Research

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Research DevelopmentFAG 4

• RFID Technology
• Roy Zhuang
• Adam Smith
• Scott Sleightholm

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Radio Frequency Identification (RFID)

• What is RFID?
• RFID is an automatic identification method,
  relying on storing and remotely retrieving data
  via RFID tags or transponders. The small RFID tag
  can be attached or incorporated into a product,
  animal or person. Silicon chips and antennas in
  the tags enable them to receive and respond to
  radio frequency queries from an RFID transceiver.
  
• Active and Passive Tags
• Active speak all the time, Passive speak when
  spoken to.
• RDs proposal
• RFID!

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Why RFID for petPRO?

• RFIDs are the next generation Bar Code,
  allowing for data to be stored.
• RFIDs make production more efficient many
  barcodes can be replaced by one RFID tag
• Increased profitability with increased control
  over workflow
• The scanners do not require line of sight access
• RFID chip can hold a large amount of data
• ROI on RFID
• Reduction in out of stock items
• Future of the RFID market
• Gives petPRO a competitive advantage

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Overview of the Company

• Founded in 2001 by veterans of the RFID industry
  
• Management team consists of seasoned veterans in
  software, hardware, RF technology, corporate
  development, and marketing
• Have worked in important product development
  roles for major organizations including Fortune
  500 companies
• Core of the system is built around the RFID
  tags, RFID readers, host computer, and Windows
  based software.

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Advantages

• USE Wireless Communication Between RFID Reader
  and Host
• COMPATIBILITY Windows Based Software
• - ActiveWave designs its own RFID tags, readers,
  and host software
• - Multiple Monitoring Terminals
• INTERNAL CONTROL Reduction of Theft and
  Shrinkage
• - Multiple Monitoring Terminals
• - Multi-Tag True Anti-Collision Capability
• - Long life, small size

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Disadvantages

• COMPATIBILITY No platform provided to enable
  direct integration of RFID data with SAP.
• COMPONENTS Package does not include RFID
  printer hardware and lacks other hardware
  solutions.
• COST Relatively high cost of implementation and
  systems maintenance compared to other
  competitors.
• SUPPORT Support functions provided by ActiveWave
  are limited, no online help, or customized
  training.

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Benefits

• PERSONALIZED ActiveWave is personalized,
  flexible and user-friendly software.
• PORTABLE Offers portable database with flexible
  memory size.

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Risks

• INITIAL STAGES Company is currently in the early
  stages of its development, it has only been in
  the market for 5 years.
• VULNERABLE There is little security available
  for systems offered by ActiveWave.
• INCOMPATABLE There is no solutions offered by
  ActiveWave to allow data to be transferred into
  petPROs SAP systems.

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Overview - Definition

• Intermec offers complete RFID hardware industry
  solutions for companies across North America and
  throughout the world.
• Provide all levels of RFID solutions from RFID
  tags, to hand held RFID scanners, large RFID
  scanners capable of scanning multiple items
  simultaneously, RFID printing solutions and
  complete instillation of all systems.
• Offer Revolutionary Gen 2 RFID compliant
  equipment ensuring established, speed,
  efficiency, reliability, range, security and cost
  standards.

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Advantages

• PROVEN Intermec currently provides RFID
  hardware systems to, including 75 percent of
  Fortune 500 companies and 60 percent of the
  Fortune 100.
• CUTTING EDGE Intellitag Generation 2 UHF RFID
  (Active) only available from Intermec, RFID
  pilots which have proven cost advantages of RFID,
  SAP integration solutions.
• SUPPORT Intermec offers renowned professional
  implementation services and continuous customer
  support for their systems.

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Disadvantages

• DEPENDANCE Forces petPRO to rely entirely on one
  provider for our RFID hardware systems.
• TECHNOLOGY DECISION Using active tags is
  currently significantly more expensive than the
  alternative of passive RFID tags.

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Benefits

• INTEGRATION Intermec offers solutions which can
  be INTEGRATED WITH petPROs CURRENT SAP!!!
• - Data retrieved from our RFID systems can be
  easily adapted into the current SAP
  systems we use.
• COMPETITVE ADVANTAGE The use of such a system
  will provide us with a competitive advantage over
  other companies who have not yet employed RFID
  systems.
• COST EFFECTIVE The cost of this RFID system will
  be partially recouped through the benefits it
  will bring in forms of increased efficiency from
  both production lines and supply chains.

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Risks

• COMPETITIVE NECESSITY Hesitation to implement
  this technology will allow competitors the chance
  to employ RFID solutions first. As RFIDs are
  embraced by more and more competitors (becoming a
  competitive necessity) petPRO will be forced to
  play catch up, to this industry trend.
• TRAINING Employees are currently unfamiliar with
  RFID technologies and systems, if proper training
  is not ensured the whole implementation may fail.

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Recommendation

• We recommend that petPRO goes ahead with
  implementing Intermecs RFID system.
• We believe that best results will be obtained
  through a two stage leveraging system, over 2
  years. Each year incorporating more FAGs into
  the RFID system.

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Rationale

• We believe the benefits of SAP integration are a
  must for our RFID system.
• As our Graph illustrates, the total advantages of
  Intermecs RFID systems are greater than those of
  ActiveWave.
• The total costs are relatively similar, and we
  believe the increase in price is undervalued for
  the additional services and hardware received
  from Intermec.
• Our excel pivot tables show that using our rating
  system, Intermec far outweighs ActiveWave in all
  categories.
• We believe that this implementation must not be
  rushed which is why we propose a two step plan
  with a scheduled review after all systems have
  been put into action.

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Leverage

• YEAR 1 Manufacturing, Shipping/Receiving/Warehou
  sing, HR, IS/IT/D.
• Manufacturing is where our product begins, thus
  so should RFID first stage will allow precise
  control of manufacturing workflow according to
  inventory, WIP and raw materials supplies. We
  have their support.
• Shipping/Rec The first stage of RIFD will
  allow precise tracking of inflow and outflow of
  inventory with exact locations, amount in stock,
  and ETA of shipments.
• HR will be essential, they will be required to
  coordinate training strategies along with that
  provided by Intermec. We have their support.
• IS/IT/D will be needed to ensure successful data
  uploading to our SAP systems.

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Leverage

• YEAR 2 Sales Operations, Marketing, Customer
  Service, Review.
• Sales Operations RFID implementation will see
  P.O.S info to be used not only for restocking
  purposes, but to collect data with regards to
  date of sale, promotions, store and associate
  info.
• Marketing RFID data accessed through SAP will
  provide location of sales info to better define
  target markets and make use of advertising
  campaigns.
• Customer Service Data collected through RFID
  technology will provide specific market data,
  allowing accurate customer info to be accessed
  instantly through SAP. We have their support.
• Review The RD department believes that at the
  end of the 2 year implementations a full review
  of the RFID system should be conducted
  highlighting pros, and cons, and future
  development plans.

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• Thank You for Your Time!