& Oracle Sensor-Based Services July, 2004 David Wertheimer Product Manager WMS & MSCA Applications.

& Oracle Sensor-Based ServicesJuly, 2004

David WertheimerProduct Manager

WMS & MSCA Applications

Why talk eBusiness Suite?

Technology alone does not deliver the value– ROI from RFID only available from improved or new business flows

Fully integrated solution– Core value proposition is completely integrated technology– “Built-in, not bolt-on” resonates with customers

Oracle has the vertical expertise– Engage customers with both apps and technology sales teams– RFID is often just a door-opener– Educate yourself on the business flows to build credibility

Bring customer experience back to applications– Share new use cases that help elevate our products

Your Company Customers/Suppliers

Distribution CentersExecutionPlanning

Reliable information - Fast planning cyclesStrongly reduced expeditingOptimal contract utilization - Reduced cost

V

Single,integrated

system

Carriers

Oracle’s Logistics Vision

Internet

Workflow-based Exceptions

Productivity enhancing UI

Integrated: load consolidation, tendering, tracking/tracing, wave planning, pick, pack

Portal Portal Portal Portal Portal

Comprehensive Logistics SolutionEnables Cross-Functional Process Optimization

OracleTP* & SCEM

(Plan & Monitor)Oracle WMS

(Store & Manage)

OracleShipping & Transportation

(Move & Track)

Stage &Cross Dock

DynamicRerouting

& Drop Ship

InventoryOptimization

Supply / Demand Matching

This presentation does not reflect a commitment to deliver.Product directions can be modified without explicit notice.

RTVs OrdersTransfers

RTVs OrdersTransfers

RMAs PurchasesTransfers

RMAs PurchasesTransfers

PlanPlan ManufactureManufacture FulfillFulfillProcureProcure

SeamlessIntegration

TailorableTailorableRules &Rules &

Workflow Workflow ProcessProcessGlobal VisibilityGlobal Visibility

RF SupportRF Support

DirectedDirected Putaway Putaway InspectInspectReceiveReceive

ShipShip PackPack DirectedDirected Pick Pick

CostCost

AssembleAssemble

WIPWIPIssuesIssues

TransferTransferCountCount

MoveMove

ReplenishReplenish

LabelLabel

Oracle Warehouse Management A Built-in, Highly Efficient and Flexible WMS

LPN’sLPN’s

MoveMove

Integrated mobile support– RFID can be used alongside RF– Gain benefit of RFID tags in business flows if present

Multi-level license plating– Each case & pallet can have a unique “serial number” or LPN– Cases can be of mixed goods or single item

Integrated label printing– Automatic RFID support

Oracle Warehouse ManagementBuilt on solid technology & robust functionality


A23595P

|| || | ||| ||| ||LPN 123

LPN 456LPN 789}

WMS XML

WMS Core

Printers & Response Devices•Label / RFID label / report printers•Light Stacks, Buzzers, & Message Boards

Warehouse Device IntegrationHighly Efficient Processes Depend on Automated Equipment


Storage•Automated Storage / Retrieval Systems•Carousels•Pick-to-Light

Data Transfer•Scales & dimensioning devices•RFID & Barcode Capture

Material Movement•Conveyors / Diverters & Monorails•Automatic Guided Vehicles•Sortation Devices

RFID-Initiated Shipping & ReceivingBuilt-in integration to Oracle Application Server

(1)(1) Load of pallets and / Load of pallets and / or cartons with RFID or cartons with RFID tags on eachtags on each

(2)(2) Drive load Drive load through RFID through RFID Reader in Reader in Receiving DockReceiving Dock

(3)(3) Interface to readers, Interface to readers, clean and filter data, clean and filter data, then pass IDs to then pass IDs to applicationapplication

(4)(4) Access objects Access objects associated with the ID's associated with the ID's (e.g. LPN's on ASN) then (e.g. LPN's on ASN) then raise correct Business raise correct Business EventEvent

Oracle ASOracle ASEdge Edge

Server Server

RFID Event RFID Event ProcessorProcessor

(6) Process the (6) Process the Business Event, Business Event, e.g. Receipt of e.g. Receipt of pallet or cartonpallet or carton

(5)(5) Access associated Access associated source document, source document, e.g. the PO’s ASNe.g. the PO’s ASN

Application Application APIsAPIs

(7)(7) Confirm success or Confirm success or failure, e.g. trigger failure, e.g. trigger green light or sound green light or sound buzzerbuzzer

(8)(8) Putaway, rescan Putaway, rescan or divert or divert materialmaterial

ResponseResponse& Exception & Exception

HandlingHandling


11.5.10

WM

S

Flow Without RFIDThree Mobile User Interactions Required

Mfg Completion & Label Printing

Direct ShipStandardReceipt

W1 W2

Flow With RFIDOne Mobile User Interaction Required

Mfg Completion & Label Printing

Direct ShipStandardReceipt

W1 W2

Automated by virtue of moving RFID-enabled pallet through RFID reader portals

FutureFuture

OpportunitiesOpportunities

Need to increase differentiation and competitive advantage. Example: Manufacturers need to quickly incorporate RFID to respond to retail mandates.

Need to increase productivity. Example: RFID allows for the elimination of manual barcode scanning for inventory tracking.

Need to increase supply chain visibility. Example: A retailer can reduce out of stock situations by RFID enabling their store shelves.

Need to Minimize costs. Example: RFID can pinpoint exactly where a manufacturing process broke down and can minimize the amount of product pulled back for a recall.

Need to maximize return on assets. Example: In the healthcare environment, a hospital can track expensive assets (medical equipment, wheelchair, etc) at any point in time, anywhere in a hospital.

Need to prevent theft, fraud and counterfeiting. Example: The pharmaceutical industry is said to lose approximately 2-7% of their profits per year from counterfeited drugs. RFID can eliminate counterfeit products with ID for each bottle.

Need to reduce risk and liability. Example: The cattle industry can minimize their risk

associated to health outbreaks related to meat by using RFID to track their livestock.

Potential Business Benefits

SCE Potential Business Benefits

Real benefits from frequently performed operations– Remove opportunity for human mistakes– Remove non-value added work (i.e.: system interaction)– Improve asset tracking

Integrated RFID ComplianceBuilt-in compliance to mandates

Future: WMS

WMS 11i10 does not meet compliance mandate– Requires Compliance Assistance Package

WMS and other apps have all data required for EPC– Pallet manifest, GTIN, SSCC, …– Natural extension to automatically generate EPCs during flow


Apply at Manufacturing Apply at Picking

Packing VerificationCatch Potential Errors Immediately

Distribution Center

Future: WMS

Hundreds of items look similar– Size 9 vs. Size 10; Semi-conductors; …

Mistakes easy to make & costly to correctExtension of 11i10 shipping flow

Pick Pack & Auto-Verify Ship


Immediate Identification of Returned GoodsImprove Asset Tracking & Speed Returns Processing


Distribution Center

Difficult or impossible to rely on barcode– Barcode / label damaged in-transit– Goods repacked differently & labor intensive to find serials

Customer cannot be credited until material identified

Return Initiated Identify Returned Material

Drivers of returns Shipping error Customer error Returnable asset

– Pallet / packaging– Rental equipment

Future: WMS

Non-Repudiation of ReceiptReduce Outstanding Accounts Receivables


Apply Tags at PalletizerStandardReceipt

Manufacturer Distribution Center

RFID tags read at external organization shared with supplier– Customer cannot deny time & date of receipt

Extensions of 11i10 shipping & receiving flowsTags on every item & reader at dock door

Future: WMS

Automated Internal MovementsReduces Manual Data Entry & Automatic Validation

Distribution Center

Operator directed by mobile computer or text-to-voice– Need not confirm movements in system– Automatic error verification

Readers at shelf & tags on each pallet, case, or item

Bulk Storage Case Storage

Drivers of internal movements Replenishment Feed manufacturing line Re-slotting


Future: WMS

System always aware of actual on-hand– Operators not sent to find material that is not there

Immediate notification of discrepancies over threshold– Reconciliation becomes easier

Tags on every item & reader at dock door

Continuous Inventory UpdateEliminate Need for Cycle & Physical Counting


Manual Process

Count Research

Automatic Process

Operator error Immediate Update

Future: WMS

Automated Pick / Issue to ProductionIncludes Recording of Lot, Serial, Attributes


Future: Mfg

Automatic Process

Tracking each component issue cumbersome– Cumbersome to record item / lot / serial

Can be automated with RFIDTags on every component and reader at each operation

ComponentSupply

Mfg. LineComponentSupply

Mfg. Line

Issue Manually Recorded Issue Automatically Recorded

Manual Process

Automated Operation Move TrackingEnables Automation as Assemblies Progress through the Factory


Manual Process

Op 10 Op 20

Move TransactionRecorded on Mobile Device

Automatic Process

Op 10 Op 20

Move TransactionAutomatically Recorded

Tracking each operation completion or “move” cumbersome– Sometimes not done at all– If critical, done on mobile device or desktop user interface

Can be automated with RFIDTags on every traveler or assembly & reader at each operation

Future: Mfg


Automated Work Instruction DisplayBased on Assembly Arrival at Work Station

With lines set up for flow mfg, consecutive assemblies may differ– Detailed assembly instructions need to be displayed to operators

Operators currently scan / enter each assembly to display instr. Can be automated with RFID Tags on every traveler or assembly and reader at each operation

Work Work Instructions Instructions Displayed Displayed

AutomaticallyAutomatically

Future: Mfg


Automated Assembly CompletionIncludes Recording of Lot, Serial, Attributes, etc.

Completion Completion Transaction is Transaction is

RecordedRecorded

Last Operation Multiple “Critical”Components in Assb’ly

Delivery to FGIAutomated

Assembly “genealogy” often tracked– Component often have serials that must be linked to assembly– Manual capture of these cumbersome & error-prone– Automate genealogy capture by RFID

Delivery of end-assembly to Finished Goods Inventory automated Tags on components & assembly and reader last operation

Future: Mfg

Components and Components and assemblies on the assemblies on the factory floor have factory floor have RFID tags on eachRFID tags on each


Perpetual Record of Material in WIP

System always aware of actual on-hand– Full visibility to downstream operations for better assembly coordination

Tags on every item & reader at strategic points in the factory

Future: Mfg

Enterprise Asset Management– Tracking assets in environment with poor controls (i.e.: hospital)– Storing service records in mini-database on product

Oracle Process Manufacturing Oracle Time & Labor RFID use cases still being defined

– Bring customer requests to product team– Log enhancement requests to raise visibility

Sensor Based Services can RFID-enable any flow– Integration to reader, filter, device management provided– Business logic linking data to application flow all that remains

Other Applications

Future


wmsnet_us & wmssup_us mailing lists– Issues specific to WMS use of RFID– WMS functional & technical / support mailing lists

rfid_help_us mailing list– Issues specific to Edge Server / Application Server RFID

logistics.us.oracle.com– WMS TOI including release notes, demos & positioning presentations

rfid.us.oracle.com– RFID TOI including extract of RFID-specific material from WMS

Resources


AQ&Q U E S T I O N SQ U E S T I O N S

A N S W E R SA N S W E R S

& Oracle Sensor-Based Services July, 2004 David Wertheimer Product Manager WMS & MSCA Applications.

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