GS1 EPC/RFID Advisory Group Launch 9 November 2006

GS1 EPC/RFID Advisory Group Launch

9 November 2006

©2005 GS12Making our Vision a Reality

Agenda

9.00am Welcome Maria Palazzolo, GS1 CEO

9.15am Global experience Bill McLeer, EPCglobal US

9.30am Advisory Group scope & objectives Mark Fuller, GS1 COO

10.30am Tea Break

11.00am Keynote: EPCglobal Progress Bill McLeer, EPC Global US

12.00pm Panel Session Bill McLeer Malcolm McKeith - ADFBruce Grant - P&GFiona Wilson - GS1

12.30pm Advisory Group Wrap-up Richard Jones, GS1 GM Ser Del

12.40pm Lunch – SCKC RFID moduleTours

1.45pm Technology Group Launch Maria PalazzoloBill McLeerFiona Wilson

3.30pm Close

EPC/RFID Advisory Group LaunchWelcome

Maria PalazzoloCEO GS1 Australia


EAN and UCC is now GS1

A single Global Organisation incorporating

EPCglobal

and

GDSN Inc ( Global Data Synchronisation Network)

All GS1 Member Organisations are the Sole Agents of the EPCglobal

Standards in their territory

GS1 Australia administers the EPC standard in Australia


The GS1 Vision for EPC/RFID

EPCglobal leads the development of industry driven standards for the Electronic Product Code (EPC) to support the use of RFID in today’s fast moving information rich, trading

networks.

Our Goal is to increase the visibility and efficiency throughout the supply chain and ensure high quality information flow between companies and their trading partners


GS1: a diversified portfolio

GS1 has a full portfolio of products and solutions

Global standards for electronic business messagingRapid, efficient & accurate business data exchange

The environment for global data synchronisationStandardised, reliable data for effective business transactions

Global standards for automatic identificationRapid and accurate item, asset or location identification

Global standards for RFID-based identificationMore accurate, immediate and cost effective visibility of information


Why we are here today…..

• Currently no mandates in Australia• Adoption is slow and opportunities are being lost• Early adopters mostly targeting improved management

of assets and logistics items• We still have a window of opportunity to examine the

EPC network and it’s benefits before mandates occur• Use learning’s from

• Overseas experiences

• EPC Network Australian Demonstrator Project

• Other pilots

• Begin to learn, experiment, evaluate, adopt

EPC/RFIDWhat the world’s been up to…


1,000 Wal-Mart stores will use EPC/RFID by June 2007, along with 600 of their largest supplier companies to track cartons & pallets 32% Reduction in out-of-stocks at the shelf

62% Reduction for faster moving items OOS for EPC tagged products replenished 3 x

faster Manual orders reduced by 10%.

EPC/RFID – What’s been happening


Metro Group (the fourth largest retailer in the world) will roll out dock-door RFID receiving gates across 150 locations by mid-2007.

Potential savings 8.5m Euro (in Germany) from RFID tagged pallets through goods exit gate.

UK retailer Marks & Spencer has expanded its item-level RFID tagging trial to 53 locations and expects EPC/RFID to help them deliver 100% stock accuracy.



Heineken is using EPC/RFID to speed up customs processing by tracking 10 containers loaded with beer as they travel through Europe.

Procter & Gamble saw a 20% uplift in sales in its first RFID-enabled new-product launch this year.



AT Kearney reported that retailers who introduced RFID received:

• Reduced inventory leading to a one-time cash savings estimated at 5% of total inventory.

• A reduction in out of stock items resulting in a recurring annual benefit of $700,000 per $1 billion in annual sales



Item-level RFID tagging deployment in one store increased sales by 12% over eight weeks.

BGN predicts that RFID will materially boost sales: "I expect additional annual revenue of 3.8 million Euro".

Lemmi Fashion: Stock turnover before tagging 5,000 to 10,000 items per day

Stock turnover after tagging 20,000 items per day Increase 250% to 300% in receipt and shipment of

goods


BGN is a Dutch

chain of bookshops

with a yearly turnover

of € 166 million.


IDTechEx predict that the healthcare industry’s demand for RFID will reach US $2.1 billion by 2016.

Health Industry Insights has identified that the RFID market in Life Sciences will exceed $14 billion over the next 3 years.

Australian Department of Defence will spend up to $650 million over the next 8 yrs on RFID Supply Chain Technology.



The Opportunity…….

Real benefits of EPC/RFID will come from business process improvement opportunities which can only be realised through effective collaboration with industry

GS1 provides the global standards and wants to support Australian Industries and solution providers to ensure cost effective industry adoption of EPC/RFID


In summary…

• EPCglobal evolving effectively to meet expanding membership

• Core work continues its rapid progress but…….it’s about the

“solutions” not “technology”

• Incredible commitment/drive within the EPCglobal community

• Closer integration of activity across GS1

• Clear change over last 12 months as organizations have

• Started to move from preparation to implementation

• Started to really understand potential to transform their competitiveness

Documents

GS1 EPC/RFID Advisory Group Launch 9 November 2006