RFID: Searching for Value Beyond the Hype. Eric Domski, RFID Solution Director, SAP Calvin Fidler, SAP Enterprise Research & Development, Peak
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1 RFID: Searching for Value Beyond the Hype Eric Domski, RFID Solution Director, SAP Calvin Fidler, SAP Enterprise Research & Development, Peak
2 RFID Landscape Implementation Approach RFID Technology RFID Case Study
3 Who is Peak, what do they do Turn Key RFID solutions integration Tag Manufacturers RFID Hardware Partners SAP Technical Functional Expertise Integration Services Ongoing Support Maintenance SAP AG 2005, Title of Presentation / Speaker Name / 3
4 PEAK Technologies Value Proposition PEAK strives to exceed customers quality expectations by leveraging our knowledge and experience to lower your risk and deliver solutions that solve your true business problems! SAP AG 2005, Title of Presentation / Speaker Name / 4
5 SAP has several years of experience in RFID 1998 Research Begins 1999 Join MIT Auto-ID 2001 AII Dev. Begins 2002 / 2003 Early Pilots & RFID Middleware 2004 RFID Enabled Business Processes Delivered SAP Corporate Research begins work with RFID Founding member of MIT Auto-ID center (now called EPC Global) First DEMO at SAPPHIRE in Philadelphia SAP Auto-ID Infrastructure development begins P&G and Metro Pilots (Shelf / future store) Fraport RFID Asset Management Pilot enabled SAP Mobile Infrastructure Created SAP RFID Customer council and ASUG exec exchange Global Auto-ID customer survey (>400 respondents) RFID Solution Package for Logistics and Enterprise Asset Management delivered AII 2.0 and AII 2.1 released RFID enabled MySAP ERP and SCM Customers signed for SAP RFID solution Purdue goes LIVE (item level tagging) AII Wall Street Journal Award for Metro Superstore Project SC Johnson goes LIVE First set SAP Customers ship RFID tagged goods to Wall*Mart SAP AG 2005, Title of Presentation / Speaker Name / 5 Analysts / Customers rank SAP at the top
6 The RFID Solution Landscape Tags Readers Device Management Auto-ID Infrastructure Exchange Infrastructure Enterprise Applications AII AII ERP SCM AII PLM SAP Event Mgmt Function Hold Data Transmit data using radio waves Read / write / Transmit data to systems Manage multiple Readers & standardizes data Store and translate raw EPC data to business data Route business data and events to applications Provide Decision Support and execute transactions Delivery Hardware Expertise Consulting System Integration Services: Value generation with RFID SAP Offering Partner Offering SAP AG 2005, Title of Presentation / Speaker Name / 6
7 RFID Value Proposition Spans Across Three Phases Data Capture (From Tags to Useable Data) Hardware -Tags - Readers - Other devices Device Mgmt. - RFID Readers - Bar Code Scanners -Printers RFID Physics - Environment - Metal/Liquid Data Filtering - Security - Accuracy / validation - Availability -Storage Data writing on tag Date Use (today) Real-Time Data Accurate Data Visibility / Monitoring - Inventory Visibility - Tracking and tracing Analytics - Inventory - Operational Efficiency - Partner Increased Performance Collaboration - EDI / ASNs -VMI Data Association - Business Data aggregation - Association to business applications (SCM, etc.) ERP integration - Standard existing processes Automation Data Use (future) Real-Time Data Accurate Data More Data Revised Business Processes - SCM, CRM, ERP, etc. - Demand Planning - Responsive Replenishment. -VMI -ATP New Processes - Decentralized Intelligence New Applications - Tracking Medical Waste Across Multiple Industries Master Data Synchronization Hardware Providers (Symbol, Alien, Intermec) MAM Selected RFID Partners Device Management Partners ACSIS, Infineon SAP AG 2005, Title of Presentation / Speaker Name / 7 SAP Auto-ID Infrastructure SAP Business Applications SAP core strength Scalability of RFID solution
8 Peak need to add slide about hardware and tags SAP AG 2005, Title of Presentation / Speaker Name / 8
9 RFID Landscape Implementation Approach RFID Technology RFID Case Study
10 RF/RFID System Blue Print Changes in the physical process How are EPC tags to be applied Data collection points Impact to labor or automation equipment Exception Handling RFID Site survey Infrastructure, Facility modifications Live on-site environmental product testing Material handling equipment Software to support process change User transaction (SAP GUI or RF SAP Console) Automated SAP postings and error handling ERP System interfaces SAP Landscape User feedback loops Light stacks, RF Terminals, Reports SAP AG 2005, Title of Presentation / Speaker Name / 10
11 Implementation Methodology Phase One-RFID Product Compatibility RFID tags, hardware and product are compatible Phase Two- Process Evaluation Blue Print Understanding of how the technology affects Process Phase Three - Pilot Local test of data collection points and feed back loops Phase Four Pilot Review Lessons Learned ERP data Integration review and plans Phase Five- Leverage Technology Investment Determine where RFID has incremental benefits Supply chain integration SAP AG 2005, Title of Presentation / Speaker Name / 11
12 SAP AII 2.1 Installation Options SAP AII 2.1 Option 1 SAP AII 2.1 Option 1 SAP AII 2.1 Option 2 SAP AII 2.1 Option 2 Customer Requirements Customers Customers seeking seeking to to pilot pilot RFID RFID technologies technologies Customers Customers seeking seeking simple simple RFID RFID Solutions Solutions not not integrated integrated with with backend backend systems systems CPG CPG Customer Customer seeking seeking a a low low investment investment Wal*Mart Wal*Mart compliant compliant RFID RFID solution solution Customer Requirements Customers Customers seeking seeking to to enable enable & integrate integrate standard standard business business processes processes with with RFID RFID Customers Customers seeking seeking to to roll-out roll-out RFID RFID Technology Technology beyond beyond piloting piloting Installation Option Option Stand-Alone Stand-Alone AII AII supporting supporting manual manual outbound outbound processing processing - - Slap Slap & Ship Ship Installation Option Option AII AII integrated integrated with with Enterprise Enterprise backend backend system system RFID RFID enabled enabled integrated integrated Outbound Outbound Processing Processing & Inbound Inbound Processing Processing Seeking Seeking to to successively successively RFID RFID enable enable Standard Standard Business Business Processes Processes Option Option 1 Solution Solution Offerings Offerings A. A. Stand-alone Stand-alone AII AII with with integration integration to to Device Device Management Management (partner) (partner) Option Option 2 Solution Solution Offerings Offerings A. A. AII AII integrated integrated with with Enterprise Enterprise backend backend with with Device Device Management Management System System SAP AG 2005, Title of Presentation / Speaker Name / 12
13 Roadmap to Value Event Management (EM) Track & Trace Proof of Delivery Trigger Actions Diversion SAP AII 2.1 Standalone ASN Integrated to R/3 Business Warehouse (BW) Inventory Visability Store Level Visibility Back Room to Sales Floor Promotion compliance RFID Consolidated Reporting Future VMI Returnable Containers (3.0) Demand Planning SAP AG 2005, Title of Presentation / Speaker Name / 13
14 What SAP AII 2.1 Solution Offers SAP AII 2.1 provides a SAP RFID Technology solution that : Support pre-configured Wal-Mart compliant Slap&Ship Scenario Lower Implementation Cost Can be installed and implemented in a few days Standalone Implementation Capabilities No integration required to R/3 or other enterprise applications Ability to easily extend to enable SCM processes with mysap SCM Reduces Cost of ownership of SAP RFID Solution Provides a competitive offering for customers looking for low-cost Pilots to prove RFID value proposition SAP AG 2005, Title of Presentation / Speaker Name / 14
15 RFID Landscape Implementation Approach RFID Technology RFID Case Study
16 AII 2.1 Technology Stack Supporting Installation Options Option 1 - Installation Option SAP Stand-Alone AII SAP AII 2.1 SAP WebAS 6.40 SAP Preconfigured BI Tag Commissioning Pack Load ASN Option 2 - Installation Option SAP AII integrated with Backend SAP AII 2.1 SAP WebAS 6.40 SAP Preconfigured BI SAP Exchange Infrastructure 3.0 Event Management (SCM 4.1) R/3 Adaptors Integration Option Manual RFID enabled Outbound Processing RFID enabled Outbound Processing Tag at Ship Technology Infrastructure for future and successively enabled RFID enabled Standard Business Processes SAP AG 2005, Title of Presentation / Speaker Name / 16
17 AII 2.1 Product Capabilities Process Capabilities Tag Commissioning: Pre-encoded tags, write on empty tags, printing tags Execution Flexibility: Outbound delivery reference information can be assigned at each process step, i.e. at tag printing, packing and loading Enhanced User Interface : UI for manual entry of base delivery information and association with EPCs scanned - possible at each process step; addition of Desk-Top UI Technical Archetecture Standalone Deployment: Scans can be captured without any assignment to any document Multiple deployment options: Can operate with or without mysap ERP integration One Instance deployment option: Comprising AII, WebAS and Preconfigured BI Preconfigured pack and load processes: Speeding up implementation Reporting Pre-shipped EPC BI Reports: EPC view per location/ per process with time stamps EPC ins and outs per location EPC read/ write rates CCMS Auto-ID Alert Monitor Message Alerts & Resolution Write Success Performance of Devices & Process Steps = messages & tags per minute Data Management Local Master Data Management Maintenance option in SAP AII (Location, Product, Business Partners) for stand-alone AII deployment Local EPC Number Range Maintenance in SAP AII for stand-alone AII deployment SAP AG 2005, Title of Presentation / Speaker Name / 17
18 Example: Business Process Flow enabled by SAP AII 2.1 Tag Commissioning Pack Load Example Scenario: Pack Cases to Stock, then Pack and Load Process Steps Select Product Print Name/ Enter or Case Process Variant Scan GTIN Tags Assign & Move pretagged cases to Stock Using Mobile Transaction Move Cases from Stock Location Pack Cases to Pallet Print Pallet Tags Assign Delivery Reference Information Load View Stock location of pre-tagged case stock Hardware Examples Zebra Printer Feig Writer Mobile or Fixed Reader Mobile or Fixed Reader Configuration based on this example Predefine location SAP AII 2.1 SAP WebAS 6.40 as a field name in configuration SAP Preconfigured BI SAP AG 2005, Title of Presentation / Speaker Name / 18
19 Packing, Goods Issue & Receipt Process with RFID Vendor Pick or Produce Issue/Receive Goods Build (Loading/Unloading) Handling Unit Buyer Status updates Create Event Handler SAP Event Mgmt EPCIS SAP WM TRM Delivery Associate Items / Pallet / Tags Register ID of Pallet Post Goods Issue or Receipt Scan IDs for accuracy Feedback AII Create HU Register EPCs Adv. Ship Notification via EDI/other Cust. Order Purchase Order SAP AG 2005, Title of Presentation / Speaker Name / 19
20 Peak Technology Slide SAP AG 2005, Title of Presentation / Speaker Name / 20
21 SAP Centric RFID Infrastructure RFID Printer Incoders RF Hand Held transactions SAP GUI Transaction Peak's Feature Set SAP's AII Module Peak's RFID Infrastructure SAP WAS 6.20 text NetWeaver SAP Business Connectors RFID Readers Incoders XML Over HTTP or SOAP Mobile Devices Ethernet I/O Controllers RFID Printer Incoders Secondary sub systems SAP AG 2005, Title of Presentation / Speaker Name / 21
22 RFID Landscape Implementation Approach RFID Technology RFID Case Study
23 Case Study: Pacific Cycle Consumer Goods meeting Wal-Mart Compliance Leading Edge implementer of technology Started piloting one year ago Majority of product is large and cumbersome Specific sku s are all metal (wagons) Pacific Cycle was working with SAMSys reader company who recommended an integrator to assist with the project. Wanted on-site testing of their product with the following technology: SAMSys Reader Alien Class 1 Squiggle tags Printronix RFID printer SAP AG 2005, Title of Presentation / Speaker Name / 23
24 Environmental RFID testing SAP AG 2005, Title of Presentation / Speaker Name / 24
25 Case Study Environment 1. Very limited staging area Readers on dock doors would read product in staging 2. Fork truck drivers drove at high speeds Causing missed reads of pallets Driver was physically on the truck before lights were illuminated 3. Very low read rates on the metal products (wagons) SAP AG 2005, Title of Presentation / Speaker Name / 25
26 Pacific Cycle Solution Devices WAS Device Controler AII 2.1 R/3 RFID Readers Master Data Tag Commissioning I/O Controlers EPC Number Range Mgmt Light Stacks Handheld Terminals Priinter RF Transactions Device Mgmt Readers I/O Controllers Printing RF Transactions Reporting from BW User Exit Printing RFC R\3 Interface SAP AG 2005, Title of Presentation / Speaker Name / 26
27 RFID Applicator In Operation SAP AG 2005, Title of Presentation / Speaker Name / 27
28 RFID Survey SAP AG 2005, Title of Presentation / Speaker Name / 28
29 SAP AG 2005, Title of Presentation / Speaker Name / 29
30 Case Study Project Status 5 week project Project Go Live March 14th Installed AII 2.1 fully integrated into R/3. Visibility across supply chain utilizing AII Current RFID technology platform Matric 0+ tags Matric DC400 readers Zebra Printers Symbol Readers SAP AG 2005, Title of Presentation / Speaker Name / 30
31 Case Study Lessons Learned 1. Pilot was a learning experience Tagging on outside corrugate did not meet Pacific Cycle s vision. Would not provide down-line visibility from Wal-Mart as product is unpackaged. 2. Modified Pilot multiple times In an effort to identify the ROI in the supply chain 3. Use established hardware 3. Continued to test and implement new technology as it was introduced into the market. Tag types Antenna configurations Readers SAP AG 2005, Title of Presentation / Speaker Name / 31
32 The Plan Moving Forward MUST MOVE THE TECHNOLOGY INTO THE MANUFACUTRING PLANTS IN CHINA TO RECEIVE ANY RETURN ON INVESTMENT Tag must be placed on warranty paperwork attached to each product Visibility to Store Level SAP AG 2005, Title of Presentation / Speaker Name / 32
33 Questions???
34 Copyright 2005 SAP AG. All Rights Reserved No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft, Windows, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation. IBM, DB2, DB2 Universal Database, OS/2, Parallel Sysplex, MVS/ESA, AIX, S/390, AS/400, OS/390, OS/400, iseries, pseries, xseries, zseries, z/os, AFP, Intelligent Miner, WebSphere, Netfinity, Tivoli, and Informix are trademarks or registered trademarks of IBM Corporation in the United States and/or other countries. Oracle is a registered trademark of Oracle Corporation. UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc. HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C, World Wide Web Consortium, Massachusetts Institute of Technology. Java is a registered trademark of Sun Microsystems, Inc. JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. MaxDB is a trademark of MySQL AB, Sweden. SAP, R/3, mysap, mysap.com, xapps, xapp, SAP NetWeaver and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence. The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages. SAP AG 2005, Title of Presentation / Speaker Name / 34
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