trailer Monitor

In reality…13.2% of the pallets traveled at over 40°F

Placing reusable monitors on every pallet resulted in profound information…

It was like having X-Ray vision

MEASURING TRAILER AIR TEMPERATURE IS REALLY ONLY GOOD FOR INSURANCE/CLAIMS USE – NOT FOR DETERMINING PRODUCT

QUALITY AND FRESHNESS


Shelf life is the time in which a product retains its desired quality attributes.

Shelf life depends on a multiplicity of variables and their changes, including the product, the environmental conditions and the packaging.

All about Shelf Life


• Every pallet of produce has a unique shelf life (picked at different times, different temperatures, different days, different cut-to-cool times, etc.)

• Until now, produce has been shipped to random destinations, without the advantage of having a “shelf life fuel gauge”.

• By the time shelf life loss becomes visible, it is too late!

• We can use temperature data along with other quality parameters to better manage product quality and Delivered Freshness™.

Shelf Life / Fuel Gauge

The Goal:Delivered

Freshness™


Distribution: From Packing House to US DCs

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Optimize distribution: Dynamically match destination and distribution routing with relative pallet shelf life expectancy to ensure Delivered Freshness

The Impact of Dynamic Routing

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Pallet AShelf Life Index: 10

Pallet BShelf Life Index: 15

Ship to TexasWith special instructions to expedite to local retailer

Ship toPennsylvania

2 Days

5 Days

With actionable in-transit data, both pallets arrive at their destination with ample remaining shelf life – ensuring quality, reducing loss

Example: Shipping from Mexico


Thank you!

27

thomas reese, sr. director, business development, intelleflex corp

Technology

intelleflex corporation

intelleflex overview

data sharing

supply chain roi

temperature range

overview technology

user andwaypoint data

low coststore data standards