Case Study: NYK Logistics

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1 Executive Conference Hilton Chicago March 29 to 31, 2004 From Promise to Reality The Executive Conference Produced by RFID Journal March 29 to 31, 2004 Hilton Chicago Case Study: NYK Logistics Rick Pople General Manager, NYK Logistics From Promise to Reality The Executive Conference Produced by RFID Journal March 29 to 31, 2004 Hilton Chicago 1

2 A Case for RTLS at NYK Logistics RFID Journal Live! March 2004 Rick Pople, General Manager, NYK Logistics Company Profile Corporate: Tokyo, Japan Founded: 1885 Employees: 20,000 (+/-) staff Company Profile - FY 2002: Shipping: Cruise: Shipping Related: Logistics: $7.0 Billion $0.5 Billion $2.9 Billion $2.6 Billion Other Segments: $2.8 Billion (Oil, Real Estate, Et Al) TOTAL REVENUE: $15.8 Billion (Based on yen = $1.00 US) 2

3 NYK - Business Activities Marine Transportation Land Transportation Warehousing Airfreight Consolidation/Deconsolidation Customs Brokerage Logistics Management Marine Terminal Management Transportation information/data providers Crystal Cruise Lines Travel agency NYK Logistics (Americas) Inc. UWDC Division Background Information Acquired by NYK Line, one of the largest and oldest ocean carrier lines, in 1985, NYK Logistics (UWDC) Inc. has grown from one facility to eleven facilities throughout the continental United States over these few years. In 2003, NYK Logistics (UWDC) Inc.: Operate 3.2+ million square feet of warehouse space at major international gateway ports. Customized options for storing, tracking, monitoring, and distributing goods. Broad range of value-added services tailored to your specifications. Committed to quality and outstanding customer service. ISO:9000:2001 Certification 3

4 NYK Logistics (Americas) Inc. UWDC Division Long Beach Logistics Service Provider in Long Beach, California Receives Over 50,000 Containers Annually Ships Over 30,000 Trailers Annually Target s Largest Distributor 70-Acre Site 1,200 Parking Slots 250 Dock Doors Up To 1,800 Gate Transactions Daily During Peak 24/7 Operations Challenges Difficulty Keeping Up With Demand (Volume / Velocity) Limited Yard Space Level Of Service Performance At Risk Difficulty Finding Containers and Trailers Difficulty Selecting Primary Carrier Trailers for Shipping Labor Intensive Yard Checks Focused on Retaining Business As Opposed to Growing Business Current System Could Not Survive Another Peak Season 4

5 Solution: RTLS at NYK Logistics Real-Time Locating System (RTLS) Provides Wireless Automated Yard Management Where RTLS Fits In Higher GPS $ Value of Asset RFID RTLS Barcodes Lower Consumer Traded Distribution Container Movement Item and Package Cases ULD s,pallets Truck Trailers Trucks, Planes Containers Rail Cars and Rail Engines Marine Containers and Planes 5

6 RTLS Capabilities True Real-Time Location System - Accurate to 10 feet or better Omni-Directional - Tag Perform Same in All Orientations Long Battery Life - 5 to 7 Years Most Applications High Capacity - Thousands of Tags per Acre Co-Existence with Wireless LAN s Watt Output Strong Interference Immunity Chips / Bit Worldwide RF Compliance - Low Power SS 2.4GHz Long Range / 1,000 ft Indoors/Outdoors Indoor/Outdoor Operation - Sealed Tags, Outdoor Readers Industry Standard Protocol - ANSI through RTLS and WhereSoft Yard WhereSoft Yard Leverages RTLS: Parking Assignment Automatic Yard Inventory Door Assignment Wireless Switcher Dispatch Location-based Alerts Unit Pick-up 6

7 Unit Check In Data Collection Handheld Check-In and Check-Out Mag Stripe Reader Magnetic Card Reader Printed Gate Pass Unit Check In Tag Attachment RTLS Tag Is Attached to Every Unit RTLS Tag 7

8 WherePorts on Yard Tractors Tag Transmits Every 2 Minutes WherePorts Excite Tags When Pulling Units WherePort RTLS Tag RTLS Antennas on Bldgs & Light Poles Antennas Detect RTLS Tag Signals Locating Access Point 8

9 Onboard Computers in Yard Tractors Onboard Computers Communicate Move Requests Onboard Computer Vehicle Mounted Computer Real-Time Yard Inventory 9

10 Rules Engines Rules Engines Automate Yard Functions Using RTLS Parking Assignment Based on unit characteristics and available yard slots Door Assignment Based on door availability and unit characteristics Door Queue User Interface Current Status of Each Dock Door Pending Unit Move Requests Origin of Unit Move Requests Automatic Unit Move Requests Age of Units 10

11 ROI Payback Less Than 1 Year Able to Handle Peak Volumes More Efficiently Decreased Yard Tractors (Peak: 10 to 5, Non-Peak: 7 to 4) Received Commitment for up to 20% More Containers in 2004 Based on 2003 Performance Improved Level Of Service Performance by 2 days Eliminated Daily Yard Checks Cut Driver Site Dwell Time in Half The WhereNet RTLS Solution One Wireless System Many Applications Tracking Transaction Capture Monitoring & Messaging Workforce Communications $ $ $ $ $$ Proven ROI 11

12 Questions and Discussion Thank You! 12