Expanding the Usage of EPC enabled RFID in North America. Myron Burke, Walmart Stores, Inc Patrick Javick, GS1 US 4 October, 2011

Transcription

1 Expanding the Usage of EPC enabled RFID in North America Myron Burke, Walmart Stores, Inc Patrick Javick, GS1 US 4 October, 2011

2 GS1 and GS1 US

3 Who is GS1 and GS1 US GS1 designs and implements a global system of supply chain standards EPCglobal RFID Standards have been development under GS1 Global organization with over 100 local offices Not for profit, user-driven organisation with 1 million members Supports over 20 major sectors including consumer goods, foodservice, healthcare and retail industries

4 GS1 System of Standards 2011 GS1 US 4

5 Why has the USA EPC Market Accelerated?

6 Consumers demanding improved retail operations

7 Community Sharing and Education Voluntary Interindustry Commerce Solutions (VICS) GS1/EPCglobal US 7

8 GS1 US Item Level Readiness Program Driving the industry towards adoption of EPC-Enabled RFID by providing education, tools and community support to solve business challenges and improve supply chain efficiencies. Education Implementation Checklist Onboard Meeting: *Retailer Only WEBINAR 1: EPC Adoption in Apparel and General Retail WEBINAR 2: How to Get Started WEBINAR 3: Basic Training WEBINAR 4: Advanced Training WEBINAR 5: Things to Do with Data WEBINAR 6: EPC with your Retailer User Tools EPC and Barcode Tag Placement Guide EPC Adoption Roadmap Business Case Templates Implementation Notes UPC to EPC Translation Tool GS1/EPCglobal Public Policy Group Consumer Notification Privacy Guidelines Retailer and Supplier Toolkits Event Data Validation Tool Community Adoption User Group Forum to share best practices and identify business needs and challenges Objectives: Drive Successful Implementations Discuss key Implementation Issues Provide a Forum for Networking

9 GS1 Standards provide a level playing field GS1 and EPCglobal Standards EPC Gen2 provided common ground for all the US based Retailers and Brands to investigate EPC Enabled collaboration during implementations 9

10 EPCglobal Standards Framework Certificate Profile Pedigree *Discovery Services Object Name Service (ONS) Share EPC Information Services (EPCIS) *Core Business Vocabulary (CBV) Application Level Events (ALE) Discovery Configuration & Initialization (DCI) Reader Management (RM) Capture Low Level Reader Protocol (LLRP) Tag Protocol UHF Class 1 Gen2 Tag Data Standard (TDS) Tag Protocol - HF Class 1 Gen2 Tag Data Translation (TDT) Identify Data Standards Interface Standards *Standards in Development

11 Forward thinking trading partners Retailers, Brands, Associations, Academia and Solution Partners 11

12 Research pays off RFID Research Center at the University of Arkansas Conducted retail store level research VICS, AAFA, CSCMP, GS1 US and GS1 Canada funded Ongoing supplier level research AAFA and GS1 US funded Provided validation that EPC usage enabled improved processes that have substantial benefits 12

13 More Accurate Inventory Benefits are being enjoyed Move from an industry average of 63% perpetual/actual to average of 95% Inventory labor savings Inventory taking productivity increased by 96% 12,000+ items/hour with RFID compared to 200 items/hour with barcode 18% reduction in the time it takes associates to locate product Out-of-stock reductions Reductions by as much as 50% Sales increases Examples from 2%-20%

14 Walmart Stores, Inc Driving EPC adoption

15 Walmart Stores, Inc. Over $400 billion in global retail sales Over 8,000 retail locations Over 100 distribution facilities Over 8,000 drivers averaging 125,000 miles / year Over 7,000 tractors pulling >50,000 trailers Shipping billions of cases annually Walmart Confidential Not for Distribution 15

16 Early UPC Challenges = Early EPC challenges Equipment costs Few adopters Poor understanding Accuracy concerns Customer resistance Walmart Confidential Not for Distribution 16

17 Industry The Root Cause of Out of Stocks Out of stock results in lost sales of 2% Inventory inaccuracies account for 41% of this loss Who bears the loss of an Out of Stock? Retailer = 9% don t buy + 31% buy elsewhere = 40% Supplier = 9% don t buy + 26% buy another brand = 35% Walmart Confidential Not for Distribution 17

18 How to approach EPC Our Success. Identify Real Problems not Symptoms Test / Trial / Learn / Engage Partners and Share Learnings Learn from trails and Apply the knowledge Focus on Problems in manageable areas to deliver results Pay the Way! Gain Alignment Provide Appropriate Resources Limit Scope to phases and align to a Transformational Vision Define Critical Path Start / Share / Keep commitments in step with Capability Walmart Confidential Not for Distribution 18

19 VICS Item Level RFID Committee EPC Idea / Use Case Mapping Logistics On line Shop on line, pick up in store Shared Item File Structure Multi-channel visibility Headquarters True Store in-stock view Replenishment accuracy Planning accuracy Format planning Inventory Freshness Reduce Redundancy Electronic Proof of Delivery DC Receipt Confirmation (Audit) Load Confirmation / Productivity DC Inventory / Claims Reconciliation Asset Visibility Global traceability Invoice accuracy GSOP EPC Touch Points (not all inclusive) Store Operations PI Accuracy Shelf In-stock and Reporting Real time sales floor visibility Alerting IMS Enhancements - Binning Shrink Intelligence / Correction Associate Productivity Returns Consumer End of season / recall Store out bound processing accuracy Proof of Delivery / Contents Global Alignment -Adopters & Fast Followers Parallel pilots (not duplicate) Resource sharing and standards

20 Item Level RFID Committees - Business Case - Getting Started - Communication & Out Reach - Education Problem Identification Investigation Discovery and Due Diligence Technical Review Target Evaluation Requirements and Design Target Revision Process Trails Data and Training Process Revision Rollout Commun ication Agreement Confirmation Shared Ownership Walmart Confidential Not for Distribution 20

21 Possible Next Steps Europe Engage with GS1 and Industry partners on Business Issues Test / Trial / Learn / Engage Partners - Collaboration Share and Apply the knowledge Gain Alignment on Priorities Define Critical Path on a limited scope Start / Share / Keep commitments in step with Capability Walmart Confidential Not for Distribution 21

22 Contacts Myron Burke Senior Director, Store Innovation EPC Walmart Stores, Inc. Patrick Javick Vice President, Industry Engagement GS1 US 22