Moving to Adaptiveness
From Internal Silos to Networked Ecosystems
Business Dimension
Functional
Excellence
Integration
Silo
Organization
Departmental
Performance
Cost
Decision
Functional
Technology
Point Solution
Time Focus
Months to
Weeks
Copyright © 2003, Cap Gemini Ernst & Young
Moving to Adaptiveness
From Internal Silos to Networked Ecosystems
Functional
Excellence
Integrated
Supply Chain
Integration
Silo
Enterprise
Organization
Departmental
Centralized
Performance
Cost
Cost & Service
Decision
Functional
Process Focused
Technology
Point Solution
ERP / Bolt-on
Time Focus
Months to
Weeks
Weeks to Days
Business Dimension
Copyright © 2003, Cap Gemini Ernst & Young
Moving to Adaptiveness
From Internal Silos to Networked Ecosystems
Functional
Excellence
Integrated
Supply Chain
Adaptive
Supply Chains
Integration
Silo
Enterprise
Extended
Enterprise
Organization
Departmental
Centralized
Collaborative
Performance
Cost
Cost & Service
Profit &
Productivity
Decision
Functional
Process-Focused
Event-Based,
Agent-Assisted
Technology
Point Solution
ERP/Bolt-On
Interdependent,
Web-Connected
Time Focus
Months to
Weeks
Weeks to Days
Real-Time
EXECUTION
MINDSET
Business Dimension
Copyright © 2003, Cap Gemini Ernst & Young
Moving to Adaptiveness
Some Enabling Processes / Technologies

RFID (Radio Frequency Identification)

Supply Chain Outsourcing (BPO)

Consumer-Based Replenishment

Service Parts Logistics

Product Lifecycle Management

Supply Chain Event Management

Performance Metrics in SCM

Supplier Relationships
Copyright © 2003, Cap Gemini Ernst & Young
RFID
RFID Technology Allows Goods to Be
Identified and Monitored Via a Wireless Tag

Device: a tag / label with identification that is
read electronically
 Minimal issues with orientation and obscurity compared to
barcodes
 Tags can be electronic chips
 Have storage capabilities and power sources that provide
versatility

System: device + reader/writer + controller
 Device – tag / label
 Reader/writer – to communicate with device
 Controller – manages data interface with computer systems
In short, RFID is like a bar code that can talk
Sources: ABI, VDC, Philips, IDTechEx, HP Docs
Copyright © 2003, Cap Gemini Ernst & Young
RFID
RFID: A $15B to $25B Market by 2015

Applications





Tracking, Tracing, Inventory Management
Anti-Counterfeiting
Safety, Security
Numerous others
Market players




Alien Technology
Checkpoint
Matrics
Intermec
As with all new technologies, there are issues, barriers,
and adoption challenges





Common standard
Tag cost
System integration
Privacy
Readability
Copyright © 2003, Cap Gemini Ernst & Young
RFID
Experts Predict Cost per Tag Will Be as Low
as 5¢ Within 18 Months (in 2001: $30 per tag)

Gillette ordered 500 million tags this year

P&G thinks RFID can cut its inventory levels almost in half

Wal-Mart have put its suppliers on notice, using RFID will
become a requirement to remain a supplier
No other technology in the last 20 years has had as much
potential to impact the economy’s trillion-dollar inventory
levels as RFID!
Copyright © 2003, Cap Gemini Ernst & Young
RFID
There are Numerous Applications of RFID
Across the Supply Chain
Item Level
Inventory
Tracking
Product
Lifecycle
Management
Automatic
Receiving
Security
Inventory
Reduction
Shrinkage
Intelligent
Shelf
In Store
Inventory
Automatic
Checkout
Last
50 yards
Product
Related
On Sell
Raw Material
Improved
Production
Planning
Manufacturer
Asset
Tracking
Finished Goods /
Warehouse
Manufacturer
Plant
Maintenance
Proof of
Delivery
Distribution
Fleet
Maintenance
& Repairs
Retailer
Vendor
Managed
Inventory
Waste
Disposal
In Store
Reactive
Marketing
In Store
Availability
Characteristics of Adaptive Supply Chain Execution
Real Time
Visible
Proactive
Event Driven
Intelligent
Responsive
Collaborative
Coordinated
Closed-Loop
The solution now exists with no shortage of problems to solve.
The key is to drive functionality beyond “a super-barcode”
Copyright © 2003, Cap Gemini Ernst & Young