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New ID Technologies through the eye of a Turkish CEO:

A Case Study

A real life success story to transform a medium size company, to a higher level of agility, efficiency and ROI

GPS GPS

BARCODEBARCODE RTLS RTLS

WI-FIWI-FI

RFIDRFID

İz tan bulConverged

System

İz tan bulConverged

System

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• Business is as old as humanity.

• The start of communication between human enabled them to make deals and bargains with each other.

• In the beginning, the number of transactions was very limited, thus these transactions could be stored and handled using the capacities of the human memory.

• The duration of this information was short, so that it did not need to be recorded for a long period of time.

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• As the number of transactions increased, human found means of recording various information concerning these transactions:– They used various shapes to

represent different objects– Written alphabets and numbers

were invented– Paper and eventually the printing

became part of daily life• However the basic concepts of

business and transactions still remain the same.

• Only representation, recording methods, and evaluation of data have been changed and continues to change everyday.

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• These changes in technology have inspired businesses to;– organize for the future, – become more professional, – implement better ideas to improve

their organizational structures and survey the environment.

• As the number of transactions increased rapidly, new electronic servants were invented to reduce human effort.

• These improvements simplified access to information, and became an advantage for all employees.

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• Organizations still cannot properly identify and classify new information, or cross reference this information according to different criteria.

• Most of the time new technologies are blamed for this failure.

• Discrepancies between hardware&software, experts concentrating on limited fields of technology, obstructs the widespread use of technologic improvements in organizations.

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• Transactions involve the following parameters;

– People

– Goods

– Locations

– Services

– Price

– Payments

– Time...

• Identifying each parameter of the transactions, following and locating each of them is important for the implementation of a knowledge-based system.

• People tend to see each identification as independent from the others, rather than grouping them together to create a whole.

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“Can we stop this thing called ‘technological innovation’ using brute force?”

Board Of Directors

• So far attempts to implement technological solutions have only had partial success.

• Efficiency never reached the desired levels.

• This situation gave the board of directors the wrong impression that this type of innovations have only limited capabilities.

• We can all talk endlessly about new technological advances in detail, but what about trying to implement them? Why and where are we failing in this respect?

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• In May 2006, the implementation of a project (İz tan bul) that would enable effective use of hi-tech advances at the optimal level was initiated.

• Not having even used barcode identification until that time, the company had

– ˜ 25.000 different items

– 3 warehouses

– 15.000m² total area

– 160 trucks and other vehicles operating all over Turkey.

Source: Ambient Findability (Peter Morville)

O’rielly Media 2005 USA

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• The objective was to make a debut

by finding an electronic way to

identify vehicles, goods, assets and

people.

• “Identification is real

identification” regardless whether

represented by barcode, active or

passive RFID, Wi-Fi,GPS, GPRS,

or all of them combined.

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• The goal is to “identify”.

• The technologies used are only

tools to achieve this goal.

• The idea was to design a

common connecting “shell” to

accommodate all these different

ID methods that track people,

vehicles and assets.

• The main purpose of this shell

would be to “trace, identify and

locate” (iz tan bul)

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• In this “shell” an uncomplicated yet advanced classification of “area” identification was used encompassing such zones as;– A floor in the building– A building itself– A street– A city– A country– An area– A vending machine– A truck– A vehicle

• Technologies used for “AREA” identification are; GPS, RFID and Wi-Fi technologies

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• In these “areas” : Goods, assets, services, people identified within a set area could be assigned and linked to these zones.

• Communication between areas and items are set so as to be able to update and notify all relevant changes via signals received from the various agents.

• The idea was to make the “shell” a stand-alone system that can communicate with any ERP system.

• A simple “inform you-inform me” protocol was implemented, that can be transmitted by users in any desired form.

Source: Location Based Services, Jochen Schiller,Agre’s Voisard,2004 Morgan Kaufman USA

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May 2006Project

DecisionJuly 2006

Design & Implementation

September 2006Got first results

Implementation in vehicles and warehouses

Project continues

OracleJanuary 2008

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• İZ TAN BUL, is an integrated and converged solution for tracing, locating and finding, combining various related technologies under one roof.

• The unique feature of İZ TAN BUL is that it combines all the technologies featured above, and operates them as an integrated whole.

GPS GPS

BARCODEBARCODE RTLS RTLS

WI-FIWI-FI

RFIDRFID

İz tan bulConverged System

İz tan bulConverged System

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• iz tan bul, initially emerged from the specific needs of our organization, but today it resulted in an integrated professional hi-tech solution package.

• We started this project as if it were our hobby, and we viewed it as an enjoyable adventure.

• As the project shaped and matured, we started receiving substantial and tangible results from our work.

• The time has came for us to deliver the experiences of our in-house customers to the outside world.

Source: Designing Interactions, Bill Moggridge, The MIT Press England 2007

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Soft drink vending machine with RFID reader

RFID tags attached

customers

Sales personnel with Wi-fi

tags

• Our first implementations were shown in 24. Int.Textile, Knitting, Hosiery Mach. Side İnd and Chemicals Fair, and 21. Int Clothing Mach. Embroidery Mach. Clothing Side Ind and Acc. Fair (May 2007).

• Here we created RFID controlled logical areas • RFID tags were given to customers based on their business cards.• 4 sales personnel was given wi-fi tags and traced during the fair (implementation of asset tracking)• These tags enabled real-time tracing, locating and finding customers. When visitors passed their tags through the

reader on the soft drink vending machine they were able to get a free soft drink and participate in a daily prize draw.

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Soft drink vending machine with RFID reader

Sales personnel with Wi-fi

tags

RFID tags attached

customers

• Interpreting gathered data is possible in many ways. Some examples are as follows:• Red points represent the number of visitors and the density of visits/zone. Stars are sales

personnel with wi-fi tags. (cafe zone had 475 visitors/fair)• There were 1681 visitors, 1390 of whom used their tags to get a drink.• Tags also gave information about visitors/day (472 people on 13.05.07) and customer name

and density of visits to each customer company (Günkar Textile was tracked by readers 64 times in zones).

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• Most Advanced Asset Tracking software:

• International leader for Barcode and RFID printing:

• Leading company for RFID equipments:

SOLUTION PARTNERSSOLUTION PARTNERS

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People and Asset Tracking

ASSET TRACKING SOFTWARE

GPS and GPRS

RFID and BARCODE WI-FI and

RTLS

Warehouse, office…management

Vehicle Tracking

HOW DOES IT WORK?

GPS Satellites Source: Location Based Services, Jochen Schiller,Agre’s Voisard,2004 Morgan Kaufman USA

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CENTRAL

WAREHOUSE RFID TAGS

DISTRIBUTION

CENTER

• Packaged goods coming to the warehouse from suppliers are barcoded, and packages are associated with pallet RFID tag.

• Pallets enter the warehouse from rfid gates, where antennas automatically pass tag information to the system and authorized employees perform stock entry by clicking on a single button. Thus inventory is automatically updated.

• From the warehouse layout the proper shelf/zone can be set, when pallet is delivered to the proper place it is associated with shelf/zone RFID tag. Here the system is once again updated. From the warehouse layout the place of the pallet can be tracked.

• Pallets to be shipped are tracked from warehouse layout, carried by forklifts through RFID gates to the trucks.

• By getting out through gates, the pallet tag is read and stock is deducted from warehouse inventory.

• Shipped pallets are associated with truck tags. Thus we know what is shipped and by which truck.

• When shipped goods come to the distribution center, pallet tags are read with the portable terminals, transmitted to the inventory of the dist. center from truck stocks.

Through all these steps İz tan bul and ERP communicate and update information during the process.

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BARCODE/RFID TAGS

CUSTOMER

• Pallets to be shipped are associated to the shipment vehicle's tags after being read by portable terminal and decreased from the distribution center’s inventory.

• Thus we know, which goods are in which shipment vehicle, going to which customer.

• Moreover, we can plan the route of each vehicle, track its location in real time on web based map, follow the route.

• So, we know where the vehicle is, where it is going, what it is carrying and to which customer, at any time we wish.

• There are many report options that we can benefit from, to analyze the efficiency of the process (compatibility of route plan with the actual followed route) and gather required information about shipments.(like km and fuel spent during shipment)

• As shipment reaches the customer, all the delivery is done via PDA. Goods’ barcode tags are read by PDA and marked as “delivered”.

• As goods are delivered, the “delivery information” is sent to the related sales personnel.

DISTRIBUTION

CENTER

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• Inventory entry- exit process used to previously take up to 2-3 days. Now it takes just a few hours.

Loading and off loading time of trucks have been remarkably decreased.

• Faulty and late shipments, inventory errors like discrepancy between actual and recorded stock has been

drastically reduced.

• Lower costs and less time spent for inventory tracking and counting.

• Existence of real time delivery information and correct inventory data.

• Loss and theft possibilities are prevented as entrance and exit gates are controlled by RFID gates.

• Lower security stock levels due to improved demand and supply planning.

• Direct integration of İZ TAN BUL with ERP omits any possible human error during data entering process.

• Decrease in labor costs, due to decreased need for labor force.

• Total automation from the beginning till the end of the process.

• Capacity increases concurrently with improvements in efficiency of operations.

• Avoiding shipment, stock receipt and stock discrepancy errors caused by manual data entry.

• Increased customer satisfaction.

• More effective and efficient use, track and maintenance of fixed assets (package, pallet, container…)

BENEFITS OF

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• Cost ReductionHow:

– Less manual controls – Lower stock holding costs – Minimized logistic costs – Decreased penalties due to quality problems – Increase in stock efficiency– Prevention of theft and loss of goods in the warehouse

• Revenue and sales increase How:

– Prevents stock shortages– Enables shorter order delivery time– Increase in customer satisfaction– Avoiding fake products

ECONOMIC BENEFITS OF

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As a user, with our 14 different companies now we feel committed to using all available tools to create an efficient enterprise. At each step we think “big”, and start “small”.In Conclusion, “competitive advantage” is the most important benefit gained from İz Tan Bul.

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THANK YOU

MORIS YAFFE (TETAŞ CEO)

[email protected]