EPC – new identification technology
and applications in Europe
Stephane Pique
Agenda
2
•
Introduction GS1/EPCglobal
•
EPC Standards
•
Introduction EPCIS
•
RFID in Europe
•
EPC/RFID Business Cases
•
Retail in Europe
Introduction GS1
3
EPCglobal subscribers
4
•
Over 1000 Companies with $3 Trillion in Revenues
•
20 out of Top 31 Fortune 500
•
Over 390 out of Global 2000
•
Over 12 Major Industries and 51 industry segments
•
Over 350 Solution Providers
•
Over 3,000 global participants in standardisation process
EPCglobal membership in June 2007
June
2004
June
2005
June
2006
June
2007
Asia Pacific
21
117
173
199
Europe
36
87
166
221
Latin America
0
5
24
32
ME & Africa
2
3
13
19
North America
132
372
499
652
Total
191
584
875
1123
Each EPCglobal member joins once in the location of their head office
5
6
End User
Solution Provider
OTHER
SLOVAKIA
BELGIUM
RUSSIA
IRELAND
ITALY
TURKEY
NORWAY
SWEDEN
SWITZERLAND
SPAIN
DENMARK
AUSTRIA
POLAND
FINLAND
NETHERLANDS
HUNGARY
FRANCE
UK
GERMANY
EPCglobal membership in Europe
100
90
80
70
60
50
40
30
20
10
0
Agenda
7
•
Introduction GS1/EPCglobal
•
EPC Standards
•
Introduction EPCIS
•
RFID in Europe
•
EPC/RFID Business Cases
•
Retail in Europe
Electronic Product Code (EPC)
GTIN
1
2
3
4
5
6
7
1
3
1
2
3
4
5
6
3
4
5
6
5
8
Trade Item
Reference
Company Prefix
EPC
2
7
1
EPC Manager Number
2
3
4
Trade Item
Reference
GTIN
The EPC can only be interpreted in combination
with the corresponding data base
8
0000000123456
Serial Number
Network standards (Overseen by ARC)
Secure Internet Exchange
Event
Registries
EPC
IS
Internal Systems
ERP, WMS, etc.
Enterprise
System
9
ONS
Authentication &
Authorisation
Search &
Discovery
EPC
IS
EPC
MW
EPC
MW
EPC Gen2
Reader
EPC Gen2
Reader
EPC Gen2
Tags with EPC
EPC Gen2
Tags with EPC
Internal Systems
ERP, WMS, etc.
Enterprise
System
EPCglobal Standards Development Structure
Discussion Groups (no opt-in/IP and open to everybody)
Level 0
Aerospace
& Defense
Chemical
Automotive
Packaging
Requested Provision
Industry Action Groups (optional opt-in/IP)
Level 1
Retail SC
FMCG/AFF
HLS
CE
TLS
Information
Business Drivers and Use Cases
Joint Requirement Groups (opt-in/IP)
Level 2
Item Level
Tagging
Active
Tagging
Tag Data
Reusable
Transport Item
Data Exchange
Sensors &
Batteries
Cross Industry
Adoption & Implementation
Groups (no opt-in/IP)
Implementation
Sharing
Requirements
Technical Action Groups (opt-in/IP)
Level 3
10
Software
Action Group
Hardware
Action Group
Information
Adoption
Programmes
Agenda
11
•
Introduction GS1/EPCglobal
•
EPC Standards
•
Introduction EPCIS
•
RFID in Europe
•
EPC/RFID Business Cases
•
Retail in Europe
Supply chains are simple… right?
•
•
12
Even “Simple” supply chains have multiple touch points and handlers
before reaching a final destination.
Complex supply chains, with multiple product owners, have a greater
need to locate products and ensure they were sold through the
proper channels.
EPCIS provides visibility
13
•
When can I expect my product delivery?
•
Where did my product come from?
•
Can the chain of custody be trusted?
•
Where is my product located now?
•
Was my product sold and distributed via the expected channels?
•
Have counterfeit products entered the supply chain?
•
Has the product been authenticated?
•
Have the products reached the needed intermediate locations?
•
Where are the products in the lot that I need to recall now?
•
And many more…
What is EPCIS?
•
EPCIS = EPC Information Services
•
A new EPCglobal standard
•
14
•
Data model for events in life of uniquely identified objects
•
Interfaces for capture and query of events
•
Ratified 12 April 2007
Industry and application agnostic
•
Cross-industry framework
•
Cross-industry and industry-specific vocabularies and extensions
•
Supports GS1 EPC and converted GS1 barcodes
•
Communicates via GS1 XML standard
Network standards (Overseen by ARC)
Secure Internet Exchange
Event
Registries
EPC
IS
Internal Systems
ERP, WMS, etc.
Enterprise
System
15
ONS
Authentication &
Authorisation
Search &
Discovery
EPC
IS
EPC
MW
EPC
MW
EPC Gen2
Reader
EPC Gen2
Reader
EPC Gen2
Tags with EPC
EPC Gen2
Tags with EPC
Internal Systems
ERP, WMS, etc.
Enterprise
System
What is EPCIS data?
What
Where
• Location (can be fixed or moving - leverage master
data - GLN)
When
• Event Time
• Record Time
Why
16
• EPC number (can leverage master data - GTIN)
• Manufacturing Data (lot, batch, expiration date)
• Transactional Data (PO, Shipment, Invoice)
• Business Process Step - e.g. Receiving, Shipping
• Product State - e.g. Saleable, Active, In Transit
• Current Conditions - e.g. Temperature
Core EPCIS event types (1/2)
•
Object Events
Observation of a collection of EPCs during business step at a
location & time:
This list of objects was observed entering DC #9 at 10:01AM, during
Receiving
•
Aggregation Events
Physical association of a set of EPCs with a parent EPC along with a
business step at a location & time:
This list of objects was just Palletized with this Pallet ID at Palletizer #27
at 12:32PM
17
Core EPCIS event types (2/2)
•
Quantity Events
Statements about an object Class (not individual objects), a quantity,
a location & time:
There were 200 bottles of Brand X cola in store #4123 backroom
at 3:20PM
•
Transaction Events
Records objects associated with a business transaction:
Order number 123 was fulfilled with objects x, y and z
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How does EPCIS data sharing works?
EPCIS instances at each enterprise communicate
via the EPCIS Query Interface
Query
Query
Query
Query
Query
EPCIS
EPCIS
EPCIS
EPCIS
EPCIS
Capture
Capture
Capture
Capture
Capture
Manufacturer
3PL
Customs
Carrier
Importer
Today, trading partner know each other
In the future Discovery Services will find
the corresponding partners
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Example EPCIS analysis in Pharma
20
Agenda
21
•
Introduction GS1/EPCglobal
•
EPC Standards
•
Introduction EPCIS
•
RFID in Europe
•
EPC/RFID Business Cases
•
Retail in Europe
Major challenges in Europe for passive RFID
• The maturity of passive RFID technology is still not sufficient for many
applications. It still requires significant effort to develop solutions that
meet specific requirements. Using passive RFID for baggage tracking
for example requires different tag and reader design from tracking
pallets in a warehouse. It simply takes time for the industry to develop
these application-specific solutions.
• European regulations did it difficult to use many UHF readers in lose
proximity. This has clearly been a major issue for companies such as
Tesco and Metro in their supply chain implementations.
• Current implementation costs remain prohibitive for many business
cases. Despite recent cost reductions, especially in tag prices, many
business applications will only take off at lower hardware prices.
• The distribution of costs and benefits between companies in an open
environment remains complex. This has clearly been a problem in the
retail and consumer goods supply chain.
Source: BRIDGE report, European passive RFID Market Size 2007-2022, Fevruary 2007
22
Passive RFID Market Europe in 2007 & 2012
Source: BRIDGE report, European passive RFID Market Size 2007-2022, Fevruary 2007
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Agenda
24
•
Introduction GS1/EPCglobal
•
EPC Standards
•
Introduction EPCIS
•
RFID in Europe
•
EPC/RFID Business Cases
•
Retail in Europe
Barcode business case
•
The 1975 barcode business case proved to be too conservative
•
Final benefits were double than anticipated
•
Final costs were half than anticipated
Soft Benefits
Percent of Sales
0.2% to 3.4%
- Faster check-out
- Reduced check-out errors/loss
- Prevention
- Elimination of price marking
Costs
-2.5% to -1.3%
1975
(McKinsey)
25
Hard Benefits
3.1% to 3.5%
- Automatic reorder
- Shrink control
- Improved warehouse operations
- Improved DSD control
- Inventory reduction
- Sales increase
1997
(PwC)
Source: Ahold
RFID business case
•
The RFID business case could also be too conservative (?)
•
Final benefits could also be double than anticipated (?)
•
Final costs could also be half than anticipated (?)
Percent of Sales
Soft Benefits
Hard Benefits
Costs
Today
26
Future
Drivers and benefits
Increased
Outcome
Higher
Quality
Hard
Benefits
Tracking
Traceability
Control
Automation
Increased
Visibility
New
Service
Reduce
Cost
Increase
Security
Generate
Value
Fulfill
Require
ments
Authentication
Law
New
Product
Feature
CRM
Soft
Benefits
27
Mandate
© Stephane Pique
Shelf visibility
RFID data captures additional OOS
above what retailer reported
What is the True Out-of-Stock?
8.0%
7.2%
No RFID Data.
Only Retail
OOS Report
0.9%
6.0%
2.7%
4.0%
2.0%
3.6%
3.6%
0.0%
OOS Without RFID
Reported Store OOS
28
OOS With RFID
Floor OOS
Additional Store OOS
3.6% additional OOS
found with RFID
Product placement analysis
29
Retail promotions
Manufacturing
•
•
•
Retailer’s
Distribution
Center
Retail
Store
Give unique EPC to each case of promotion-packaged item,
on RFID tag
Equip facilities with RFID readers: loading dock doors, trucks,
retail back-room door, dumpster
Can now measure & drive promotion:
•
•
30
Mfr’s
Distribution
Center
Timeliness: is promotional packaging reaching consumer in time?
Effectiveness: is promotional item selling better?
RFID benefits at METRO Group
•
Increased process efficiency by 12% to 17%
(incoming merch. and shelving)
•
Reduction of loss/theft by 11% to 18%
(depends on category)
•
Increased goods availability by 9% to 14%
(reduction OOS)
•
Incoming goods cost reduction of € 8.5mio
(German estimation only)
31
Agenda
32
•
Introduction GS1/EPCglobal
•
EPC Standards
•
Introduction EPCIS
•
RFID in Europe
•
EPC/RFID Business Cases
•
Retail in Europe
Ahold
33
•
Roll out of RTI for Pharmacy Supply Chain
•
Roll out of Crates Identification within Ahold SC
•
Proof of concept with Roll Cages
•
Proof of concept with Crates for Fresh Food in open system
•
Feasibility study with SRS pallets in open system
Carrefour
•
Pilot planned with games CD and software CD involving
one store and warehouse
•
Trial planned to track and trace tagged pallets between
DC and store
•
34
Planned trial on item level in Belgium
DELHAIZE
•
Reusable plastic containers (RPCs) are valuable assets
•
Tracking of these assets is a costly activity
•
RPC can be tagged and tracked like items within the
supply chain
•
RPC are owned by Delhaize and therefore the full scope
of the project is under control
35
METRO Group
•
Roll out in October 07 with with 150 suppliers, 180 stores
and 10 DCs for incoming and outgoing goods
•
Promotion execution excellence tests in 3 stores
•
Pilot in October at one of the men department at Kaufhof
to tag items
•
Test with RFID enabled forklifts and RTIs
•
Feasibility study with sensor based temperature tracking
of cool chain
•
36
Prototype at order picking
REWE Group
•
Roll out with 150 suppliers by tagging trolley and pallets
involving 500 stores and one DC
•
Pilot to track and trace RTIs from slaugther house up to
store
37
TESCO
•
High value items (razor blades) on smart shelves
•
Entertainment (DVD’s) on smart shelves
•
Trial with 37 stores and one DC in Ireland involving 70k
cages for tracking of the loading and delivery to store
•
38
Trial of asset tracking with milk supplier
Contact details
Stephane Pique
European Director EPC/RFID
M +49 163 771 2938
E stephane.pique@gs1eu.org
W www.gs1eu.org and www.epcglobalinc.org
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