HP s RFID Privacy Program. Dan Swartwood Data Privacy Officer

Transcription

1 HP s RFID Privacy Program Dan Swartwood Data Privacy Officer

2 RFID Defined Really Frantic Implementation Date WHY RFID?? Current State: Currently out of stock of top 200 SKU s is 38% on busiest shopping days Invoice/Delivery reconciliation costs $40B annually Counterfeiting/Grey Market costs are estimated at $500B Forrester 2004 page 2

3 What is an RFID tag? RFID (Radio Frequency Identification) tag/label is a tag that at least has an identification number that can be electronically read at a distance even when not visible RFID tags have few problems of orientation and obscuration when compared with barcodes, magnetic stripes, etc. Thus, can be used for more than just tracking or payment RFID tags can include electronic chips, storage, local power source, and other functionalities that make them very versatile RFID systems are comprised of tags, reader/writers to identify and communicate with the tags, and a controller that manages the information interface with a computer system Sources: ABI, VDC, Philips, IDTechEx, HP Internal Sources: ABI, VDC, Philips, IDTechEx, HP Internal page 3

4 Example RFID Uses Function Example Tracking Tracing Anti-counterfeiting Entertainment Safety Security Auto-rejection Transactions Proof of ownership FMCG supply chain Monitor prisoners, children Verify authenticity covertly Voice activation in toys Pharmaceutical use instructions Personnel tagging in secure areas Electronic handshake requirement Electronic road-tolls Tagging of valuable products Anti-tamper, anti-theft Real-time detection, identification Sources: ABI, VDC, Philips, IDTechEx, HP Internal page 4

5 Limitations of RFID Difficult to read through metal or liquids Does not geo locate Only works at very limited ranges ( a few feet) Can not read through walls page 5

6 Why Now?? Wal*Mart Mandate: 1 EPC tag per carton 100% read on conveyor 1 EPC tag per pallet 100% read at Inbound dock Conveyor speed of up to 600 feet per minute 3 Texas Distribution Centers By January 2005 Other mandates: US Dept of Defense Target Metro Carrefour Albertsons Commercial Customers requests page 6

7 What Does HP Stand for? Rules from the Garage Believe you can change the world Radical ideas are not bad ideas Invent different ways of working Believe that together we can do anything Invent page 7

8 HP RFID Strategy Business Driver & Objectives HP s business drivers Provide RFID enabled goods to Customers who request them Use RFID / EPC internally to save costs Help other companies to implement Develop RFID / EPC related technology Support and enable global standard business processes HP s business objectives create an agile data infrastructure accessible at any time Get accurate distribution & sales information related to products Product life cycle information from manufacture to retail channels enable low touch processes & improvements on Supply Chain cost structures increase material & finished goods velocity thru Supply Chain quality tracking at key processes in manufacturing reliable information capability for Reverse Distribution processes faster shipping and receiving processes page 8

9 I just know that RFID justification is in here somewhere.. page 9

10 Reduced costs Reduced out of stock Faster, better targeted product recalls Faster service Reduced drug fraud/incorrect prescriptions Better food supply management page 10

11 The Supply Chain Business Case Retaining your Customer Tagging goods that your Customer asks you to tag Improving Supply Chain Efficiency Do things at less cost by reducing labor involved Increase Supply Chain velocity by taking less time to do the same work Do thing better by increasing first pass accuracy Lessen Supply Chain risk by increased in transit accountability Improved Data Collection RFID reduces effort & cost to identify item Which can make identification viable where it wasn t before And this can improve overall Supply Chain visibility Which should reduce second guessing of events page 11

12 No decision has been made yet on a specific program pending discussions on item level tagging Returns have to be validated against the original shipment RFID could enable such verification without reference to original order Sorting material for disposition & recycling can be labor intensive RFID would enable automatic sorting page 12

13 Potential Benefits Of Key Data On The Tag Date of sale enables accurate validation of warranty entitlement Recording exact configuration at time of manufacture enables faster Returns processing Tagging material and components facilitates disposition and recycling in support of the environment Tagging components for Rev Level control facilitates faster recalls and inventory rework page 13

14 Business drivers for promoting privacy Minimizes risk of compliance breach Builds the brand Enhances trust Reinforces global citizenship customer community employee shareholder Privacy = Trust = Revenue page 14

15 HP Privacy Principles support the fair information practices give customers control over their own personal data provide customers with choices that enhance trust and, as a result, grow the business put customers in the lead to determine their relationship with hp enforce the highest integrity and compliance in internal practices, and with all vendors and suppliers support trust relationship with employees page 15

16 RFID Brief Overview Since program was launched in May 2003, we have established Formally invited to join Core Team Nov 03 Privacy presentation to Core Team Dec 03 Joined EPC-Global Privacy group Feb 04 Weekly internal consultations Developed internal policy position Working with EICTA on RFID position Working with NGO s to influence USG Periodic meetings with Partners/Customers tomers Present at the Wal*Mart rollout Apr 04 page 16

17 RFID Brief Overview Since program was launched in May 2003, we have established page 17

18 HP implements the EPC Identification Label Will be on all packaging page 18

19 Label on HP product packaging EPC Text EPCGlobal Logo Will also be added to bar code label in future RFID on back of the bar code label page 19

20 Back of Box Label (shows antenna and chip) page 20

21 page 21

22 Scheduled impacted by change of Completion vendor and difficulties in switching vendor systems Should be live in volume by August 2004 Tagging pallets & cases with EPC Class 1 Standard tags We are also working with our large Retailers to synchronize our efforts with their own pilots page 22

23 Includes systems changes to Shop Floor Control and WMS Chester receives inkjet cartridges in bulk and packages them for different markets and Customers They are starting at pallet and case level outbound and will then walk back up the process chain to Receiving page 23

24 Sao Palo receive components and raw material and perform the full range of manufacturing and completion processes, shipping finished goods to Customer in the Latin America Region Tags will be used to carry quality & control data thru the process with the unit as it is built They are starting at manufacturing processes and will then walk down the process chain to Shipping page 24

25 HP s RFID Privacy Program Summary We are a technology company with a long solid reputation for innovation and privacy Privacy is a legitimate concern of our customers and we will address these concerns in a pro-active and positive manner We are implementing RFID in our own manufacturing & distribution operations and integrating privacy standards into those operations We will lead by example in the privacy space We can and will be a positive force to lead the RFID privacy discussion Our internal experience has given us a competitive advantage page 25

26 We expect to contribute fully to the development and global implementation of the EPC standards and privacy implementations We believe that HP has much to offer both as a very large user, as a privacy leader and as a technology solutions company We are also supporting RFID related development at various universities and business schools page 26

27 page 27

28