© copyright 2009 rf controls, llc. all rights reserved. mapping the future and taking advantage of...
TRANSCRIPT
© Copyright 2009 RF Controls, LLC. All rights reserved.
Mapping the Future and Taking Advantage of AIDC Technologies
April 27, 2009
Chris HookVP Business Development, RF Controls
© Copyright 2009 RF Controls, LLC. All rights reserved.
• Technology Dynamics• The Solution Mix• Applications, Opportunities• Change Enabling Technologies• Seeking Business Value• Planning Your Future…
Agenda
© Copyright 2009 RF Controls, LLC. All rights reserved.
December 2008 RFID Journal Magazine:
Monitor Technology
© Copyright 2009 RF Controls, LLC. All rights reserved.
• From Reik Read at industry analysts RW Baird, referring to beam-steerable phased-array antenna systems:
“We view the ability to scan specific zones as a key attribute that can help locate missing items, provide real-time out of stock information, improve pick processes and can aid in inventory transfers, all in real-time.”
• RW Baird’s reports make interesting reading as they examine enablers and impediments to market adoption
Monitor Technology
© Copyright 2009 RF Controls, LLC. All rights reserved.
Process Solution Ingredients
These are the essential ingredients in any applied solution
© Copyright 2009 RF Controls, LLC. All rights reserved.
Process Solution Ingredients
We witness increasing reliance on technology over time
We witness increasing reliance on technology over time
© Copyright 2009 RF Controls, LLC. All rights reserved.
Parts Location and TrackingManufacturing
Distribution and Warehousing
Retail Store or “Office”
Stock Room Inventory Visibility
Item Identification
Returnable Containers
Pick, Pack & Ship Inbound Receiving
Records Management
WIP Management – Location and Tracking
Personnel Security – Location and Tracking
Store Loss Prevention
Libraries and Video Rentals
Active RFID and Local Area
RTLS
Passive RFID
Promotions Monitoring
Battery Assisted Passive RFID
Read Range
Nature of the Business Environment
Electronic Proof of Delivery (EPoD)
Put Away Locations
Replenishment
Capital Assets (e.g. IBCs)
Capital Assets
Capital Assets
Unit Tag Cost
A Plethora of Applications
© Copyright 2009 RF Controls, LLC. All rights reserved.
Monthly audit teamsAn external vendor audits retail
items once per month.
Tank surveyorsTanks are checked once or
twice a year by a tank surveyor.
Health inspection officialsStores are inspected quarterly by
health inspectors.
Beer and cigarette license officials Beer and cigarette license officials come by
the store once per year.
Hazardous materials officialsStores are inspected by hazardous materials officials once per year.
Central monitoring personnel
(security monitoring of the store). Managers may
periodically get a call from this monitoring center.
MaintenanceMaintenance comes to the store
at least weekly to repair equipment such as when a
customer drives off with a pump hose.
Help deskHelp desk personnel are contacted between 10 and 15 times per week.
PayrollPayroll personnel call once or
twice per week with payroll issues
AccountingManagers speak with accounting personnel
up to 10 times per week with accounting
issues.
HRManagers get a call from HR
regarding an employee once a week on average.
Customer serviceThe store manager helps with the cash register during peak times and answers
customer requests and complaints.
Excise tax officialsExcise tax officials come by periodically to inspect
cigarettes and ice production.
EmployeesEmployees continually seek guidance from the store manager on tasks and
issues. The manager must also guide employees through on the job training.
Merchandising request
The manager is asked to change signage and displays. Also, price
changes require items to be inventoried and
added to the daily paperwork. This can be a daily occurrence.
Fuel trucksManagers must review
and sign invoices.
Monthly auditsAn external vendor audits
retail items once per month
DSD receivingVendors representing bread,
beer, Frito-Lay, and soft drinks come by regularly throughout
the week to deliver their products.
DSD merchandising Vendors representing bread, beer,
Frito-Lay, cigarettes, and soft drinks come by regularly throughout the week
to order and check on their product.
Area/Zone managerManagers come by
several times a week to check on store operations
Loss preventionThe store manager
receives guidance from loss prevention regarding cash control, accidents,
etc. If an event occurs, an incident report must be
filed, and an investigation may take place.
Safety trainingEvery other month the
manager must participate in computer based safety training
courses.
HiringThe manager must contact references and gather data to fill out online paperwork for each new employee.
Daily reportingThe store manager spends an
hour at a minimum and sometimes up to four hours per day filling out
daily paperwork.
Weekly reportingEach week, the
manager must prepare weekly documentation and take it to the area
manager.
RDC orderingOne to three times per
week, the store manager must prepare an order for
the RDC.
RDC receivingManager must unlock the back door, count
product, and review and sign invoices. Biggest Time
Consumers
Large Time Consumers
Average Time Consumers
Back office 67%, customer facing 33%.
What could be changed using AIDC to shift this balance to increase efficiency, improve
customer service and increase sales?
Back office 67%, customer facing 33%.
What could be changed using AIDC to shift this balance to increase efficiency, improve
customer service and increase sales?
© Copyright 2009 RF Controls, LLC. All rights reserved.
Financial Reports
Supply Chain
Workforce
Management
Store Promotions
Stocking and Inventory
Management
Customer Service
Back Office
Store Layout
Check-Out
Solving many process deficiencies will require the application of multiple “synchronized technologies”Solving many process deficiencies will require the application of multiple “synchronized technologies”
© Copyright 2009 RF Controls, LLC. All rights reserved.
• There is good understanding of the potential for passive and battery assisted passive (BAP) UHF RFID systems to transform business processes
• Operational changes have been required to derive maximum value for all collaborating parties
• EPCglobal has been pivotal in driving the adoption of user-driven standards
• Interoperability and data sharing has been well proven
• There has been important, innovative strides in tag design and manufacturing, leading to lower cost, higher performance products
• But care is needed to ensure that maximum value can be derived from technology advances
UHF RFID Market Status
© Copyright 2009 RF Controls, LLC. All rights reserved.
• Latest generation Higgs-3 (Alien) and Monza3 (Impinj) chips show significant operating range improvement
• But with increased range comes more extraneous or spurious reads, leading to ambiguity of tags’ locations and hence increased likelihood of process errors resulting from “dirty data”
• A systemic, collaborative approach is needed among technologists to achieve maximum value from innovation
• What might “-4” tags offer? Enhanced functionality, but potentially unforeseen challenges…
Tag Developments
© Copyright 2009 RF Controls, LLC. All rights reserved.
Antennas which scan selectively and collaboratively, and can give accurate 3D locations of tags
BESPA: #1 of “Mark’s Top 10”
© Copyright 2009 RF Controls, LLC. All rights reserved.
Characteristic Conventional Change-enabling
Energy focus Spread over a wide “cone” Place tag excitation energy only where it’s needed
Weak tag signals Prone to interference, worsening SNR with increasing range; Rx antenna sees many unwanted signals
High gain directional antenna coupled to high performance reader
Multi-pathing Severe problems with extraneous reads (e.g. at adjacent dock door portals)
Sophisticated multi-path ambiguity resolution algorithms eliminate spurious reads
Operating range Forward link limited to ≈ 5m (“-2” tags)
Operating range with “-2” tags > 20m
Practicality in use Antennas mounted close to where tagged objects move so damage is likely; sometimes there’s no room for a portal
Antennas mounted away from normal traffic and item movement
Tag sensitivity Increases the likelihood of extraneous reads and “dirty data”
Improving tag sensitivity enables new applications that will require BESPA antennas
BESPA Antennas: A New Wave
© Copyright 2009 RF Controls, LLC. All rights reserved.
““The future is a wired shop floor The future is a wired shop floor complemented by sensing technology, a complemented by sensing technology, a platform for platform for ubiquitous machine-to-machine ubiquitous machine-to-machine computingcomputing in which human resources are in which human resources are dedicated to dedicated to customer servicecustomer service, allowing , allowing sensors, readers, middleware and enterprise sensors, readers, middleware and enterprise software to reconcile inventory in real software to reconcile inventory in real time.”time.”
Inventory Management
From “Chaos in the Retail Cosmos”, VDC
This is a great illustration of my argument concerning the dynamic people-process-technology mix that must be applied to problem solving
This is a great illustration of my argument concerning the dynamic people-process-technology mix that must be applied to problem solving
© Copyright 2009 RF Controls, LLC. All rights reserved.
• A perspective on how to approach inventory management transformation using AIDC:• Experimental design• Staged deployments• Distributed real-time interrogation capability• Integrated planning• Executive sponsorship• Maximize the use of existing data capture
infrastructure• Adherence to global standards
Inventory Management
From “Chaos in the Retail Cosmos”, VDC
© Copyright 2009 RF Controls, LLC. All rights reserved.
Image courtesy of Vue Technology
Light up the store or stock room to achieve automated, real-time inventory monitoring; tagged goods may be positioned arbitrarily
Inventory: Count and Locate
© Copyright 2009 RF Controls, LLC. All rights reserved.
A Vision of an Intelligent Food Chain (IFC):A multi-sensory data capture and control network, A multi-sensory data capture and control network, incorporating Internet and wireless technologies, incorporating Internet and wireless technologies,
designed to improve operational efficiency, improve designed to improve operational efficiency, improve information velocity, enable remote resolution information velocity, enable remote resolution
without human intervention, and to achieve without human intervention, and to achieve benchmark product consistency and predictability of benchmark product consistency and predictability of
quality and freshness of produce, delivering fresh quality and freshness of produce, delivering fresh produce to customers “on their terms”. produce to customers “on their terms”.
Mark’s #2: Cold Chain Sensors
© Copyright 2009 RF Controls, LLC. All rights reserved.
IFC ApplicationsStores
Packing Station Cold Storage DC/RipeningVesselsFarms Port/Yard
DischargePort
INTERNAL
EXTERNAL
Visibility and VelocityVisibility and Velocity
Improve vessel monitoring and controlImprove vessel monitoring and control
Improve truck/container monitoring and controlImprove truck/container monitoring and control
Improve reefer monitoring and controlImprove reefer monitoring and control
Improve yard managementImprove yard management Improve yard managementImprove yard management
Enhance container securityEnhance container security
Improve asset managementImprove asset management
Improve customer serviceImprove customer service
Improve control over in-transit ripeningImprove control over in-transit ripening
Enhance food safety and securityEnhance food safety and security
Improve customer supply chain compliance
Improve customer supply chain compliance
Optimize in-store promotions
Optimize in-store promotions
© Copyright 2009 RF Controls, LLC. All rights reserved.
IFC - BenefitsDramatic improvement in sustainability of operationsEnhanced monitoring & control of temperature throughout entire
supply chainAbility to relate key agricultural quality data from the farm, by lot Enhanced control and monitoring of fruit respiration rates – end-to-endEnhanced ability to respond to customized/regional needs Improved fruit stability through continuous temperature and
respiration controlLinkage to shelf-life extension technologiesAutomated forward and backward traceability for food safety
compliance Improved transportation fleet management
For Optimal Management of Every LoadHigher consumer satisfaction by creating a new
standard of excellence for fresh produce management
© Copyright 2009 RF Controls, LLC. All rights reserved.
RetailerInventory Accuracy
Load Validation Accuracy
Proof of Delivery
Automation
Inventory Accuracy and Product Aging Visibility Product Safety and Status Alerts
Shipping and Receiving Efficiency
Manufacturer Retailer DCsTransportation
ProvidersSuppliers Distribution Centers
On-Shelf Availability
Consumers
We observe multiple opportunities for process changes, leading to consistent best practices for shipping and receiving
We observe multiple opportunities for process changes, leading to consistent best practices for shipping and receiving
Business Process Improvement
© Copyright 2009 RF Controls, LLC. All rights reserved.
Install
Scrap/Retire
ApproveRequest
Create Purchase
Order
Receive
Issue
Transfer
Transfer
Remove
Place In Service
Requisition
Staging Area
Field TechniciansOperational
Site
Test
Warehouse Receive from
Vendor
CreateRequisitions
(from various planning processes)
ApprovedRequisitions
ApprovedPurchase
Order
Return to Vendor
Warehouse
Transfer
In Transit
ReceiveSite Under Construction
Availableto Provision
Customer Order
OperationalSite
Transfer
Not an area for RFID applications
Business Process Improvement
High touch business operations with high value assets, that could benefit
from AIDC
High touch business operations with high value assets, that could benefit
from AIDC
© Copyright 2009 RF Controls, LLC. All rights reserved.
• RFID is just one facet of “wireless and sensor” technologies that facilitate increasing sophistication in automated sense and respond systems, which are being applied to transform business operations today
• Bar codes are standardized and globally deployed, which is beneficial
• Myopic attention to “license plate”, passive RFID tag prices will persist, especially in retail businesses
Observations
© Copyright 2009 RF Controls, LLC. All rights reserved.
• Enhanced tag functionality is already being utilized (e.g. temperature logging)
• What new opportunities – and challenges – will next generation “-4” UHF passive tags bring?
• New technologies must take account of deployed infrastructure as a springboard for adoption
• RFID and other sense and respond systems are enablers for profound business process change, through which maximum value will be realized
Observations
© Copyright 2009 RF Controls, LLC. All rights reserved.
• Pay close attention to technology advances
• Maintain a prioritized, rolling list of process deficiencies that it would be beneficial to improve
• Quantify the potential value from change• Keep a “wish list” of prospective new
opportunities which could enhance revenue
• Define your success criteria; be both rational and reasonable
Recommendations
© Copyright 2009 RF Controls, LLC. All rights reserved.
• Remember the process-people-technology mix to maximize your return on AIDC investments
• Strive for a common UI which abstracts the nature of the AIDC technologies; this will yield a device agnostic approach and aid phased migration over time
• Ensure cross-functional visibility and support• Think collaboratively rather than competitively
Recommendations
© Copyright 2009 RF Controls, LLC. All rights reserved.
The Biggest Lesson Learned?
Collaborate Connectand
• Now, but not in the early days of bar codes…• Internet technologies• Layered standards• Interoperability• Numerous vendors• Practically ubiquitous, wireless, portable
computers
© Copyright 2009 RF Controls, LLC. All rights reserved.
““There have been There have been many changesmany changes. We wanted to . We wanted to focus more on focus more on technologytechnology, and we , and we simplified our simplified our business processesbusiness processes. Decision making in our . Decision making in our supply chain, for example, got a lot supply chain, for example, got a lot fasterfaster. That . That has added has added agilityagility to our organization. And our to our organization. And our organization has become much organization has become much more openmore open.”.”
Jong-Yong Yun, CEO of Samsung Electronics, reported in Business 2.0 as he discussed the keys to Samsung’s success in becoming a consumer electronics powerhouse on par with Sony.
A Vision of Change
© Copyright 2009 RF Controls, LLC. All rights reserved.
““The best way to predict the The best way to predict the future is to continue to invent it.”future is to continue to invent it.”
David Glass, Walmart
A Closing Thought…
© Copyright 2009 RF Controls, LLC. All rights reserved.
Q & A
Chris HookVP Business DevelopmentRF Controls, LLC1141 S. 7th StreetSt. Louis, MO 63104-3623USA
Website: http://www.rfctrls.come-mail: [email protected] phone. +1 847 274-6943