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1
A Strategic Approach to RFID
Terri Crawford, Business IT Manager, Distribution,
Publix Super Markets, Inc.
2
Publix Super Markets, Inc.
Largest employee owned supermarket chain in the US – over 129,000 associates
2005 retail sales of $20.5 billion Over 850 supermarkets in the
Southeast United States Eight distribution centers (22
warehouses) shipped over 640,000,000 cases in 2005
Manufacturing Facilities– 2 Bakery Plants,3 Dairy Plants,
3 Fresh Foods, Deli Kitchen and Printing services
AlabamaAlabamaAlabamaAlabamaAlabamaAlabamaAlabamaAlabamaAlabama
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GeorgiaGeorgiaGeorgiaGeorgiaGeorgiaGeorgiaGeorgiaGeorgiaGeorgia
FloridaFloridaFloridaFloridaFloridaFloridaFloridaFloridaFlorida
Gulf ofMexico
OrlandoOrlandoOrlandoOrlandoOrlandoOrlandoOrlandoOrlandoOrlando
North CarolinaNorth CarolinaNorth CarolinaNorth CarolinaNorth CarolinaNorth CarolinaNorth CarolinaNorth CarolinaNorth Carolina
South CarolinaSouth CarolinaSouth CarolinaSouth CarolinaSouth CarolinaSouth CarolinaSouth CarolinaSouth CarolinaSouth Carolina
AtlanticOcean
Lake OkeechobeeLake OkeechobeeLake OkeechobeeLake OkeechobeeLake OkeechobeeLake OkeechobeeLake OkeechobeeLake OkeechobeeLake Okeechobee
ColumbusColumbusColumbusColumbusColumbusColumbusColumbusColumbusColumbus
MontgomeryMontgomeryMontgomeryMontgomeryMontgomeryMontgomeryMontgomeryMontgomeryMontgomery
JacksonvilleJacksonvilleJacksonvilleJacksonvilleJacksonvilleJacksonvilleJacksonvilleJacksonvilleJacksonvilleTallahasseeTallahasseeTallahasseeTallahasseeTallahasseeTallahasseeTallahasseeTallahasseeTallahassee
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St. PetersburgSt. PetersburgSt. PetersburgSt. PetersburgSt. PetersburgSt. PetersburgSt. PetersburgSt. PetersburgSt. Petersburg
AugustaAugustaAugustaAugustaAugustaAugustaAugustaAugustaAugusta
NashvilleNashvilleNashvilleNashvilleNashvilleNashvilleNashvilleNashvilleNashville DurhamDurhamDurhamDurhamDurhamDurhamDurhamDurhamDurhamGreensboroGreensboroGreensboroGreensboroGreensboroGreensboroGreensboroGreensboroGreensboro
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Publix
Pending Publix
Publix Store Publix Store Publix Store Publix Store Publix Store Publix Store Publix Store Publix Store Publix Store LocationsLocationsLocationsLocationsLocationsLocationsLocationsLocationsLocations
3
Publix RFID Initiative
Member of EPCglobal in since June 2004, participating in the FMCG and HLS BAG
Support the adoption of RFID and the EPC network within the supply chain
Currently have a Strategy and Architecture project underway to define our RFID Roadmap
4
Publix and the University of Florida
Member of the Advisory Board to the UF/IFAS CFDR Committed to working with the Center in several
research initiatives One of the many research initiatives we are interested
in is RFID Beginning a joint research project with UF and 3 of our
produce suppliers V2 - Visibility Validated in the Perishable Supply Chain
5
RFID Impact on Retail Industry
Product tagging and tracking has implications to all Supply Chain processes
The technology has the potential to revolutionize the supply chain
All processes and technology systems associated with product information and movement are potentially impacted
6
RFID Strategy and Architecture Project at Publix
Correct approach is essential to achieve maximum benefit to our business processes
Will use our Strategy and Architecture Methodology 3 – 5 year horizon Define the business processes, application, data and
infrastructure as-is and to-be models Assess the readiness and timing for implementing
RFID in identified processes Build the business case for implementation Develop Adoption Roadmap
7
Scope of RFID S&A
Our S&A project is focused on the EPC and EPC Network
Includes all Supply Chain Processes from Suppliers and in-house manufacturing to retail stores
Considering the applicability of Pallet, Case and Item tagging in each area
Process benefit divided into direct benefit (i.e. labor savings, process or process step elimination) or visibility benefit (i.e. new or improved data availability, more accurate or timely data)
Functional areas– Manufacturing– Distribution– Retailing– DSD– In Store Production– Purchasing and
Procurement
Facilities– Manufacturing – Distribution Warehouse – Stores
8
Approach for RFID S&A Project
ValidateIdentify key internal and
external dependencies
and refine business case
based on feedback
ValidateIdentify key internal and
external dependencies
and refine business case
based on feedback
PlanEvaluate
Implementation Options and
Develop Roadmap for
Implementation
PlanEvaluate
Implementation Options and
Develop Roadmap for
Implementation
QuantifyIdentify Costs
and Quantifiable Benefits.
Develop High Level Biz Case and roadmap
QuantifyIdentify Costs
and Quantifiable Benefits.
Develop High Level Biz Case and roadmap
DefineDefine future
state of Process,
Application, Technology, Infrastructure
DefineDefine future
state of Process,
Application, Technology, Infrastructure
Assess Review current
state of Process,
Application, Technology,
Infrastructure
Assess Review current
state of Process,
Application, Technology,
Infrastructure
Process StreamProcess Stream
Technology & Infrastructure StreamTechnology & Infrastructure Stream
Phase 1
Program ManagementProgram Management
Phase 2 Phase 4
Application & Information StreamApplication & Information Stream
SponsorshipSponsorship Change Management & Communication
Change Management & Communication
Risk ManagementRisk Management
Phase 3
9
RFID S&A Project – Iterative Approach
Iterative PhasesIterative PhasesIterative PhasesIterative Phases
2. CPG –Cold Chain
3. Pharmacy
4. Fresh
AreasAreasAreasAreas
Incorporate learning's,
andBest
Practices
Phase 2, Phase 3 and
Phase 4
Quantify, Survey-Validate Assumptions
AndFinalize
Implementation Roadmap
Phase 2, Phase 3 and
Phase 4
Quantify, Survey-Validate Assumptions
AndFinalize
Implementation Roadmap
Phase 1
Assess-Define
1. CPG – Dry
10
Key Deliverables
Future Solution State– EPC-RFID Enabled, High-level Process Future State– High-level application Future State – updated supply chain application
architecture– High-level technical Future State– Suggested approach with package software suppliers
Implementation Roadmap and Strategy– Business case for RFID implementation, including high-level cost and
benefit estimates– Key opportunities mapped against dependencies– 3-5 year Adoption Roadmap to include pilot/rollout sequencing and
triggers for project kickoff– Publix positioning and focus at standards forum
11
V2 Project Objectives
Approached by UF to participate, jointly developed the vision and objectives of the project – focus on business processes and the EPC Network
To expand the research of the Center from a controlled lab environment to a production operations environment
To prove the EPC network viability and validate the benefit of the additional visibility of product through the supply chain
Gain knowledge of the technology and process issues that will be associated with implementing RFID
12
V2 RFID Project with UF CFDR
Testing with three produce suppliers; Del Monte, Tanimura & Antle, and Duda
Contributors to the project include: Alien, Franwell, Ingersoll Rand/Thermo King, RedTail, Symbol, VeriSign
Produce suppliers are shipping designated loads to Publix with pallet and case level RFID tags
3 receiving door portals are installed at the Publix produce warehouse in Lakeland, Florida
13
V2 Project, continued
All information is posted to an EPCIS Developing a visibility dashboard to be used by
all participants First Shipment with full visibility was completed
on 1/18/06 Each supplier and Publix have customized the
dashboard for their individual business needs through specific parameters
14
V2 Project, continued
UF CFDR has a full view of each participants data and will aggregate appropriate information to be shared with all partners
UF CFDR will evaluate and document the project results, benefits and opportunities
Next phase will be determined based on the results of the first phase
Expect to finish the first phase by May 2006
15
Thank you