Logistics Division

1
Logistics Division

• Technology Evaluation
• Final Presentation RFID

2
New Technology RFID

• RFID, or Radio Frequency IDentification is a
  system whereby tags are attached to products and
  read by specialized devices in order to track
  them through the supply chain
• When coupled the reader produces a magnetic
  field that the tag draws power from and
  communicates the information
• Software involved is SAP compatible

3
Magneto (metaphorical passive RFID tag)
drawing magnetic power from reader.
(Dramatization only)
4

• Leveraging
• could use RFID tags to track machinery, office
  equipment, and other petPRO assets
• future potential sales and consumer information
  (RFID tags stay on sold products, e.g. Gillette)

• Potential Risks
• project may not be useful if Nestlé does not also
  want to implement tags
• consumer backlash over RFID - privacy

5
Option 1 Outsource RFID

• Pros
• less time used by petPRO for development and
  implementation
• IDENTEC Solutions (Kelowna, B.C.) are experts in
  planning, development, support (recent Nokia
  project)
• www.identecsolutions.com

• Cons
• expensive (at least 0.30 per tag, 1,000 per tag
  reader)
• gap between petPROs and IDENTECs goals,
  potential lock-in contract, general relationship
  with outsourcing company

6
Option 2 RFID In-House

• Pros
• potential to be cheaper
• designed with specific petPRO requirements (goal
  congruency)
• no binding contract
• always there for regular maintenance

• Cons
• take a lot of time and resources in I.T. division
• lack the RFID expertise that would come from an
  outside source (greater risk of bugs)
• lack necessary manufacturing equipment for tags
  and such

7
Option 3 Status Quo

• Pros
• no money, time, resources spent on implementing a
  new technology and all the hidden costs involved

• Cons
• RFID is the wave of the future (Wal-Mart has
  made it a supplier requirement for 2006)
• more concise production and inventory
  information, for logistical planning and security
  purposes

Magneto says.. Still unwilling to make
sacrifices... that's what makes you weak.
8
The Decision

• Implement the RFID tags, and purchase them from
  an outside distributor
• This includes working closely with IDENTEC in
  order to develop a SAP compatible system that
  fulfills petPROs logistical dreams

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THE END!

• Thank you.

10
Ransom Love WOW!