Publix MIT RFID convocation.ppt

1

A Strategic Approach to RFID

Terri Crawford, Business IT Manager, Distribution,

Publix Super Markets, Inc.

2

Publix Super Markets, Inc.

Largest employee owned supermarket chain in the US – over 129,000 associates

2005 retail sales of $20.5 billion Over 850 supermarkets in the

Southeast United States Eight distribution centers (22

warehouses) shipped over 640,000,000 cases in 2005

Manufacturing Facilities– 2 Bakery Plants,3 Dairy Plants,

3 Fresh Foods, Deli Kitchen and Printing services

AlabamaAlabamaAlabamaAlabamaAlabamaAlabamaAlabamaAlabamaAlabama

TennesseeTennesseeTennesseeTennesseeTennesseeTennesseeTennesseeTennesseeTennessee

GeorgiaGeorgiaGeorgiaGeorgiaGeorgiaGeorgiaGeorgiaGeorgiaGeorgia

FloridaFloridaFloridaFloridaFloridaFloridaFloridaFloridaFlorida

Gulf ofMexico

OrlandoOrlandoOrlandoOrlandoOrlandoOrlandoOrlandoOrlandoOrlando

North CarolinaNorth CarolinaNorth CarolinaNorth CarolinaNorth CarolinaNorth CarolinaNorth CarolinaNorth CarolinaNorth Carolina

South CarolinaSouth CarolinaSouth CarolinaSouth CarolinaSouth CarolinaSouth CarolinaSouth CarolinaSouth CarolinaSouth Carolina

AtlanticOcean

Lake OkeechobeeLake OkeechobeeLake OkeechobeeLake OkeechobeeLake OkeechobeeLake OkeechobeeLake OkeechobeeLake OkeechobeeLake Okeechobee

ColumbusColumbusColumbusColumbusColumbusColumbusColumbusColumbusColumbus

MontgomeryMontgomeryMontgomeryMontgomeryMontgomeryMontgomeryMontgomeryMontgomeryMontgomery

JacksonvilleJacksonvilleJacksonvilleJacksonvilleJacksonvilleJacksonvilleJacksonvilleJacksonvilleJacksonvilleTallahasseeTallahasseeTallahasseeTallahasseeTallahasseeTallahasseeTallahasseeTallahasseeTallahassee

TampaTampaTampaTampaTampaTampaTampaTampaTampa

St. PetersburgSt. PetersburgSt. PetersburgSt. PetersburgSt. PetersburgSt. PetersburgSt. PetersburgSt. PetersburgSt. Petersburg

AugustaAugustaAugustaAugustaAugustaAugustaAugustaAugustaAugusta

NashvilleNashvilleNashvilleNashvilleNashvilleNashvilleNashvilleNashvilleNashville DurhamDurhamDurhamDurhamDurhamDurhamDurhamDurhamDurhamGreensboroGreensboroGreensboroGreensboroGreensboroGreensboroGreensboroGreensboroGreensboro

RaleighRaleighRaleighRaleighRaleighRaleighRaleighRaleighRaleigh

Winston-SalemWinston-SalemWinston-SalemWinston-SalemWinston-SalemWinston-SalemWinston-SalemWinston-SalemWinston-Salem

MiamiMiamiMiamiMiamiMiamiMiamiMiamiMiamiMiami

HialeahHialeahHialeahHialeahHialeahHialeahHialeahHialeahHialeah

Fort LauderdaleFort LauderdaleFort LauderdaleFort LauderdaleFort LauderdaleFort LauderdaleFort LauderdaleFort LauderdaleFort Lauderdale

BirminghamBirminghamBirminghamBirminghamBirminghamBirminghamBirminghamBirminghamBirmingham

HuntsvilleHuntsvilleHuntsvilleHuntsvilleHuntsvilleHuntsvilleHuntsvilleHuntsvilleHuntsville

MobileMobileMobileMobileMobileMobileMobileMobileMobile

AtlantaAtlantaAtlantaAtlantaAtlantaAtlantaAtlantaAtlantaAtlanta

CharlotteCharlotteCharlotteCharlotteCharlotteCharlotteCharlotteCharlotteCharlotteChattanoogaChattanoogaChattanoogaChattanoogaChattanoogaChattanoogaChattanoogaChattanoogaChattanooga

KnoxvilleKnoxvilleKnoxvilleKnoxvilleKnoxvilleKnoxvilleKnoxvilleKnoxvilleKnoxville

Publix

Pending Publix

Publix Store Publix Store Publix Store Publix Store Publix Store Publix Store Publix Store Publix Store Publix Store LocationsLocationsLocationsLocationsLocationsLocationsLocationsLocationsLocations

3

Publix RFID Initiative

Member of EPCglobal in since June 2004, participating in the FMCG and HLS BAG

Support the adoption of RFID and the EPC network within the supply chain

Currently have a Strategy and Architecture project underway to define our RFID Roadmap

4

Publix and the University of Florida

Member of the Advisory Board to the UF/IFAS CFDR Committed to working with the Center in several

research initiatives One of the many research initiatives we are interested

in is RFID Beginning a joint research project with UF and 3 of our

produce suppliers V2 - Visibility Validated in the Perishable Supply Chain

5

RFID Impact on Retail Industry

Product tagging and tracking has implications to all Supply Chain processes

The technology has the potential to revolutionize the supply chain

All processes and technology systems associated with product information and movement are potentially impacted

6

RFID Strategy and Architecture Project at Publix

Correct approach is essential to achieve maximum benefit to our business processes

Will use our Strategy and Architecture Methodology 3 – 5 year horizon Define the business processes, application, data and

infrastructure as-is and to-be models Assess the readiness and timing for implementing

RFID in identified processes Build the business case for implementation Develop Adoption Roadmap

7

Scope of RFID S&A

Our S&A project is focused on the EPC and EPC Network

Includes all Supply Chain Processes from Suppliers and in-house manufacturing to retail stores

Considering the applicability of Pallet, Case and Item tagging in each area

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)

Functional areas– Manufacturing– Distribution– Retailing– DSD– In Store Production– Purchasing and

Procurement

Facilities– Manufacturing – Distribution Warehouse – Stores

8

Approach for RFID S&A Project

ValidateIdentify key internal and

external dependencies

and refine business case

based on feedback

ValidateIdentify key internal and

external dependencies

and refine business case

based on feedback

PlanEvaluate

Implementation Options and

Develop Roadmap for

Implementation

PlanEvaluate

Implementation Options and

Develop Roadmap for

Implementation

QuantifyIdentify Costs

and Quantifiable Benefits.

Develop High Level Biz Case and roadmap

QuantifyIdentify Costs

and Quantifiable Benefits.

Develop High Level Biz Case and roadmap

DefineDefine future

state of Process,

Application, Technology, Infrastructure

DefineDefine future

state of Process,

Application, Technology, Infrastructure

Assess Review current

state of Process,

Application, Technology,

Infrastructure

Assess Review current

state of Process,

Application, Technology,

Infrastructure

Process StreamProcess Stream

Technology & Infrastructure StreamTechnology & Infrastructure Stream

Phase 1

Program ManagementProgram Management

Phase 2 Phase 4

Application & Information StreamApplication & Information Stream

SponsorshipSponsorship Change Management & Communication

Change Management & Communication

Risk ManagementRisk Management

Phase 3

9

RFID S&A Project – Iterative Approach

Iterative PhasesIterative PhasesIterative PhasesIterative Phases

2. CPG –Cold Chain

3. Pharmacy

4. Fresh

AreasAreasAreasAreas

Incorporate learning's,

andBest

Practices

Phase 2, Phase 3 and

Phase 4

Quantify, Survey-Validate Assumptions

AndFinalize

Implementation Roadmap

Phase 2, Phase 3 and

Phase 4

Quantify, Survey-Validate Assumptions

AndFinalize

Implementation Roadmap

Phase 1

Assess-Define

1. CPG – Dry

10

Key Deliverables

Future Solution State– EPC-RFID Enabled, High-level Process Future State– High-level application Future State – updated supply chain application

architecture– High-level technical Future State– Suggested approach with package software suppliers

Implementation Roadmap and Strategy– Business case for RFID implementation, including high-level cost and

benefit estimates– Key opportunities mapped against dependencies– 3-5 year Adoption Roadmap to include pilot/rollout sequencing and

triggers for project kickoff– Publix positioning and focus at standards forum

11

V2 Project Objectives

Approached by UF to participate, jointly developed the vision and objectives of the project – focus on business processes and the EPC Network

To expand the research of the Center from a controlled lab environment to a production operations environment

To prove the EPC network viability and validate the benefit of the additional visibility of product through the supply chain

Gain knowledge of the technology and process issues that will be associated with implementing RFID

12

V2 RFID Project with UF CFDR

Testing with three produce suppliers; Del Monte, Tanimura & Antle, and Duda

Contributors to the project include: Alien, Franwell, Ingersoll Rand/Thermo King, RedTail, Symbol, VeriSign

Produce suppliers are shipping designated loads to Publix with pallet and case level RFID tags

3 receiving door portals are installed at the Publix produce warehouse in Lakeland, Florida

13

V2 Project, continued

All information is posted to an EPCIS Developing a visibility dashboard to be used by

all participants First Shipment with full visibility was completed

on 1/18/06 Each supplier and Publix have customized the

dashboard for their individual business needs through specific parameters

14

V2 Project, continued

UF CFDR has a full view of each participants data and will aggregate appropriate information to be shared with all partners

UF CFDR will evaluate and document the project results, benefits and opportunities

Next phase will be determined based on the results of the first phase

Expect to finish the first phase by May 2006

15

Thank you