Realizing Business Process Improvements through Real- Time EPC Data Exchange

Transcription

1 Realizing Business Process Improvements through Real- Time EPC Data Exchange Ken Traub CTO, ConnecTerra, Inc. Brian Millsap CIO, Hampton Products Copyright 2005 ConnecTerra, Inc.

2 Agenda Company background Tagging process Video Business benefits Next steps and summary 2 Copyright 2005 ConnecTerra, Inc.

3 Hampton Products Background Manufacturer of durable padlocks, locking and non-locking door hardware and security lighting Committed to innovation: 2 nd in category to use ASNs 1 st in category to use UCCNet for product catalog data sync 1 st in category to ship RFID-tagged products to Wal*Mart One of few manufacturers to RFID-tag all SKUs 3 Copyright 2005 ConnecTerra, Inc.

4 ConnecTerra Background Software infrastructure provider for RFID and device computing Active member of EPCglobal Co-author of six specs Chair of two software spec working groups One of three tech vendors on Architecture Review Committee Software vendor for Hampton Products RFTagAware high performance RFID middleware Compliance Jump Start software for RFID tagging of products, verification, and association with business transactions 4 Copyright 2005 ConnecTerra, Inc.

5 Wal*Mart Supply Chain Hampton s View Hampton Products Wal*Mart Factory Distribution Ctr Distribution Ctr Retail Stores 1. EPC data collected during tagging and shipping EPC Database 3. Wal*Mart data shared with Hampton via RetailLink network EPC Database 2. EPC observations collected as product moves 4. Combined data used to gain business benefits 5 Copyright 2005 ConnecTerra, Inc.

6 What Hampton Products has done EPC RFID tags applied to products for Wal*Mart Sanger TX DC Tags applied to all cases, all SKUs Tags applied to pallets EPCs recorded in local system Wal*Mart EPC observations gathered from Wal*Mart RetailLink Business benefits: Illumination of the Supply Chain Increased in-stock rate Reduction in orders requiring discrepancy reconciliation Technology providers: ConnecTerra, Inc. (middleware and tagging software) Avery-Dennison (label stock and printers) Symbol (readers) 6 Copyright 2005 ConnecTerra, Inc.

7 Agenda Hampton Products background Tagging process Video Business benefits Next steps and summary 7 Copyright 2005 ConnecTerra, Inc.

8 Tagging Process Phase 1 Factory Distribution Center 1. Product warehoused Picking Station 3. Labels applied during pick 2. Case EPC labels printed, stored on rolls 4. Sorted by barcode Sorter Sort Lane R Tag Printing Station ConnecTerra Middleware & Tagging Software WMS 5. EPCs read and associated P 6. Pallet EPC label printed 7. Pallet shipped 8 Copyright 2005 ConnecTerra, Inc.

9 Tagging Process Phase 2 Factory Distribution Center 1. Product warehoused Picking Station 3. Labels applied during pick 2. Case EPC labels printed, stored on rolls 4. Sorted by RFID and 4. Sorted associated by barcode Sorter Sort Lane R Tag Printing Station ConnecTerra Middleware & Tagging Software WMS 5. EPCs read and associated P Pallet EPC label printed Pallet shipped 9 Copyright 2005 ConnecTerra, Inc.

10 Tagging Process Phase 3 (long term) Factory Distribution Center R Product warehoused R R 1. Case EPC labels delivered on packaging Picking Station 3. Labels applied during pick 2. Case EPC labels printed, stored on rolls Additional visibility Sorted by RFID and associated R Sorter Sort Lane Packaging Mfr Tag Printing Station ConnecTerra Middleware & Tagging Software WMS P Pallet EPC label printed Pallet shipped 10 Copyright 2005 ConnecTerra, Inc.

11 Video 11 Copyright 2005 ConnecTerra, Inc.

12 Agenda Hampton Products background Tagging process Video Business benefits Next steps and summary 12 Copyright 2005 ConnecTerra, Inc.

13 Benefits Increased In-stock Key performance indicator for Hampton: are goods in stock at Wal*Mart stores? Can t sell product if it s not where the consumer can find it Key metric for Wal*Mart rating of supplier Hampton believes an increase in their in-stock rate is possible by using EPC data to examine supply chain: Gather ~6 months of baseline data Alert if deviation arises; e.g., abnormal delay in shipping from Wal*Mart DC to Wal*Mart store Take appropriate action in response to alert 13 Copyright 2005 ConnecTerra, Inc.

14 Benefits Discrepancy Reconciliation Discrepancy arises when shipment contents not immediately confirmed; e.g., concern that Wrong product shipped Too few products shipped Most resolved successfully, but resolution process takes time Within two months of commencing RFID operations: Far fewer than the usual 80% of RFID shipments reported discrepancies Several shipments with discrepancies had Wal*Mart reads minutes to file for resolution, instead of days 14 Copyright 2005 ConnecTerra, Inc.

15 Next Steps Tagging process improvements Automation and managing the conveyor using RFID Provide EPC data to Wal*Mart via ASN Extend supply chain visibility to manufacturing plants 15 Copyright 2005 ConnecTerra, Inc.

16 Summary Hampton Products achieved speedy roll-out: All SKUs tagged, all cases, all pallets Three month deployment Technology partners ConnecTerra, Avery Dennison, Symbol Immediate benefits from RFID/EPC data sharing: Increased In-Stock Percentage Reduced discrepancies Illumination of inside of supply chain Longer-term benefits expected: Increased in-stock Increased operational efficiency Obstacles: Tag cost Emerging Technology 16 Copyright 2005 ConnecTerra, Inc.