Kimberly-Clark’s
RFID Story
December 6, 2007
University of Minnesota & Seeonic
© Copyright 2007 Kimberly-Clark Corporation
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Products sold in 150+ Countries
Production facilities in 42 Countries
$16.7 Billion in Enterprise Sales
Employ 57,000 people
One-fourth of the world’s
population use our products
© Copyright 2007 Kimberly-Clark Corporation
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Business-to-Business
Consumer
Tissue
© Copyright 2007 Kimberly-Clark Corporation
Personal
Care
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RFID Evolution at K-C
2001
2002
2003
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2004
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2005
2006
2007
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Auto-ID Center
Auto-ID Field Trials
EPCglobal Founding Member
Business Case Development
Establishment of AST Organization
RFID Research Lab
Customer RFID Infrastructure Pilots
Deployment & Business Process Pilots
Strategic Business Application Plan
EPCglobal Accredited Performance Test Center
Business Process Application Development
Business Process Commercialization
© Copyright 2007 Kimberly-Clark Corporation
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Kimberly-Clark RFID Objective
Develop repeatable scalable
business processes and
supporting systems driving the
validation of the RFID
business case
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K-C RFID Vision
Drive value for the
consumer by exploiting the
capabilities brought about
by the technology to deliver
innovative new solutions
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K-C RFID Solution Center
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KC RFID Solution Center Philosophy
Educate – industry leaders leading others
Collaborate – with best of class vendors
Innovate – to generate IP and protect RTP
Deliver – solutions that provide value
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K-C RFID Solution Center
Standardized Test Procedures/Data Collection
Supports Research & Development activities
Replicates K-C manufacturing & distribution
Instant packaging re-engineering solutions
On-demand support / dedicated research staff
Business support opportunity development
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RFID Solution Center Process Model
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RFID Laboratory Equipment
Work Space:
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Floor: Over 5900 sq ft
Office/Lab: 1300 sq ft
Network:
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Wireless
K-C Network Configurable
Equipment:
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PLC Controlled Conveyor
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15-600 fpm
Over 150 linear ft of Case Level
Over 50 linear ft of Item Level
Diverting Capability
Pallet Racking System
Shipping/Receiving Door Portals
Lansmont Tri-axial Accelerometer (2)
Stretch Wrapper
Store Shelving
Clamp Trucks (2)
Fork Lift
Weber Label/Printer/Applicator
© Copyright 2007 Kimberly-Clark Corporation
Zebra Table-Top Printer/Encoder (2)
Spectrum Analyzer
Signal Generator
Avery Dennison Sweet Spot Tester
Avery Dennison Test Cube
Symbol Handheld Reader
Readers and Associated Antennas
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Impinj
Alien
Samsys
AWID
Matrics/Motorola
Sensormatic
Siemens
LXE
Thing Magic
Omron
Antennas
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Parabolic
Monopole
- Dipole
- Yagi
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Supporting RFID Activities Around The
Globe
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K-C’s Industry Partnership
Packaging Suppliers
Customers
Technology Providers
Universities
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Successes & Challenges
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Portable Edge
• Cost effective way to RFID tag promotional
merchandise to realize business case benefits
• Ability to associate EPC data to specific
customer orders
• $12K per mobile unit instead of $150K for site
infrastructure installation
• Can be used at K-C facilities, 3PL’s, and copackers.
• Tracks execution of events to the sales
© Copyright 2007 Kimberly-Clark Corporation
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Innovation & Collaboration
Creation of Portable Edge Solution
MC-9090 G
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OAT Mobile Tag™
PAD 3500
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Portable Edge Process
Encode
Read/Associate
Apply
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Promotion Execution
• RFID enabled process developed that tracks
execution to the sales floor:
• Daily reports based on real-time data
• Retail operations teams taking corrective
action
• Ties RFID reads to POS data to track sales
performance
• Supporting pilots with multiple global customers
© Copyright 2007 Kimberly-Clark Corporation
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K-C RFID
Value Realization
Benefit Categories
Inventory &
Labor
11%
e-POD
10%
OOS
Turn
29%
© Copyright 2007 Kimberly-Clark Corporation
OOS
Promo
50%
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First of the Month Promotion
RFID data showed only 56%
AUGUST ADULT CARE PALLET DIAPLAY
Of the stores executed
on-time. Late stores had
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Lower sales lift.
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POS Quantity
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20
0
2006/07/30
2006/07/31
2006/08/01
2006/08/02
2006/08/03
2006/08/04
2006/08/05
2006/08/06
2006/08/07
2006/08/08
2006/08/09
Date
© Copyright 2007 Kimberly-Clark Corporation
Bottom 10
Top 10
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Adult Care First-of-Month
Pallet Display
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60
55
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40
Aug
Oct
Jan
Feb
% to sales floor on-time
© Copyright 2007 Kimberly-Clark Corporation
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Real Time
Promotion
Execution
Sample Summary Report…
© Copyright 2007 Kimberly-Clark Corporation
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RFID Yard Management
• Current Issues
– Lack of asset (trailer/tractor) visibility outside the 4 walls to
manage incoming supplies and outgoing materials and finished
goods.
– All manual processes
– No actionable data collected on leased assets to determine need
/ efficiency
– No electronic data to aid in
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detention reconciliation
efficiency improvements
trailer pool management
exception handling
– 2006 Detention charges $3.3MM across North America sites
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© Copyright 2007 Kimberly-Clark Corporation
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RFID Yard Management – Pinc Solutions
Passive RFID Tags
© Copyright 2007 Kimberly-Clark Corporation
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RFID-Enabled Clamp Truck
• RFID-enabled fleet provides real-time
visibility within the raw material, production
and distribution supply chains
• Drives efficiencies through precise
business process execution and increased
order accuracies
• 662 doors x $5,000 = $3.31M
• 325 lift trucks x $3,000 = $975k
© Copyright 2007 Kimberly-Clark Corporation
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RFID-Enabled Clamp Truck
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KC RFID Leadership
April 13, 2004
First Wal-Mart Read
of an EPC
encoded tag
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Recognized By The Industry for
Leadership & Innovation
April 2007
“Kimberly-Clark Gets An Early Win”
October 2006
“Thinking Inside the Box: A New Era of Smart
Packaging”
July 2006
“The Smart Way to Print Smart Labels”
October 2005
“Lab Powered Innovation”
© Copyright 2007 Kimberly-Clark Corporation
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Recognized By The Industry for
Leadership & Innovation
RFID Early Adopter of the Year – 2005
Consumer Goods Technology
VICS Collaborative Commerce
Achievement Awards Most Innovative
on Supply Side – 2007
“For using RFID to find better ways to serve
the customer & consumer with initiatives
that reduce out-of-stock that cause lost
sales at retail.”
© Copyright 2007 Kimberly-Clark Corporation
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Thank You
© Copyright 2007 Kimberly-Clark Corporation