Rfid Solution Lifecycle Management

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RFID Solution Lifecycle Management

w w w . e f o r c e g l o b a l . c o m

Innovate. Execute.TM

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Agenda About eFORCE

Executive Flyover RFID

What is it? : What are the benefits? : What is hype and what is real? : How will it impact the industry?

RFID Strategic Opportunity Assessment Approach

Tasks, Timelines, Personnel, Deliverables and Pricing

RFID Pilot Compliance

RFID Deployment Solution Center Offering

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Hi-Technology/Manufacturing/Automotive

Financial Services, Insurance

Life Sciences/Pharmaceutical

Energy/Oil and Gas/Natural Resources

Telecom, Publishing/Media & Entertainment

Travel/Transportation/Logistics

Hi-Technology/Manufacturing/Automotive

Financial Services, Insurance

Life Sciences/Pharmaceutical

Energy/Oil and Gas/Natural Resources

Telecom, Publishing/Media & Entertainment

Travel/Transportation/Logistics

IndustriesIndustries

OverviewOverview 375+ people strong

HQ in SFO, Delivery Capabilities in US, UK, 2 Development Centers in India (Kolkata, Chennai)

Services - Enterprise Solutions Enterprise Portals

Content, Document, Digital Asset Management

Enterprise Application Integration

Customer Relationship Management

Enterprise Infrastructure

Legacy Migration

Application Monitoring, Maintenance, Support

Technology Core Competencies J2EE, .NET, C, C++, SQL, XML, OpenSource

Standards-based Approach – RUP, OpenSource, J2EE, XML

Flexible Business Arrangement Fixed-Price, Fixed-Time | T&M

Dedicated Offshore Centers

Offshore Build Operate Transfer (BOT)

On-site, Off-site, Offshore

375+ people strong

HQ in SFO, Delivery Capabilities in US, UK, 2 Development Centers in India (Kolkata, Chennai)

Services - Enterprise Solutions Enterprise Portals

Content, Document, Digital Asset Management

Enterprise Application Integration

Customer Relationship Management

Enterprise Infrastructure

Legacy Migration

Application Monitoring, Maintenance, Support

Technology Core Competencies J2EE, .NET, C, C++, SQL, XML, OpenSource

Standards-based Approach – RUP, OpenSource, J2EE, XML

Flexible Business Arrangement Fixed-Price, Fixed-Time | T&M

Dedicated Offshore Centers

Offshore Build Operate Transfer (BOT)

On-site, Off-site, Offshore

Application: Agentis, ATG, BroadVision, E.piphany, Interwoven, MatrixOne, RedHat, Siebel, Stellent, SeeBeyond, Saviion, TIBCO, Verity, Vignette, webMethods

Infrastructure: Microsoft, Oracle, Sun Microsystems, IBM, BEA Systems

Application: Agentis, ATG, BroadVision, E.piphany, Interwoven, MatrixOne, RedHat, Siebel, Stellent, SeeBeyond, Saviion, TIBCO, Verity, Vignette, webMethods

Infrastructure: Microsoft, Oracle, Sun Microsystems, IBM, BEA Systems

Technology PartnersTechnology Partners

Company Overview

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Agenda About eFORCE

Executive Flyover – RFID


RFID Strategic Opportunity Assessment Approach




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What is RFID ? How Does it Work ? Radio Frequency Identification

Identify individual items

Line of sight not required

Stable in harsh conditions

Read through most non-metals

RFID tags cost: $.05 to $1.50

RFID readers: $10,000 to $100

INFRASTRUCTURE: Critical

RFID Interface

Auto ID Center

Spatial capacity 1kbpsm (802.11b)

Item or Pallet

SKU

Reader

Server

Internet

RFID Tag

ERP

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RFID identifies (SKU) individual items Cola can Vial of aspirin Component of aircraft engine

RFID tags are paper thin labels consisting of Integrated chip Integrated antenna Two varieties: Passive tags and active tags with (battery) power source

RFID readers can “read” many tags Line of sight not required Anti-collision prevents interference

RFID readers may be Handheld or stationary

What is RFID? How does it work?

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01.0203D2A.916E8B.0719BAE03C

ePCePC 96 bitsHeader Object ClassePC Manager Serial Number

Header: 8 bits = 256

ePC Mgr: 28 bits = 268, 435,456

Object Class: 24 bits = 16,777,216

Serial Number: 36 bits = 687,194,767,361

268 million companies can each categorize 16 million different products

and each product category may contain over 687 billion individual items !!

Beyond Barcode

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1 million companies who are current members of UPC / EAN can manage over 100,000 different products and each product may contain over 16 million items !!

Beyond Barcode

ePCePC 64 bits (Type I)

01.0203D2A.916E8B.0719BAE03C

Header Object ClassePC Manager Serial Number

Header: 2 bits

ePC Mgr: 21 bits ~ 1 million

Object Class: 17 bits

Serial Number: 24 bits ~ 16 million

9Source: GARTNER RESEARCH

The RFID Opportunity Spectrum

Automate Existing WMS Functions

Carrier LevelTrack and Trace

RFID Retail Compliance

Goods Authenticationand Tracking

Supranet RFID

RetailMerchandising and

Replenishment

Enterprise Focus

Integrated Supplier-to-End-User Use of

Standards-Based RFID

Privacy and SecurityIssues Emerge

Supply Chain Focus

Standards MaturityExtensive

Costof

Tags

$ 0.01

2007

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Benefits co-related to adoption rates

Benefits Increases as more Items are Tagged

- Store level promotions and pricing

- Unit/item theft

- Pay-on-Scan

- Consumer understanding

- Product R&D

- WIP inventory

- Routing

- Assembly

- Aging/Quality control

- MRP

- Capacity planning

- Product assortments

- Product recall/warranty process

- Case theft

- Retail OOS

- Demand planning

- Supply planning

- Subcontracting/re-packer visibility

- Pick, Pack & Ship

- Physical counts & reconciliation

- Cycle counts

- Consign/Hold Inventory

- Product diversion

- Supplier VMI/replenishment

- Production planning

- DC/Goods receipt

- Put-away

- Inventory control and storage

- Real-time ATP Inventory

6 months Time +5 years

PALLET TAGGING

CASE TAGGING

ITEM TAGGING

Low

High

Op

po

rtu

nit

ies

& B

en

efi

ts

Source: SAP

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Sample RFID Implementations to date

Uses Of RFID Span Numerous Industries

Implementations of RFID

Company Item taggedType of tag/chip

Read/Write Year/stage Outcome

Harley Davidson

Bins carrying parts of custom motorcycles during assembly

Passive 13.56 MHz

Read/Write 1998/rollout

Automatically displayed manufacturing instructions for employees at each stage of the assembly process

Toyota Phase 1Carriers containing car frames as they move through paint stations during production

Passive 13.56 MHz


Streamlined manufacturing and vehicle tracking; saves on interest charges

TrenStarBeer kegs as they move through the supply chain

Passive125-128 MHz


Improved demand forecasts and increase efficiency; identification of black-market sales and elimination of misdirected shipments

International Paper

Cores of larger paper rolls moving through the warehouse

Passive915 MHz

Read Only2003/running

Reduction of lost and misdirected paper rolls

GapDenim apparel through the supply chain and onto store shelves

Passive13.56 MHz

Read/Write 2001/pilot

Improved customer service through better inventory management on shop floor; increase supply chain efficiency and data accuracy

RaxelReusable plastic containers for carrying biohazardous waste

Passive905-928 MHz

Read/Write 2002/implemented

Avoid contamination by ensuring proper cleaning, asset visibility

Michelin TiresPassive905-928 MHz

Read/Write 2003/running

Compliance with the TREAD act and recall management

Las Vegas Airport

Airline baggage tagsPassive905-928 MHz

Read/Write 2003/deployment

Automated rerouting of baggage and increased accuracy (99.5% up from 70-85% accuracy with bar codes) to ensure that they send each bag back to the right airline

Department of Defense

Shipping containers Active433 MHzRead/Write 1994/

rollout90% reduction in the number of containers required

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Where can RFID technology play a role? Optimize supply chains

Provide complete visibility of each items' location, state and context throughout the entire supply and demand chain

Implement build-to-demand manufacturing systems vs. build-to-forecast

Improve demand and forecasting accuracy

Generate revenue Accelerate New Product Introduction (NPI) cycles

Improve on-shelf availability to prevent stock-outs

Enable mass product customization by integrating customer usage and product information in adaptive CRM, SCM and PLM applications

Reduce costs and improve item management Increase data quality and speed and prevent incorrect and incomplete orders

Provide security enhancements, such as real-time asset and personnel monitoring

Real-time event/process management and situational awareness

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Potential Areas of Benefits from RFID

Activity Area Benefits of RFID over Barcode% of Cost Reduction

Storage Warehouse Automated, accurate inventory management 28%

Dispatch Warehouse Automated checking process 26%

Claims Management

SupplierAutomated, accurate data records decrease claims generated

18.5%

Cross-Docking HubAutomated checking, reduced paperwork decrease admin

18%

Receipt RDC Automated checking 9.4%

Claims Management

RDCAutomated, accurate data records decrease claims generated

20.8

Dispatch RDC Automated checking process 5%

Storage RDC Automated accurate inventory 21.7%

Inventory Cost AllReduced inventory due to visibility through chain

55%

Asset Utilization All Improvement in asset Utilization 30%

Receipt Retail Reduced paperwork 2.8%

Storage Retail Automated inventory management 16.3%

Replenishment Retail Improved efficiency 4.5%

Losses RetailReduced loss (out of code, overstocking) from inventory visibility

11%

Total savings from a RFID linked supply chain cost compared to barcode driven supply chain cost structure 8.1%

Short-Term

Potential Prioritization of Opportunities

Mid-Term

Long-Term

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What should you do with RFID in 2004?

Figure 4 Companies Are Taking RFID Mandates Seriously“At what stage is your company in adopting RFID?”

In production or upgrading

Rollout underway or piloting

Considering No Plans Don’t know

Base: 528 IT decision-makers at North American companies(percentages may not total 100 because or rounding)

Source: Forrester’s Business Technographics® November 2003 North American Benchmark Study

7% 5% 12% 64% 12%

13% 8% 23% 44% 13%

20% 12% 16% 38% 14%

26% 10% 15% 38% 12%

Going into 2004Distribution

Manufacturing

Retail

All other Industries

Source: Forrester Research, Inc.

Pilot EPC now

Several companies like Intel, P&G and Michelin have completed pilots and are identifying the benefits of the technology for their value chain initiatives

Explore other uses of RFID and X-Internet Technologies

Evaluate RFID within the context of a larger trend

Extended Internet>> That connect Information systems to physical assets, products and devices

Clearly define the benefits, costs, ROI and Risks through Pilots

The costs can add up very quickly (billions of tags, readers, network equipment, printers, storage, etc.)

Training, implementation, data analysis and process optimization initiatives will cost even more than the hardware costs

Thus it is imperative to clearly understand the business benefit of RFID

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What developments can you expect to see on the RFID front in 2005?

RFID traffic will flow to existing applications and networks

Future >>> IP Networks

Short to Mid Term >> Existing VAN to ERP/WMS

The major benefits of ROI will come from event triggering based on RFID data

Multi-vendor strategy to RFID solutions

Maturity in dealing with the privacy issues that derailed the early pilots

Example vendors

ManugisticsManhattan AssociatesRedPrairieSAPOracle

ConnecTerraDataBrokersGlobeRangerOAT Systems

IBM Savi TechnologySun Symbol Tech.RF Code SAMSysIntermec ThingMagic

Tyco Int. Philips Semi-Alien Tech. ConductorMatrics Texas InstrumentsZebra Tech. Avery Dennison

Applications

Data Management

Hardware/readers

Chips/tags

Source: Forrester Research, Inc.

Figure 5 A Collection Of Vendors Is Necessary For EPC Pilot Design

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Pitfalls to Avoid Use RFID only if it is intrinsic to your project

Many of the business cases currently publicized as justification for RFID have nothing to do with RFID. They are more to do with data synchronization or systems integration and can be achieved without RFID

Vigorously assess the incremental benefits of RFID to incremental cost of RFID. If RFID is not intrinsic to the benefits, do without it.

The real benefits of RFID will be realized by re-engineering processes around RFID

Short to Mid Term >> Manufacturing and Warehousing

Longer Term >> Retail Store

Keep away from initiatives that are defined solely by RFID’s ability to share data across the enterprise

Use a critical eye on these “RFID Poster Boy” business justifications as they can be realized without RFID in most cases

Improving POS data through the use of RFID

Most POS issues are related to POS infrastructure not data collection

The trust and strategic issues of sharing data between manufactures and retailers will not be resolved with new technology

End-to-End Supply Chain Visibility – This is an integration problem that will not be solved through RFID

Lot Traceability – This again is an integration problem that can be resolved through barcode. It can be enhanced by RFID but RFID is not the “silver bullet”

Visibility into Receipts – This issue can be managed with enforcement of stricter ASN (Advanced Ship Notice) transactions

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Proposal Outline About eFORCE



RFID Strategic Opportunity Assessment - Proposed Engagement Approach




Why eFORCE?

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Overview of Our Approach

Understand the existing & future business environment & supply chain strategy for integration & collaboration with business partners

Understand the existing & future business environment & supply chain strategy for integration & collaboration with business partners

Analyze the business across a complete set of KPI’s and leverage opportunities through the application of RFID

Analyze the business across a complete set of KPI’s and leverage opportunities through the application of RFID

Tie the resulting opportunities to a set of business problems and/or objectives

Tie the resulting opportunities to a set of business problems and/or objectives

Define a strategy, prioritization & categorization, and roadmap to leverage RFID opportunities

Define a strategy, prioritization & categorization, and roadmap to leverage RFID opportunities

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Areas of Assessment?

Technology

Strategic IntentStrategic Intent

ProcessReview

ProcessReview

PersonnelReview

PersonnelReview

PreliminarySolution

PreliminarySolution

Road MapRoad Map

MeasurementFramework

MeasurementFramework

Process Design

Process Design

TechnologyArchitecture

TechnologyArchitecture

Detailed Road Map

Detailed Road Map

StrategicRenewal

StrategicRenewal

ProcessRealization

ProcessRealization

OrganizationalAlignment

OrganizationalAlignment

Technology Delivery

Technology Delivery

ScorecardsScorecards

RFIDAssessment

RFIDSolution Delivery

BusinessArchitecture

BusinessArchitecture

RFIDSolution Design

Strategy

Process

Organization

Management

Clie

nt

– Supply

Chain

& E

nte

rpri

se S

olu

tions

stra

tegy

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Why use this Approach?

LeadingThroughBusiness

Review and Assessment of Business Strategy

Review and Assessment of Business Strategy

Identify & Qualify the Business Benefits

Identify & Qualify the Business Benefits

Link Business Processes to Business Value

Link Business Processes to Business Value

Define Deployment & Enabling Tools

Define Deployment & Enabling Tools

Identify the business benefit in terms of growth and market positioning, and determine the drivers behind growth over the short/long term. Ensure the business model has the requisite FLEXIBILITY to adapt to changing business needs.

Assess what are the key business competitive advantages that reduce operational costs or enhance revenue generation or improve customer service ability through the leverage of RFID.

Identify the key business processes that will need re-alignment to secure the business benefits.

Identify the supporting technology and leverage components from existing investments

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The Deliverables are Classified Under…

Deployment Strategy

Measurement Strategy

Growth Strategy

Identify key business goals/objectives over the next 0-4 years to

ensure the RFID based SCM evolution plan

provides the required flexibility to evolve

with business needs also provides the framework for the logical growth in

coverage of the supply chain initiatives that drives the value back to the enterprise and

its value-chain partners

Provides the framework to

measure financial and non-financial

value creation through the

evolution of the supply chain efforts within and outside

the four walls of the enterprise through

the use of RFID

Provides the necessary exit points within the Operational Model to extend the process of collaborating with the value-chain partners

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What Influences the Deliverables?

DeploymentStrategy

GrowthStrategy

MeasurementStrategy

Business Partner Assessment Information Assessment Business Objectives Supply Chain Strategy

Supply Chain Drivers Shareholder Value Creation Business Objectives Technology Readiness Process Readiness

Supply Chain Strategy Organizational Readiness Process Readiness Technology Readiness Business Partner Readiness Business Objectives

Influencing FactorsInfluencing Factors

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What are the Project Deliverables?

Deployment Strategy

RFID Deployment Roadmap Identification of Leverage & Process

Grouping Information Integration Model to support

RFID deployment Organization Impact Analysis Model (Risk

Analysis) Ability to Execute Model

Details the rollout strategy to support the business processes and at the same time identifies point of leverage that accelerate deployment and mitigate associated risks.

Identifies the RFID strategy and ensures that the technology strategy supports the business imperatives and priorities

Measurement Strategy

Metric- Process Model (Level 0) Define Measurement Variables

Defines the business metrics and relates them to the corporate strategy using the balanced scorecard approach

Growth Strategy

Define the Extended Value-Chain Structure Define Inter-Enterprise Touch-Points and

Information Requirements

Identifies the extended value-chain and the supporting process touch-points in an RFID deployment

Deliverables Benefits

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Sample Project Timeline

RFID Evolution Plan 35 days Mon 3/8/04 Fri 4/23/04

Project Kick-Off 1 day Mon 3/8/04 Mon 3/8/04

Supply Chain Strategy Definition 2 days Tue 3/9/04 Wed 3/10/04

Supply Chain Strategy Review 2 days Tue 3/9/04 Wed 3/10/04

Develop Evolution Plan Components 11 days Thu 3/11/04 Thu 3/25/04

Level 1 Process Review 7 days Thu 3/11/04 Fri 3/19/04

Metrics Identification 2 days Mon 3/22/04 Tue 3/23/04

Assessment of Inter-Enterprise Information Requirements 2 days Wed 3/24/04 Thu 3/25/04

Business Unit Risk Assessment 2 days Thu 3/11/04 Fri 3/12/04

Organizational Assessment 4 days Fri 3/26/04 Wed 3/31/04

Impact Analysis 1 day Fri 3/26/04 Fri 3/26/04

Technology Landscape Review 3 days Mon 3/29/04 Wed 3/31/04

Development of Roadmap/Strategy 14 days Thu 4/1/04 Tue 4/20/04

Business Function Rollout Strategy 6 days Thu 4/1/04 Thu 4/8/04

Definition of Technology Clusters 3 days Fri 4/9/04 Tue 4/13/04

High-Level Investment Plan 5 days Wed 4/14/04 Tue 4/20/04

Final Presentation 3 days Wed 4/21/04 Fri 4/23/04

Review of Strategy 1 day Wed 4/21/04 Wed 4/21/04

Fine-tune Strategy 1 day Thu 4/22/04 Thu 4/22/04

Final Presentation & Project Close-Out 1 day Fri 4/23/04 Fri 4/23/04

Task NameTask Name FinishFinishStartStartDurationDuration

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Critical Success Factors Client needs to ensure that management commitment & executive sponsorship exists to

see the project through.

Accurate and timely delivery of information required from Client.

End-user empowerment and support/insight to make necessary changes in business process and practices.

Client will have to assign key functional and technical resources to the project for effective knowledge transfer and project success (project commitment).

Both scope and functional requirements of the project need to be clearly defined at the beginning of the project in order to ensure that all team members understand what exactly needs to be done (scope creep) for the successful completion of the project.

The Client project leader needs to have the adequate organizational and executive support necessary to gather, organize and provide all the data and resources required for the successful completion of the project (visible executive support).

Project visibility within the organization needs to be high in order to ensure proper departmental support & involvement when needed (visibility & internal communication).

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Agenda About eFORCE







Why eFORCE?

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Overview of RFID Deployment Solution Center The RFID Deployment Solution is

designed to assist Wal-Mart suppliers with RFID compliance, pilot programs and shipment preparation to the three Wal-Mart DC’s located in North Texas (Cleburne, DeSoto and Sanger). In order to accomplish this, the RFID Deployment Solution has an integrated offering, partnering with several providers of RFID technology, hardware and software to provide a single-sourced solution that will allow:

Suppliers to meet the RFID requirements mandated by Wal-Mart and other retailers

Technology vendors (RFID, hardware and software) to showcase their solutions by providing a working system to continuously evolve RFID solutions for the marketplace

Provide a model for national and global roll-outs by suppliers to the retail RFID enabled community. We will encourage participation of the vendor community.

Expand beyond Texas with this unique business model that can be duplicated beyond the Dallas marketplace in other 3PL warehouses

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What is the RFID Deployment Solution Center?

page 3May 16, 2004

An operational 3PL warehouse to handle the complete lifecycle of RFID deployment and pilot compliancy

In simple terms, the RFID Deployment Center exists to provide an arena for execution based RFID solutions. It is an operational 3PL warehouse utilized for the execution of the technology that is a key component to long-term supply chain efficiency

making it work

allows retailers, retail vendors, transportation providers and technology partners come together to optimize RFID solutions

understand it

and allows businesses to identify where they can make improvements and gives them the ability to test the suggested improvements before implementing them – to see if they will provide the desired results.

improve it

Retailers/

Suppliers

Hardware

(Zebra, Sun,

CCL)

Systems

(EXE, Savant)

Operations

(DC Logistics,

Transport Ind.)

A collaborative working environment provides

the foundation for making it happen

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RFID Deployment Solution Center

Through the RFID Deployment Solution Center, RFID product and service firms act as a single-source solution for Wal-Mart suppliers that want to achieve compliance with Wal-Mart’s Texas vendor requirements or deploy RFID to other applications.

Our pallet and case tagging, cross docking, conveyor tag testing and consolidation services make the RFID Deployment Center the first full-function RFID deployment facility for distribution environments.

It provides systems, test environments, warehousing distribution operations and transportation solutions to Wal-Mart supplier organizations. We offer the unique ability to seamlessly integrate disparate RFID technologies into a comprehensive solution that meets the specific logistical needs of each customer.

page 4May 16, 2004

RFID Deployment Solution Center (150,000 sf)

InboundFlow

To TaggingArea

OutboundStaging

OutboundFlow

Test Track & Racking

THE RFID DEPLOYMENT SOLUTION CENTER The RFID Deployment Solution Center is a 150,000 sq. ft. distribution facility for designing, testing, validating and deploying RFID logistics systems, hardware, software and other technology components. This state-of-the-art technology center is designed to simulate distribution center environments. RFID solutions can be independently verified as compliant with Wal-Mart and other RFID mandates.

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RFID Deployment Solution Center- Portfolio Of Offerings Compliance Testing

Tagging to meet the requirements of Wal-Mart, the DoD or other channel members. Our Deployment Center offers high-quality RFID equipment-testing facilities meeting the Wal-Mart specs.

Package itself

Packaging configuration

Pallet configuration

Tag Type (between vendors, active versus passive, etc.)

Reader configuration and antennae placement

Operations

We provide warehousing, tagging and support services to ensure Wal-Mart compliance

Transportation

We offer quality, non-asset based logistics solutions and strategic support services.

On-Going RFID Compliance

Ideal environment for suppliers to develop, test and roll-out RFID solutions for on-going compliance with Wal-Mart and other retailers.

Business Process Modeling and Solution Design

Model your business processes and design integrated RFID solutions that will reduce a supplier’s investment in

Systems

Complete, custom solutions for reading/exchanging data in real-time environments.

Education Forums

Educate members on RFID technologies, applications, solutions and advancements.

Complete Program Management

Assess, Plan, Implement and Operate a complete turnkey RFID Deployment Solution

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Agenda About eFORCE







Why eFORCE?

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eFORCE Summary Blue-chip client base

Strong management team with experience in IT Services

Proven expertise in implementation of leading software packages, systems integration, and custom development

Strong vertical industry/domain expertise

Strong technology alliances with leading ISV’s

Global Delivery Model - Offshore and Onshore development, maintenance and support

Corporate fiscal and operations discipline

Strategic focus on customer satisfaction

33w w w . e f o r c e g l o b a l . c o mInnovate. Execute.TM

Rfid Solution Lifecycle Management

Business

interference rfid readers

nonmetals rfid tags

eforce executive flyover

bits type

offshore application

passive tags

active tags

tags line of sight