ProMat 2003 On-Floor Seminar Series Welcomes You to:

SESSION # 223

“CONTAINER TRACKING WITH RFID TECHNOLOGY”

Sponsored by: TrenStar, Inc.

Speaker: Michael C. Dempsey

222

Agenda

Evolution of Container Management in the Supply ChainAdvances in AIDC/RFID TechnologyNew Dimensions in RFID/CMS Applications for Enhanced Tracking and ControlDemonstrationClosing

EVOLUTION OF CONTAINER MANAGEMENT SYSTEMS IN THE SUPPLY CHAIN

444

Container Management Systems

Container Management Systems (CMS) are a New Dimension in Supply Chain Execution (SCE) and Collaborative Logistics Technology– Focused on returnable transport containers (RTCs)

and other mobile assetsDeployed where asset has high actual, strategic regulatory or intrinsic value

– CMS integrate multiple elementsContainer identificationContainer data capture / mobile computingApplication software and hardwareIntegration software and hardware

555

Containers

666

Container Management Systems…

Container Management Systems Provide Advanced Functionality for Efficient Asset Tracking and Control– Inventory Management– Location Management– Preventive Maintenance– Billing– Value Added Processing– Routing– Demand Planning and

Forecasting

777

Container Management Systems Today

Adoption of Container Management Systems have Risen from Four Parallel Forces– Acceptance and growth of SCE solutions– Advances in AIDC/RFID and communications

technologies– Drive to returnable packaging – The Internet

Expect Increased Deployment as Drive to Supply Chain Efficiency Increases

888

Issues in Container Management

Efficient Container Management has Historically Been Hindered by Multiple Issues– Cost (purchase, maintenance, loss)– An operational necessity but difficult to manage– Difficult to identify – environmental and use

conditions preclude efficient identification– Non-standardization – difficult to warehouse,

creates material handling and logistics issues– An information “black hole” – the true missing

link in the supply chain of asset-intensive industries

999

Issues in Container Management…

– Logistics Network Complexity – loss and under-utilization due to inability to track or locale

– Difficult Location Tracking – in-transit visibility has been economically unachievable

– Security – content loss due to inability to protect, no protection against dangerous agents

– Government/Environmental Regulations – drive to “green”, reusable assets, food or chemical regulations for source ingredients

101010

The Failure of Supply Chain Systems in Container Management

Hardware and Software Technology Providers Have Traditionally Failed to Provide Solutions for Effective Container Identification and Tracking– Traditional ERP business systems – do not track

assets or content– Current supply chain execution systems do not track

assets – WMS, TMS, etc.“Stop at warehouse door”

– Supply chain process management systems (SCPM) do not track containers only SKU, inventory, etc.

– Automated identification and data collection (AIDC) solutions are hardware focused, no application software

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The Failure of Supply Chain Systems in Container Management…

Extended Supply Chain Networks Require New Technology Solutions for Efficient Container Management– Provide RFID, communication and sensor

technologies– Integrate container management solutions with ERP,

ADC, manufacturing and supply chain execution systems

– Provide supply chain network integration for true collaborative logistics including event management, visibility and process integration among trading partners – suppliers, co-packers, manufacturers, distributors, 3rd party, customers

121212

Process IntegrationContainer Management Systems Must Integrate Easily with ERP, Supply Chain and Execution Subsystems

ContainerManagement

Solutions

WMS

OrderManagement Trade

Logistics

MSDS

GPS-Based Truck TrackingDSD SystemRTLS

Information InfrastructureLegacy - EAI

TMSERP

MaterialsManagement

MES

ADVANCES IN AIDC/RFID TECHNOLOGY

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Container Identification and Data Capture

Identification Technology– Barcode

Single or 2D, various symbologies

– RFIDActivePassive (low frequency UHF)

– Locating TechnologyRTLS

– Sensor Technology– Communication

TechnologyWLANCellularSatcom

151515

RFID Elements

Data ConcentratorTags Readers

CMS Software

161616

Tracking Assets with RFID

Tag beacon is received by RFID reader. TagID and location information is interpreted.

Readers communicate via 802.11b to access point and onto network.

Tag ID and location data is sent to CMS.

CMS data accessible by users

Tagged assets beacon at designated frequency

171717

RFID Comparison

$0.50-$2.00per tag

$4.00-$50.00per tag

Cost

Read orRead-Write

Read orRead-Write

Type

Not limited1-7 years based on battery

LifeVariousVariousFormat

Low (303-433 MHz)UHFMicrowave

Low (125 KHz)Mid (13.56 MHz)UHF (868-915 MHz)Microwave (2.4 GHz)

Frequency0-15 ft.0-300 ft.RangePassiveActiveType

181818

Benefits of RFID in Container Management

Improved Identification Under Most Operational ConditionsEnables Use of CMSEase of Locating, No Direct Line of SightMinimal Equipment Requirement and CostsReduced Data Capture Labor Based on “Human-Free” Equipment ScanningReduced Labor Content and CostsRead-Write Ability, Carry Data with ContainerIncreased Flexibility

191919

Issues with RFID

Adoption Limited by Costs – RFID vs. Barcode– Barcode (4 per container) = $2.50– Passive RFID (1 per container) = $1.00 - $5.00– Active RFID (1 per container) = $18.00 - $50.00

In-Transit Visibility Limited by Technology (power, frequency, range)– High infrastructure costs to capture/send data on

asset, location, etc.Environmental Restrictions– Tag usage in specific applications

202020

New Dimensions in RFID/CMS

Applications for Enhanced Tracking and Communication– Location Tracking

GPS-based locatingRFID tag network creation, e.g. self networking tag

– Global Visibility Based on Advanced Communication Technology

Microwave, Satcom, Cellular– Condition Monitoring

Real-time monitoring of container status– Security

Prevent or record tampering, invasive materials

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Self Networking RFID Tag

CANISTERTAG

LocationMonitoring

CMS

30 ft

CANISTERTAG

CANISTERTAG

CANISTERTAG

CANISTERTAG

CANISTERTAG

CANISTERTAG

CANISTERTAG

CANISTERTAG

CANISTERTAG

CANISTERTAG

CANISTERTAG

CANISTERTAG

CANISTERTAG

CANISTERTAG

30 ft 30 ft

30 ft

DC> 1 mile

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Networked Location Tracking

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Global Visibility

242424

In-Transit Visibility at Warehouse/Factory

CMSData

Collector

252525

In-Transit Visibility at Loading Dock

Container and Pallet IDs Captured by ReaderTransmit to CMS

DataCollector

262626

In-Transit Visibility at Shipyard

Tags Report to Data CollectorData Collector Communicates to CMS

Shipyard / Intermodal yard

272727

In-Transit Visibility at Sea

Tag Interfaces with Ship Satellite Communications System to CMS

282828

Condition Monitoring

Photonic Sensor Linked to RFID TagMonitoring Data Sent to CMS

292929

Security

RFID-Based Locks for Tamper MonitoringCMS Integration with Customs Systems for Accelerating ClearanceIntegrated Sensor Technology for IBC Internal Condition Monitoring

DEMONSTRATION

QUESTIONS ?

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Closing

CMS is a New Dimension in SCE SoftwareProven RFID Solutions New Exist Which Provide a Full Range of Functionality for Container TrackingEnabling Technology is Developing to a Justifiable Level