Application of an e-valuation Framework to RFID in the Food Chain. Where Can RFID be Used? Wanted: An RFID Business Case Framework

Transcription

1 Application of an e-valuation Framework to RFID in the Food Chain Where Can RFID be Used? Fred Riggins Presentation to the Twin Cities Ninth RFID Industry Forum March 6, 2008 Health Care Libraries Transportation Manufacturing Retail Airports Security Agriculture Where Can RFID be Used? Wanted: An RFID Business Case Framework Support Firm activities infrastructure Human resource management Technology development Procurement Inbound logistics Operations Outbound logistics Marketing and sales Challenges in developing an RFID business case Potential for impact across many industries Potential for impact throughout supply chain Continuous developing technology Need for many complementary technologies Primary activities The Value Chain Focus on technical issues Trading partner mandates Interdependent benefits Basic Framework Components Five dimensions of commerce Four value chain structural settings Value Chain Structural Settings Basic Framework Components Efficiency benefits Doing things better = Pervasive Effectiveness benefits Doing things smarter = Pervasive Intelligence Dimensions of Commerce Types of Value Creation Strategic benefits Doing things for competitive advantage = Pervasive Coordination

2 Basic Framework Components Five dimensions of commerce doing things faster overcoming distance barriers altering relationships enabling new ways to interact s creating new products/services Basic Framework Components Five dimensions of commerce Four value chain structural settings Outbound Logistics Sales & Marketing Dimension Efficiency Effectiveness Strategic es Applying the Grid Across the Value Chain es Efficiency Effectiveness Strategic Marketing and Sales Outbound Logistics Three Case Examples Dairy products manufacturer Wells Dairy German cheese maker Sachsenmilch How a third party logistics (3PL) provider might make use of RFID RFID at Wells Dairy For Wal-Mart mandate RFID labeling system on one-gallon ice cream bucket production line Tag wrapped 2 onegallon containers as case prior to freezing Tag wrapped 75 cases as pallet after hardening

3 Fulfills Wal-Mart mandate for top 100 suppliers. Prepare for implementation throughout facility. es No manual scanning case/pallet bar-codes. System generates pallet tags (no keying in bar-code info). es RFID-populated database tracks inventory allowing Wells to quickly find a product if problem occurs. es System quickly determines when low quality product should be withheld, increasing shipment quality. es Increased productivity since personnel do not need to ensure correct placement of pallet bar codes. es Correct pallets in outbound queue, better shipping Outbound Logistics quality. No double-checking bar-codes on the truck. es

4 Three Case Examples Dairy products manufacturer Wells Dairy German cheese maker Sachsenmilch How a third party logistics (3PL) provider might make use of RFID RFID at Sachsenmilch Goal: Improve efficiency in cheese production Ensure cheese ripens for correct time under specific conditions data collection for EU regulations Part of an extensive factory upgrade RFID-enabled production line guides tagged racks of cheese into and out of various sweating and ripening rooms System collects data on location and time of cheese during ripening process. Fulfills EU requirements. es If audited, detailed database used to show origin and process used for each piece of cheese. es Improved process precision improves quality of product. es Engineers analyze data to improve development processes and ultimately higher quality cheese. es

5 Three Case Examples Dairy products manufacturer Wells Dairy German cheese maker Sachsenmilch How a third party logistics (3PL) provider might make use of RFID distance barriers by monitoring conditions in the truck remotely during transport. es Two-way data transfer with truck allows for remote mgmt of environmental conditions. Better quality. es Make timely decisions about shipment & destination using real-time product status. Better quality. es Increased leverage over transport partner. Forces higher level of accountability. Clarifies culpability. es System automatically communicates instructions directly with truck driver. Better quality. es

6 3PL analyzes data to provide input into packing process and pallet alignment. Better quality. es Detailed temp history can be offered to customer allowing for FEFO, variable pricing, etc. es More effective partnership with transport partners locks-in end customer to 3PL/trucker alliance. es Benefits of the Framework Helps identify where RFID has potential to impact the organization Helps identify functionality interactions Helps identify metrics for measuring system performance Helps communicate the business case for RFID User Name: forum Password: guest For more go to User Name: forum Password: guest For more go to