Radio Frequency Identification (RFID) IBF/EBF-congres

Transcription

1 Radio Frequency Identification (RFID) IBF/EBF-congres 12 th of June 2008 Ronald Janssen, Senior Manager ICT

2 Agenda Introduction Business case (Q1 2005) Feasibility study (Q4 2005) Pilot project (Q1 2006) Bringing the solution to maturity (Q ) 2

3 Introduction Centraal Boekhuis: The leading logistic services company for books and office supplies in the Netherlands and Belgium. Complementary to logistics we deliver administrative, financial and IT services to our customers. We service more than 500 publishers and 1800 booksellers We hold approx titles on stock and distribute more than 67 million copies annually. Over 770 FTE, 640 of which are CB personnel Turnover is approx. 70 million. BGN: Largest booksellers in the Netherlands 16 large consumer stores, 26 campus stores (Selexyz brand) 3 customer target groups: consumers, businesses and students Annual sales of over 175 million Approx. 650 employees Shareholders: VC, publisher and the management 3

4 What s RFID Bar code RFID (Radio Frequency Identification) Can only be read individually Must be in plain sight Dirt and damage sensitive (Usually) read manually Data cannot be changed Information is limited Read many tags at the same time No visible spot required Integratable in packing or product Are read automatically Rewritable Information depends on use 4

5 Use of RFID R F I D I N T R O D U C T I O N Lorry, Container multiple logistic uses; first-time-use in history Technically realizable using active RFID tags Introduction by logistic service providers Pallet; Roller Cage, Container [RTI] Variable usability in logistical processes and RTI pools Increasing chain dependancy for RTI Introduction by logistic service providers BOX [box level tagging] Increasingly used in logistical processes Low chain dependancy Introduction by logistic service providers and retailers Book [item level tagging] Use increases, as well for marketing as in logistics Complete chain dependancy Introduction usually by cooperating producers and retailers 5

6 Business case (Q1 2005) Business study done by Centraal Boekhuis, together with Dutch publishers and retailers. Publishers See little benefits in using RFID Focus: improve existing processes with already available technologies RFID is considered extra costs, no substantial benefits Retailers There is a strong business case for item level tagging. The additional cost per item must be under 0,17 The potential of RFID is higher in larger bookshops ROI can be achieved by optimizing logistic processes, eg. product availability and taking inventory, and improving sales. Conclusion Pull model Retail will pull RFID through the supply chain Applying tags in the logistic process Logistics partner (Centraal Boekhuis) 6

7 Feasibility study (Q4 2005) Tests done in CaptureTech RFID lab (NL) Test Cases: Scan the complete content of a CB carton box with up to 60 books inside Orientation of books in all directions Labels can be facing each other Scan the content up a cupboard shelf with up to 50 books 7

8 Feasibility study UHF Gen2 Tests with up to 86 books Passed: Yes 96% 91% 86% 81% 76% 70% 65% 60% 55% 50% 1,0 W 0,9 W 0,8 W 0,7W 0,6 W 0,5W t yp e % 10 0 % 10 0 % 10 0 % 9 6,3 0 % 8 8,9 0 % t yp e % 10 0 % 10 0 % 10 0 % 9 9,2 0 % 9 6,6 0 % t yp e % 10 0 % 10 0 % 10 0 % 9 9,4 0 % 9 6,6 0 % 8

9 Pilot project (apr nov 2006) Selexyz Bookstores in Almere and Maastricht Floor areas appr m to items on stock 9

10 Pilot project scope Scope of pilot implementation 100% of the books must be tagged Every tag contains a unique EPC 100% check of goods received based on ASN Taking inventory with a mobile scanning device Signalling of misplaced books Kiosk application for customer self service Theft detection based on RFID 10

11 Results reported by BGN ( nice ) Fast stocking up on books. The shop took delivery of 35,000 books in just three days. That s hugely faster than we could have done without RFID. It would have been two weeks work (Matthijs vd Lely, CEO BGN) A scanner reads the contents of an unopened (!) box in mere seconds. Reading the individual bar codes in an open box used to take about 5 minutes. (Jan Vink, CIO BGN) With a mobile RFID scanning cart, 2 persons can inventory the whole shop in 1½ hour without having to close it up. Before, it took a fairly large number of people at least a day with the shop closed for business. This leads to a yearly saving of approx. EUR 200,000 and approx. EUR 260,000 less sales loss. 11

12 Customer orders Customer orders: Automatic notification of customers upon receipt of the book in the shop Strong improvement of quality of service Efficient processes 12

13 Self service kiosk 13

14 Results reported by BGN ( Wow ) Stock reliability of over 97,5% on bookcase level Information kiosks located throughout the shop pinpoint within seconds the exact location of any of the store s books. The kiosks tell shoppers not only whether a book is in stock but also what bookcase it s on. In other shops this is simply not feasible. If a book is not in stock, the shopper can order it online at the kiosk for either home or store delivery. In the case of store delivery customers are notified immediately ( or SMS) when the book has arrived. This dramatically improves customer experience Improved and current insight in assortment, enabling BGN to timely and automatically stock up on ever sellers and broaden the assortment by adding new categories. Through these improvements BGN sells more copies (> 5 %) without hiring additional staff, thus increasing the sales-per-head. 14

15 RFID results at BGN are not unique EPC Reduces Out-of-Stocks at Wal-Mart A study by the University of Arkansas found the retailer was able to reduce out-of-stocks by 16 percent through the use of Electronic Product Code RFID tags on cases of goods from suppliers. RFID Journal reports dramatic results in early item-level RFID pilots Several progressive retailers, driven by the potential of RFID to help improve inventory visibility and store operations, have already moved ahead with item level tagging. The results of these early item-level RFID pilots have been dramatic: Inventory accuracy has increased up to 20 percent Out-of-stocks are down by as much as 50 percent Sales are up by as much as 10 percent Safety stock is down by as much as 50 percent Cycle-counting time is down by as much as 90 percent Shrinkage is down by as much as 50 percent RFID increases in-stock rate and sales at Best Buy Best Buy achieved a 98.7 percent in-stock rate on tagged goods and simplified the search process. This enabled staff members to find tagged goods more quickly than nontagged items. Improved stock levels and product availability led to a 14% percent increase in the number of tagged items sold. 15

16 Pilot project result Based on the results of the pilot BGN/Selexyz has decided to roll out the use of RFID in all of its 16 consumer shops 3rd shop (Nijmegen) started since december 2007 Another 4 shops to be implemented this year (The Hague, Breda, Groningen, Leiden) Remaining 10 shops to be implemented before July 2009 To be able to support that CB has improved its tagging process 16

17 Pilot academic library Academic library of the VU in Amsterdam Pilot started in October 2007 (Improvement-it) Pilot in two department libraries with books Self checkout, security, taking inventory 1,4 mln books in total 17

18 Bringing the solution to maturity Improving the RFID label Performance Speed Read rate Reliability Security Privacy Standardisation 18

19 Improving the RFID label Up to January 2008 we have used a generally available Gen2 UHF RFID inlay Developing a RFID label, specifically designed for use on books, that met our specifications has taken 1,5 year 19

20 Improving the RFID label Size equal to current price label (75x36mm) Adhesive characteristics both removable and permanent Design and extensive testing with different suppliers We have started using the label in January 2008 Continuous improvement 20

21 Performance Books have to be tagged at a speed of 1 per second Read rate 99,99% on item level Commissioning and writing the EPC is critical Boxes have to be scanned at a speed of max boxes per hour Tunnel read performance is critical Allow tagging total volume 21

22 Implementation CB June 2008 Centralised RFID labelling (Groepage) Implementation of 2 semi-automatic workplaces with Logopac applicators Production capacity of max copies per day 22

23 Standardisation In discussion with GS1 / EPCglobal Proposal based on SGTIN-96 with a commissioning service Book Industry Meeting; ISBN and EPC on the 19 th of June GS1 workgroup Kick-off on the 24 th of June SSCC-96 standard for box tag 23

24 SGTIN-96 EPC GTIN & S/N Indicator Digit ISBN Check Digit* Serial Number SGTIN ISBN Indicator Digit Serial Number *Bar Code s check digit is not stored in EPC Tag 24

25 Privacy Communicate to the customer Bring benefits to the customer Offer the possibility to kill the chip Make the information on the chip, including the EPC, as meaningless as possible 25