DoD Contract Supplier RFID Guide Training Part One

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DoD Contract Supplier RFID Guide Training-
Part One
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Presentation Agenda

• Introduction to the RFID Mandate
• Implementation
• Guidelines Requirements
• Conclusion, QA

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Background

• The Defense Federal Acquisition Regulations
  Supplement Final Rule (effective Nov. 14, 2005)
  requires suppliers to use passive RFID tags on
  all cases and pallets shipped to the DoD (see
  www.dodrfid.org)
• The 2007 Defense Procurement budget is 84 B
• Phased implementation plan http//www.dodrfid.org
  /supplierimplementationplan.htm

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Overall RFID Benefits

• Hands-free data capture
• Increased efficiencies
• Streamlined supply chain
• Improved business functions
• DoD Better support for war-fighting

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Supplier Benefits

• Improved planning
• Produce faster demand responses
• Streamline business processes
• Improved efficiencies in recalls
• Increased ability to stock DoD shelves
• Receive faster payment for supplied goods

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Defense Benefits

• Improved inventory management
• Improved labor productivity
• Eliminate duplicate orders
• Automate shipping/receiving
• Improved inventory/reduce shrinkage
• Enhance business processes within the DoD
• Improved asset tracking

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Overall Benefits

• The military and its suppliers gain a more
  accurate picture of consumption
• Duplicate orders are minimized, logisticians can
  be more responsive
• Defense on the ground is able to make informed
  decisions and have confidence in the supply chain
• Leveraging RFID to deliver the right materials in
  the right condition at the right time is a
  critical part Warfare support

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Why RFID?
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RFID in Contracts

• Sample RFID clause in contract

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Master Solicitation Clause

• http//www.dla.mil/j-3/j-336/DLA/DLA_Automated_Mas
  ter_Solicitation_Current.doc, page 15

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How Does RFID Work?

• RFID chips are similar to bar codes in that they
  also store unique identifiers
• The identifiers can include additional
  information like serial numbers
• Many tags can be read simultaneously
• They can be read by fixed readers without any
  human interaction.
• The chips also have extra memory where you can
  save additional information about each item being
  tracked.

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Definitions

• RFID Radio Frequency Identification
• EPC Technology Electronic Product Code
• Passive RFID technology (readers, printers,
  tags) that is built to current ePCGlobal
  standards
• CAGE Code Commercial and Government Entity
• Unit Pack for UID
• Unique Identification placed on the first tie,
  wrap, or container supplied to a single
  itemtypically items over 5000 in value
• Bulk Commodities
• Items not tagged, bulk items carried in rail
  cars, tanker trucks, pipelines, etc.
• Case
• Exterior container -- container sufficient to
  protect unit packs during shipment and storage
• Shipping container container sufficient to be
  shipped safely without further packing
• Palletized Unit Load
• Quantity of items arranged on a pallet so entire
  load is handled as a single unit

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Implementation Approach

• The implementation charts a roadmap that charts
  critical distribution functions at defense depots
  and ports
• Three-phased implementation approach
• According to procurement methods
• Classes/commodities
• Location

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Implementation Schedule -2005

• Classes
• Class I Subclass Pkgd. Operational Rations
• Class II -- Clothing, Individual Equipment, Tools
• Class VI -- Personal Demand Items
• Class IX -- Weapon Systems Repair Parts
  Components
• Depots
• Susquehanna, PA (DDSP)
• San Joaquin, CA (DDJC)

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Implementation Schedule -- 2006

• Classes
• Class I Subclass -- Packaged operational rations
• Class II -- Clothing, individual equipment, tools
• Class III (P) Packaged petroleum, lubricants,
  oils, preservatives, chemicals, additives
• Class IV Construction barrier equipment
• Class VI -- Personal demand items
• Class VIII Medical materials (not
  pharmaceuticals)
• Class IX Weapon systems repair parts
  components

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Implementation Schedule - 2006

• Depots
• Albany, GA
• Anniston, AL
• Barstow, CA
• Cherry Point, NC
• Columbus OH
• Corpus Christi, FL
• Hill AFB, Ogden UT
• Jacksonville FL
• Warner Robins, GA

• Tinker AFB, Oklahoma City, OK
• Norfolk VA
• Puget Sound, WA
• Red River, TX
• Richmond, VA
• N. Island, San Diego, CA
• Tobyhanna, PA

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Implementation Schedule -- 2007

• All New Contracts
• All Classes
• All Depots
• All Individual cases
• All cases on pallets
• All pallets
• All unit packs for UID items

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Contract/Solicitation Requirements

• The cost of implementing RFID is allowable under
  contract
• Primary RFID Requirements
• Data on each tag must be unique
• Tag must be affixed to appropriate location on
  package
• Each tag must be readable at time of shipment

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Advanced Shipping Notice (ASN)

• Available through WAWF (Wide Area Workflow)
  website, https//wawf.eb.mil
• Same Material Inspection Receiving Report (MIRR)
  transaction being sent to WAWF with additional
  (RFID) data added
• 24-character hexadecimal number from each label
  needs to be added to the receiving information on
  WAWF
• Help Desk 866--618-5988, 801-605-7095

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ASN Information

• The Advanced Shipping Notice (ASN) transaction
  into WAWF enables the sender to relate the RFID
  tag info to the contents of each shipment.
• This is similar to a FedEx tracking number that
  identifies a particular package to the shipping
  information located in the central database.

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DoD Identity Types

• DoD suppliers who are EPCglobal subscribers
  should use their EPC number
• Suppliers who use the DoD Identity Type will use
  their Commercial And Government Entity (CAGE)
  code
• See EPC Tag Data Standards at Httpwww.epcglobali
  nc.org/standards_technology/specifications.html

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DoD Tag Option

• This option is for DoD suppliers who
• Are not a member of EPCglobal (and do not intend
  to join) use their Commercial Government Entity
  (CAGE) code to ID their company
• Supplier will use 96-bit (Gen 2) RFID tags

• Header Tag data is 96-bits
• Filter IDs a pallet, case, or UID associated
  with RFID tag
• Identifier CAGE Code
• Serial Number Unique ID associates tag and
  shipment

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RFID Tags

• The transponder tag may be integrated with the
  shipping label or it may be an independent entity
  
• Two tags are allowed- one barcode label and one
  RFID tag

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Tag Placement

• Tags should be affixed where there is the minimum
  risk of damage
• Each tag should be 2 from top
• Each shipping container should have only one RFID
  tag

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References for Information

• Check website for updates to the Supplier
  Implementation Plan
• http//www.dodrfid.org/supplierimplementationplan.
  htm
• Also check the Supplier Implementation Guide
  http//www/.dodrfid.org/supplierguide.htm
• Visit EPCglobal at http//epcglobalinc.org
• General DoD RFID information http//www.dodrfid.o
  rg

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Options to Meet RFID Mandate

• Slap and Ship (Peel Stick - Ship)
• Pre-encoded RFID tags
• 2. Enterprise RFID System
• RFID printer
• RFID readers
• Fixed
• Handheld
• Enterprise RFID software

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1. Slap Ship Tags

• Issues
• Need to order large quantities to keep prices low
• Shipping and handling costs sometimes high (esp.
  overnight shipping)
• Conduct a cost analysis for accurate cost per tag
• Tag needs to be read and verified prior to
  shipping
• Tag may be damaged when applying to shipping
  container
• May not be able to read tag due to interference
  of metal or liquids, which de-tunes the RFID
  tags.

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2. Enterprise RFID System

• Issues
• Some companies need to remodel their entire
  shipping department to accommodate printer,
  reader and portals
• A change in production processes sometimes
  required
• Added costs sometimes involved in more elaborate
  RFID systems
• Business Analysis
• Site Survey
• Installation and Integration Charges
• Ongoing Support Charges
• NOTE it is important that the readers, printers
  and tags all talk to each other in the same
  frequency range

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Consequences

• Payment may be delayed if RFID tags cannot be
  read accurately
• The Automated Best Value Score (ABVS)
  http//www.dscr.dla.mil/proc/abvm/About20ABVS20R
  evised.doc
• A low Packaging Score will be given if RFID tags
  are not used and the contract requires RFID
• A low score could eventually result in a loss
  of contracts 

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Automated Best Value Score
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Uploading to WAWF

• Paste RFID data into WAWF Package ID on the
  Pack tab of the combination invoice and
  receiving report.

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Uploading to WAWF

• Enter the package quantity on each Contract Line
  Item Number (CLIN)
• Some line items may require multiple cases.

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Uploading to WAWF

• Check to make sure all line items are complete.
• The Difference will be zero.
• RFID tags are now complete!

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Questions?

• Thank you for participating in our
• DoD RFID Training.
• Call with questions 800-705-9721 ext. 137
• Email questions to info_at_enterprisecompanion.com