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University of AkronRFID in Cross-Enterprise LogisticsJoe Dunlap
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Siemens Overview
Corporate Departments
Managing Board
Operations
Regional organizationRegional offices, regional companies, representative offices, agencies
Corporate Centers
Corporate Communications
Corporate Information andOperations
Chief Economist /Corporate Relations
Global Procurement andLogistics
Management ConsultingPersonnel
Automation and Control
Automation and Drives
Industrial Solutions andServices
Siemens Logistics & Assembly
Siemens BuildingTechnologies
Power
Power Generation
Power Transmission andDistribution
Transportation
Transportation Systems
Siemens VDO Automotive
Medical
Medical Solutions
Lighting
Osram Corporate Finance
Corporate Personnel
Corporate Technology
Corporate Development Siemens Financial Services
Siemens Real Estate
Siemens Business Services
Information andCommunication Networks
Information andCommunications
Financing and Real Estate
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MOBY Portfolio
MOBY V 433 MHz
MOBY I
134 kHz /
1,81 MHz
MOBY F
125 kHz
MOBY E
MOBY D
13,56 MHz
MOBY U
2,45 GHzMOBY R
Planned
UHF
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Siemens Partial RFID Clients Listing
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Broader Siemens RFID Product Portfolio
POLYIC
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Warehouse logistics
Closed Loop RFID Applications Using Siemens
Material flow Production plants
Distribution logistics FreightAssembly lines Transportation/Traffic
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Quelle Distribution CenterLeipzig, Germany
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MOBY Examples
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Patient tracking at New York Central Bronx Hospital
• Patients are equipped with RFID wristbands for short-range tracking (entrance, …)
• Patients are equipped active RFID watches for open field tracking
• 13.56 MHz chips with• ID#• Name• Link to medical records• Secure access to patient data (PKI)
• Antennas at doors and floors
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Understand the Retail Visibility Value Proposition…
SuperStorePOS
ReceivingShipping
Picking Routing
Sorting
Distribution Center – Supplier
Today with Barcodes
SuperStorePOS
ReceivingShipping
Picking Routing
Sorting
Distribution Center –Supplier
Tomorrow with RFID
ReceivingBackroom Storage
CompactorFloor Portal
Current visibility gap between Shipping & POS
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Auto-ID Center Town Test
• Today many retailers only do carton counts at the store
• Receiving dock pallet or carton level reads
• Automatically and systemically reconcile against DC manifest
• Improved visibility and accountability
Store ReceivingStore Receiving
Source: AutoID Center Town Test
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Auto-ID Center Town Test
• Today many retailers can not locate stock on hand
• Back room reader & antennas carton level reads
• Improved visibility, reduced store labor and reduced stock-outs
Source: AutoID Center Town Test
Store BackroomStore Backroom
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Auto-ID Center Town Test
• Today many retailers can not locate stock on hand
• Backroom to floor antenna carton level reads
• Improved visibility, reduced stock-outs
Store BackroomStore Backroom
Source: AutoID Center Town Test
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Auto-ID Center Town Test
• Empty corrugate confirms all items are in fact on the floor
• Information could be integrated with POS to close visibility loop
Carton CompactorCarton Compactor
Source: AutoID Center Town Test
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Understand the Retail Visibility Value Proposition…
SuperStorePOS
ReceivingShipping
Picking Routing
Sorting
Distribution Center – Supplier
Today with Barcodes
SuperStorePOS
ReceivingShipping
Picking Routing
Sorting
Distribution Center –Supplier
Tomorrow with RFID
ReceivingBackroom Storage
CompactorFloor Portal
Current visibility gap between Shipping & POS
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The Need for Open Loop Systems
Raw material
s
Raw material
sdelivery
Order Deliver
yStore
Consumer
Production
Distribution
Center
FG Deliver
y
CSA: Chip Sharing Approach
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Phases of RFID Deployment
Source: Gartner Research 2003
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Kaufhof AG / Gerry Weber
• Kaufhof AG – German based retailer• Gerry Weber Shops at Kaufhof’s exclusive Galleria
stores• 149 Shops in Belgium & Germany• Gerry Weber textiles tracked along the whole supply
chain• Pilot conducted from supplier, Gerry Webber through
logistics, Meyer & Meyer Logistics & Kaufhof
• Project Overview• Objective for field trails to assess the utility of thorough
tracking of goods and assess the benefits derived from it• Contact free and multiple reading• Minimize transport “losses” & shrinkage• Speed up processes• 20,000 chips per store• Due to privacy concerns chip removed after sale !
(See video reference)
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Kaufhof Video
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Many organizations are moving toward EPC requirements & cross-enterprise RFID
FDA Endorses RFID Technology
In its final report on ways to reduce the counterfeiting of drugs, the U.S. Food and Drug administration says RFID could play an important role in anticounterfeiting strategies beginning next year.
Feb. 18, 2004—The U.S. Food and Drug Administration released its final report today on ways to reduce the counterfeiting of prescription drugs. The report’s recommendations include the use of RFID technology to create a "pedigree"—a secure record documenting that the drug was manufactured and distributed under safe and secure conditions.
Target Issues RFID Mandate
BREAKING NEWS: The retailer plans to require suppliers to put EPC tags on pallets and cases beginning in late spring 2005.
Feb. 20, 2004—Target, the fourth largest retailer in the United States, has told its top suppliers that they will be required to apply RFID tags on pallets and cases sent to "select" regional distribution facilities beginning late spring 2005. The company wants all suppliers to tag pallets and cases by the spring of 2007.
* Other European organizations not listed
Best Buy to Deploy RFIDThe consumer electronics retailer says it will require suppliers to use Electronic Product Codes on pallets and cases beginning in January of 2006.By Mark Roberti
Aug. 31, 2004—Best Buy announced today that it plans to deploy Electronic Product Code technology to increase its supply chain efficiency over the next several years. The Minneapolis-based consumer electronics retail chain will require its major suppliers to begin applying EPC-compliant tags to product cases and pallets by Jan. 2, 2006. It expects to have all cases and pallets from all suppliers tagged by May 2007.
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Understand the Impact of RFID on YOUR Business
Clear away the ambiguity created by conflicting messages around RFID to assess the potential impact of RFID on your business as an enabling technology
More coming soon…
Your Company
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XYZ Supplier RFID Volume Analysis
Illustrative
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XYZ Supplier RFID Volume Analysis
% Tagged to Total Volume
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20,000
40,000
60,000
80,000
100,000
120,000
140,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Qtr
Ctn
Vo
l Other
TGTvol
WMTvol
Illustrative
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Recognize That Benefits Won’t Come Without Process Change
Auto Read,Print & Apply
Manual SKUIdentification
(Scan or Read)
Create Labels
Apply Labels
• Begin to determine how processes, equip, inventory, people & information flows can be improved with RFID…
• Consider events and information not captured by barcodes today, what's it worth to your organization
• Redefine Processes
• Measure Improvements
Illustrative Example: Receiving Process
Consolidate into single
event
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Understand the Factors Affecting the Performance of RFID Systems
• Environment• Know the effect of your supply chain environment on radio wave properties such
as:• Freezer / High heat• Humidity• Noise
• Products• The limiting factors of your products or packaging such as:
• Density• Temperature
• Technology Selection• Know the different properties of different RFID technologies with regards to:
• Passive vs. active• Frequency• Memory size• Communication Protocols (EPC Class 0, 0+, 1, 1.1, ANSI, ISO)
• Data reading / writing abilities• Data navigation speed
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Focus on Short-Term Requirements & Benefits With An Eye Toward Longer Term Opportunities
Long-Term
Short-Term
ImplementationPilot
Strategy & Assessment
ImplementationPilot
Phase 1 Strategy & Assessment will determine the appropriate strategies to meet both short & long-term business needs, perform readability tests, develop a business case and proof of concept.
Phase 2 Short-Term, based on Assessment recommendations and business case, will pilot & implement RFID application opportunities necessary to be compliant with customer demands while driving value.
Phase 3 Long-Term will review Assessment recommendations to pilot and implement more strategic RFID applications beyond customer compliance.
Two-pronged approach spearhead by a comprehensive strategy
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A Sound Business Case Should Be Developed in the Strategy & Assessment Phase
Baseline Assessment Business Case DevelopmentApplication Development
Baseline Assessment will seek to provide a defined baseline for operational assessment and application comparison, and to identify operational areas holding improvement opportunities.
Application Development will combine assessment synergies to identify potential application opportunities, KPI’s, and solution design.
Business Case Development will analyze costs and benefits, determine TCO and ROI, and prioritize applications based on risk and value to finalize the business case.
Pre
-lau
nc
h P
ha
se
Prepare
■ Finalize scope requirements
■ Issue data request.
Proof of Concept
Quantify Benefits &
Costs
Business Observation
and Data Collection
Operations Assessment
Design Tactical and
Strategic Solutions
Identify Key Inputs
Finalize the Business Case
Generate Potential
Applications
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Sponsor Review
Executive CommitteeReview
Educational Workshop
Product Tests
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Questions
Siemens One, Inc.
4705 Duke DriveMason, Oh 45040Phone: 513-336-1197Fax: 770-225-5624
Joe D. DunlapSenior Business Development Manager
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