Upload
rashwinder
View
136
Download
7
Embed Size (px)
Citation preview
RFID in a 3PL Enviornment
Dick Pocek, Director of LogisticsJim Dean, Manager of Customer Supply Chain
About Energizer
- Energizer Holdings Inc. - (Eveready Battery Company & Schick-Wilkinson Sword )
Energizer Holdings, Inc.(Energizer), incorporated in 1999, is one of the world's largest manufacturer of dry cell batteries and flashlights, and a global leader in the dynamic business of providing portable power
Energizer is the successor to over 100 years of expertise in the battery and lighting products industry, formerly Eveready Battery Company 1905 -1999
Prior to Eveready name, known as National Carbon Company from 1886 -1905
Energizer’s battery and flashlight subsidiaries offer a full line of products in five major categories: alkaline, carbon zinc, miniatures and rechargeable batteries; and lighting products
In January 2003 Energizer announced purchase of Schick-Wilkinson Sword razor business from Pfizer Inc. for $930 million
Schick-Wilkinson Sword is the second-largest shaving-products company in the world
Energizer, Eveready and Schick-Wilkinson Sword brands are marketed and sold in over 140 countries
National Carbon Co. 1st dry cell battery
American Ever Ready Co.
first tubular flashlight
Ralston Purina buys Eveready
Battery Co
1896 1914 1986 April 4, 2000
National Carbon buys American Ever
Readyand forms Union Carbide
Eveready Battery Co. becomes a subsidiary of independent Energizer
Holdings Inc., NYSE ticker symbol ENR
Invent first dry
cell battery (CZ)
Invent first commercial
Watch battery
1896 1898 1931 1955 1957 1959 1980 1990 1995 2001
First to freshness
date batteries
Invent first
alkaline battery
Invent first flashlight.Invent first
D size battery.
Invent first
miniature battery
for hearing
aids.
Invent first lithium battery(AA)
First zero-added
mercury battery
First on-
battery tester
First hearing
aid battery
dispenser
A History of Innovation
Energizer innovation extends to branded and private label products, as well as our account teams and approach to category management.
Kenya
Sri Lanka
SingaporeMalaysia
Philippines
Indonesia
Tianjin, China
Egypt
La Chaux De Fonds, Switzerland
AsheboroMaryville
St. Albans VT
Bogang, China
Bennington VT
Singular Focus + Global Supply Chain = Efficiency
A Global Production Complex
Garrettsville, OHMarietta, OH
Walkerton, Canada
Caudebec, FranceTanfeield Lea, U.K.
Wal-Mart Pilot
Wal-Mart Detailed Expansion Step 1: January 2005 – 3DC’s, 102 Stores, 36 Clubs– 6068 Sanger, TX (RDC)– 6064 Cleburne, TX (GDC)– 8235 Desoto, TX (X-Dock)• Step 2: June 2005 – 7 DC’s, 241 more Stores, 73 more Clubs– 6016 New Braunfels, TX (RDC)– 6036 Palestine, TX (RDC)– 6056 Terrell, TX (GDC)– 6083 Temple, TX (GDC)– 7010 New Caney, TX (GDC)– 6698 Dayton, TX (X-Dock)– 8234 Searcy, AR (X-Dock)• Step 3: October 2005 – 2 DC’s, 202 more Stores– 6018 Searcy, AR (RDC)– 6048 Opelousas, LA (RDC)• 2005 Total: (12 DC’s), 545 Stores, 109 Clubs = 654 facilities
Wal-Mart
80% of SKUs are Break-Pack and will not be tagged initially.
Private Label SKUs will not be tagged
Ship mostly mixed pallets not requiring pallet tags
Sam’s
TL environment
100% of SKUs will be tagged at case and pallet level.
Energizer and SWS SKU Landscape
Energizer RFID Lab
Tag and Product Testing
Tested different carton types Tag orientation Tag placementDifferent Tags
Energizer’s 3PL RFID Expectations“Slap and Ship” implementationProcesses that are easy to transfer between sitesCosts spread over customer baseFlexible systemsTracking capability
RFID Energizer/3PL IssuesCartons cannot be opened at the warehouse due to the use of wrap-around automated carton forming upstreamSize limitation of some cartonsOrder cycle time issues
The Future of BarcodesExternal
UPCITF14UCC128
InternalEAN128UCC128
Energizer’s position on bar code utilization is that there will be no change to our use of barcodes near term.Current internal projects will continue as scheduled. External bar code requirements will be dictated by the market place.
Energizer’s 3PL Expectations
Distribution technology leaderInnovatorValue added servicesStable management teamGlobal capabilitiesPartnership
How Does RFID Compare With Other Major Information Technology Development & Deployment Milestones ?
Internet
Y2K
RFID
Similarities:
The development or deployment of new IT solutions Potentially disruptive technology integrations Fluid landscape with regard to products and vendors Massive influx of resources to respond quickly Market Position Consideration - Lead or Lag?
1999
Manufacturers Issues Regarding RFID Deployment In Supply Chain Applications
Customers Are Starting To Require RFID Use
•Retailers
•Government (i.e. DoD & FDA)Limited Resources are available to meet the challenge
•Personnel
•Financial Resources
•TimeMany companies have varying degrees of success when using consultantsCan I really find an ROI for implementing RFID in my business?How can you make RFID deployments operationally viable?Few companies have real experience with this emerging technologyWho are my strategic partners that could help with this initiative?
Solution EvolutionMoving towards customer integration
LLP
Managed Transportation
Orde
rFu
lfillm
ent
Reverse
Logistics
Vendor Managed Inventory
Value Creation Potential
Com
plex
ity
SCM
Managed Transportation
Orde
rFu
lfillm
ent
Reverse
Logistics
Vendor Managed Inventory
Warehousing
Service Provider
X-DockingWarehousing Transport
Third Party Provider
5% to 10% typical cost savings 10% to 20% typical cost savings
$
RFID assists business integration in that it provides real time data and visibility,
involving logistical providers who service companies
throughout the supply chain
Generic Supply Chain Solution Sets
Supply Chain Management
Raw MaterialTransportation
Manufacturing WarehouseOperations
Finished GoodsTransportation
DC Operations /Finished GoodsInventory Mgt.
End Customer/Consumer
Suppliers(Domestic &
International) Raw Material
InventoryManagement
Plant Shuttles
OutboundTransportation
Project ManagementContinuous ImprovementKnowledge Management
Supplier Management
Inbound Raw Materials
In-plantServices
Raw MaterialsInventory
Finished GoodsInventory
Customer Management
InternationalFreight
InboundTransportation
InboundTransportation
OutboundTransportation
OutboundTransportation
InternationalFreight
Automatic identification and data collection technologies are used in all parts of the supply chain today, thus requiring the potential integration of RFID
into these areas in the days ahead.
RFID Can Be Used In Various Points Throughout The Supply Chain
• Manufacturing - discretely identify products, the facility in which it was produced and the date of manufacture
• Distribution Centers - accurate inventory control and order fulfillment activities
• Retailers - track shelf activity, trigger automated fulfillment, improve customer checkout, billing and shrinkage
• Reverse Logistics - evaluate merchandise return speed to DCs, disposition of returned products, financials
• Container/Yard Management - Real-Time Locating Systems (RTLS) triangulate the relative position of tagged items. Useful also for specialized Kanban systems (requires expensive RFID Tags)
• Asset Tracking – tracking items such as returnable containers and high value products
Ultimately, the big cost savings and service benefits of RFID will come from a dramatically enhanced ability to manage inventory and orders across time and the supply chain. 3PLs are already firmly established in delivering these type of logistical applications.
RFID – How Can It Affect Supply Chain Partners In The Future?• Customers will likely keep requesting the use of RFID
and other emerging supply chain technologies.• Resources throughout the supply chain could possibly
be positively or negatively impacted by RFID deployments (i.e. personnel, inventory, money, equipment, space …).
• Supply Chain information technology implementations will have special focus placed on RFID integration
• Trading partners will have to figure out how to manage the data collected from RFID applications and use it for advanced demand planning strategies.
• 3PLs with RFID experience will be able to assist companies across the entire supply chain.
3PL RFID Case Study: Exel PLC
Presentation courtesy of Exel PLC
Executive Summary (RFID)
The current state of RFID: An emerging technology Many critical issues Ready for wide adoption in the supply chain?
As supply chain leaders, Exel is responding to this technology by directing global and local teams to work with customers, RFID experts, and vendors to understand the value, cost, challenges and opportunities related to this technology.
Given Exel’s market position, we have a unique opportunity to understand technology from multiple business applications, across different supply chains.
Factors Driving Exel’s Response to RFID
Customers- Retailer compliance- Opportunity to provide customer
channel solutions Operations efficiency
- To be proven Supply chain visibility in certain services…
- Global freight management- Demand planning- Track/trace- Returnable containers
…and broader future visibility leading to enhanced supply chain performance and solutions
Exel’s RFID strategy positions Exel to better understand RFID and create value:
Exel RFID Organization
Global RFID Strategy
Team
RFID Core Team
Market Vertical & Account Specific Teams
Steering Committee
Communication & Consistency
Execution
Within each team all operational functions and market verticals are represented, thus making sure that RFID
solutions are looked at holistically and that best practices are shared.
So what has Exel done to date. . .
•Participated in some 8 – 10 major pilots globally Theatres – Americas, EMEA & APACIndustry Verticals – Retail, Consumer & TechnologyStandards – EPCglobal and non-EPCglobal RFID
•Became a member of EPCglobal
•RFID deployments/applications inclusive of: Numerous pieces of material handling equipment Dock doors Staging areas and pallet racking Pallets Stretch wrappers Containers and high value assets
Exel RFID Application Examples
Dock Door RFID Portal
Fork-lift Mounted RFID
Garment On Hanger RFID Portal
RFID Enhanced
Stretch Wrap Machine
RFID Enabled Rack
RFID Enabled
Bulk & Staging Areas
RFID Centers of Excellence Overview
• Create a theatre specific RFID laboratories where Exel and partners can test RFID application
– Americas, Europe and Asia• Involve RFID, WMS, system integration, material
handling and other technology vendors as partners• Multiple applications of the technology will be reviewed
in these centers • Vendor and technology “agnostic” due to fluid RFID
landscape (standards and technology in a state of flux)• Open to customers to test their RFID applications
Centers of Excellence activities will help our clients and our account teams determine the best applications for RFID in supply chain
applications.
RFID Center Of Excellence Preliminary Layout
Americas Facility
Center Of Excellence will focus on real-world tests for RFID usage in areas such as shipping & receiving, putaway & picking, label placement, material handling and
systems integration.
Computers & Desks
Rack Storage
Conv
eyer
Rack Storage
53'-1
1"
30'-0
"
23'-8"
Bulk Storage (4 Deep)
14'-0
"12
'-0"
12'-0
"13
'-0"
Matrics Readers
RFID Project Challenges• New and existing RFID products are not necessarily interoperable
with other RFID vendor offerings• Product availability and product development can delay pilots• Many companies are selling RFID products, but total RFID integration
can be a challenge (tags, readers, printers, middleware)
• UHF RFID hardware can interfere with existing 900 MHz RF systems operating within DCs, requiring countermeasures or upgrades
• Specific product & packaging combinations frequently prevent reading of cases at the center of a pallet
• EPCglobal Generation 2 RFID Standard Ratification Date ???• 6-12 month product development cycle after EPCglobal Gen. 2
approved• ROIs for RFID technology deployments can be difficult to obtain• Data management (EDI, visibility, order management) is not currently a
requirement from mass retailers even though this will be important
Exel Client RFID Activities & Observations
• Mass Retailer RFID mandates have generated the following:– Manual “slap & ship” of RFID tagged skus– Semi-automated tagging of skus (e.g. conveyor augmented solutions)
• Automated/semi-automated RFID tagging solutions need scalability and flexibility as part of a long-term solution
• SKU quantities used in RFID trials have been limited (20 or less typ.)• RFID tagging is being pushed further into the supply chain based on
the difficulty and expense of RFID tagging products at the plants• Asset tracking is the primary means of deploying RFID outside of
current mass retailer mandates• Outside of the Retail/CPG Market activities, Pharmaceutical and
Technology Market RFID applications are on the rise• Exel has been and continues to be brought into RFID projects to
assure operational viability and proper execution of RFID projects
QUESTIONS ???