AiDC Solutions Limited 1 Is this the right time to incorporate RFID technologies into your...

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Is this the right time to incorporate RFID technologies into your business?

What is the ROI?’

David MyersCEO AiDC Solutions LimitedChairman AIM UK

Prague – 30th March 2011

AiDC Solutions Limited www.aidc-solutions.co.uk

• Calculating ROI• RFID Diagnostic• Real-world examples

Agenda

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Define the business process• Inputs, Activities, Outputs

• Define the Costs of the Activities• Time, People, Objects, Space

Technology Options

In Supply Chain we look at:• Receiving/Raw Materials• WIP• Shipping

‘There is no ROI with RFID’

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Consider what RFID DOES not what RFID IS

RFID is a technology which improves visibility

Closed Loop Supply ProcessASNs, Production Scheduling, WIP, inbound/outbound logistics, Resource Utilisation

Open Loop Supply ProcessWIP Flows, Inventories, Safety Stock, Storage

Value is the elimination of cost in the forms of time, unnecessary manual work, equipment, surplus inventories or space.

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Vehicle

Container

Pallet

Tote Bin

Case

Singles

Vehicle

Container

Pallet

Tote Bin

Case

Singles

Diagnostic Matrix

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Pallet Tagging

Reusable

Low Cost

Automatic Pallet Reading

Labour Savings

Read/Write

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Low Cost (Under 70 cents)

Robust

Reusable

Automatic Tote Reading

Labour Saving

Good Payback

Robust

Tote/Tray Tagging

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Metal

Fluid / High % Water

Wood /Paper

Not reusable

Cost of the tag becoming very significant

Buried Tags in pallet not readable

Multi Tag reading

Product and Packaging Material

Case

Case Tagging

AiDC Solutions Limited www.aidc-solutions.co.uk

Hadfields Stockport

• Rug & Carpet Supply• 200,000 Custom made

rugs• Barcode labels supplied

to manufacturers• Thousands of variants• Variety of manufacturers

AiDC Solutions Limited www.aidc-solutions.co.uk

Hadfields Stockport

• Container Deliveries• 3,000 to 4,000 rugs

per delivery• 60 deliveries per year

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Hadfields Stockport

Incoming Stock;• Unloaded and checked

manually• Unload time 3 days for 7

men

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Hadfields Stockport

RFID enabled labels• Unloaded and placed into

container with known quantity of rugs

• Container wheeled past reading gate and RFID tags read

• Quantity verified• Information tied to stillage• Sent to store

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Hadfields Stockport

RFID advantage;• Unloading - reduced from

147 hours to 20 hours• Cost saving per year

£58,000 • Added Bonuses;• Stock accuracy• Despatch and tracing

accuracy

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• Poor Printing and label Positioning causes Read Errors

• Read Errors cause Downtime/Rework

Errors like this cost NGFE on average

£25,000 Per Year

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Saving

£18,500 Per Year

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Potential Saving

£50,000 Per Year

One Label – Means Less Bobbin Cleaning

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• Access Pass• Toll Roads• Transportation (Smartcard)• Tote box, Pallet & Load ID• Clothes tracking (M&S)• Libraries

RFID - it’s all around you!

AiDC Solutions Limited www.aidc-solutions.co.uk

RFID Growth

Sales $ Millions

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Call

AiDC Solutions Limited+44 1422 399530

or visit

aidc-solutions.co.uk