RFID Benefits Capture

© Copyright 2009 H.-C. L. Hanebeck Page 1RFID – Benefits Capture and New Developments

Radio-Frequency Identification –Benefits Capture and New

Developments

Hanns-Christian Hanebeck2009 Guest Lecture at Southern Methodist University (SMU) in Dallas, Texas


Technology Vision … Seventy Years Ago


These were ridiculous!!!!

Oh, well …

Technology Reality … Today


The Paradigm Shift

Real-TimeDecisions

InformationSharing

EventManagement

DataCapture

• RFID Tags, Readers and Antennae

• Barcode Scanner• iPhone or Camera Phone

• Device Mgt Layer• Data Filtering & Smoothing• Complex Event Processing• Rules Engine• User Input via Web

• Rule-Based Decision-Making

• Alert & Notification Based Decision-Making

Reporting &Data Analysis

• Software as a Service• AJAX• Web 2.0• Data Push to Devices

• Performance Data• Behavioral Data• Event Statistics• System Statistics


1 2 3Data

Capture

Capturing Data

EventManagement

Information Sharing


2) RFID technology consists of a transponder (tag) and an antenna connected to a reader:

1) RFID stands for Radio Frequency IDentification

3) RFID has been around since the 1940s

Antenna

Tag

Reader

Technology Basics


There are Three Types of Tags:

§ Passive tags (without batteries)

§ Semi-passive tags (battery assisted)

§ Active tags (with batteries and usually good data processing capabilities)

Technology Basics


Tag

Reader

Read-Range

RF Signals

Antenna

3 Tag responds

Antenna sends the signal2

Reader triggers a signal1

32

1

RFID Middleware Backend

Systems

6 RFID Middleware passes filtered, clean information to enterprise systems

RFID Middleware applies business logic

5

Reader recognizes the tag and notifies the RFID Middleware

4

65

4

Data Acquisition

Data Utilization

Technology Basics


Capability

Time

WE Are Here!

WW-IIApplications

AnimalTracking

TollRoads

Mandates

Supply ChainApplications

ProcessInnovation

How Far Is The Adoption

SolutionMaturity


Retail Mandates Began to Drive UHF Adoption

BusinessValue

Time2003 2004 2005 2006 2007

0

20

40

60

80

100

Issue of Mandate

Phase I Process Implementation1 RDC7 Stores8 Suppliers

Phase II Process Implementation1 RDC, 1 GDC, 1 SDC, 1 C2Pharm104 Stores, 36 Wholesale Locations137 Suppliers

Phase III Process Implementation

12 DC600 Stores137+ Suppliers

350 Suppliers

All Suppliers

Specialized ItemTagging

All Items,All Suppliers,All Geographies

International Expansion

Actual

Planned

Overall budget: $500 MM


Source: IBM, 2006 and Siegemund 2003

There is More than Just RFID

GPS Tracking

Cellular Tracking (850/900/1800/1900)

Configuration via Handheld or OTA

Key Features:

• Location Reporting• Geofencing• Real-Time Alerts• Speed Monitoring• Altitude Tracking• Nine Sensors• Scheduled Updates• OTA Updates

BluetoothDevice (Active

RFID) with Sensory

Capabilities

Real-TimeReporting via Cell Phone

Nine Sensors via Zigbee


Electronic Air Conditioning Controls

Electronic Motor Controls

Cooking and Refrigeration Controls

Automotive HVAC Controls

Time Controls

Thermostats

Meter Reading Automation

Zone Controls

Heat Exchangers

Electronic Ignition Controls Electronic

Motor Controls Gas Controls

Electronic Motor Controls

Humidity Controls

Fire Detectors Temperature and Pressure Sensors

Laundry Sensors

Hydronic Comfort Controls

Reversing Valves, Defroster and Pressure Controls

Semiconductor Controls

Ignition Controls

Gas Controls

Time Controls

CO Alarm Controls

Heat Alarms

Temperature and Pressure Sensors

… It

Just

Did

!!!

So, … When Will It Hit Home?


Graphics: www.active-robots.com, 2006

Next Generation Sensors

http://www.active-robots.com/products/sensors/devantech/srf04-750.jpg�

http://www.active-robots.com/products/sensors/lynxmotion/tra-01-750.jpg�


1 2 3Data

Capture

Managing Events

EventManagement

Information Sharing


Asked what he feared most, British Prime Minster (1957-63) Harold McMillan replied:

“Events, dear boy. Events.”

A Word of Wisdom


Supply Chains Are About Managing the Odds


The “Black Hole”

When you have no idea where your stuff is, how long its been there or how it got there in the first place …

Odds Are Impossible To Manage In The Dark


Supply Chains Today and Tomorrow


RFID and SensorNetworks

External Databases

ProcessIntelligence

Tag ID

Location

Date and Time

Object Information

Sensory Data

Fact-based Conclusions

Real-time Decisions

SituationalAwareness

Situational Decision-Making


Tag ID

Location

Date and Time

Object Information

Sensory Data

Fact-based Conclusions

Real-time Decisions

Traffic Reports / ETA UpdatesCustoms Clearance

Real-Time POS Updates

More Information Can Lead to Better Decisions


RFID Tag IDRecognizedRFID Antenna

RFID ReaderEdgeWare

What HappenedWhat You Need What You Get

Tag ID “xyz-123”

EquipmentLocation

RFID AntennaRFID ReaderEdgeWare

Tag “zxy-123” has been read at dock door 13

ERP, SCMEdgeWare

Sales OrderRetrieved

Expected: “x” Line Items in “y” quantities

Truck ID andDestination

Right vs. WrongShipment

Handheld App,SCM, EdgeWare

Tag IDCount


Actual: “x” Line Items in “y” quantities


Portal Inactivity Process Closure

Example: Shipping

Event Management Orchestration


RFID Tag IDRecognizedRFID Antenna

RFID ReaderEdgeWare

What HappenedWhat You Need What You Get

Tag ID “xyz-123”

Tote IDLookupDatabase,

EdgeWare

Tag “zxy-123” is attached to tote “abc”

ToteFill

Full vs. EmptyTote

Weight Sensor, EdgeWare

ToteFill

Camera Sensor,EdgeWare


Portal Inactivity Process Closure

Example: Returnable Containers

Tote MovementDirection: shipping versus receivingMotion Sensor,

EdgeWare

Partial Fill vs. Empty Tote

Event Management Orchestration


1 2 3Data

Capture

Sharing Information

EventManagement

Information Sharing


Real-Time Vehicle Locations

(Potential) TheftAlert

Seal BreachAlertRoute Diversion

AlertAccident

Alert

CongestionAlert

SpeedingAlert

ETA DelayAlert

!!

!!

!

!

!

Unauthorized DriverAlert

!

Wrong AreaAlert

!

Graphic: Google 3D Citiscape

GPS and Wi-Max As Visibility Enablers


Your TypicalCompliance Solutions

Warehouse Management: receiving. put-away, kitting, picking , shipping, theft prevention, inventory control, personnel optimization, yard management,

asset management, access controlCross Docking: receiving. shipping, theft prevention, inventory control, personnel optimization, yard management, asset management, access control

HQ: planning and forecasting, financial transactions, order management, SRM, CRM, reconciliatory processes

Stores: point-of-sale systems, VMI

Products Are Handled By Many Partners


CustomerOrder

BrandOwner

Raw MaterialSupplier Component

Supplier

PackagingSupplier

FinalAssembly

OrderFulfillment

Delivery

Communication Is Key


Source: JackBe, 2006Graphics: Google, 2006 and JackBe, 2006

Impact of AJAX and Web 2.0


1 Assembly

DistributorEPCIS

RetailEPCIS

2 Packaging

3Shipping

ManufacturerEPCIS

4Transport

5 Receiving

6Storage 7 Cross-Docking

8 Shipping

9 Transport

10Storage

11 Cross-Docking

12 Transport

13Receiving

14Backroom

15Storefront

Payment16


Graphics: Google, 2006 and JackBe, 2006



Graphics: Google, 2006 and JackBe, 2006


3

Making the Right Decisions

Information Sharing

2Event

Management

1Data

Capture


“The key to winning is getting to where the puck is going to be next.”

Wayne Gretzky

A Word of Wisdom


Value and Benefits

RFID Object Identification

High Reliability

Automated Data Capture

Management of Exceptions

Avoidance of Errors

Technology Capability Benefits (Sampling)

Process Efficiency

Visibility

Object Location

Trust btw. Partners

Process Measures


Process Innovation Is Key


Business Case at John Deere

• The application provides John Deere and JD Credit with real-time updates of dealer inventory

• Ability to detect changes in ownership early on and to trigger invoicing accordingly

• Ability to detect fraud early on• Ability to reduce inventory and restock based on actual

consumption• Ability for dealer to automate inventory counting• Ability to detect theft early on and inform law

enforcement immediately• Ability to manage loaner and rental fleets very efficiently• Ability to manage and coordinate sales teams

Dealer Inventory Management


Mfg / Ops / FISupply Chain

Trade Partners

Reduced Inventory Carrying Cost

Process Efficiencies in Locating Assets

Faster Payments through Visibility

Higher Dealer Satisfaction

Better Through-Put in Yards

Improved Inventory Record Accuracy

More Reliable Transport Information

Higher On-Time Delivery Performance

Process Efficiencies through EPCIS

Reduction of Errors and Reconciliation

Less Expedites and Further Cost Reduction

Better Capacity Planning

Ability to delivery just-in-time

More Reliable Performance Measurement

Improved Inventory Control

Reduced Shrinkage

Avoidance of Lost Sales Due to Inventory Optimization

More Timely Settlement Processes

Avoidance of Inventory Carry Cost Due to Inventory Optimization

Fewer Orders with More Targeted Buys

Better Use of Financial Instruments e.g. Discounts, Commissions

Optimization of Showroom Space

Ability to Locate Assets Quickly and Competently

Increased Sales Through Better Information

Reduced Labor through Better Asset Retrieval

Reduced Labor for Inventory Counts

Enhanced Dealer-MFG Communication

Better Ability to Forecast Financial Performance

Reduced Inventory Tracking Cost

Product Design and Life-Cycle Optimization

Not included in the trade partner business cases are more innovative business cases such as maintenance and repair optimization, employee and tool tracking, driver recognition and the tailoring of services based on individual driver behavior. Also omitted here are spare parts and used asset scenarios as well as all issues around management of rental and loaner fleets.

Higher Order Fulfillment Accuracy

Reduction in Administrative Cost

Higher Mfg Planning Accuracy

Better Assembly Sequence Control

Better NC/CNC Coordination

Better Replenishment Signaling

Better Tool Tracking and MRO

Better Management of Unforeseen Events

Business Case at John Deere


Information Value

Latency

High

Low

Low High

Lost Value

Action Distance

Traditional ERP / SCM Scenario

4

3

2

RFID and Sensor-based Scenario

4

3

2

1

Decision Made4Information Delivered3

Data Cleaned and Stored2Event Occurred1

Value of Real-time Systems

Value of Real-Time Information


3

Putting It All Together

Information Sharing

2Event

Management

1Data

Capture


Defines

Employ

Accomplish

Enables

Strategy

Processes

Technology

Strategy Matters!


ProcessOptimization

ActionableKnowledge

Supply ChainVisibility

ReliableData

RFIDTangibleBusinessBenefits

And the winner is …

Process

Process Matters!


NT + OO = EOO

Source: A. Hyytinen, 2002

Execution Matters!


Miniaturization

Wireless

Agent Technologies

Reality-AwareEvent-Driven

Decentralized Decision-Making

One Heck of aSupply Chain

Technology Matters!


Not all innovation is equal – the key is to identify the pretenders early on!

Experts Matter!


Source: University of Saarland, 2006

The Endgame …


Questions ?

Hanns-Christian Hanebeck: [email protected]

Documents

RFID Benefits Capture