Container Centralen Uses RFID to Reduce Costs and Combat Counterfeiting. Soren Moller Sorensen COO of Container Centralen A/S, Denmark

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2 Container Centralen Uses RFID to Reduce Costs and Combat Counterfeiting by Soren Moller Sorensen COO of Container Centralen A/S, Denmark

3 Curriculum Vitae COO of Container Centralen A/S 25 years of experience in Supply Chain Management last 15 years at Management, Consulting and Strategic level MBA From Leicester University Married father of 2 children

4 Agenda Introduction of Container Centralen A/S RFID in the European Horticultural Sector Why? Supplier Partners Technology Possibilities with RFID Lessons learned

5 The Beginning Container Centralen (CC) began as a cooperation between Danish flower and pot plant exporters in The original CC Container

6 A Simplified Pool System The CC Pool System is in principle based on one-for-one exchange Empty units are exchanged for full units and vice versa 1 full unit = 1 empty unit

7 Immediate Results (1976) ONE system with shared transport items: Reduced number of transportation units in the entire supply chain Higher efficiency lower costs

8 The CC Equipment 2011

9 The CC Services 2011

10 CC Network Europe 10 offices and 60 depots

11 CC Network US 1 office and 50 depots

12 Agenda Introduction of Container Centralen A/S RFID in the European Horticultural Sector Why? Supplier Partners Technology Possibilities with RFID Lessons learned

13 Why RFID in the Horticultural Sector? Improved quality of the pool Protection of the shared investment (250+ MEUR) in the industry Closing of the pool a fair system with no free riders Operational cost & time reduction as illegal low-quality containers are excluded from the system

14 Why RFID in the Horticultural Sector? Shared European solution for the whole industry Opportunity for Track & Trace as next step Reduce administration time & paper work possible cost savings for all users

15 Why Was Improved Quality of the Pool Necessary? The legal users of the 3.5M genuine CC Containers were paying for the free riders / lowquality containers that came into the pool in great numbers

16 RFID in the Horticultural Sector It all started back in In 2010 and throughout the implementation in 2011, the RFID implementation group consisted of:

17 Main Supplier After a tender in 2008 CC signed up with IBM in February 2009.

18 Deliveries From IBM 3.9 million RFID tags in a unique housing (3.5M + new contracts) Gates and scanners for 60 depots and repair shops in Europe IT infrastructure to handle the data and flows Development of an RFID track and trace solution platform

19 Other Suppliers PANMOBIL Nordic ID Mieloo & Alexander Scanners, software and consultancy services.

20 World s Largest RFID Implementation Kick-off was January 10 th, 2011

21 Implementing the Tags 20,000 customers attached padlocks to 3.9M CC Containers sent in 33,000 parcels 35 countries 100,000 users in Europe were informed

22 High Security Is Necessary The solution offers a very high level of security not seen in any RFID implementation before.

23 Devices For the Solution A number of certified devices are available and more are pending: Handheld readers Stick readers Leg readers Mat readers Gates / portals

24 The Devices PL3000 Morphic* GS- Basic/Gun GS-Smart* User Interface Screen 3.5 Screen lines 2 LED s Scanning Fast scan times, reading distance approx cm Fast scan times, reading distance approx cm One-by-one scan, reading distance approx 5-10 cm One-by-one scan, reading distance approx 5-10 cm Weight 550 gram 190 gram 102 gram 80 gram Connectivity GPRS / cradle GPRS / cradle GPRS/EDGE through a cradle or SCOUT GPRS/EDGE through a cradle or SCOUT

25 Possibilities With RFID The IT infrastructure is created and all the CC Containers have an RFID tag, so now the CC Container is no longer just a CC Container, but a unique RTI with a unique number. Now we can exchange data about the unit and its contents!

26 Possibilities With RFID (Cont.) Link product data, sales data and order data together with the physical CC Container Automation of logistical processes Cost & time savings on operations Reduction of the loss of CC Containers

27 Possibilities With RFID Better protection of the pool system Reduced cost for repair and maintenance (discount given up front) Better overall quality of the pool Track & Trace and a lot of other good ideas which will turn up when the parties in the supply chain get RFID fully integrated in their daily operations

28 Lessons Learned It is not so much about the technology / hardware / software - It is more to be aware of and solve / improve logistical issues The technology must work! - no room for patience by the customers

29 Lessons Learned (Cont.) The vision of RFID is clearly there, but people need help to see it. Fear of change / costs is dominating time is important. Top management of CC has been deeply involved and has communicated this involvement internally / externally.

30 Lessons Learned We believe that in a couple of years the markets will thank us for what we did!

31 Example of RFID Utilisation in SCM BAAS Plantenservice Makes the Supply Chain Transparent Complete utilisation of the added value of CC RFID tags! Press release by Mieloo & Alexander, August 18 th, 2011

32 BAAS Plantenservice Case Ad van de Wijdeven, BAAS Plantenservice Managing Director: "We immediately saw the opportunities of the RFID tags on the CC Containers for further speeding up and improving our logistics. Especially in the peak periods, when we process about 12,000 to 14,000 CCs a day, things can easily go wrong, and that requires a lot of communication between suppliers, transporters and our logistical and financial departments. All of this is no longer necessary because we can see at glance exactly what the status of each delivery is. Our suppliers and transporters have the same information. And it all happens automatically!"

33 BAAS Plantenservice Case In conclusion, Baas Plantenservice is proud of these innovative work methods and invites other parties in the distribution chain to join in this initiative. "It is in all of our interests that together we ensure that we maintain the leading position in the horticultural sector," says Ad van de Wijdeven.

34 Questions?