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Transcript of Visibility and ROI for CPG Manufacturers - … · Visibility and ROI for CPG Manufacturers ... •...
Visibility and ROI for CPG
Manufacturers
Building RFID Infrastructure for a
whole IndustryBy: Geir Vevle
Project Manager NLP-Rollout & CTO HRAFN
This presentation
• Background
• Solution: It’s an Infrastructure
• Solution: Effects
• Plans
• Questions
Summary
• 300k pallets + 300k totes in Norway withRFID
• The industry wants to use it
• Building infrastructure for B2B&B2C applications
• Currently
– Phase 0: 40 readers, 22 readpoints, 5 locations
– Phase 1: autumn 2011 rollout
BACKGROUND TO CASE
Src: GS1
History of RFID in Norwegian CPG
supply chain
2000-2005: ExploringRFID theoretically
2005-2008: Field tests, technology tests
• Meat and fruit and vegetable first.
2008-2010: Pilots
• Meat, fruit and dairy.
• New plasticpallets and plastic totesequipped withRFID
2011- : RTI leveltagging
• Building commoninfrastructure
Norwegian RTI-pool’s
purpose• Founded in 2006
• Ownership
– 50% owned by retail chains (4 chains)
– 50% owned by production industry
• NLP’s purpose
– Efficient and environmentally friendlydevelop and manage reusable transport items for Norwegian CPG market.
Transport infrastructure is
changing
Transportation infrastructure is
changing
NLP in numbers
• NLP
– 300 000 RFID
tagged plastic
pallets. (-> 1M)
– 300 000 RFID
tagged plastic totes.
(-> 6-9M)
• Business model:
Rental
– A fee per trip per RTI
– A fee per day per
RTI
The plastic RTI rental process
NLP DC ProducerRetail-
DCStore
Fact:
• The customers already have the RFID
in the tote and pallet.
– No need to choose RFID
– No need to pay for RFID tag
– Can they really afford not to?
Why
• Documented 1-5%
errors in manual
counting
• Takes a long time
• Need to differentiate
on 6 different totes
• 30-192 totes per
pallet
Let’s make it easy to use RFID
• Simplify and
automate reception
and shipment
process
• Turnkey solution
delivered as a
service
• Make it as a
infrastructure
SOLUTION:
INFRASTRUCTURE
Infrastructure
• Transportation • Information
Infrastructure
• Transportation • Information
Dimensions
• RFID in the totes
and pallets:
– Identify assets
– links to information
– store information
– transfer information
• The totes and
pallets themselves
– Carry goods
– Protect goods
Standards used
Platform for information
Real time data consumers
Enable understanding
NLP RFID Infrastructure
• Delivered as a
service
– Monitored
• Includes:
– Portals
– Handhelds
– EPCIS
– Education
EPCIS
NLP RFID Infrastructure
Business model
• 2$ for each pallet
shipment
• 0,1$ for each day per
pallet
Business model RFID
enabled
• 2$ + $ for each pallet
shipment
• 0,1$ for each day per
pallet
– Readpoints
– Education
– Automated report
SOLUTION:
EFFECTS
Processes adressed
Physical
• Production
– Link of SSCC to Pallet
• Shipping
• Receiving
• Other:
– Inventory
– Recall
Information
• Report shipped RTI’s
• Report received RTI’s
– View SSCC
• Report Inventory
ROI
RTI Users
• Reporting to NLP
– Efficient
– Automatic
– Correct
• First step of RFID
benefits
NLP
• Detailed information from
their assets
– (What, where, when, why)
• Ability to add services to
the whole valuechain
PLANS
Plans
Now
• Pallets
• Infrastructure built
– Limited deployment
Next
• Q3-11:
– Infrastructure avaliable
• Q4-11:
– 5-700k more pallets
– first value add service
avaliable (SCOR-KPI’s)
• Q2-12:
– 1M++ totes
• Q1-13:
– >3M totes
Target picture
Physical RTI’s for transporting goods
RTI ID’s for identification
RFID Datacapture infrastructure recording information
EPCIS for storing&sharing information
NLP services: Ship/rec
included:
auto-
ship/rec
3rd party services:
SCOR
KPI’s?
Temp
track?
Traceability
Enab
ling
Producer DC Store
