Post on 08-Apr-2017
RFID for Carton Tracking
BJ FavaroTechnical Leader
September 2014
Factory of the Future Program - Supply Chain Operations
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Previous Challenges to RFID
CostPerformance &
ReliabilityStandards
Partners not interestedCisco mandate
DecreasingNow at 99.9%Global standard definedPartners engaged/doing their own workCollaborate for mutual benefit
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How RFID Can Help Cisco
Component
SuppliersGlobal Hubs
PCBA Sites
Direct Fulfillment Sites
Service Logistics Centers
Customers
Reverse Logistics Centers
Service Repair
CentersService Depots Scrap
Shipping & Receiving automation X X X X X X X X X X
Inventory management X X X X X X X X X X
Asset tracking X X X
WIP visibility X X X X X
WIP automation X
Process control X X X X X
Traceability X X X X X X X X
Increase data accuracy, increase productivityReduce out-of-stock, reduce shrinkage, increase productivityReduce capital cost, improve financial compliance, increase
productivityUpdate customers, quantify bottlenecks
Streamline processes, increase productivityDetect and report process errors
Automate data collection, improve purge/ECO/UMPIRE accuracy
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Objective of RFID for Carton TrackingAdd RFID tags to cartons at DF sites to:
• Automate shipping & receiving at DF sites and SLCs• Execute faster, more accurate inventory audits• Reduce shipping errors
Business benefits:• Increase partner productivity to reduce partner & Cisco cost• Improve planning & fulfillment• Reduce customer complaints
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RFID label printer and encoder
Product line
DF Packout
RFID fixed reader portal
RFID handheld readers
Warehousing
RFID fixed reader portal
DF Outbound/SLC
Inbound
DF/SLC Outbound
Packscan & Pallet Load Outbound
Loading docks
RFID fixed reader portal
Truck load
Truck load
RFID fixed reader portal
......
Product line
Product line
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RFID Packout Demo @ FTX
Videohttp://videosharing.cisco.com/p.jsp?i=9703
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Packout station equipment = $9,300 X 161 linesInbound/outbound portal equipment = $11,050 X 91 stationsTraining & misc equipment per site = $10,500 X 27 sitesPartner systems integration cost = $100,000 X 7 partners
Total cost = $4,072,000
What Would It Cost to Implement?
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How Many Times Are Cartons Scanned?Direct
FulfillmentOrigin SLC Destination
SLCCustomer
Route A61% of cartons shipped
Route B5% of cartons shipped
Route C19% of cartons shipped
Route D15% of cartons shipped
Scan outbound shipment
Scan outbound shipment
Scan outbound shipment
Scan outbound shipment
Scan outbound shipment
Scan outbound shipment
Scan inbound shipment
Scan inbound shipment
Scan inbound shipment
Receive inbound shipment
Receive inbound shipment
Receive inbound shipment
Scan outbound shipment
Scan outbound shipment
Scan inbound shipment
Receive inbound shipment
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What Does It Cost To Manually Scan at SLCs?Process Cost
Physical Receiver $ 1,799,616.00 Inbound Receiving $ 6,271,200.00 Cycle Count $ 514,252.00 Physical Inventory $ 108,864.00 Lost Carton Search $ 223,800.00 Outbound Scanner $ 6,614,400.00 Grand Total $ 15,532,132.00
• Cost of labor from 4 of 8 SLCs• Does not include DF sites• Does not include Cisco resources to respond to deviations, or cost to Cisco for
rebuilds
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FY15 Q3 (Proposal)
2nd Phase :- Other DF sites
:- Sites name are TBD
Other SLCs :- Sites Name are TBD
Time
Capa
bilit
ies
Roadmap
FY15 Q1FY15 Q2 (Proposal)
1st Phase:- One DF and One SLC Site Pilot release to put the RFID on the Carton. Program Caron id as RFID.
• Add the RFID/Carton id in the ASN/4B2/3B2 and 3B3 messages
• Replicate the RFID/Carton id and location in the SAP Hana
• Report to show the end to end tracking of carton based on RFID.
FY15 Q4 (Proposal)
3rd Phase :- Remaining DF sites :- Sites name are TBD
Remaining SLCs :- Sites name are TBD
BTS sites( Pallet level implementation)(FVE,IML, SHK, SEL) .
Scoping and Planning
FY16 Q1 (Tentative)
Align with Cloud Solution :- TBD
FY16 Q2 (Tentative)
Collect the data Using Autotest Cesium:- TBD
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Risks
Description ActionPartner productivity improvement may not automatically reduce Cisco cost
Work with partner managers and partner to agree in advance cost reductions based on agreed upon productivity improvements
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Resources to refine cost and benefit estimates, and create implementation plan
Request to Move Forward
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Arvato DF sites that ship software only (Dublin-BV, Wville-INC) Changes to Cisco software or systems Improvements to Universal Order Visibility
Out of Scope