Application of an e-Valuation
Framework to RFID in the
Food Chain
Fred Riggins
Presentation to the
Twin Cities Ninth RFID Industry Forum
March 6, 2008
Where Can RFID be Used?
Health Care
Retail
Where Can RFID be Used?
„
Procurement
Outbound
logistics
„
Marketing and Service
sales
„
Primary
activities
„
The Value Chain
„
„
Basic Framework Components
„
„
„
Three types of value creation
Five dimensions of commerce
Four value chain structural settings
Value Chain
Structural Settings
Types of
Value Creation
Dimensions of
Commerce
Airports
Security
Agriculture
Challenges in developing an RFID
business case
„
Technology
development
Operations
Manufacturing
An RFID Business Case Framework
Human resource
management
Inbound
logistics
Transportation
Wanted:
„
Support Firm
activities infrastructure
Libraries
Potential for impact across many industries
Potential for impact throughout supply chain
Continuous developing technology
Need for many complementary technologies
Focus on technical issues
Trading partner mandates
Interdependent benefits
Basic Framework Components
„
Three types of value creation
„
Efficiency benefits
„
„
= “Pervasive Presence”
Effectiveness benefits
„
„
Doing things better
Doing things smarter = “Pervasive Intelligence”
Strategic benefits
„
Doing things for competitive advantage
= “Pervasive Coordination”
1
Basic Framework Components
„
„
Three types of value creation
Five dimensions of commerce
„
„
Time – doing things faster
„
Distance – overcoming distance barriers
„
Inbound Logistics
„
Relationships – altering relationships
„
Internal Operations
„
Interaction – enabling new ways to interact
„
Outbound Logistics
„
Products – creating new products/services
„
Sales & Marketing
Dimension
Time
Distance
Relationships
Interaction
Product
„
Type of Benefit
Efficiency
Effectiveness
Strategic
Accelerate
Process
Tasks
Control
Processes
Remotely
Alter
Role of
Intermediaries
Make Use of
Extensive System
Feedback
Automate
Tasks Using
Software Agents
Eliminate
Information
Float
Receive Realtime Remote
Telemetry
Establish 24/7
Integrated
Service
Enable
Personalized
Service
Respond
Intelligently to
Environment
Provide
Decision Support
Tools
Achieve
Global
Presence
Create
Dependency to
Lock-in User
Promote
Virtual
Integration
Offer Proprietary
Systemic
Competency
Three Case Examples
Dairy products manufacturer Wells’ Dairy
„
„
Case study from RFID Journal (Jan 2007)
German cheese maker Sachsenmilch
„
„
Three types of value creation
Five dimensions of commerce
Four value chain structural settings
„
RFID Value Grid
„
Basic Framework Components
Case study from RFID Journal (Jan 2007)
How a third party logistics (3PL) provider
might make use of RFID
Applying the Grid Across the
Value Chain
Time
Accelerate
Process
Tasks
Eliminate
Information
Float
Establish 24/7
Integrated
Service
Distance
Control
Processes
Remotely
Receive Realtime Remote
Telemetry
Achieve
Global
Presence
Alter
Role of
Intermediaries
Enable
Personalized
Service
Create
Dependency to
Lock-in User
Respond
Intelligently to
Environment
Promote
Virtual
Integration
Automate
Tasks Using
Software Agents
Provide
Decision Support
Tools
Offer Proprietary
Systemic
Competency
Efficiency
Effectiveness
Strategic
Relationships
Make Use of
Interaction Extensive System
Feedback
Product
Marketing and Sales
Outbound Logistics
Internal Operations
Inbound Logistics
RFID at Wells Dairy
„
„
For Wal-Mart mandate
RFID labeling system on
one-gallon ice cream
bucket production line
„
„
Tag wrapped 2 onegallon containers as case
prior to freezing
Tag wrapped 75 cases as
pallet after hardening
2
RFID Value Grid
Internal Operations
Dimension
Time
Distance
Relationships
Interaction
Product
Effectiveness
Strategic
Accelerate
Process
Tasks
Control
Processes
Remotely
Alter
Role of
Intermediaries
Make Use of
Extensive System
Feedback
Automate
Tasks Using
Software Agents
Eliminate
Information
Float
Receive Realtime Remote
Telemetry
Establish 24/7
Integrated
Service
Internal Operations
Time
Distance
Relationships
Interaction
Product
Distance
Relationships
Interaction
Product
Respond
Intelligently to
Environment
Provide
Decision Support
Tools
RFID-populated database tracks inventory allowing
Wells to quickly find a product if problem occurs.
Type of Benefit
Effectiveness
Strategic
Accelerate
Process
Tasks
Control
Processes
Remotely
Alter
Role of
Intermediaries
Make Use of
Extensive System
Feedback
Automate
Tasks Using
Software Agents
Eliminate
Information
Float
Receive Realtime Remote
Telemetry
Establish 24/7
Integrated
Service
Internal Operations
Time
Enable
Personalized
Service
Achieve
Global
Presence
Create
Dependency to
Lock-in User
Promote
Virtual
Integration
Offer Proprietary
Systemic
Competency
Efficiency
RFID Value Grid
Dimension
Type of Benefit
Efficiency
RFID Value Grid
Dimension
Fulfills Wal-Mart mandate for top 100 suppliers.
Prepare for implementation throughout facility.
Enable
Personalized
Service
Respond
Intelligently to
Environment
Provide
Decision Support
Tools
Achieve
Global
Presence
Create
Dependency to
Lock-in User
Promote
Virtual
Integration
Offer Proprietary
Systemic
Competency
Increased productivity since personnel do not need
to ensure correct placement of pallet bar codes.
Type of Benefit
Efficiency
Effectiveness
Strategic
Accelerate
Process
Tasks
Control
Processes
Remotely
Alter
Role of
Intermediaries
Make Use of
Extensive System
Feedback
Automate
Tasks Using
Software Agents
Eliminate
Information
Float
Receive Realtime Remote
Telemetry
Establish 24/7
Integrated
Service
Enable
Personalized
Service
Respond
Intelligently to
Environment
Provide
Decision Support
Tools
Achieve
Global
Presence
Create
Dependency to
Lock-in User
Promote
Virtual
Integration
Offer Proprietary
Systemic
Competency
RFID Value Grid
Internal Operations
Dimension
Time
Distance
Relationships
Interaction
Product
Effectiveness
Strategic
Accelerate
Process
Tasks
Control
Processes
Remotely
Alter
Role of
Intermediaries
Make Use of
Extensive System
Feedback
Automate
Tasks Using
Software Agents
Eliminate
Information
Float
Receive Realtime Remote
Telemetry
Establish 24/7
Integrated
Service
Internal Operations
Time
Distance
Relationships
Interaction
Product
Distance
Relationships
Interaction
Product
Respond
Intelligently to
Environment
Provide
Decision Support
Tools
System quickly determines when low quality product
should be withheld, increasing shipment quality.
Type of Benefit
Effectiveness
Strategic
Accelerate
Process
Tasks
Control
Processes
Remotely
Alter
Role of
Intermediaries
Make Use of
Extensive System
Feedback
Automate
Tasks Using
Software Agents
Eliminate
Information
Float
Receive Realtime Remote
Telemetry
Establish 24/7
Integrated
Service
Outbound Logistics
Time
Enable
Personalized
Service
Achieve
Global
Presence
Create
Dependency to
Lock-in User
Promote
Virtual
Integration
Offer Proprietary
Systemic
Competency
Efficiency
RFID Value Grid
Dimension
Type of Benefit
Efficiency
RFID Value Grid
Dimension
No manual scanning case/pallet bar-codes. System
generates pallet tags (no keying in bar-code info).
Enable
Personalized
Service
Respond
Intelligently to
Environment
Provide
Decision Support
Tools
Achieve
Global
Presence
Create
Dependency to
Lock-in User
Promote
Virtual
Integration
Offer Proprietary
Systemic
Competency
Correct pallets in outbound queue, better shipping
quality. No double-checking bar-codes on the truck.
Type of Benefit
Efficiency
Effectiveness
Strategic
Accelerate
Process
Tasks
Control
Processes
Remotely
Alter
Role of
Intermediaries
Make Use of
Extensive System
Feedback
Automate
Tasks Using
Software Agents
Eliminate
Information
Float
Receive Realtime Remote
Telemetry
Establish 24/7
Integrated
Service
Enable
Personalized
Service
Respond
Intelligently to
Environment
Provide
Decision Support
Tools
Achieve
Global
Presence
Create
Dependency to
Lock-in User
Promote
Virtual
Integration
Offer Proprietary
Systemic
Competency
3
Three Case Examples
„
RFID at Sachsenmilch
Dairy products manufacturer Wells’ Dairy
„
„
Case study from RFID Journal (Jan 2007)
Goal:
„
„
„
German cheese maker Sachsenmilch
„
„
Case study from RFID Journal (Jan 2007)
„
„
How a third party logistics (3PL) provider
might make use of RFID
RFID Value Grid
Internal Operations
Dimension
Time
Distance
Relationships
Interaction
Product
Effectiveness
Strategic
Accelerate
Process
Tasks
Control
Processes
Remotely
Alter
Role of
Intermediaries
Make Use of
Extensive System
Feedback
Automate
Tasks Using
Software Agents
Eliminate
Information
Float
Receive Realtime Remote
Telemetry
Establish 24/7
Integrated
Service
Internal Operations
Time
Distance
Relationships
Interaction
Product
Type of Benefit
Efficiency
RFID Value Grid
Dimension
System collects data on location and time of cheese
during ripening process. Fulfills EU requirements.
Enable
Personalized
Service
Respond
Intelligently to
Environment
Provide
Decision Support
Tools
Achieve
Global
Presence
Create
Dependency to
Lock-in User
Promote
Virtual
Integration
Offer Proprietary
Systemic
Competency
Improved process precision improves quality of
product.
Type of Benefit
Efficiency
Effectiveness
Strategic
Accelerate
Process
Tasks
Control
Processes
Remotely
Alter
Role of
Intermediaries
Make Use of
Extensive System
Feedback
Automate
Tasks Using
Software Agents
Eliminate
Information
Float
Receive Realtime Remote
Telemetry
Establish 24/7
Integrated
Service
Enable
Personalized
Service
Respond
Intelligently to
Environment
Provide
Decision Support
Tools
Achieve
Global
Presence
Create
Dependency to
Lock-in User
Promote
Virtual
Integration
Offer Proprietary
Systemic
Competency
Improve efficiency in cheese production
Ensure cheese ripens for correct time
under specific conditions
Automate data collection for EU regulations
Part of an extensive factory upgrade
„
RFID-enabled production line guides
tagged racks of cheese into and out of
various sweating and ripening rooms
RFID Value Grid
Internal Operations
Dimension
Time
Distance
Relationships
Interaction
Product
Effectiveness
Strategic
Accelerate
Process
Tasks
Control
Processes
Remotely
Alter
Role of
Intermediaries
Make Use of
Extensive System
Feedback
Automate
Tasks Using
Software Agents
Eliminate
Information
Float
Receive Realtime Remote
Telemetry
Establish 24/7
Integrated
Service
Internal Operations
Time
Distance
Relationships
Interaction
Product
Type of Benefit
Efficiency
RFID Value Grid
Dimension
If audited, detailed database used to show origin
and process used for each piece of cheese.
Enable
Personalized
Service
Respond
Intelligently to
Environment
Provide
Decision Support
Tools
Achieve
Global
Presence
Create
Dependency to
Lock-in User
Promote
Virtual
Integration
Offer Proprietary
Systemic
Competency
Engineers analyze data to improve development
processes and ultimately higher quality cheese.
Type of Benefit
Efficiency
Effectiveness
Strategic
Accelerate
Process
Tasks
Control
Processes
Remotely
Alter
Role of
Intermediaries
Make Use of
Extensive System
Feedback
Automate
Tasks Using
Software Agents
Eliminate
Information
Float
Receive Realtime Remote
Telemetry
Establish 24/7
Integrated
Service
Enable
Personalized
Service
Respond
Intelligently to
Environment
Provide
Decision Support
Tools
Achieve
Global
Presence
Create
Dependency to
Lock-in User
Promote
Virtual
Integration
Offer Proprietary
Systemic
Competency
4
RFID Value Grid
Inbound Logistics
Three Case Examples
„
Dairy products manufacturer Wells’ Dairy
„
„
Dimension
Case study from RFID Journal (Jan 2007)
German cheese maker Sachsenmilch
„
Case study from RFID Journal (Jan 2007)
Time
Distance
Relationships
Interaction
„
How a third party logistics (3PL) provider
might make use of RFID
RFID Value Grid
Inbound Logistics
Dimension
Time
Distance
Relationships
Interaction
Product
Effectiveness
Strategic
Accelerate
Process
Tasks
Control
Processes
Remotely
Alter
Role of
Intermediaries
Make Use of
Extensive System
Feedback
Automate
Tasks Using
Software Agents
Eliminate
Information
Float
Receive Realtime Remote
Telemetry
Establish 24/7
Integrated
Service
Inbound Logistics
Time
Distance
Relationships
Interaction
Product
Type of Benefit
Efficiency
RFID Value Grid
Dimension
Two-way data transfer with truck allows for remote
mgmt of environmental conditions. Better quality.
Enable
Personalized
Service
Respond
Intelligently to
Environment
Provide
Decision Support
Tools
Achieve
Global
Presence
Create
Dependency to
Lock-in User
Promote
Virtual
Integration
Offer Proprietary
Systemic
Competency
Increased leverage over transport partner. Forces
higher level of accountability. Clarifies culpability.
Type of Benefit
Efficiency
Effectiveness
Strategic
Accelerate
Process
Tasks
Control
Processes
Remotely
Alter
Role of
Intermediaries
Make Use of
Extensive System
Feedback
Automate
Tasks Using
Software Agents
Eliminate
Information
Float
Receive Realtime Remote
Telemetry
Establish 24/7
Integrated
Service
Enable
Personalized
Service
Respond
Intelligently to
Environment
Provide
Decision Support
Tools
Achieve
Global
Presence
Create
Dependency to
Lock-in User
Promote
Virtual
Integration
Offer Proprietary
Systemic
Competency
Product
Effectiveness
Strategic
Accelerate
Process
Tasks
Control
Processes
Remotely
Alter
Role of
Intermediaries
Make Use of
Extensive System
Feedback
Automate
Tasks Using
Software Agents
Eliminate
Information
Float
Receive Realtime Remote
Telemetry
Establish 24/7
Integrated
Service
Inbound Logistics
Time
Distance
Relationships
Interaction
Product
Distance
Relationships
Interaction
Product
Respond
Intelligently to
Environment
Provide
Decision Support
Tools
Make timely decisions about shipment & destination
using real-time product status. Better quality.
Type of Benefit
Effectiveness
Strategic
Accelerate
Process
Tasks
Control
Processes
Remotely
Alter
Role of
Intermediaries
Make Use of
Extensive System
Feedback
Automate
Tasks Using
Software Agents
Eliminate
Information
Float
Receive Realtime Remote
Telemetry
Establish 24/7
Integrated
Service
Inbound Logistics
Time
Enable
Personalized
Service
Achieve
Global
Presence
Create
Dependency to
Lock-in User
Promote
Virtual
Integration
Offer Proprietary
Systemic
Competency
Efficiency
RFID Value Grid
Dimension
Type of Benefit
Efficiency
RFID Value Grid
Dimension
Eliminate distance barriers by monitoring conditions
in the truck remotely during transport.
Enable
Personalized
Service
Respond
Intelligently to
Environment
Provide
Decision Support
Tools
Achieve
Global
Presence
Create
Dependency to
Lock-in User
Promote
Virtual
Integration
Offer Proprietary
Systemic
Competency
System automatically communicates instructions
directly with truck driver. Better quality.
Type of Benefit
Efficiency
Effectiveness
Strategic
Accelerate
Process
Tasks
Control
Processes
Remotely
Alter
Role of
Intermediaries
Make Use of
Extensive System
Feedback
Automate
Tasks Using
Software Agents
Eliminate
Information
Float
Receive Realtime Remote
Telemetry
Establish 24/7
Integrated
Service
Enable
Personalized
Service
Respond
Intelligently to
Environment
Provide
Decision Support
Tools
Achieve
Global
Presence
Create
Dependency to
Lock-in User
Promote
Virtual
Integration
Offer Proprietary
Systemic
Competency
5
RFID Value Grid
Inbound Logistics
Dimension
Time
Distance
Relationships
Interaction
Product
Effectiveness
Strategic
Accelerate
Process
Tasks
Control
Processes
Remotely
Alter
Role of
Intermediaries
Make Use of
Extensive System
Feedback
Automate
Tasks Using
Software Agents
Eliminate
Information
Float
Receive Realtime Remote
Telemetry
Establish 24/7
Integrated
Service
Inbound Logistics
Time
Distance
Relationships
Interaction
Product
Type of Benefit
Efficiency
RFID Value Grid
Dimension
3PL analyzes data to provide input into packing
process and pallet alignment. Better quality.
Enable
Personalized
Service
Respond
Intelligently to
Environment
Provide
Decision Support
Tools
Achieve
Global
Presence
Create
Dependency to
Lock-in User
Promote
Virtual
Integration
Offer Proprietary
Systemic
Competency
RFID Value Grid
Inbound Logistics
Dimension
Time
Distance
Relationships
Interaction
Product
Detailed temp history can be offered to customer
allowing for FEFO, variable pricing, etc.
Type of Benefit
Efficiency
Effectiveness
Strategic
Accelerate
Process
Tasks
Control
Processes
Remotely
Alter
Role of
Intermediaries
Make Use of
Extensive System
Feedback
Automate
Tasks Using
Software Agents
Eliminate
Information
Float
Receive Realtime Remote
Telemetry
Establish 24/7
Integrated
Service
Enable
Personalized
Service
Respond
Intelligently to
Environment
Provide
Decision Support
Tools
Achieve
Global
Presence
Create
Dependency to
Lock-in User
Promote
Virtual
Integration
Offer Proprietary
Systemic
Competency
More effective partnership with transport partners
locks-in end customer to 3PL/trucker alliance.
Type of Benefit
Efficiency
Effectiveness
Strategic
Accelerate
Process
Tasks
Control
Processes
Remotely
Alter
Role of
Intermediaries
Make Use of
Extensive System
Feedback
Automate
Tasks Using
Software Agents
Eliminate
Information
Float
Receive Realtime Remote
Telemetry
Establish 24/7
Integrated
Service
Enable
Personalized
Service
Respond
Intelligently to
Environment
Provide
Decision Support
Tools
Achieve
Global
Presence
Create
Dependency to
Lock-in User
Promote
Virtual
Integration
Offer Proprietary
Systemic
Competency
User Name: forum
guest
For more go to
Password:
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Benefits of the Framework
„
„
„
„
Helps identify where RFID has potential
to impact the organization
Helps identify functionality interactions
Helps identify metrics for measuring
system performance
Helps communicate the business case
for RFID
User Name: forum
guest
For more go to
Password:
www.assistinnovation.com
6