How RFID Solutions Drive New Business Benefits

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1 Thursday, 12:20 pm Room S230-G Sherman, Mapp, Irland How RFID Solutions Drive New Business Benefits Alan Sherman, Director of Marketing, OATSystems William Mapp, President, BA Systems Jeff Irland, Associate, Booz Allen Hamilton

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3 Deploying RFID to Drive Business Benefits Alan Sherman Director of Marketing OATSystems, a division of Checkpoint

4 OATSystems Delivers Real-Time Visibility to the Enterprise What We Do: Optimize the value of enterprise systems (ERP, WMS, MES, POS, Field Service,...) and operational processes with real-time visibility Drive actionable information to prevent process errors and delivers tangible cost savings! Alert! Model # Y453-D7112 Has been moved to Zone Y14 Connect Auto-ID solutions (active, passive, Wi-Fi, UWB, RTLS, GPS, ) with business context in real-time

5 OAT Systems: Auto-ID Innovation & Leadership History of Leadership: Founded in 2001 by industry visionaries Sanjay Sarma, founder of the MIT Auto-ID Center Prasad Putta, Manager of Auto-ID Center and early Walmart field trials Breadth & Depth of Resources: Division of $1B Checkpoint Systems (NYSE: CKP); rich heritage as an RF technology innovator and solution provider 40+ years of RF experience 5,500 employees across 6 continents Proven Solutions: Over 100 retailers, consumer products companies, and industrial manufacturers deploy OAT software to streamline operations Enterprise Scale: Powers the world s largest RFID-enabled manufacturing deployment First-to-Market: First RFID middleware (2001) First multi-site deployment (2003) First RFID-centric applications (2003) First Flexible Architecture solution (2006) Selected for the first end-to-end aerospace & defense deployment (2008) OATSystems empowers logistics & supply chain management, continuing to offer innovative and practical solutions in the face of fast-changing challenges Inbound Logistics Magazine

6 Our Customers Have Won the Top Award Here for the Past Three Years Best RFID Implementation 2007: Hewlett-Packard, an OATSystems customer Best RFID Implementation 2008: Airbus, an OATSystems customer Best RFID Implementation 2009: Charles Vogele, a Checkpoint customer Marcelo Pandini Manager, RFID & Business Development, Hewlett-Packard Brazil Carlo K. Nizam Head of Value-chain Visibility and RFID, Airbus Thomas Beckmann Head of Supply Chain, Charles Vogele Group

7 What We re Seeing in the Market Strategic investments, leveraging existing budgets Enterprise application development & enhancements Lean manufacturing initiatives Compliance & risk management initiatives Business intelligence drives real-time information requirements Current, relevant, complete data is key Investment for the future New product lines, more complex value chains Gradual replacement of aging fleets in A&D, elsewhere RFID as a business-enabler, not an end itself Leverage GPS, Wi-Fi, sensor, barcode infrastructure Using the right sensor for the job Beyond the four walls In-transit visibility now reality

8 Value from RFID Solutions Across Industries Vehicle & Equipment Tracking Component Tracking & Kitting Clean Room Tracking Controlled Asset Tracking Compliance Tracking Emergency Equipment Tracking Tool Tracking Product Diversion Tracking $20B+ Heavy Equipment Manufacturer Global Defense Contractor Global Aerospace OEM Oil & Gas Company $2B+ Helicopter Manufacturer Healthcare Provider $2B+ Defense Contractor $1B+ Consumer Product Distribution Company Specialized equipment, yard trailers across multiple locations Component parts, subassemblies for customized packing kits Indirect materials used in process manufacturing Finished goods through audit and attestation Emergency medical equipment and supplies Indirect assets and documentation Specialized tools across 20+ buildings in manufacturing campus Patented products licensed solely to authorized distributors

9 Case Study: Healthcare Regional emergency medical services company providing 24/7 pre-hospital care Visibility Challenges: Optimize the tracking of medical equipment, supplies, and service equipment to maintain fleet. Increase safety, efficiency and preparedness. OAT Solutions: OAT Asset Tracking and Inventory Management running on mobile handhelds Results: -reduced time and labor cost to equip ambulances with critical medical supplies -reduced verification time from 2 hours to 90 seconds -facilitated documentation for public health regulatory compliance and improved compliance rate -reduced on-hand inventory of medication and service parts by 30% -reduced product waste due to expired items -improved patient service and safety

10 Case Study: Heavy Equipment Manufacturer $20+ billion manufacturer of agricultural and construction equipment Visibility Challenges: Managing thousands of Reusable Transport Items containing component parts and work-in-process during assembly. Production delays, line shutdowns and other errors associated with using a barcode-based Kanban system. OAT Solutions: Automated Shipping & Receiving, Container Tracking, Work-in-Process, Line-Side Replenishment, integrated with SAP Materials Management System Results: -improved inventory accuracy and automatic replenishment with SAP Materials Management system -reduced expedite costs for missing components -eliminated need for line shutdowns and whole goods rework caused by errors in parts availability -instant inventory status across multiple locations -employees focused on exception handling vs. track and trace -significant increase in manufacturing efficiency

11 Case Study: Chemical Manufacturing Fortune 500 Chemical Manufacturer Visibility Challenge: Tracking raw materials, product batches and finished goods through manufacturing, distribution and reverse logistics to improve customer service, provide timely delivery and minimize scrap product OAT Solutions: Automated Shipping & Receiving, Container Tracking, Line-Side Replenishment, Work-in-Process, integrated with SAP inventory and work order systems Results: -reduction in labor cost and exception handling at key points -reduction in scrap material and raw material inventory costs -improved on-time delivery and customer satisfaction -fewer labor hours searching for product, faster response -automatic validation of batch numbers and expiration dates during returns process -increased warehouse efficiency, automatic replenishment for SAP inventory systems

12 Key Take-Aways 1. Identify your key business challenges Where are my Example: WIP Tracking/ Line-Side Replenishment

13 2. Look for existing budgets and creative funding sources Key Take-Aways SAP ERP, Oracle, etc. Lean mfg., compliance

14 Key Take-Aways SAP ERP, Oracle, etc. 3. Leverage existing systems and processes Sensors Wi-Fi, Barcode, etc.

15 Key Take-Aways SAP ERP, Oracle, etc. 4. Reference precedents, even from other industries the use Sensors cases are often similar Wi-Fi, Barcode, etc.

16 5. Partner with providers Key who Take-Aways can deliver the right proven solution it doesn t have to be hard! SAP ERP, Oracle, etc. Get Work Order Details from SAP ERP Assign Work Order to Compare Update Kanban Board, Auto- Replenish Inventory Update Work Order Status OATxpress Get Assembly Instructions & Component List for Workstation #3 Validate Against Work Order Send Work Order Status OATdevice manager Receipt at Workstation #3 Auto-ID Devices & Sensors RTLS, Wi-Fi, Barcode, RFID Read Component Serial #s, Batch #s, Test Data Operator Feedback! Alert! Part # TR is recalled. Please substitute Part# CR

17 VISIT US IN BOOTH #440

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19 Real Benefits from RFID

20 Today A Bit About Us Our Experiences Real Benefits

21 Shameless Plug BA Systems Advanced Techniques and Technologies High Transactional Throughput Wireless Remote Sensing RFID Dual Frequency Mobile

22 Why Are You Here? Technology HF/UHF UWB 1,000,000 tags per second Solutions? Asset and Inventory Management Workflow Control WIP, CnP, Warehouse Mgmt, etc.

23 RFID Gets You Close What We ve Learned with Our Customers Process, Process, Process Fixed Readers + Localization = JIT Inventory Mobile Readers + Diligence = Superb Customer Service Rugged Tags + Instruction = Superior Quality What We ve Discovered We Were Buried in Data What Goes in Must Come Out The Solutions Needed Solutions

24 It s Not Really About the Data Collected Everything, but Meant Nothing Adhoc Queries Killed Us Everyone Became a DBA Everyone Became Certified Excel Professionals Hours Wasted Running Transforms The Solution Became a Problem

25 It s About Data Products

26 Real Benefits Real Value is Derived from Your Data Products Presentation is Key Simplicity Makes Decision Making Easier Data is One of Your Key Assets What We ve Found Decisions Are Made Faster, Less Heartburn Communicating Down Is Easier People Stop Questioning the Process Easier to Make Your Own Numbers

27 Thanks Come See Us at Booth #142! Win an ipod Shuffle! William Lee Mapp, III Chief Nerd, BA Systems, LLC

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