RFID Projects in Japan - an Update

Transcription

1 RFID Projects in Japan - an Update Dec, 2018 Consumer Affairs, Distribution and Retail Industry Division Ministry of Economy, Trade and Industry (METI) Government of Japan

2 1 1.Analysis of Present State 2.RFID Policy Initiative 3. RFID Demonstration Project 4.Prospective View

3 The Changing Environment of Retail Jan-2014 May Sep Jan-2015 May Sep Jan-2016 May Sep Jan-2017 May Sep Jan-2018 May Sep Retail Sales Trend Changes in Attitude with Respect to Price & Consumer Preferences Hourly Wages of Part-time Workers / Effective Job Opening to Applicant Ratio (JPY Trillions) (%) (JPY) Desire for Low Price & what is Economical Desire for Quality Even at Higher Prices Desire for Products Meeting One s Lifestyle Per-Hour Wages(Left) Jobs-to-Applicants Ratio(Right) 1 Securing New Demand 2 Accurate Understanding of Consumers 3 Productivity Enhancement Source: Retail Sales Trends : METI Commerce Statistics. Changes in Attitude with Respect to Price & Consumer Preference :NRI Survey of 10,000 Consumers (CY2000, CY2003, CY2006, CY2009, CY2012). Hourly Wages of Part-time Workers/ Effective Job Opening to Applicant Ratio : (Hourly Wage) Recruite Jobs, (Effective Job Opening to Applicant Ratio)MoHW Trends in General Job Placements. Hourly wage data is the average wage in Sales/Services sector in the Greater Tokyo Area (Tokyo, Kanagawa, Chiba, Saitama Prefectures), the Tokai Area (Aichi, Mie, Gifu, Shizuoka Prefectures), the Kansai Area (Osaka, Hyogo, Kyoto, Nara, Shiga, and Wakayama Prefectures). Effective Job to Applicant Ratio is the index of Labor Market by Occupation Product Sales Occupation. Through 2011, benchmarked against 1999, from 2012 benchmarked against

4 Supply Chain Waste Food Loss (CY2015) Unit: JPY 100 Million Estimated Value of Returned Products (Wholesaler to Manufacturer) Food Loss In Japan 6.46 Million Tons Worldwide Food Donations 3.20 Million Tons Loss Equivalent to a Bowl of Food by Every Japanese Everyday Processed Food Daily Goods OTC Drugs Source: Food Loss MoAFF (2015) estimates and/or WFP Report (FY2014). Product Returns Annual Coordinated Discussion Round Table amongst manufacturing, distribution, and sales/ Forum Reports. 3

5 Penetration of Electronic Commerce (JPY Billions) EC Aggregate Merchandise Sales and Percent Market Share 5.8% 6.0% <Consumer Data Acquisition> % JPY 8.6 Trillion % % % % % % % Consumer ID Page View History Purchase History Products Placed in Shopping Cart Products Removed from Cart Purchases of Ancillary Products Settlement Method etc EC EC 市場規模 Market Size EC EC 化率 Market Share Source: METI FY2016: Survey of the Electronic Commerce Market 4

6 Smart Supply Chain Platform EPCIS Standardization <Cyber Space> Data coordination through designing standard region Forecast/ Identification Individualize & Inventory Data Specification Browsing History APP AI Product Data RFID Space Data Database Cameras Logistics Data Delivered Data GPS Location Data WiFi/Beacon Digital Signage Settlement Data Purchasing Data <Physical Space > Data collection from point of contact with things, people and places Cashless Electronic Receipts User Data Smart Home 5

7 Smart Store Conceptual Framework Maker Data Coordination at Each Supply Chain Level Digitalization of Product Inventory via Smart Shelf Individual Identification and Behavior Tracking Via Camera Imaging RFID Camera Cashless Logistics Supply Chain Data Sharing System Open & Close Strategy For Coordinated Data Electronic Price Tags Multi-language Information Wholesale Dynamic Pricing via Coordination with Supply/Demand and Expiry Data Cater to Inbound Traffic via Multi-language Product Information Cash Register-less, Cashless, Receipt-less via Walk Through Settlements 6

8 7 1.Analysis of Present State 2.RFID Policy Initiative 3. RFID Demonstration Project 4.Prospective View

9 The Future Shape of RFID & Example of Diffusion Benefit Accurate traceability of defective product. Joint shipments via visibility of shipping routes/ volumes. Beneficial in natural disasters. Labor savings at cash registers and reduction to food loss via efficient inventory management. Prevention of theft via RFID gates. Confirmation of food expiry in refrigerators via smartphone. Data Platform Built on Speed Manufacturer LogisticsWholesale Retail Consumer Production Data Truck Cargo Volume Data Delivery Data Inventory Sales Data Loss Data Expiry Data Consumption Data Data ( ) Distribution of RFID tagged products, automated acquisition of supply chain data RFID tags attached to products by the manufacturers. Product tracking in & out of plants and warehouses. Roadside gates allow tracking of product location. Fast capture of product movement whether it be delivery inspection, inventory, POS settlement. Consumers able to readily see food status inside RFID compatible refrigerators and closets. As merchandise management of consumers falls within the realm of individual privacy, it is assumed in this model that the consumer will personally control related data. 8

10 The Declaration of Plan to Introduce 100 Billion Electronic Tags for Products in Convenience Stores (April 18, 2017) Text of the declaration By 2025, Seven-Eleven Japan Co., Ltd., FamilyMart Co., Ltd., Lawson, Inc., Ministop Co., Ltd., and JR East Retail Net Co., Ltd. (operator of NewDays convenience store chains) should attach electronic tags to all products sold in their convenience stores (estimated to be 100 billion products per year) and achieve individual-item monitoring for every product. In this process, the companies must consider providing a portion of the information that they acquire through using such electronic tags to supply chains. The companies should start electronic tag demonstrations around 2018 by attaching such tags to products in their convenience stores in certain areas, aiming to achieve individual-item monitoring for every product. Qualification conditions involving the declaration The companies should set the unit production price of a dissemination-type electronic tags to one yen or less (cost taken for processing such tags, including a combination of an IC chip, antenna and creating seals), to be attached to all applicable products (some products have special disqualifying conditions for the time being, e.g., those warmed by microwave, stored in metal containers, frozen/chilled and ultra-thin). They should develop a system for fully accomplishing source tagging, where manufacturers themselves attach the electronic tags to their products, and in which nearly all their products can be incorporated into their system using radio-frequency identification (RFID) technology. Source of the logos:the website of each company 9

11 The Declaration of Initiatives for Making Drug Stores Smarter (March 16, 2018) Text of the declaration The Japan Association of Chain Drug Stores (JACDS), jointly with the Ministry of Economy, Trade and Industry (METI), will aim to realize a smart store system. METI and JACDS will launch research for electronic tags using the radio-frequency identification (RFID) technology as the first step in this initiative. They agree on the purpose of the Plan to Introduce 100 Billion Electronic Tags for Products in Convenience Stores** and JACDS will aim to attach electronic tags on all products sold in drug stores by 2025 and to realize individual-based management of these products. METI and JACDS will start a new project titled Growth Strategy Project in 2018 and conduct a demonstration test on the use of electronic tags in drug stores. Through these efforts, METI and JACDS will enhance the expertise and knowledge of related staff by removing the burdens of monotonous and repetitive work and will improve the quality of services. Moreover, they will take on the creation of new value added using data acquired from IoT-based devices, e.g., electronic tags. Source of the logos and the pictures The website of Japan Association of Chain Drug Stores 10

12 11 1.Analysis of Present State 2.RFID Policy Initiative 3. RFID Demonstration Project 4.Prospective View

13 Issue of RFID High Cost Realization of 1 tags RFID Tag/Reader The Performance does not meet the requirements of users Resistant to microwave Improvement of read accuracy Implementation on products There is no fast and inexpensive method Improvement of encode efficiency Embedding tags in packages Printed implementation Value Creation The benefits of product manufacturers are uncertain Share of inventory information Marketing New service to consumer 12

14 Outline of the RFID Demonstration Project Item Detail Term 14~23 February 2018 Place Purpose FamilyMart METI Store Lawson Marunouchi Park Bldg Store MiniStop Kanda Nishiki-cho 3-chome Store To realize the Sharing of Supply Chain Data as set forth under the 100 Billion Electronic Tags Declaration, and to create and test a working model of the Supply Chain Data Sharing System. 13

15 Image Illustration of the Demonstration Logistics Center METI Store Supply Chain Data Sharing System (EPCIS) Marunouchi Park Bldg Store Manufacturer Logistics Data Cooperation Tag Attachment Read Point Kanda Nichiki-cho 3-chome Store Source: Logos from websites of relevant company 14

16 Image of Supply Chain Data Sharing System ② Delivery Of 001 ① Shipment of 001 ③ Sale of 001 RFID Tag Code Logistics Center (LC) A Store B ①Shipment of 001 Item Cookie Cookie Cookie JAN Code Serial Status /22 12:00 Shipment fm LC A Inventoried at LC A Inventoried at LC A ②Delivery of 001 Item JAN Code Serial Status /22 13:00 Deivery at Store B Cookie Inventoried at LC A Cookie Inventoried at LC A Cookie ③Sale of 001 Item JAN Code Serial Status /23 11:00 Sale at Store B Cookie Inventoried at LC A Cookie Inventoried at LC A Cookie 15

17 16 1.Analysis of Present State 2.RFID Policy Initiative 3. RFID Demonstration Project 4.Prospective View

18 Expansion of the Project Supply Chain Management Consumer Relationship Management product planning Procurement & Production Logistics Sale Utility Value Loyalization Visualization of Product Flow Previous Demonstration Tag Implementation EPCIS Linkage Read of Arrival & shipment Display in Stores Read of Sales Goods Visualization of Perception Flow Next Step Recognition Induction Customerization Loyalization Repurchase 17

19 Image Illustration: Visualization of Perception Flow WiFi Cameras RFID Electronic Receipts More Accurate Marketing APP Usage History & Visitor Traffic Line = Visitor s Age / Gender Linkage of Digital Signage and an Item which is picked up Whether or not the item has been purchased Verifying whether sales promotion affects purchasing WiFi (Linkage to App) An Item attached a RFID tag Digital Signage Electronic Receipts A camera that guesses age & gender of visitors RFID Reader Shelf When taking an item on the shelf, advertisement of the item is shown from the digital signage. Electronic Price Tag 18

20 Issue of RFID High Cost Realization of 1 tags RFID Tag/Reader The Performance does not meet the requirements of users Resistant to microwave Improvement of read accuracy Implementation on products There is no fast and inexpensive method Improvement of Encode Efficiency Embedding tags in packages Printed implementation Value Creation The benefits of product manufacturers are uncertain Share of inventory information Marketing New service to consumer 19