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University of AkronRFID in Cross-Enterprise LogisticsJoe Dunlap

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Siemens Overview

Corporate Departments

Managing Board

Operations

Regional organizationRegional offices, regional companies, representative offices, agencies

Corporate Centers

Corporate Communications

Corporate Information andOperations

Chief Economist /Corporate Relations

Global Procurement andLogistics

Management ConsultingPersonnel

Automation and Control

Automation and Drives

Industrial Solutions andServices

Siemens Logistics & Assembly

Siemens BuildingTechnologies

Power

Power Generation

Power Transmission andDistribution

Transportation

Transportation Systems

Siemens VDO Automotive

Medical

Medical Solutions

Lighting

Osram Corporate Finance

Corporate Personnel

Corporate Technology

Corporate Development Siemens Financial Services

Siemens Real Estate

Siemens Business Services

Information andCommunication Networks

Information andCommunications

Financing and Real Estate

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MOBY Portfolio

MOBY V 433 MHz

MOBY I

134 kHz /

1,81 MHz

MOBY F

125 kHz

MOBY E

MOBY D

13,56 MHz

MOBY U

2,45 GHzMOBY R

Planned

UHF

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Siemens Partial RFID Clients Listing

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Broader Siemens RFID Product Portfolio

POLYIC

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Warehouse logistics

Closed Loop RFID Applications Using Siemens

Material flow Production plants

Distribution logistics FreightAssembly lines Transportation/Traffic

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Quelle Distribution CenterLeipzig, Germany

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MOBY Examples

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Patient tracking at New York Central Bronx Hospital

• Patients are equipped with RFID wristbands for short-range tracking (entrance, …)

• Patients are equipped active RFID watches for open field tracking

• 13.56 MHz chips with• ID#• Name• Link to medical records• Secure access to patient data (PKI)

• Antennas at doors and floors

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Understand the Retail Visibility Value Proposition…

SuperStorePOS

ReceivingShipping

Picking Routing

Sorting

Distribution Center – Supplier

Today with Barcodes

SuperStorePOS

ReceivingShipping

Picking Routing

Sorting

Distribution Center –Supplier

Tomorrow with RFID

ReceivingBackroom Storage

CompactorFloor Portal

Current visibility gap between Shipping & POS

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Auto-ID Center Town Test

• Today many retailers only do carton counts at the store

• Receiving dock pallet or carton level reads

• Automatically and systemically reconcile against DC manifest

• Improved visibility and accountability

Store ReceivingStore Receiving

Source: AutoID Center Town Test

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Auto-ID Center Town Test

• Today many retailers can not locate stock on hand

• Back room reader & antennas carton level reads

• Improved visibility, reduced store labor and reduced stock-outs

Source: AutoID Center Town Test

Store BackroomStore Backroom

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Auto-ID Center Town Test

• Today many retailers can not locate stock on hand

• Backroom to floor antenna carton level reads

• Improved visibility, reduced stock-outs

Store BackroomStore Backroom

Source: AutoID Center Town Test

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Auto-ID Center Town Test

• Empty corrugate confirms all items are in fact on the floor

• Information could be integrated with POS to close visibility loop

Carton CompactorCarton Compactor

Source: AutoID Center Town Test

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Understand the Retail Visibility Value Proposition…

SuperStorePOS

ReceivingShipping

Picking Routing

Sorting

Distribution Center – Supplier

Today with Barcodes

SuperStorePOS

ReceivingShipping

Picking Routing

Sorting

Distribution Center –Supplier

Tomorrow with RFID

ReceivingBackroom Storage

CompactorFloor Portal

Current visibility gap between Shipping & POS

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The Need for Open Loop Systems

Raw material

s

Raw material

sdelivery

Order Deliver

yStore

Consumer

Production

Distribution

Center

FG Deliver

y

CSA: Chip Sharing Approach

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Phases of RFID Deployment

Source: Gartner Research 2003

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Kaufhof AG / Gerry Weber

• Kaufhof AG – German based retailer• Gerry Weber Shops at Kaufhof’s exclusive Galleria

stores• 149 Shops in Belgium & Germany• Gerry Weber textiles tracked along the whole supply

chain• Pilot conducted from supplier, Gerry Webber through

logistics, Meyer & Meyer Logistics & Kaufhof

• Project Overview• Objective for field trails to assess the utility of thorough

tracking of goods and assess the benefits derived from it• Contact free and multiple reading• Minimize transport “losses” & shrinkage• Speed up processes• 20,000 chips per store• Due to privacy concerns chip removed after sale !

(See video reference)

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Kaufhof Video

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Many organizations are moving toward EPC requirements & cross-enterprise RFID

FDA Endorses RFID Technology

In its final report on ways to reduce the counterfeiting of drugs, the U.S. Food and Drug administration says RFID could play an important role in anticounterfeiting strategies beginning next year.

Feb. 18, 2004—The U.S. Food and Drug Administration released its final report today on ways to reduce the counterfeiting of prescription drugs. The report’s recommendations include the use of RFID technology to create a "pedigree"—a secure record documenting that the drug was manufactured and distributed under safe and secure conditions.

Target Issues RFID Mandate

BREAKING NEWS: The retailer plans to require suppliers to put EPC tags on pallets and cases beginning in late spring 2005.

Feb. 20, 2004—Target, the fourth largest retailer in the United States, has told its top suppliers that they will be required to apply RFID tags on pallets and cases sent to "select" regional distribution facilities beginning late spring 2005. The company wants all suppliers to tag pallets and cases by the spring of 2007.

* Other European organizations not listed

Best Buy to Deploy RFIDThe consumer electronics retailer says it will require suppliers to use Electronic Product Codes on pallets and cases beginning in January of 2006.By Mark Roberti

Aug. 31, 2004—Best Buy announced today that it plans to deploy Electronic Product Code technology to increase its supply chain efficiency over the next several years. The Minneapolis-based consumer electronics retail chain will require its major suppliers to begin applying EPC-compliant tags to product cases and pallets by Jan. 2, 2006. It expects to have all cases and pallets from all suppliers tagged by May 2007.

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Understand the Impact of RFID on YOUR Business

Clear away the ambiguity created by conflicting messages around RFID to assess the potential impact of RFID on your business as an enabling technology

More coming soon…

Your Company

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XYZ Supplier RFID Volume Analysis

Illustrative

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XYZ Supplier RFID Volume Analysis

% Tagged to Total Volume

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Qtr

Ctn

Vo

l Other

TGTvol

WMTvol

Illustrative

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Recognize That Benefits Won’t Come Without Process Change

Auto Read,Print & Apply

Manual SKUIdentification

(Scan or Read)

Create Labels

Apply Labels

• Begin to determine how processes, equip, inventory, people & information flows can be improved with RFID…

• Consider events and information not captured by barcodes today, what's it worth to your organization

• Redefine Processes

• Measure Improvements

Illustrative Example: Receiving Process

Consolidate into single

event

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Understand the Factors Affecting the Performance of RFID Systems

• Environment• Know the effect of your supply chain environment on radio wave properties such

as:• Freezer / High heat• Humidity• Noise

• Products• The limiting factors of your products or packaging such as:

• Density• Temperature

• Technology Selection• Know the different properties of different RFID technologies with regards to:

• Passive vs. active• Frequency• Memory size• Communication Protocols (EPC Class 0, 0+, 1, 1.1, ANSI, ISO)

• Data reading / writing abilities• Data navigation speed

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Focus on Short-Term Requirements & Benefits With An Eye Toward Longer Term Opportunities

Long-Term

Short-Term

ImplementationPilot

Strategy & Assessment

ImplementationPilot

Phase 1 Strategy & Assessment will determine the appropriate strategies to meet both short & long-term business needs, perform readability tests, develop a business case and proof of concept.

Phase 2 Short-Term, based on Assessment recommendations and business case, will pilot & implement RFID application opportunities necessary to be compliant with customer demands while driving value.

Phase 3 Long-Term will review Assessment recommendations to pilot and implement more strategic RFID applications beyond customer compliance.

Two-pronged approach spearhead by a comprehensive strategy

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A Sound Business Case Should Be Developed in the Strategy & Assessment Phase

Baseline Assessment Business Case DevelopmentApplication Development

Baseline Assessment will seek to provide a defined baseline for operational assessment and application comparison, and to identify operational areas holding improvement opportunities.

Application Development will combine assessment synergies to identify potential application opportunities, KPI’s, and solution design.

Business Case Development will analyze costs and benefits, determine TCO and ROI, and prioritize applications based on risk and value to finalize the business case.

Pre

-lau

nc

h P

ha

se

Prepare

■ Finalize scope requirements

■ Issue data request.

Proof of Concept

Quantify Benefits &

Costs

Business Observation

and Data Collection

Operations Assessment

Design Tactical and

Strategic Solutions

Identify Key Inputs

Finalize the Business Case

Generate Potential

Applications

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Sponsor Review

Executive CommitteeReview

Educational Workshop

Product Tests

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Questions

Siemens One, Inc.

4705 Duke DriveMason, Oh 45040Phone: 513-336-1197Fax: 770-225-5624

joe.dunlap@siemens.com

Joe D. DunlapSenior Business Development Manager

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