Welcome AIDC Educational Session Annual Conference: Cultivating ebusiness for Global Success

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1 Welcome AIDC Educational Session

2 Intro MISSION Educate and promote adoption of AIDC technology across the agricultural industry supply chain AIDC Task Force Areas of Focus Standards Review Review Current Guidelines for Updates Gap Analysis /Cristal Partnership Council Partnerships Ag Retail Allied Providers Education Development of Use Cases Provide Learning Opportunities

3 AIDC Task Force Members Mike Ball J.R. Simplot Company Eric Soderholm AbeTech Jody Costa Barcoding, Inc X132 Marcia Rhodus Monsanto Co Shane Snyder Barcoding, Inc X142 Randy Fry Ceres Solutions David Shaffer Land O Lakes dwshaffer@landolakes.com

4 Retail AIDC Demo Mike Ball, Simplot

5 History on Barcode Project 1. Process to install Product Barcoding for Inventory, Delivery Tickets, and Invoicing. 2. Team effort required as this touches many areas and locations 3. Input of Barcode s/gtin s for each product that currently have Barcodes from manufacturers on packages 4. Decisions made on Product Barcode s/gtin s produced and on products that do not have Manufacture Barcodes 5. Project duration was an issue as we had 15,000+ sku s DEMO OF MANUAL PROCESSES VS THE USE OF BARCODES

6 Delivery/Invoice Demo MANUALLY CREATE A DELIVERY/INVOICE TICKET Manually create a delivery ticket by using product look-up and physically entering all data needed Note time and number of steps to complete Manual Process USE A SCANNER TO COMPLETE THE DELIVERY PROCESS Use a barcode scanner to create a delivery ticket, which will automatically enter the data needed Note the time it takes to complete process using scanner

7 Physical Inventory Demo MANUAL PROCESS FOR PHYSICAL INVENTORY Manually count inventory on sheet and then enter into system Note this is multi-process counting the inventory, writing the counted quantity down on count sheet, then entering into the system USE A SCANNER PROCESS FOR PHYSICAL INVENTORY Use a barcode scanner to scan product and then enter quantity Note time savings in the number of steps needed to complete the physical inventory

8 AIDC Container Tracking Demo EPA REGULATED CONTAINER MANAGEMENT USING MOBILE DEVICES Manual Process Manually write down Container Barcodes on a Printed Delivery Ticket then go back and enter into system. Because of the human element, there could be errors that force you to go back out and recheck the Barcode Numbers for each container. Scanner Process From an existing Delivery Ticket, scan the Container Barcodes to complete the ticket for delivery Through the use of automated data capture, errors are minimized (99.9% accuracy).

9 Issues with Manual Processes A. Incorrect products on orders B. Lot number issues and inaccuracies C. Large number of returns from customers because product or quantities were not what was ordered D. Time-consuming physical inventory and frustrating recounts E. Large amount of employee time to fix issues? What other issues can you think of that result from manual processes?

10 Process Improvements with Barcodes Minimized product issues since you are reading the barcode and not doing manual product look-ups Huge time savings during physical inventories (one manager said that they saved 40 overtime hours on two physical inventories per year) Time and labor savings Direct positive impact on customers waiting on an order to be completed faster and more accurate? What other improvements can you realize with the use of automated data capture?

11 AIDC Scanner Easy Use Open Excel and allow users to scan products and see how easy it is to scan bar codes. See one, do one, and teach one process should alleviate concerns about training users on using barcode scanners? If you ve implemented barcode scanning, how did you train your team?

12 AIDC in Distribution Shane Snyder, Barcoding, Inc.

13 Major Impact Points of AIDC (2) Putaway (1) Receiving (3) Picking (4) Physical Inventory (5) Packing & Shipping

14 Barcodes Are Just the Beginning Three Primary Data Capture Technologies: Barcode Effective, efficient, accepted technology RFID (radio frequency identification) no line of sight/user Voice Increased efficiency/accuracy

15 The Small but Mighty Barcode Simple Powerful Accurate Accepted Standardized Fastest time to value

16 Receiving Real-time connectivity at dock door increases the velocity and the accuracy of the receiving function. Impact Streamline and error-proof the receiving process Enable instant inventory visibility and availability Eliminate congestion at the dock door Improve worker productivity Reduce cycle times Speed putaway process for faster inventory availability

17 Put Away Virtually error-free materials are always in the right location. Impact Reduce dock-to-stock times Optimize inventory availability and accuracy Improves worked productivity more with the same Protect customer service and satisfaction

18 Packing and Shipping Scanning capabilities and wireless connectivity improves speed and accuracy. Impact Increase productivity do more with the same Increase shipping accuracy Eliminate the costs associated with re-ships Protect customer satisfaction. Orders are right before packing Reduce packing material costs Reduce out-of-stocks

19 Picking Whether picking individual items or cases, handsfree mobile solutions streamline and error-proof the picking process for fast and accurate fulfillment. IMPACT Meet customer expectations for same say shipping Achieve 99.9% picking accuracy Improve customer service Eliminate returns and return fees Granular picking to support first in, first out/ last in, last out Reduce out of stocks Improve data accuracy Cost-effectively handle compliance initiatives

20 Physical Inventory/ Cycle Counts Mobile and wireless warehouse inventory management technologies reduce the number of workers required for conducting cycle count. IMPACT Streamline inventory management process Reduce shrinkage and loss Enhance accuracy without delay Improves customer service with real-time inventory control Imposes operational discipline Improved reporting Lower labor time and cost

21 Ask the Right Questions What are you trying to accomplish with automation? How much data would best support the application? What are the specific tasks involved? What is the work environment? Does it require more ruggedized equipment? What are your compliance-labeling requirements? What ROI can you expect (or do you require) by automating? Figure out what will work for your unique organization

22 Get the Right Teams Involved Corporate Team What are our business objectives? How can we exceed customer expectations? How can we maintain energy and success? How well do we use technologies to achieve our desired outcomes? How do we plan for the day? Warehouse Team What are our feedback mechanisms? How do we measure and share results in ways that are meaningful? How do we conduct labor planning? How do all the pieces fit together for the warehouse?

23 Be Prepared Understanding the process goes a long way toward the success of a data capture project. For Example: Appoint representatives from all departments touched. Gather all existing documentation of current processes. Designate a project owner who buys into project mission. Devote adequate technical and financial resources. Anticipate potential pitfalls. Know everything won t be perfect all the time.

24 Be Efficient Accurate Connected Real-time Visibility is Essential Increase customer satisfaction and safety Meet government and compliance mandates Improve data accuracy Increase operational productivity Protect your brand and bottom line Reduce warranty claim costs Focus on generating revenue Barcoding systems only generate a profit when supported by improved processes. What will you gain?

25 AIDC Infrastructure Eric Soderholm, AbeTech

26 Wireless Networks 1. Commercial or Consumer grade wireless 2. Stand A Lone or Controller Based Solutions 3. Indoor/Outdoor Coverage 4. Environmental Conditions 5. Site Survey/Installation 6. Cabling 7. Switches On Average for budgeting purposes we use 15k-20k sq. ft. for one AP in a warehouse. APs can range from $

27 Handheld Computers 1. Batch or Wireless 2. 1D Laser, 1D Imager or 2D Imager 3. Several Keypad Options 4. Pistol Grip 5. Cold temp 6. Rugged or Ultra Rugged Mobile Computers range from $500 for a simple batch device up to $3500 for an ultra rugged wireless device.

28 Vehicle Mounted & Rugged Tablet Computers 1. Physical Keyboard or Virtual on screen 2. Operating System 3. Durability 4. Operating Temperature 5. Moisture 6. Sunlight Viewable Displays Pricing will range from as little as $1500 up to $5000 based on the requirements.

29 Barcode Scanners 1. 1D Laser, 2D Linear Imager or 2D Area Imager 2. Cabled or Wireless 3. Fixed position 4. Durability 5. Direct Part Mark reading (DPM) 6. Density Scanners will range in price from $100 for a basic tethered scanner up to $1000 for a rugged cordless scanner. Note that DPM options can be as extreme as $3000.

30 Thermal Label Printers 1. Stationary or Portable 2. Print Volume 3. Wireless, Ethernet or USB 4. Size of Label 5. Direct Thermal or Thermal Transfer 6. Print & Apply Price Ranges for Label Printing Options: Portable Printers - $1,000-$2,000 Stationary Printers $400-$5,000 Print & Apply - $10,000-$40,000

31 Software Data collection software can be as simple as a $500 custom batch application, and sky is the limit for a fully functional Warehouse Management Software (WMS) solution. I will first recommend talking with your accounting software provider to see if they have a data collection module. If that doesn t meet your requirements, there are many 3 rd party WMS providers available as well.

32 ROI Analysis

33 ROI Analysis Calculate Hard Savings - Labor Key Measures: # of warehouse workers: Receiving/Putaway/Picking/Cycle Count/Pack-Ship # of warehouse workers: Data Entry Burdened Cost Per Hour Full Time/Part Time/Contract Staff, Overtime % Current Pick Rates: Lines/Units Per Hour Industry Stats: RF handheld pick rates: Voice pick rates: 50 to 190 lines/hour 175 to 275 lines/hour

34 ROI Analysis Calculate Hard Savings Error Rates Key Measures: Measuring accuracy can be a challenge. There is a industry standard listed below that can be used in ROI development if you are not currently measuring accuracy. Industry Stats: Manual Picking RF Handheld Picking: Voice Picking: 7 to 34 errors/ to 7 errors/ to 3 errors/1000

35 ROI Analysis Customer Impact

36 ROI Analysis Estimate Soft Savings in your ROI Analysis Increased customer satisfaction and retention (reduce/eliminate lost orders). Enhanced job satisfaction and ultimately a higher rate of retention for users. Reduced assets deployed to manage inventory and fulfill orders. Real-time inventory data visibility. Less time spent on mistakes and more on making improvements.

37 Want to join the team? Contact us. Mike Ball J.R. Simplot Company Eric Soderholm AbeTech Jody Costa Barcoding, Inc X132 Marcia Rhodus Monsanto Co Shane Snyder Barcoding Inc X142 Randy Fry Ceres Solutions David Shaffer Land O Lakes dwshaffer@landolakes.com