S P O N S O R E D B Y

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1 S P O N S O R E D B Y

2 Host: Mark Roberti, Editor, RFID Journal Speakers: John Rommel, Sr. Manager RFID Channel Development Motorola Kevin Kail, CEO epcsolutions Jack Sparn, CIO igps RFID-Enabled Plastic Pallets for Increased Visibility into Shipping Logistics

3 John Rommel Sr. Mgr RFID Channel Development, Motorola RFID-Enabled Plastic Pallets for Increased Visibility into Shipping Logistics

4 Industry Overview Over 600 million new pallets were built in An additional 300 million were reclaimed from scrap 185 million wooden pallets reached US landfills in Or 4.2 million tons Or 1.5% of all solid waste Large manufacturers routinely order between 10,000 and 30,000 pallets per year 3 Some analysts estimate there are over 10 billion wooden pallets in operation today 3 1. VPI: Trends In Use, Recovery, And Recycling Of Wood Pallets 2. Virginia Tech: Municipal Solid Waste Landfills and Wood Pallets 3. Modern Materials Handling

5 The Problem With Pallets Assets That You Own But Don t Control Rely on customers to return them Typically no accounting of how many were shipped Rarely is there reciprocity for lost or damaged pallets Costly to Maintain Replacement costs (10% shrink per year) Maintenance costs Storage costs (extreme case vs. normal use)

6 The Potential With Pallets Pallets move the majority of our supply chain What if a pallet was smart with RFID Easier to track a pallet than to track each item on it The pallet s ID could become the locator for its contents The standardized transport medium could become the standardized data interchange medium Smart pallets could also be used in warehousing and to track hazardous materials

7 RFID Pallet Pooling Eliminates cost of pallet ownership Pay as you use Eliminates the hassles of tracking pallets Automated process Provides a platform for smart shipment tracking Common numbering scheme and data path

8 What Is Required RFID Standards Durable, pre-tagged pallets Efficient & flexible reader infrastructure Tag database registry Control & communication software Adoption by leading manufacturers

9 What Is Required RFID Standards EPC Gen 2 Durable, pre-tagged pallets igps Efficient & flexible reader infrastructure Motorola Tag registry database igps, epcsolutions Control & communication software epcsolutions Adoption by leading manufacturers Quaker Foods, Gatorade, HEB, Tropicana, Imperial Sugar, and others.

10 Kevin Kail, CEO epcsolutions RFID-Enabled Plastic Pallets for Increased Visibility into Shipping Logistics

11 epcsolutions Company Overview epcsolutions, Inc. is a leading provider GS1 standard based solutions for EDI, GDSN, BarCode, and EPC-based RFID. We are a complete systems and solutions company with 5 offices, over 40 employees and 300 customers.

12 Solutions and Standards Solutions DocManager TagManager FAM TetraGate WIP GtinManager GS1 Standards EDI RFID Supply Chain Fixed Asset Human Asset Work in Process GDSN

13 GTINManager GTINManager allows product data to be synchronized with the Global Data Synchronization Network via the 1Sync repository. It implements the GS1 GDSN standard so suppliers can easily gather and process data on a local computer system, and then send that data electronically to retail trading partners.

14 Data Transport Solutions DocManager functions as a PBX or EDI VAN for business Documents, managing the receipt and sending of documents between trading partners and processes those documents based on business rules for each trading partner. DocManager provides compliance with GS1 ecom by managing the receipt and sending of documents between trading partners based on business rules.

15 igps Network

16 Tracking Technology

17 Primary functions performed for igps Data Capture Data Transport

18 Data Capture and Transport Locations Over 600 Locations

19 Pallet Manufacturing

20 RFID Tag Validation Print Spool 1200 sets of 4 1 Zebra Pallet Tag Maker Zebra C C C C C C C Machine Validation 1. Read GRAI 2. Encode Tag 3. Verify Tag 4. Print GRAI igps Serial #: 0565FE C FE1 igps Serial #: 0565FE C FE D 5 9 D Human Validation 1. Matching Tag Numbers 2. Starts with Each run verify encoding matches number igps Serial #: 0565FE C FE1 2 Box 1200 sets of 4 Box 1200 sets of 4 Morenci = 0,4,8,C Buckhorn = 1,5,9,D Bowling Green = 2,6,A,E igps Serial #: 0565FE C FE1 1

21 RFID Pallet Validation

22 RFID Pallet Validation Pre-weld Validation Checks (Weld Table) Missing GRAI Non-matching GRAI Multiple GRAI s After Labels Applied (Validation Table) Missing GRAI Non-matching GRAI Multiple GRAI s Barcode Match

23 Reading Pallets at a Dock Door Application Screen LCD at Dock Door

24 Pallet Manufacturing

25 igps Network

26 Jack Sparn CIO igps RFID-Enabled Plastic Pallets for Increased Visibility into Shipping Logistics

27 igps igps operates the world s first pallet rental service providing all-plastic pallets with embedded RFID tags, enabling shippers and receivers to track and trace shipments in real time. igps pallets are 30% lighter than wood pallets, reducing transport costs and green house gas emissions, and they are 100% recyclable. (igps retains complete ownership rights to all pallets wherever the location.)

28 igps Business Overview System components are currently using Best of Breed approach with our strategic partners: Information Systems (Ryder, epcsolutions) Pallet Manufacturers (Schoeller Arca Systems, the worlds largest plastic pallet manufacturer) Logistics (Ryder System) Targeting world-class manufacturing, distribution and retail customers Initial focus on Fast Moving Consumer Goods (FMCG) Will expand reach to Pharmaceuticals, Electronics and Home Improvement

29 Benefits The igps solution provides numerous benefits: Power of tracking and tracing through RFID (Driven by Technology and Operational Processes) A lighter, stronger, safer and greener pallet than wood Increased efficiency of the igps pooling model Improved customer supply chain productivity Benefits of sustainability

30 The Power of RFID Each igps pallet has 4 identical RFID tags embedded in its frame with state-of-the art EPC Gen 2 RF technology (and 4 redundant bar code labels are on every pallet for locations without RFID readers at this time). Supply chain visibility Track/trace capability Inventory accuracy Reduce/eliminate lost pallets 3-way readability RFID, bar code, and alpha-numeric isum 2 System the most scalable real-time pooling information system in the world, built on the latest technology from Microsoft

31 The Components of an RFID Solution Pallet Identification EPC Gen 2 Passive Tags UPC and Serial Number Labels Readers/Scanners Motorola Handheld RFID Readers Motorola Mobile Readers on Fork Lifts Other Portals/In-Line Custom per site Conveyer Mount Dock Door Channel Portals and Free Standing

32 The Components of an RFID Solution Cont. Software Microsoft Server OS epc Doc Manager Microsoft SQL 2003 MS.NET 2.0 Framework Edge Servers HP (RFID read capture and user GUI display) LAN, Wireless or WAN Attached igps isum 2 HP Remote and Central Server (transactions/data collection)

33 The Components of an RFID Solution Cont. Bloodhound Pallet Tracking Master Database Logistics System Interface Billing Reporting Customer Interface (EDI) itrac Order Management (Web) Transportation Management, Logistics Optimization

34 igps Pallet Pooling Model Manufacturing Plant RFID Read Retail/Wholesale Distributor Transfers - Palletized Loads igps Transactional RFID Software isum 2 tm Issues - Truckloads of Pallets Returns Truckloads of Pallets RFID Read igps Depot RFID Read

35 Model Overview Bill of Lading Order Issue itrac Order Manufacturer Bloodhound Issue Transfer Depot Return Retailer idepot

36 Full Flow Bill of Lading Order Issue itrac Order Manufacturer Bloodhound Issue Transfer Depot Return Retailer idepot

37 New Order Bill of Lading Order itrac Order Manufacturer Bloodhound Depot Order

38 Order Request We need another shipment of pallets by the end of the week We ll put in the order, and they should be there by Friday ORDER REQUEST # b0 Depot A1: Ship 570 pallets no later than Thursday for Friday Delivery

39 Depot Issue Bill of Lading Order Issue itrac Order Manufacturer Bloodhound Depot

40 Depot Issue

41 Bill Of Lading

42 Manufacturer Transfer Bill of Lading Order Issue itrac Order Manufacturer Bloodhound Transfer Depot Retailer idepot

43 Transfer Products are associated to the pallet Orders are requested by the Retailer Shipments are transfer to the Retailer RFID Antenna Manufacturer Transfer Depot Retailer

44 Manufacturer System Transfer

45 Retailer Issue and Return Bill of Lading Order Issue itrac Order Manufacturer Bloodhound Issue Transfer Depot Return Retailer idepot

46 Return To Depot

47 Systems Architecture Overview Systems Architecture Overview

48 igps isum 2 Systems Architecture RFID DATA CAPTURE TRANSACTION MASTER DATABASE INVENTORY DATABASE LOGISTICS & TRANSPORTATION MANAGEMENT CUSTOMER ORDER / SERVICE (Web Portal)

49 RFID Scanning Solutions RFID Scanning Solutions

50 Handheld RFID System - Depot Enter BOL Select Container Read Pallet Tags Sync reads

51 isum 2 Handheld Solution - Manufacturer Process The pallet moves along the manufacturing line to a staging area. A mobile isum 2 application on the Motorola MC-9090 mobile handheld is used to scan the barcode on the pallet of goods representing the LPN and then the RFID tag embedded within the pallet. These two scans link the two items and are stored within the memory of the handheld device. The handheld is then synchronized over wireless LAN, and the information is transferred to the local isum 2 database. Periodically, the local isum 2 database is synchronized with isum2 Orlando at which point the association information is transferred to the isum 2 Orlando system. The GRAI is matched to the LPN via the discrete scans as specified by the user.

52 isum 2 LPN Solution In-Line Manufacturer Fixed Reader Process The pallet moves along the manufacturing line. After the LPN is applied, the pallet will pass through a section where there is a fixed RFID reader and Microscan barcode scanner. The RFID reader is mounted with two antennas that read the built-in RFID tags found within the pallets. This information is then forwarded to the local isum 2 database. The Microscan barcode scanner is controlled by the Moxa box device. The scanner is positioned to read the LPN off of the pallet, and relays the information to the Moxa box which in turn sends it directly to the local isum 2 database. Once the local isum 2 server receives both the LPN and RFID information, the local isum 2 application examines the timing of the reads, and associates the pallet to the shipment associated to the LPN. This information is stored locally, and then pushed up to isum 2 Orlando database via AS2.

53 isum 2 Dock Door Solution - In-Line Manufacturer Process The pallet passes through the dock door on a forklift. The RFID reader scans the Asset ID and sends it to isum 2 Manufacturer and stores it in the local isum 2 Database in the Raw Tag Read Table. isum 2 Manufacturer then executes a query to the WMS. The result of the Query gives the Ship To and the Order Information for that Dock Door at that time. Then isum 2 Manufacturer creates a Order Transfer Header/ Details pair that is sent to the Order Transfers/Order Details Table in the isum 2 database. (the Transfer Header is the Order, the details are GRAI s.) isum 2 Local takes the Order Transfers/Order Details and moves it to isum 2 Central that stores it in the Order Transfers/ Order Details Staging Tables in the isum 2 Central database.

54 Dock Door RFID Portal-Manufacture Dock Door Portal

55 isum2 Forklift - Manufacturer Motorola Reader/Antenna

56 Data Connectivity Diagram

57 Implementation Management and Controls/Certification Start-up Process Site Survey Engineering Project Management Approved Bill of Materials Set-up and Scanning Equipment Verification Customer Training

58 System Monitoring and Management 24x7 Customer Support and Help Desk Remote Systems Monitoring Network/Connectivity Server/Scanner Functions Heartbeat Transaction Management Local System Alerts

59 isum2 Remote Monitoring Scanning Hardware Management igps Heartbeat

60 RFID-Enabled Plastic Pallets for Increased Visibility into Shipping Logistics

61

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