Cubic Global Tracking Solutions Greater Profits and Enhanced Supply Chain Security Randall Shepard, VP and Acting GM November 17, 2010 Cubic Global Tracking Systems All Rights Reserved-2010 Presentation Overview • • • • Areas of Value Service Options Life-cycle cost Way Ahead Cubic Global Tracking Systems All Rights Reserved-2010 Greater Profits and Enhanced Security • Can we achieve the enhanced logistics security desired by the US Department of Homeland Security (DHS) and international Customs agencies while also increasing corporate profits? • Can the Automated Identification Technology (AIT) used for container security actually increase net profit rather than be deemed to be an additional security tax? • If the answer to these questions is “Yes”, then the whole decision process changes from “why” to “how and when”. Cubic Global Tracking Systems All Rights Reserved-2010 Greater Profits Supply Chain Attributes that Contribute to Greater Profits • Less Expensive – Better utilization of shipping asset s – Lower insurance premiums • Faster – Improved supply chain management – In-transit route optimization • Higher Quality – Environmental monitoring – Continuous visibility • More Deterministic – Fast Lane Processing – Continuous Chain of Custody • Much more effective than 100% scans Cubic Global Tracking Systems All Rights Reserved-2010 CGTS Copyright © 2010 Automated Identification Technology (AIT) • Not including bar code or passive RFID. No real security benefit. • Includes enhanced active RFID or mobile mesh RFID (mmRFID) – Data rich – Sensors including GPS • Includes autonomous Global Tracking – Tracking, monitoring, controlling, securing – Highly reliable, secure global communications – Platform architecture for sensors and applications – Remote configuration and upgrade • Assumes Reliable Low Latency alert notifiers – SMS, email, XML 5 Cubic Global Tracking Systems All Rights Reserved-2010 CGTS Copyright © 2010 Product and Technology Overview Global Sentinel 4C Vehicle, refrigerated container or special container. GPS, GSM, Iridium and wireless sensors Globally deployable. Status: Deployed Global Sentinel 5B Dry container door beam mount Designed for dry containers GPS, GSM, and Iridium Multiple sensors Status: Deployed Global Sentinel 5L Dry, Reefer, Truck and Permanent Install Designed for multiple use applications. GPS, GSM & Iridium Multiple sensors Status: Deploying Mesh Products Yard management Pallets, containers, trailers and vehicles Condition Based Management Status: Deploying Device Management Center Process data from devices Waypoint: Position and status messages Event: Unauthorized entry & sensor limit. Data analysis Status: Continued enhancement Satellite, Cellular or Wireless (Least Cost Routing) Tagged Asset Secure Access Real-time alerts Satellite, Cellular or Wireless (Least Cost Routing) Global Comms Network Device Management Center Cubic Global Tracking Systems All Rights Reserved-2010 3rd Party Back Office End Customers System Overview CGTS Copyright © 2010 Integrated and Modular Approach Customer Back Office Applications DMC Authentication Server Alerts Secure Web Access Least Cost Routing (Wireless, GSM, Satcom) Reefer Container Dry Container Tracking and Monitoring Supplier Broker/ Agent Terminal Customs Carrier Terminal Customs Cubic Global Tracking Systems All Rights Reserved-2010 Importer Customer CGTS Copyright © 2010 Current Market Availability Low cost mesh based tags – – – – Ultra-low power Encrypted True ad hoc networking Variety of sensors including GPS – DoD endorsement for next generation AIT Intelligent, infrastructure-free asset management solutions IA certified secure data to existing servers Reliable, autonomous global tracking requiring no infrastructure Low-latency event reporting and analysis Dependable real-time monitoring of the location, status and security of intermodal cargo & containers. Remote reconfiguration of reporting and sensors settings Rapid deployment and integration with any legacy systems Cubic Global Tracking Systems All Rights Reserved-2010 CGTS Copyright © 2010 CGTS Copyright © 2010 Enhanced ITV Services CONTAINER DEVICE Mesh Network Interface Internal Powered a RFID Interface GPS enabled Sensor enabled ITEM DEVICE Mesh Network Interface Internal Powered Sensor enabled VEHICLE DEVICE GPS enabled (Via SatCom) Sensor Enabled SatCom Interface Mesh Network Interface External Powered Internal Powered Active RFID Interface CONTAINER ITEM ISO Container VEHICLE Distribution Platform Cubic Global Tracking Systems All Rights Reserved-2010 11 CGTS Copyright © 2010 Mobile Mesh RFID Applications Cellular / Satellite communication gateway LAN or WAN gateway WWW WWW Redundant Data Communication WWW WWW Mesh RFID with or without sensors JLOTS: Ship Board ITV Cubic Global Tracking Systems All Rights Reserved-2010 CGTS Copyright © 2010 Actionable Versus Store-and-Forward • Information latency affects service value • Stored data via a RFID or regional comms can provide history – Security state – Environmental history – Route history • Stored data may be sufficient for Fastlane • Actionable data via continuous global communications (Iridium) • Continuous reporting allows pro-active action in-transit – – – – Security breach Route deviation Mishandling and other out-of-tolerance states Delays • Flexible reporting interval provides efficiency Cubic Global Tracking Systems All Rights Reserved-2010 CGTS Copyright © 2010 Beacon Versus Report-by-Exception • Actionable data can be determined on the server or on the device • Server-based decision making requires frequent reporting • Device-based decision making allows reporting by exception • Using route deviation as an example – Assume 15 minute maximum latency – Beacon must report every 15 minutes to provide serve with data – Smart device must only check position every 15 minutes – Considerably affects life-cycle cost • Assume battery powered global communications device – Beacon must report 2,880 times per month – Smart-device may report only routine status 30 times per month – Almost 100 times difference in battery use and communications cost Cubic Global Tracking Systems All Rights Reserved-2010 CGTS Copyright © 2010 How Optimized Reporting Works Up to 2,000 Geozones on a device each with unique reporting attributes. Easily changed via remote uplink. Geoboundaries on server control distribution of Alerts CGTS Copyright © 2010 Success Through Collaboration • Significant Commercial Value Available – – – – • Effective Industry Solutions Available – – – – • Lower costs Better quality Faster Shipping Deterministic supply chain aRFID and mmRFID Autonomous reporting Secure data Global access What is Needed – – – – Established security standards 802.15.4 interoperability Fastlane commitment Certification process Certified Quality of Service Standards are Required Cubic Global Tracking Systems All Rights Reserved-2010