Integrated Logistics Scenarios April 15, 2005. 2 2Integrated Logistics Scenarios 2005 RosettaNet. All Rights Reserved. Synergy of Integrated Standards

Integrated Logistics Scenarios

April 15, 2005

22 Integrated Logistics Scenarios

2005 RosettaNet. All Rights Reserved.

Synergy of Integrated Standards The Key is Aligning All Three eBusiness Flows

InformationPhysicalFinancial

Aligning the Information and Physical Flows… Aligning the Information and Physical Flows… • Enables immediate visibility to the total supply chain • Reduces operating costs• Improves delivery speed• Increases customer satisfaction

Aligning the Financial and Information Flows…Aligning the Financial and Information Flows…• Enables automated accounts receivables• Credits customer accounts immediately to allow additional purchases• Provides faster visibility to funds and improves investment speed

SupplierCustomer



Synergy of Integrated Standards Gain Synergy by Aligning All eBusiness Flows

SupplierCustomer

Logistics Service Provider

Info Flow: Request Purchase Order

Info Flow: Request Shipping Order

Physical Flow: Deliver Product

Financial Flow: Credit Advice from Bank



Synergy of Integrated Standards Aligning the Movement of Products and Information

SupplierCustomer3. Notify Advance Shipment (PIP 3B2) with Serial Shipping Container Codes (SSCC)

3. Notify Shipping Documentation (PIP 3B18) (with SSCCs)

4. RFID tags appliedto containers and pallets using supplier-defined SSCCs


1. Request Purchase Order (PIP 3A4)

RFID Read aligns with PIP®

PIP® Initiates Shipment

2. Assign Serial Shipping Container Codes (SSCCs)5. RFID read

automatesshipping receipt using SSCCs

EPC#: BLUE

01103760



3. Payment Instructions (SWIFT XML with URI)

Synergy of Integrated Standards Aligning the Movement of Currency and Information

SupplierCustomer

Customer’s Bank Supplier’s Bank

1. Notify Invoice (PIP 3C3)

PIP® Initiates Bank Payment

4. Interbank Clearing on legacy systems forwarding URI with funds

3. Notify Remittance Advice (PIP 3C6) with Unique Remittance Identifier (URI)

5. Credit Advice(SWIFT XML with URI)

URI is the key to enable sellers to automate

accounts receivablesQuicker visibility of funds

2. Assign Unique Remittance Identifier (URI)



RFID and Unique Codes Introduction

Radio Frequency Identification (RFID) solutions utilize a combination of standards

– Tags are labels with microchips that emit radio signals

– Readers are devices that pick up the radio signals

– Codes provide unique identification numbers to track pallets, cartons, and serialized items

– Information is associated with each code to provide visibility into the supply chain



• Serial Shipping Container Code (SSCC)

– 18 digit code used to uniquely identify a case, pallet or container

– Could be used as both barcode and/or encoded on a RFID tag

– RosettaNet PIPs® 3B2, 3B12, 3B13 and 3B18 include container ID: ShippingContainerIdentifier.ProprietarySerialIdentifier

RFID and Unique Codes Unique Container and Pallet Codes

72 bit code

Serial Extension Company CheckSerial Number

0 081123400 2304596 2 SERIAL SHIPPING CONTAINER CODE

Extension Digit4 bits

Company Prefix36 bits

Serial Reference28 bits

Check Digit4 bits



RFID and Unique Codes Using Container Codes with RFID Tags and Readers

Container code stored on RFID Tag2

EPC#: BLUE

01103760

Reader reads Code from RFID Tag 4

EPC#: BLUE

01103760

RFID Tag applied to container or pallet3

UniqueContainer

Code

1 Unique Container Code assigned

Serial Extension Company CheckSerial Number

0 081123400 2304596 2 SERIAL SHIPPING CONTAINER CODE

Extension Digit4 bits

Company Prefix36 bits

Serial Number28 bits

Check Digit4 bits

EPC#: BLUE

01103760



• Electronic Product Code (EPC)

– Adopted GTIN Structures– Support up to 288M Companies, 16M Object Classes,

and 68B serial numbers– Encoded on a RFID tag – Versign to run an EPC code registry

RFID and Unique Codes Unique Serialized Product Code

Header Company SKU Serial Number

01 . 0000A89 . 00016F . 000169DCOELECTRONIC PRODUCT CODE TYPE 1

Header8 bits

EPC Manager28 bits

Object Class24 bits

Serial Number36 bits

96 bit code



Overview of ApproachesDocument Exchange Collaboration

• Pallet and box identification keys carried on RFID chips will be used in existing eBusiness documents

• How partners exchange PIPs® will remain largely unchanged

• Visibility to supply chain information is dependent on individually predefined TPA’s



Document Exchange Collaboration Order-to-Cash eBusiness Process

Suppliers


7. Notify Shipment Receipt (PIP 4B2)8. Notify Invoice (PIP 3C3)

4. Request PO Change (PIP 3A8)

Customer

6. Notify Advance Shipment (PIP 3B2)

9. Notify Remittance Advice (PIP 3C6)9. Financial Payment – Bank Credit Advice

PhysicalInformation

Legend – B2B Flows

Financial

1. Delivery of Products per Agreement

2. Request Purchase Order (PIP 3A4)

3. Distribute Inventory

Report (PIP 4C1)

5. Request Shipping Order (PIP 3B12)

Confirm Order

Confirm Change

7. Receipt of Products by Customer

6. Shipment of Products for Customer PO

RFID Read Initiates PIP®

PIP Initiates Bank Payment

RFID Read Initiates PIP



Document Exchange Collaboration Inventory Mgmt (VMI) eBusiness Process

Suppliers


6. Notify Consumption (PIP 4B3)

7. Notify Invoice (PIP 3C3)

2. Notify Forecast Reply (PIP 4A5)

Customer

6. Notify Consumption (PIP 4B3)

9. Notify Remittance Advice (PIP 3C6)9. Financial Payment – Bank Credit Advice

PhysicalInformation


Financial

2. Distribute Inventory Report (PIP 4C1)

1. Notify Threshold Release Forecast (PIP 4A3)


3. Shipment of product

8. Receipt of Products by Customer

7. Shipment of Product

PIP Initiates Shipment

PIP Initiates Bank Payment



4. Notify Shipment Receipt (PIP 4B2)RFID Read

Initiates PIP

4. Shipment Receipt

8. Notify Shipment Receipt (PIP 4B2)






Document Exchange Collaboration International Shipment eBusiness Process

Supplier Logistics Service Provider

Customer

2. Confirm Shipping Order (PIP 3B13)

1. Request Shipping Order (PIP 3B12)


4. Notify Shipping Doc-SED/Cert. Origin/Com. Invoice (PIP 3B18)

5. Distribute Shipment

Status(PIP 3B3)

6. Notify Shipment Doc for Customs Declaration (PIP 3B18)

5. Distribute Shipment Status (PIP 3B3)

5. Distribute Shipment Status (PIP 3B3)7. Notify

Shipment Receipt(PIP 4B2)

5. Shipment Arrives at Customs

PhysicalInformation


Financial


4. Product Shipment


7. Shipment ReceiptBy Customer


6. Shipment Clears Customs

Import Customs Carrier

Integrated Logistics Scenarios© COPYRIGHT 2005 ROSETTANET – ALL RIGHTS RESERVERD14

Summary

• RFID can be implemented today to automate logistics processes

• Relevant RosettaNet PIPs® support SSCC codes

• RosettaNet is working with EPCglobal to ensure standards alignment

Documents

Integrated Logistics Scenarios April 15, 2005. 2 2Integrated Logistics Scenarios 2005 RosettaNet. All Rights Reserved. Synergy of Integrated Standards