Deploying RFID for
Value Across the
Enterprise
Presented at AIDC 100
October 15, 2008
Introduction
• Hello –
Peter Blair
Reva Systems
Director of Marketing
978-244-0010 ext. 213
pblair@revasystems.com
• Agenda
Some Industry Perspective
HP Perspective & Programs
Reva Background
Global Enterprise Use Cases
© 2008, Reva Systems Corporation
Slide 2
Some Industry Perspective:
METRO Group
© 2008, Reva Systems Corporation
Slide 3
______
Outlook
Substitute
Substitute
Substitute
Substitute
Substitute
for
Innovative
Technology
HP
Pratt
Dole
DHL
ETC…you
&&
Consumer
& Whitney
Food
3PL / Processing
Logistics
get
in
Electronics
the
Aerospace
picture
•
Challenges of the future in Retail
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Key technologies
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Hands-free data communication
Unique identification
Rapid access to process data for supply chain participants
Customer Services
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Take advantage of greater services emphasis
Create real-time transparency
Use information anytime, anywhere
Better product availability
Better quality & freshness control of goods (temp, sell by, etc.)
Product pedigree
More information for customers
Process Improvement & Cost Reduction
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Inventory
Labor
Asset Utilization
Employee & Public Safety
• RFID = key optimizer for Metro’s Future Enterprise
© 2008, Reva Systems Corporation
Slide 4
RFID is key optimizer for
Metro’s Future Enterprise
• Value Propositions for RFID
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Right goods, right place, right time
Accurate & timely back end systems
Product quality
Process efficiency
Supply chain transparency
Consumer confidence and safety
Consumer information and enhanced experiences
• Requirements for RFID are NOW MET
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Standards-based technology
Interoperable tags & readers
Globally capable solutions
High performing implementations
Manageable installations
Cost effective deployments
© 2008, Reva Systems Corporation
Slide 5
HP’s Perspective: RFID Can
Address Business Problems
• Supply Chain
– Contains large proportion of serialized product
– Requires careful tracking
• Use of multiple vendors at multiple supply
chain points
– Requires identification of items and their
location
– Performance monitoring and hand offs
• Barcodes provide this capability today BUT
– Physical limitations limit where and how often it
can be applied without unbearable additional
costs
March 15, 2016
6
HP RFID Geographic Scope
RFID impacts businesses, operations and customers in all Regions.
Therefore program scope is global and pan HP in nature.
Commercial sites
Retail sites
March 16
30+ sites now RFID capable
7
Proposed Solution
• Could HP use RFID to enhance the flow of
goods in our Supply Chain by:
– Automating identification of items through the
process flow
– Eliminating manual effort
– Increasing granularity of item, location, and time
data
– Identifying an item as the consequence of
another process
– Eliminating processes which only identified items
– Eliminating dwell time between processes
– Using RFID based data to radically change
processes
– Carry key data on an item for faster local
processing
March 15, 2016
8
Existing Processes – Quite
Manual even with Bar Codes
He is scanning
every printer engine
to capture the serial
number
And he is applying
a barcode label by
hand
March 15, 2016
9
Refining Existing Processes
– Integrating with RFID
RFID capable printer
Serial number is
associated to EPC
number
Shop Floor system
creates EPC code to
integrate into tag
March 15, 2016
10
Shipping Prep – Prior to RFID
•Forklift selects full pallet for shipment,
picks the pallet from storage, then takes
it to a shipping dock
•Tells warehouse staff that pallet is ready
•Warehouse staff then scan pallet
contents
•WMS system confirms pallet to order and
prints shipping label
•Operator retrieves address labels and
apply to pallets
March 15, 2016
11
Shipping Prep – With RFID
•Forklift selects full pallet for shipment,
picks the pallet from storage
•Forklift approaches ship preparation
tunnel, photoeye triggers process
•Antenna reads EPC pallet tag and EPC
case tags on the pallet
•System verifies pallet and prints
shipping label and tag
•Label ready by the time forklift reaches
end of tunnel
•Pallet taken directly to outbound staging
•Idle time from staging eliminated
completely
March 15, 2016
12
Mixed/Partial Pallets –
Prior to RFID
• Less than full pallet
quantity
• One or more products
• Barcode labels on each
individual box must be
scanned manually
• Dense pallets can only
be barcode scanned by
unstacking pallet
March 15, 2016
13
Mixed/Partial Pallets –
With RFID
• Pallet rotates on shrink
wrap machine
• Read case EPC’s from
each box
• Reva integrated with WMS
automatically verifies
product and quantity
• Eliminates manual scan
step
• Reduces cycle time
incorporating scanning with
wrapping operation
March 15, 2016
14
Sao Paolo : e2e implementation
Performs the full range implementation for Latin American market:
• manufacturing +
• completion process +
• distribution center (inbound & outbound) +
• reverse distribution (DOA & warranty repair)
1.Tagging Printer Chassis prior to build
2.Gathering Key data during Build (Product DNA)
3.Materials level control using Tags
March 15, 2016
15
March 15, 2016
16
RFiD Tag at printer Chassis
Writing EPC & HP Serial
number in
RFiD Tag
Writing test results:
Building product DNA
Writing Country destination
Writing Pen expiration date –
Consolidating Product DNA
Building pallets
automatically controlled
March 15, 2016
18
Is RFID Worthwhile? - Yes
…. but it’s not always obvious as to why and
how. The key advantages are :
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March 15, 2016
Labor Savings
Process Accuracy
Inventory Accuracy
Proof Of Delivery
Improved Operational Data
Improved Operational Performance
Advanced Ship Notice ( Dispatch Advice )
Predictive Event Management
Common Shared Data
19
Is RFID Worthwhile? - Yes
• It is the combination of these factors which makes
RFID so powerful and worthwhile
• The most common mistake is to look at just one or
a few of them and decide that RFID isn’t worthwhile
• Barcodes took off seriously when folks realized that
benefits could be accrued by everyone throughout
the process chain
• Can’t get all benefits from the start up. You have to
make enough investment initially to cover a critical
mass of the process chain.
• Need to approach RFID as an enabling
infrastructure
March 15, 2016
20
Reva Background
Customers
Awards
Product of the Year
Standards
RFID Network Infrastructure
Facility-wide visibility
Redundant
Scalable
© 2006, Reva Systems Corporation
© 2008, Reva Systems Corporation
Slide 22
Slide 22
Reva’s Product Portfolio
Tag Acquisition Processor (TAP)
TAP 721
•Dynamic Facilities
•Up to 128 Readers
•Up to 1,024 read-points
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RFID Network Appliances
Accurate, reliable, location data
Reader system optimization
Facility-wide visibility
Redundant, scalable
Standards-based Interfaces
Reva Management Console (RMC)
•
•
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Site mapping and
configuration tools
RF Modeling
Facility virtualization
Scaled, automated
deployment
Single site management
and monitoring
TAP 331
•Remote Facilities
•Up to 8 Readers
•Up to 32 read-points
Reva Multi-site Manager (RMM)
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Multiple site management
and monitoring
Powerful alerts
Enterprise health views
Drill down to individual
sites
Network-wide reader
upgrades
Reva Platform Benefits for
Enterprise Customers
• Improves RFID performance
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More reliable reads and higher read rates
Most accurate location information
Continuous availability with fault tolerance and failover
Remote configuration, management and monitoring
• Provides a facility infrastructure that scales
– Flexibility to add fixed and mobile readers from different vendors
– Supports seamless integration with IBM, Oracle and other
applications
– Simply integrate additional applications
• Lowers facility Investment in the ROI equation
– Designed for rapid, repeatable deployments
– Choose the right mix of readers for the job
– Lower operations costs through swift problem identification and
resolution
© 2008, Reva Systems Corporation
Slide 24
Case Study – DHL & Metro France
Pallet Level Tracking at 5 DCs and 90 Stores
Customer Initiatives
•
•
•
RFID-enable all the Stores and
Warehouses
Pallet level tracking
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DC outbound shipping to stores
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Store goods receiving from DCs
The system should scale to support caselevel tracking in the future.
Customer Overview
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Metro is one of the larger retailers in France with 90 Cash &
Carry Stores.
The logistics and warehouses for the stores are managed by
DHL. There are 5 warehouses.
Total of 154 dock doors.
Aggregate traffic of 1.5 million tags per year.
The backend is Oracle based.
Customer Challenges
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•
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Multi-site management of the RFID infrastructure
The stores and warehouses are difficult RFID environments with
cross-reads and ambient tags. The backend systems depend on
100% ‘accurate’ RFID reads.
Ability to operate a diverse set of devices with real-time
implications: RFID readers, printers, lightstacks, buzzer.
Different networking setup (firewalls etc) in DHL warehouses
and Metro stores.
Reva Solution
•
•
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Reva TAP 701s at the DCs and 331s at the stores.
RMM for centralized management and monitoring
The entire workflow was developed by systems integrator
NBGID with Reva guidance and training.
Workflow developed by Partner
•
•
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Interface to backend
Operation of the lightstack, buzzers, control of gathering cycles
Additional filtering
25
Case Study – Manor
Pallet, Case and Item Level Tracking from DCs to Stores
Customer Overview
Customer Initiatives
•
Manor Stores operate in Switzerland
•
Automate the pallet, case and item
tracking from DCs to Stores.
•
Reduce errors
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Manor is the second largest retailer in Switzerland.
Total of 70 department stores and 2 DCs in Switzerland.
The first RFID phase involves 8 stores and 2 DCs.
Backend system is Oracle based.
Customer Challenges
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Very tough environment with RFID portals at close vicinity to
each other.
100% accurate reads required at binders and wrappers.
<100% but accurate reads required at the shipping and
receiving.
Introduction of RFID alters some of the processes – how to keep
it user-friendly and efficient.
Reva Solution
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Reva 331 for the stores, and 701s for the DCs.
Reva developed the workflow for this project.
Worked with systems integrator Rodata who delivered the endto-end solution including portals and project management
Workflow Development by Reva
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Backend interface with Oracle
Innovative filtering logic to tackle some special cases of
locationing requirements at the facilities
Process-related functionality
Iteratively developed through series of extensive testing and
learning
26
Case Study – Correos
Mail Quality and Asset Tracking using UHF RFID
Customer Overview
Customer Initiative
• Closed loop
• Asset Tracking: Roll Cages, carts & totes
• Mail tracking: Mail trays & bags
• Truck Load/Destination verification
• Mail Sort Verification
• Service Level Monitoring / Assurance
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National postal services for the country of Spain
Operates 100’s of mail depots and local community post offices
In the past - has used HF RFID tags to conduct modest quality
tracking through their distribution network
NOW – is implementing extensive mail quality and asset
tracking programs using UHF RFID tags, Gen2 Readers and
Reva RFID Network Infrastructure
Phase 1: 37 DCs with 207 portals.
Backend is IBM
Customer Challenges
•
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Reading all the trays in a roll cage can be difficult if there are
many trays in the cage and if the cage contains a lot of metal
Operating 10s or 100s of RFID readers in a facility can create a
lot of RF noise, thereby reducing read rates
Activity on adjacent dock doors may be hard to decipher since
the RFID readers will observe moving trays/cages and static
trays/cages
Reva Solution
•
•
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Reva 701s for the large DCs and 331s for the small ones.
Reva developed workflow logic to interface with IBM MQ over
proprietary XML.
End-to-end solution delivered by systems integrator Aida Centre
based in Spain
27
Case Study – Sony Logistics
RFID enhanced Order Processing and Shipment Verification
combined with Digital Video Recording
Customer Overview
Customer Initiatives
•
Sony consumer electronics distribution
center that serves northern Europe
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Tag and track cases during order
fulfillment, create video record proof-ofshipment with Tag ID’s embedded
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Automate shipment checking for
shipment accuracy
Reduce order and shipment errors,
prevent loss and lower claims volume
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Sony is known for high quality consumer electronics.
The Sony distribution center in The Netherlands ships
televisions, CD players, and other consumer electronics to retail
and wholesale customers in Germany and other northern
European countries.
Sony uses SAP for their warehouse management system.
Customer Challenges
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Needed to lower inventory shrink and lessen claims associated
with orders & shipments
Needed to streamline claims processing procedures
Implement RFID to improve accuracy and combined with Video
records to document proof of shipment for their claims process
Needed 100% RFID read rates on order pallets and zero cross
reads in order to create accurate video records
The distribution environment presents many RF challenges
Reva Solution
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A Reva TAP controls all 20+ RFID readers in the facility
The TAP determines which tags are actually in which locations
with 100% read rates, even at the 6 closely spaced shrinkwrapper- video recording stations while eliminating cross reads
During shipping operations, the TAP determines which tags are
being loaded on which trucks and presents visual feedback to
the load operators indicating good and bad pallets
Customer Benefits
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Reduced shipping process time by 4 hours on average per day
Eliminated overtime labor for all by peak-peak times
Increased order & shipment accuracy
Reduced shrink and claims
Reduced time to process claims
28
Actual ROI so far…
• Reduced shipping process by 4 hours
on average per day
• Eliminated overtime labor for all but
Peak-Peak times
• Increased fulfillment accuracy
• Decreased claims
Case Study – Dow Corning
RFID enabled WIP tracking, IT asset tracking & yard management
Customer Initiatives
•
Dow Corning Adhesives Plants in
Michigan and Kentucky
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Tag and track WIP and select
components used in chemical
manufacturing process.
•
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Tag and track IT assets (laptops,
servers, etc.)
Manage trucks and containers in the
yard with RFID for check-in/out and
storage
Customer Overview
•
•
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Dow Corning is a multi-national chemical and alternative
energy manufacturing company that is a joint venture
between the Dow Chemical and Corning.
Adhesives plants mix temperature controlled chemicals to
create individual products that are packaged and re-packaged
for use and sale.
Dow Corning uses SAP for ERP and manufacturing
execution.
Customer Challenges
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Handling hazardous materials & maintaining employee safety
Product quality is effected by temperature during production
and storage
Manufacturing environment is not RF-friendly
Reva Solution
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Interface with readers and portals
Aggregate RFID data
Determine accurate item location by work area and
temperature zone
Eliminate cross reads and false-positive reads
Push clean RFID data to multiple applications
Customer Benefits
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More efficient material handling / stream lined operations
Eliminated need to purchase additional equipment
Better labor planning resulting in labor savings
Inventory Management
Improved product quality
30
The Results
• It works (Avery Dennison, Motorola, Reva & Lowry)
• Lots of data created and analyzed
• Operators now rely on system feedback at critical
steps (they trust the RFID enhanced process)
• The business now depends on the data
• Dow is now tracking IT assets using the same
infrastructure at several plants
• Dow has added truck yard management at the
original plant (using UHF passive)
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Automatic check in / out at multiple gates
Eliminated the need to purchase additional equipment
Improved labor planning to unload trucks
Improved shipment visibility (transit time ‘holes’)
Thank You
Ashley Stephenson
Reva Systems, Chairman
astephenson@revasystems.com
Appendix
METRO Group
Case Study
Cash & Carry
Europe’s Largest Rollout
for RFID Enabled
Shipping and Receiving
at about 400 Stores and
Distribution Centers in
Germany
Hypermarkets
The world’s most complete,
standards-based, live
supplier-distribution to instore point-of-sale item level
RFID deployment
© 2008, Reva Systems Corporation
Slide 34
How Metro Deploys RFID
Applications
Enterprise Integration
&
Data Repositories
RFID Network Infrastructure
(TAPs)
Other
Applications
Runs
Centrally
at
MGI
Data
Centers
Installed
at all RFID
Facilities
*****
UHF Gen2 Readers
(fixed, portal, mobile, handheld)
Multiple
Vendors in
Stores and
Distribution
Centers
UHF Gen2 Tags
© 2008, Reva Systems Corporation
Many Tags
Slide 35
Retail Supply Chain Program
Sites
 About 70 Metro Cash & Carry and about 100 Real stores in
Germany (first phase, 2007)
 Additional 200 Real stores (second phase, 2008)
 15 Distribution Centers
Project Time
 Phase 1: July – September 2007
 Phase 2: March – July 2008
RFID
technology
 Fixed and Portal readers from Sirit, Intermec & Checkpoint
 Reva TAP 331s at Stores and TAP 701s at DCs
 IBM WebSphere integration at MGI Headquarters
Coverage
Areas




Process
Areas
Dock Doors at Distribution Centers
Dock Doors at Stores
Some Back to Front of Store Portals
Some Processing Zones
DC inbound goods receiving from suppliers
DC outbound shipping to stores
Store goods receiving from DCs and some direct suppliers
Some store tracking of goods backroom to front room
Some tracking of perishable goods (meat)
© 2008, Reva Systems Corporation
Slide 36
Distribution Center Operations
•Ensure the right goods loaded on right truck
•Give operator feedback in time if right or wrong
© 2006, Reva Systems Corporation
Slide 37
Store Operations
•Automatic goods receiving
•Some perishables tracking
•Backroom to front room tracking
Receiving Dock
© 20086, Reva Systems Corporation
Transition
Door
Slide 38
Item-Level Store Project
Store
 Galeria Kaufhof in Essen,
 Men´s Fashion, 3rd floor
Project start
 September 2007
RFID
technology
Coverage
Areas
Application
Objectives

60+ Passive transponders, fixed &
handheld from multiple vendors running the
LLRP interface, controlled by Reva TAPs

RFID-Readers at portals for incoming
goods, intersection areas, dressing rooms
and check-outs
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•
•
•
RFID Shelves, Racks, Fixtures
Changing Rooms
Point-of-Sale
Escalators, Elevators, Walls
Inventory Management
Customer Experience
Retail Analytics
© 2008, Reva Systems Corporation
Slide 39
3rd Floor with Antenna Positions
Key Data
64 readers
208 antennas
30,000 articles
500 product carriers
Cash Desk
Backstore
Fitting Rooms
Exit
Gardeur-Shop
Escalator/ Floor
Sales Floor
© 2008, Reva Systems Corporation
Slide 40
Store Set up in Reva
Management Console
> 60
readers
© 2008, Reva Systems Corporation
Slide 41
Why this Item-Level RFID
Deployment Matters ?
1. First standards-based item-level retail
deployment of its scale and it works
2. EPC standards compliant network
layered architecture
3. Heavy use of near-field UHF
4. Excellent systems performance in very
dense reader environment
5. Cutting edge consumer facing
applications
This was NOT possible until 2007
© 2008, Reva Systems Corporation
Slide 42
Many Read Points & Heavy Use of
Near-field UHF Deliver Consumer
Facing Applications
© 2008, Reva Systems Corporation
Slide 43
Also Reads at Point-of-Sale
© 2008, Reva Systems Corporation
Slide 44
Combined EAS with UHF for Loss
Prevention
© 2008, Reva Systems Corporation
Slide 45
The Benefits to Date
• Supplier Support: within 3 months > 40% of pallets
received at Markets were tagged
• Improved accuracy in shipments to the correct
Markets
• Improved shelf availability in Markets
• Increased frequency of stock taking in shelves in
Department Store = accuracy
• Better visibility of RFID operations centrally
• 1 Employee manages the RFID infrastructure
centrally for 100s of sites / 1,000s of readers
© 20086, Reva Systems Corporation
Slide 46