Welcome RFID: The Future of Intelligent Logistics

1
WelcomeRFID The Future of Intelligent
Logistics
February 10, 2006 Heljä Salomaa, Logistics
Director, Finland Post Tomi Pienimäki, Chief
Technology Officer Mika Lindholm, Business
Development Director, Capgemini Mark Prichard,
Product Director, EMEA Ian Broughton, Business
Development, EMEA
2
Agenda
1000 1005 Welcome 1005 1020 BEA
Overview Mark Prichard, Product Director, BEA
Systems 1020 1050 Finland Post RFID
Providing Information not Data for Intelligent
Logistics Heljä Salomaa , Logistics Director,
Finland Post Corporation 1050 1105 The BEA
Approach to RFID Ian Broughton, Business
Development, BEA Systems 1105 1125 COFFEE
BREAK 1125 1150 Proven Process of
Deployment Mika Lindholm, Business Development
Director, Capgemini 1150 1200 The
Future is Intelligent Logistics Tomi
Pienimäki, Chief Technology Officer 1200
1230 Q A / Lunch 1230 130 Tour
(optional)
3
BEA Systems Overview
February 10, 2006 Mark Prichard, Product
Director
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Company Overview

• Who We Are What Do We Do
• World leader in enterprise infrastructure
  software
• Simplify enterprise computing
• Improve business responsiveness through a
  service-oriented architecture (SOA) approach
• The Objective Align IT with business needs
  providing the right information to those that
  need it.

5
Company Background

• Customer Base Financial Strength Stability
• gt 1B in Sales
• 31 consecutive quarters of positive cash flow
• 15,000 customers worldwide, including majority
  of Fortune Global 500
• Acquired more than 30 companies in 10 years
  including ConnecTerra for RFID
• Global Presence
• 75 offices in 36 countries
• Over 3,000 employees
• Strategic Industry Influence
• More than 1,300 systems integrators, independent
  software vendors, and application service
  providers
• Driving innovation into standards Active
  EPCglobal Member

6
Service Orientated Architecture The Power of a
New Approach
Service-Oriented Architecture is an IT strategy
that organizes the discrete functions contained
in enterprise applications into interoperable,
standards-based services that can be combined and
reused quickly to meet business needs.
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RFID Within the SOA Vision
INFORMATION
INFORMATION
INFORMATION
RE-USABLE SERVICES
RE-USABLE SERVICES
RE-USABLE SERVICES
RE-USABLE SERVICES
INFORMATION
INFORMATION
INFORMATION
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Alignment of RFID with an SOA Strategy

• Allows RFID data to be enriched and delivered
  as information services
• Build once, re-use many times - leverage existing
  RFID services e.g. workflows to highlight
  mis-shipments through a portal
• Reduced development times for new projects RFID
  Accelerator Kit
• Reduces cost and risk for integration with
  internal systems such as WMS ERP as well as
  external data repositories.
• Allows business to respond quicker to new RFID
  requirements that demonstrate value relevant
  information for intelligent logistics.

9
Finland Post CorporationRFID Providing
Information not Data for Intelligent
Logistics
February 10, 2006 Heljä Salomaa Business
Director in Logistics
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Finland Post Background
Finland Post Group
Net turnover of 1235,2 million
Information logistics 176,0 million
Messaging 808,0 million
Logistics 254.1 million
Distribution network, post offices

• 2.5 million delivery addresses
• 25 million parcels per year
• 5,500 vehicles

• 23,297 postal employees
• 2.6 billion items per year
• 7000 standard delivery routes covered/day

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Three Key Trends inOperating Environment
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Challenges for Postis Businesses

• Customers and other operators are expecting
  increasingly detailed and proactive information
  on supply chain status
• Finland Post is constantly looking to improve
  operational processes that improve customer
  service and reduce costs

13
Background to the Pilot

• Initial RFID discussions took place 18 months ago
• BEA wanted to understand Finland Posts thinking
  on RFID and its potential uses within their
  environment
• Was Reusable Asset Tracking an issue and did the
  business case stack up?
• Capgemini BEAs RFID assessment included
• Prove the business case existed around Reusable
  Asset Tracking
• Provided answers to the following questions
• Is there a business case?
• Will it give Finland Post the information it
  needed?
• How could it be deployed?
• How long would it take?
• How much would it cost?

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The Business Case Developed Around

• Reducing Shrinkage
• Losing over 17,000 cages per annum
• 1.3 million euros per year in replacement costs
• Increasing visibility of roll cage movements
• Major dwell times of roll cages at customer sites
• No visibility of cycle times
• Increasing availability and utilisation of the
  assets

15
The Business Case Developed Around

• Improving customer service at peak times.
• SLAs were suffering due to lack of these assets
• Opportunity to uncover Value Added services

16
Project Scope
The project was carried out by Finland Post in
co-operation with Capgemini and BEA Systems Oy
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Objectives of the Pilot

• To evaluate the technologies and pilot RFID
  process
• To use RFID technology within the production
  process as standalone systems (i.e. without
  integration into the normal production systems)
• How well would the technologies work
• Functioning of tags, antennas, readers (Long
  range and hand-held)
• Usability of hand-held readers (software and
  hardware)
• Endurance of readers and tags in the different
  climatic conditions
• Determine the best options for tags, packaging
  and tag location on Roll cages
• How to attach the tags as easy and fast as
  possible
• Minimize breaking and losing the tags

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Objectives of the Pilot

• Identify Roll Cage Movements
• Increase visibility of roll cage movements
• Identify dwell times of roll cages at customer
  sites
• Obtain info about how long a roll cage had been
  in service
• Increasing availability and utilisation of the
  assets
• To take the data from the readers and expose that
  as information to identify
• Usability and usefulness of collected tracking
  information
• Added value of new collected information compared
  with present tracking information

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RFID Pilot Layout Process3 Doors and 300
Tagged Roll Cages
Logistics Centre, Vantaa
Helsinki Post Terminal
3
Sorting areas
Transport routes
Roll cages movement in the Post Terminal
Long range readers
1
Hand-held readers
Customer
2
Pilot Roll cage storing
Post office
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Pilot Environment Read Rates

• UHF RFID portal was used to track Roll cages
  automatically
• 100 reception with every long range reader
  tested,
• Tags designed especially for Finnish Post metal
  Roll cages
• 93 of empty trays (plastics letterboxes) inside
  of a Roll cage with standard tags were seen by
  the readers (without optimizing the tuning or
  antenna design of the letter box tag)
• some changes to the tag would enable 100 reads

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Overview of Technical Architecture
WLAN
WLAN
RFID tags
HHT reader
RFID Device Edge-Server
BPM
WS
WLI
LAN
Fixed
Tag
BEA WebLogic Integration Server
Long range reader
DB
Custom
DB
Control
Control
JPF
The BEA RFID Solution
BEA WebLogic Portal Server
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Data Collected in the Pilot

• In the pilot limited amount of information was
  collected
• Day and time
• Driver id
• Roll cage id
• Customer id
• Event
• pick-up / delivery
• load / unload
• empty / full Roll cage
• License plate on the tag cheaper more secure

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Benefits

• Improve asset management through visibility
• Reduce total cost of ownership
• Improving control, availability and maintenance
  costs
• Ensuring assets in the right place, right time,
  right quantity
• Accurately charge customers for their use of roll
  cages
• Analytically information on
• Asset cycle times
• Dwell times
• Utilisation rates
• Shrinkage points

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Turning Data into Meaningful Information

• Finland Post now has total visibility of roll
  cages
• Information is available via the online portal
  providing information such as
• Circulation of Roll cages
• Number of events per customer or per route
• Number of Roll cages per customer during a day
• Demand of Roll cages per day / week / route /
  customer

Example Portal Information gtgt
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Summary of Roll Cages at each site. Ideal for
identifying those customers who are hoarding roll
cages.
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Finland Post Operations Portal
This screen shows individual roll cage events for
a given tag id It can be used to track the
movements of an individual roll cage. Provides
information on error tracking and helps with
rollcage hunts.
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Long Term Postis Answer to Customer
Expectations
Benefits
Shared standards
Process control with RFID, guidance and sender
information storage in the tag
RFID tag in deliveries (e.g. parcels, value
letters), increases transparency of the process
Implementation of RFID everywhere in Finland to
every Post Terminal and all kinds of containers
RFID process pilot with Roll cages
Time
2005
20zz
20xx
200x
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The BEA Approach to RFID
February 10, 2006 Ian Broughton, Business
Development, EMEA
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Mission for RFID
TARGETED SOLUTIONS
SCALEABLE RE-USABLE RFID PLATORM
INTEGRATED
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Why Is BEA Investing In RFID?Many existing
customers want a single sw infrastructure vendor
Logistics
Federal
Pharma
Retail
USArmy
USAF
USDHS
UKHMRC
USDLA

• Counterfeit Reduction
• Diversion Control

• 3PL Services
• Asset Tracking

• Supply Chain Visibility
• Asset Tracking

• Reduce Out-of-Stocks
• Reduce Shrinkage

21 of the these companies use BEA products
Standardize on WebLogic
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Solution Framework
BEA WEBLOGIC PORTAL
ERP
ONS
SCM
EPC
OMS
WHM
PORTAL
B2B
ACCELERATOR KITS
ANALYTICS
BEA EVENT REPOSITORY
EVENT ENRICHMENT
BEA WEBLOGIC INTEGRATION
RFID HARDWARE
SUPPLIER
CUSTOMER
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Market Analysis
2016

• 26.23 billion Global Market
• 2.71 billion Global Market

2006
RFID Forecasts, Players Opportunities 2006
2016, IDTechEx includes software services
Contributory Factors
Reducing Tag/Inlay prices
Reducing reader prices
Increasing Focus on the Business Case and less on
Market Hype
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Focus on Business Case / ROI
Which of the following do you think your company
would be focused on most in implementing RFID? (
saying)

• RFID Market Research, 2005. Conducted by KRC
  Research on behalf of BEA Systems

34
Small Steps Lead to Big Benefits
35
Assessment Laboratory
Assessment Flexible Phase Approach
Progress to Pilot Then Roll Out
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What Questions Does this Answer?

• Quite simply-
• Is there a business case?
• Will it give me the information I need?
• How can it be deployed?
• How long will it take?
• How much will it cost?

1. GO
2. NO GO

37
Coffee Break
February 10, 2006
38
Proven Process of Deployment
February 10, 2006 Mika Lindholm, Business
Development Director, Capgemini Mark Prichard,
Product Director, EMEA
39

• Transformation Consulting
• Business
• Technology

• Process Consulting
• Customer Relationship Management
• Supply Chain Management
• Finance Employee Transformation

• Architecture Services
• Systems Architecture
• Solution Design

• Business
• Outsourcing
• Business Process
• Outsourcing

• Systems Integration
• Application Packages
• Development Integration Services
• Data Content Services

• IT Outsourcing
• Applications Management
• Infrastructure Management
• Network Outsourcing

• Infrastructure Services
• Systems Engineering
• Network Engineering
• Security

40
Finland Post The Requirement
Sender
Vehicle UnLoaded. Scan-Out Full Roll Cage
Deliveries Scan-In Empty Roll Cage Collection
Post Office.
In-Transit
Distribution Centre.
Vehicle Loading _at_ Distribution Centre. Scanned
Out using Handheld Scanners Scan-In through
Portals Gates
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The process of moving forward
RFID is not like purchasing a new HP printer that
can be taken out of the box connected to a PC and
it works. Select a reliable experienced partner
to guide you through an RFID adoption
programme. You need to understand the technology
before you can exploit it. Business case
development (barcodes will be around for many
years to come), take it in baby steps Realise
benefits and progress to next stage. Do not
select RFID based on price. Your environment,
your processes and business applications will
dictate the RFID technology selection thats
right for you. Do not under estimate the
importance of Operator training.
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Assessment Laboratory
Assessment Flexible Phase Approach
Progress to Pilot Then Roll Out
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Assessment LaboratoryWhat Areas Were Covered?
Roll Cage Dimensions.
Roll Cage Uses.
Roll Cage Handling.
Roll Cage Typical Damage.
Roll Cage Potential Tag Positions.
Post Environment.
Roll Cage RFID Reader Considerations (I)
Roll Cage RFID Reader Considerations (II)
Roll Cage RFID Recommendations.
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RFID Key message.
RFID is simply a very good enabling technology

• RFID Reader Software
• Application Software (WMS/Track trace etc).
• IT Infrastructure
• EAI Integration
• Business Process Transformation
• Financial Transformation

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RFID The Future is Intelligent Logistics
February 10, 2006 Tomi Pienimäki, Chief
Technology Officer
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Themes for Technology Adoption
Location Based Systems
Enabling Innovative Customer Solutions
Production Efficiency
Solutions For Reaching
Intelligent Logistics
Emerging Opportunities
Mobility
Event Management
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Combining RFID, Location Based Systems and 2-D
symbols

• RFID and Location Based Systems will be essential
  technologies in the future
• RFID should be combined with other technologies
  Location Based Systems, 2-D symbols (and
  barcodes)
• gt Comprehensive technology roadmap
• Posti Strategy Small scale deployments as
  technology matures
• Piloting technologies with limited investments
  would ensure competitiveness in the future

48
RFID Usage Areas and Effects in Posti
Effects on Posti's external view on national and
international level
Customer benefits
RFID in Posti
RFID Foundation
Process control, efficiency and quality
Transparency - Shipment tracking
Removing manual work, Efficient work governance
Transportation facilities tracking
Other usage areas
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RFID Roadmap Draft 2006-2010

• Wide tracking of transports and shipments
• Process control and optimization
• Dynamic process control

• Tracking of selected shipments on item level
• Real time tracking and reporting of shipments
  and transports for clients

2010
2009

• Tagging of other transport units
• Wider integration to customer processes

• Technology roadmap
• Demo-/test environment to gen2 level
• Architectural readiness
• Tracking of selected transportation units
• Tracking of high value deliveries

2008
2006 - 2007
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Summary of Morning Session
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In Summary

• BEA is committed to RFID
• Scaleable robust infrastructure is central to a
  successful RFID deployment
• Transform RFID data into relevant timely
  information to improve decision making
• Use a proven process of deployment
• Experienced knowledgeable partners are a must
  to make it happen.

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Q A / Tour
53
Tour A Top Level Overview
54
RFID Pilot Layout3 Doors and 300 Tagged Roll
Cages
Logistics Centre, Vantaa
Helsinki Post Terminal
3
Sorting areas
Transport routes
Roll cages movement in the Post Terminal
Long range readers
1
Hand-held readers
Customer
2
Pilot Roll cage storing
Post office
55
Lunch Close
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Portal Reader Antenna
BACK
Antenna Reader Portal
LED Counter
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Handheld Readers
BACK
Customers Tag
Hand-held Terminal
Roll cage tag
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Posti Roll Cages
BACK
59
Posti Roll Cage Dimensions
SIDE VEIW
FRONT VEIW
BACK
1425 mm
1560 mm
Wheel diameter 100 mm
15 mm
135 mm
35 mm
35 mm
520 mm
505 mm
835 mm
680 mm
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Posti Roll Cage Uses
BACK
Delivering small and large format letters.
Delivering letter transportation units.
Plus a Variety of other Consignments.
61
Posti Roll Cage Handling
BACK
Roll cages are moved with speed and in
numbers using a range of fork lift trucks. From
this picture it can be seen that up to 12 empty
Roll cages can be moved at the same time using a
single vehicle.
There are numerous Roll cage weighing and
tipping machines in operation.
62
Posti Roll Cage Typical Damage
BACK
Roll cage base becomes saturated with snow/ice
after being left outside for prolonged periods.
The base and wheels have to be replaced regularly.
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Roll Cage Potential RFID Tag Positions
6 RFID tag positions have been considered
BACK
SIDE VEIW
FRONT VEIW
Position 6.
Position 5.
1560 mm
Position 4.
Position 1.
Position 3.
135 mm
Position 2.
Position 3.
Position 2.
64
RFID Reader Considerations.

• Read Range Speed
• Distance from Reader to tag.
• Size of portal to be covered by reader.
• Tag read data requirements (i.e. how much data
  stored on tag).
• Maximum speed the tag will pass the reader.
• Anti-collision requirements.
• Number of Tags in the reader field to be read
  at the same time.
• Reader Position/Environment.
• Mobile or fixed position.
• Local environment, floors, ceiling and wall
  construction.
• Potential sources of RF interference, inc. items
  tags attached to or being moved on.
• RFID Tag Type
• Passive or Active. Low Frequency (125KHz to
  134KHz), High Frequency (13.56 MHz), Ultra High
  Frequency (868 MHz) or Microwave Frequency
  (gt1GHz).

BACK
65
Read Range, Speed Anti-Collision Requirements
BACK
Roll Cage Stacking
Helsinki Post Office
Posti Vehicle
66
Reader Position/Environment
BACK
Large metal pipe-work, electric motors, metal
roller doors, Electric Fan heaters with large
metal heat exchanger matrix, power cables etc.
67
RFID Recommendations.

• Tag Position on Roll Cage.
• We recommend that Position 5 and 6 should be
  evaluated within the Posti operational
  environment. The RFID pilot will aim to establish
  the read performance based on the tag position
  and ability to address the RFID tag by Posti
  operators.
• We recommend UHF RFID technology to be deployed
  by Posti
• UHF (868.5 MHz).
• The RFID technology selection criteria has taken
  into account many factors, including the
  operational and physical specification
  requirements identified during the Posti process
  reviews. Most importantly it has taken a view of
  the RFID technology support and purchase costs
  for both readers and tags both today and in the
  future.

Position 5
Position 6
BACK
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Assessment
Back
Hardware Technology Definition

• Review of assets/containers compatibility with
  RFID
• Tag positioning and tag attachment methods
• Definition of RFID tagging strategy
  (when/who/how)
• Reader requirements - read range and read speeds
• An outline RFID IT architecture definition
• Existing data collection technologies with
  recommendations for RFID integration

1. GO
2. NO GO

69
Assessment
Back
RFID Operational Processes

• Current Process Map and Procedures
• RFID Enabled Process Map and Procedures
• GAP analysis
• Review security, along with operator training
• Health and safety issues - strategies comply with
  corporate strategy and legal requirements.
• How is the change going to be managed?

1. GO
2. NO GO

70
Assessment
Back
RFID Benefits Cost Development

• RFID hardware technology costs (pilot/roll-out)
• RFID software integration costs (pilot/roll-out)
• RFID implementation costs (pilot/roll-out)
• RFID Business benefit definition,
  immediate/future development
• A total investment summary for both Pilot and
  roll-out implementation

1. GO
2. NO GO

71
RFID Laboratory/Pre-Pilot Testing
Back

• Objectives
• Establish best performing hardware vendors
• Appropriate tag format, position mounting
  method
• Assessment of readers to track other items using
  a range of operational scenarios.
• Stable solution to take on-site