The Carrefour approach to RFID. The Carrefour approach to RFID CIES Supply Chain Prague, October 2007
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1 The Carrefour approach to RFID The Carrefour approach to RFID CIES Supply Chain Prague, October 2007
2 Agenda The Department The RFID programme External activities 2
3 «Twist and Shake Ideas» Emerging Trends & Seek, find and experiment Innovation innovative Department solutions to serve our business units, in line with the Corporate strategy Monitor Retail market Observe new technology Collect and reuse internal initiatives from the countries Propose and develop new concepts Set up experimentation to assess the innovation in real situation Support business units to deploy Communicate 3
4 Emerging Trends & Innovation Department Methodology A three step approach Emerging Trends & Innovation Department ASSESS DEPLOY Business Unit Identify the opportunity Qualify the opportunity Experiment Set up the pilot(s) Deploy Go / No Go Exchange with BU representatives Get the Executive sponsor Have a nominated PM Build the team The Business Unit owns the project Initial investment taken by our department Minimal interaction with existing IT system 4
5 Agenda The Department The RFID programme External activities 5
6 The RFID programme Four complementary projects with the same objective: Understand by experiment,, the business benefits of using RFID technology within our supply chain Manufacturer/ Warehouse/ Store 4. Textile 1. Culture Store Manufacturer/ Warehouse 3. EPCS* 2.Smart tracking Warehouse/ Store *EPCS : Electro Photo Ciné Son Appliances, Camera, Audio, Video, PC 6
7 Culture Project: the RFID processes Shipping Warehouse Receiving / Backroom Store Sales area Warehouse for returns 1. Control of cases / pallets sent to the store 2. Receiving control 3. Inventory and cycle counting 4. Returns management 5. Control of cases / pallets sent by the store 7
8 Figures for Culture Project phase 1 As is RFID Store receiving control Significant improvement 40mn in time needed per activity 14 h 15mn Data accuracy and quality Inventory enhancement Cycle counting 420mn 80mn Comfort increase for store personnel Reliable technology Returns picking and preparation 2h -57% -78% -85% 8
9 Smart Tracking Project Tracking goods (groceries) and support (pallets) Improve store receiving Tracking SSCC EPC Enhance visibility Evaluate support tracking Inventory management using GRAI EPC Test plastic pallet support Automated capture using portal solution Assess sharing information using EPC Information Services (EPC IS) 9
10 EPCS Project Determine how RFID will improve warehouse processes Receiving, storage / cross-docking, preparation, shipment Start Manufacturer tagging on selected products Mark RFID on consumer unit Leverage situation where 1 case = 1 consumer unit Possible extension to the sales area Consider after sales scenario Work on collaboration and visibility scenarios 10
11 Textile Project Track product from manufacture to retail store Leverage new Carrefour partnership in textile with BCBG Consider retail store and retail warehouse first Source tagging to be examined Make better product availability, improve inventory management, decrease stock level Get full supply chain visibility with network information sharing 300 references and about 1 million units 11
12 Agenda The Department The RFID programme External activities 12
13 External activities Research and Innovation French cluster Pôles de compétivité PAC ID Retail a.k.a. Grande Distribution European Commission BRIDGE project GS1 and EPCglobal European Implementation Guide RFID expert group 13
14 PAC ID Retail Project Develop logistics scenario using RFID SCS cluster Work with SMEs Prepare and build network applications Partnership between academic research, solution providers and users Members include STMicroelectronics, IBM, France Telecom R&D, Malongo and Carrefour 14
15 The BRIDGE Project BRIDGE - Building Radio frequency IDentification solutions for the Global Environment Build RFID applications relying on EPCglobal standards RFID Hardware Network: Service Lookup and Service Network: Serial-Level Supply Chain Control Security and Privacy 30 consortium members including GS1, Carrefour, GS1 France, Cambridge University, Benedicta, Gardeur, Nestlé UK and Sony Technology Business Overall project cost: 13 M Anti-Counterfeiting Drug Pedigree Supply Chain Management - Textile Manufacturing Process Reusable Asset Management Products in Service Item Level Tagging for Non-Food Items Project Management Training Dissemination Web Tools Exploitation Adoption 15
16 Two initiatives with GS1/EPCglobal RFID/EPC European Implementation Guide Under Carrefour s initiative Focus on retailers and their suppliers Provide guidelines for the use of RFID Use cases, way to apply standards, information sharing, expected performance and best practices Certification / quality centre Create in several European countries a new service to test RFID Retail/FMCG business usage in order to achieve the required performance level Reproduce operational environments Replicate business processes and RFID use cases 16
17 RFID Expert Group a.k.a. RFID stakeholders Group Role Provide advice to the Commission Articulate the views of stakeholders and guidelines Promote awareness campaigns in Member States Current topics address personal data, privacy and security Focus on Retail industry and workplace We need your feedbacks, in order to be listened now 17
18 and now: RFID in practice 18
19 and now: RFID in practice 19
20 CIES Supply Chain CONFERENCE Interest to test RFID in real world
21 Why the RFID Lab? Objectives : - Assessing the current capabilities of RFID in challenging environment - Facilitate technology appropriation - Qualify and, even, certify solutions (tag, software) GS1
22 The most challenging environment TOTAL Lubrifiant, liquide and metal 3 Learnings : Lubricants have very good electromagnetic properties Bulk reading of logistics unit = 100% for all products It is essential to use packaging to space the tag several centimeters from the metal surface of certain logistic units Metallic packaging reflect the electromagnetic waves (decrease the reads) Saturation occurs when more than 200 tags appear simultaneously in reading field 2007 GS1
23 Water based products require imaginative solutions Objectives : Capability of RFID at different logistic steps Process targeted : Preparation inspection : box passing on RFID conveyor bulk reading of articles contained in a box : near 100% (coupling effect) Single reading of the box : 100% Shipping/Receiving inspection : pallet passing through a RFID portal Single support pallet identification : 100% Picking inspection : forklift-mounted reader : Without adaption of the process : 52-82% (water absorption, metal reflection) With adaptation (signal confirms each identification) : 100% Learnings : Water-based products absorb electromagnetic wave! 3D tags needed for support pallet identification (multiple positions) RFID-friendly packaging have to be imagined (to help the waves and reduce the coupling effect) GS1
24 Metal environment Objectives : Capability of RFID for reusable asset management in a metallic environment Tests : Pallet passing through a RFID portal (Width : 5 m) Bulk reading of reusable frame used in the shipping of disk brake : Tag place on the support : 100% for all configurations Learnings : Although there is a very metallic environment, there is no problem and read rate are always at 100% GS1
25 Pharmaceutical Objectives : Bulk reading in water + metal environment Process targeted : Assorted package inspection : box passing on RFID conveyor Bulk reading of articles contained in a box : % Shipping/Receiving inspection : Bulk reading of boxes when pallet passing through a RFID portal : 49%-100% Bulk reading of boxes when pallet during stretch wrapping of the pallet : 100% Learnings : Rotational reading is benefit for identification! Pharmaceutical product are very difficult (water + metal) so tags have to be at the exterior to guarantee a read rate of 100% GS1
26 Textile Objectives : Bulk reading in non challenging environment Process targeted : Assorted cartons inspection : box passing through RFID conveyor Bulk reading of articles contained in a box : 100% Shipping/Receiving inspection : Pallet passing through a RFID portal Bulk reading of boxes : 100% Preparation : Consumer unit on metal sorter Individual reading : 100% Learnings : Perfect environment : no water, no metal! The sorter s metallic trays requires that goods be place with their RFID tag facing upwards GS1
27 FMCG Objectives : Capability of RFID for shipping and receiving Process targeted : Identification of pallet : Forklift-mounted reader : 100% RFID portal : 100% Identification of support pallet : % Identification of reusable metallic assets : 100% Learnings : Tagging a pallet s center block do not guarantee a 100% read rate (instead of the lateral block) A double tagging of the pallet is require (multiple positions of the pallet) GS1
28 Construction Objectives : Capability of RFID at different logistic steps Process targeted : Shipping/Receiving inspection : Bulk reading of boxes when pallet passing through a RFID portal : 81-89% Bulk reading of boxes when pallet during stretch wrapping of the pallet : % Picking : Forklift-mounted reader With process adaptation (signal confirms each identification) : 100% Identification of logistic units of gypsum board loaded onto a tractor-trailer : 100% 9 Learnings : Really hard environment (metal) : fasteners, supports Better read rate with rotation 2007 GS1
29 Learn more with The Full report : Detail of all the tests Summary of results By application By reading mode By application Thematic Analysis Gen2 UHF Regulation RFID Market Available in French and in English GS1
30 Learnings and take away RFID has proven its ability to bring productivity and improve quality through visibility and EPC as THE RFID standard has matured, and is now able to support all applications and environment but It can t works in isolation, it needs to be supported with information sharing It is not a plug and play technology so It is essential to move it into real context to identify its constraints and also actual potentials GS1
31 GS1 Member Organisations Countries with a GS1 Member Organisation Countries served on a direct basis from GS1 Global Office (Brussels) 108 Member Organisations. 145 Countries served. Local support, global reach GS1
32 Contact Programme Manager Emerging Trends and Innovation Department Groupe Carrefour 20
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