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RFID Users Group

• Dr. Dale Rogers
• Center for Logistics Management
• University of Nevada
• RFID Users Group
• International Paper
• Memphis, TN
• 20 January 2005

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RFID Users GroupAGENDAMemphis,
TennesseeThursday, January 20, 2005

• 730 745              Board the bus
• 800 805              Sign Collect NDA
  Agreements
• 805 815              Welcome Introductions
• 815 915              International Paper
  overview
• 915 1100            Tour of this facility
• 1100 1200          Open discussion and
  questions from the tour
• 1200 100            Lunch/networking
• 100 130              Research Project
  Presentation Discussion
•                              RFID Whats
  Happening Now?
•                              Dr. Dale Rogers
• 130 200              Intermec - tags and
  equipment
• 200 230              Wal-Mart update
• 230 300              Next steps
• 300                       Board the bus for the
  hotel

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RFID Users Group Mission

• Facilitate discussion
• Work through problems
• Provide on-going benchmarking
• Develop best practices
• Perform applied research

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SCM Art versus Science
Art
Percent Art vs. Science
Science
1990
2020
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Volume of Data
After RFID
Before RFID

• Early RFID technology trials have established
  that the amount of data generated by pallet, case
  and item tracking via RFID tags will be 100 to
  1,000 times the volume that companies currently
  retrieve when using traditional bar coding
  systems.
• About 50 percent of organizations believe that
  their current infrastructure can accommodate
  anticipated RFID data volumes.
• In October 2005, Teradata announced that
  Wal-Marts data warehouse exceeded half a
  petabyte.

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How ready is your firm to operate in an RFID
environment? August 2004
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How ready is your firm to operate in an RFID
environment?January 2005
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Do you know how the implementation of RFID will
impact your systems? August 2004
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Do you know how the implementation of RFID will
impact your systems? January 2005
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Do you know how the implementation of RFID will
impact your supply chain processes? August 2004
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Do you know how the implementation of RFID will
impact your supply chain processes? January 2005
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Do you believe that the investment your firm will
likely make in new technologies, systems and
processes will be worthwhile in the long run?
August 2004
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Do you believe that the investment your firm will
likely make in new technologies, systems and
processes will be worthwhile in the long run?
January 2005
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What are your greatest concerns related to
acquiring and implementing RFID? (Please rank
the following with 1greatest concern and
10least concern)
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How much would you estimate the cost acquiring
and implementing RFID will be?

• Responses ranged from 75K to Hundreds of
  Millions.
• Most of the respondents have little idea what the
  final costs will be.
• Cost uncertainty is a concern.
• Clearly an area for additional research.

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ROI

• Suppliers less sure of benefits than they were a
  few months ago.
• Many suppliers say a real return on investment is
  currently years away
• Ninety percent of those firms surveyed say that
  "a timely and substantial ROI" is a prerequisite
  for launching any major RFID initiative in their
  organizations.
• A large portion of RFID investment is expected to
  occur during 2005.
• A little over half of suppliers believe that RFID
  system deployment will reduce labor costs and
  boost process efficiencies in their firms

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Read Rates

• Many users report that RFID read rates are
  currently below acceptable levels.
• Rates below 70 are not uncommon with specific
  products/processes.

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Progress Update

• Fifty-three suppliers started shipping cases and
  pallets with RFID tags to the Wal-Mart DC outside
  Dallas in the beginning of January 2005.
• Wal-Mart expects to have 108 suppliers shipping
  cases and pallets with RFID tags by the end of
  January 2005. The remaining 29 (out of 137) are
  expected to come online by the end of February
  2005.
• Wal-Mart is on schedule to expand its RFID
  initiative to 12 distribution centers and 600
  stores by October 2005.
• In January 2005, Wal-Mart has installed RFID
  equipment in 104 stores.
• By the beginning of 2006, Wal-Mart's top 300
  suppliers will be required to tag cases and
  pallets of selected products with RFID tags. By
  the end of 2006, the retailer expects its entire
  supplier base (up to 20,000 suppliers) to be
  "engaged in RFID in some form or fashion."
• Tesco is deploying RFID equipment across 35
  distribution centers and approximately 1,300
  retail outlets by Fall 2005. Tesco plans to
  implement more than 4,000 readers and 16,000
  antennae.

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How might a users group focusing on RFID be the
most help to you?

• Sharing
• Real-world cases and experiences
• Everyone is working independently on RFID and
  financial analyses made for only one use rather
  than leveraging the use over many applications
  throughout the supply chain, including point of
  sale and reverse flow
• Highlight costs, concerns, and difficulty of RFID
  implementation
• Examine results of companies experiencing RFID
  requirements. Create a forum that can feedback
  major concerns to Wal-Mart without exposing
  individual companies. Help each of us stay
  current on RFID technology and trends.

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Software Requirements

• The volume of data, and the need for precise
  control and monitoring of RFID readers, requires
  deploying customized middleware that links
  readers with corporate ERP systems and other
  supply chain infrastructure.
• Concern about overwhelming network loads likely
  to mean firms will implement middleware solutions
  to mitigate redundant volumes and excess reads.

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Structure Versus Behavior

• Structure determines behavior
• Behavior does not determine structure

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RFID_at_Genco.com