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More Than Just Visibility. SaviMore Than Just Visibility. Savi
The Business Case for AIDC Solutions Throughout the Supply Chain
AIDC 100 - “Evolution of an RFID Revolution”October 15th 2008
David Shannon, SVP Marketing SAVI/Lockheed Martin
J. Craig Casto, Global Auto ID Leader
Dow Chemical Company
2
Savi Group Overview
Savi Logistics Systems
•FOCUS: Customized decision-support logistics solutions for situational awareness, in-transit asset visibility and management, planning, collaboration and optimization.
•MARKET: Large programs and projects for the U.S. DoD and other Federal Agencies.
•PROGRAMS: Global Transportation Network and Business Systems Modernization Center.
Savi Networks
•FOCUS: Real-time information service that automatically tracks, manages and secures intermodal container assets and inventory throughout the global supply chain.
•MARKET: Commercial shipper manufacturers, 3PLs and freight forwarders.
•CUSTOMERS: J&J, Western Digital, Emprevi, PNL Networks.
Savi Technology
•FOCUS: Complete products, solutions & services leveraging RFID and AIT technologies for end-to-end supply chain asset management & security.
•MARKET: Defense, defense suppliers & governments worldwide.
•CUSTOMERS: DoD, NATO and defense forces in the UK, Australia, Denmark, Spain, Sweden, Poland.
Savi ManagedServices(Initiative)
•FOCUS: Develop and deploy integrated, transaction-based information service to make supply chain information accessible and actionable while driving effective decision-making and defined outcomes.
•MARKET: Commercial and government shipper-manufacturers, government and logistics service providers.
3
Vision
• Every Conveyance and Mobile Asset Will be Tracked Using Some Type of AIDC Technology– Connect People with Things– Interoperable Networks Leveraging Bar
Codes, Passive and Active RFID, GPS
• Networks Will Be Integrated with Complete Solutions, Services and Apps– AIDC is the Enabler within the Network
• Dynamic Management of Supply Chains– Tracking Conveyances and Their Contents– RFID’s Real Value is Tracking and Securing
Assets End-to-End – Not just within The four walls or point-to-point
Everything Will be Tracked Wirelessly in 10 Years
4
Evolution of the AIDC Revolution
• Solving Customer Problems using the right technologies
• Work Collaboratively with Customers
• Evolving to Solutions not just point Technology
• Provide End to End Capabilities
5
Requirements for Each LayerThe Right Technology for the Right Application
Layer 5: Movement Vehicle
Layer 4: Container
Layer 3: Unit Load
Layer 2: Transport Unit
Layer 1: Packaging
Layer 0: Item
Barcode
• Long range (300+ft)• High metal environment• Omni directional• Real Time Assured Data• Sensor / Security enabled• Affordable
• Line of sight• Global location
• Short range (3-15ft)• Lower cost tags• Read/write• Non line of sight
• Very short range (1ft)• Ultra Low cost• Read only
Barcode
Passive RFID
Active RFID
GPS/SatCom
Cost
Functionality
6
Governance level (‘read & react’)Dashboard function, where progress of the process is
monitored and exceptions are alerted
Tactical level (‘Read & React’)Dashboard function, where progress of the process is
monitored and exceptions are alerted
Operational level (‘Sense & Respond’)Direct feedback to the operational employee to
approve or disapprove a certain action
Strategic level (‘Learn & Leverage’)Information about the performance of the processes used to better tune the operation – in
combination with the forecast
Feedback Loop -Days to Weeks
Minutes to Days
<Sec to Min’s
Customer Satisfaction
Value Chain Optimization
Operational Excellence
Process Control
Homeland Depot PODTransshipmentPOE Theatre DC Unit
Journey
Driving ValueMaking AIDC Information Accessible & Actionable
Transform visibility in value creating execution at the operational & tactical level
RoadTransport
Consolidator/Distribution
Center
RoadTransport Vessel
TransitPort Vessel
Port ofDischarge
DistributionCenter
RoadTransport ConsumerFactory
RailTransport
Value Chain
10
RFID/GPS Strategy
• VOC with 100 Dow Business Leaders
• Level set technology and used Six Sigma techniques/tools
• 450 Ideas
• 50 Prioritized Project Areas
• 10 Selected for Generation 1 Implementation
• Validated with Technology Advisory Board of Dow Key Suppliers
• Leverage Auto-ID Expertise Center to own MET
• Leverage PSC processes and disciplines for project execution
• Connect to the industry players to drive standards adoption
• Link investments to Dow’s IT strategy
• Communicate with internal stakeholders to align opportunities
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Facilities, Location, Physical Structure
Tagging
Internal asset utilization & loss prevention
Asset ManagementProduct Inventory & Warehouse Mgmt
Warehouse inventory management / location
management
Product Handling Validation
Product Labeling
Product Consignment Inventory Management
Container & Product Tracking
Container Tracking
Cylinder Tracking
Railcar Monitoring & Tracking
Tank Truck Tracking
Intermodal Container Tracking Marine Pack Cargo Monitoring &
TrackingTracking of all Dow
shipments & receipts
Container Historical Info / Compatibility
Electronic Seals
Container Maintenance Tracking
Product Condition Monitoring
Electronic Documents/ Info Accompanying
Product
Emergency Response Information
Track Pipeline Workers
Maintenance parts identification and
inventory management
Maintenance (MRO)
Locate Maintenance Parts & Spares
Match Maintenance Parts to Specifications
Locate key expensive mobile equipment within
a plant / whseLocate key Managed
Service supplied equipment within plant /
whseTrack Tool & Equipment
utilization & loss prevention
Asset Maintenance Lifecycle Tracking
Asset Lifecycle Tracking Accuracy
Manufacturing
RFID/GPS support of plant construction activity
Whse Inv Mgmt / Location Mgmt
Dow Personnel / Regular Contractor Location Monitoring on site
RFID use to identify worker training and ability
to enter specific areas
Ad hoc personnel location monitoring on site
Material identification and staging during
manufacturing process (Auto BOM, Recipe)
Material identification and staging during
manufacturing process (Pull, Replenish)
Material management & tracking within Dow sites
Hazardous Materials Tracking on Sites
Hazardous Materials Tracking on Sites -
CustodyPlant conditions
(emissions) monitoring
Plant conditions and data collection – Gen 2
RFID use to identify worker training and ability
to execute processes / use equipment
Railcar Optimization
Transportation & Logistics
Optimization
Onsite Container Optimization
Container / Vehicle Fleet Optimization
Transportation Security & Fleet Optimization
Dow RFID / GPS Prioritized Opportunities
12
Supply Chain Scope
• 3,500 global employees
• 2.5 million shipments each year
• 45,000 customer ship-to locations
• 200 shipping sites
• 130 billion lbs of product shipped each year
• 20% of shipments involve international border crossings
13
Container Tracking MET at 50,000 Feet
Savi TechnologiesInternet based ASP
(GIS Mapping and Event Mgt)
Cylinder Tracking
Railcar Tracking
Intermodal ContainerTracking
Business Objects
15
Container Tracking – Railcars with RFID & GPS
• RFID on NA rail cars since 90’s– Car location supplied to car
owners multiple times per day
– Used to project ETA’s – Utilized at plants to collect
SAP transactional data
• GPS/SatCom/Sensors– TIH & Flammable Gases– Next Generation Railcal
• Sensor needs (liquid level, pressure, etc)
• Power needs (Rahall Institute power plant)
16
The User Interface
• Powered By Google Earth• Defined Geo-Fences for
– High Threat Urban Areas– Dow Sites
» Load Racks» Unload Racks» Maintenance
Tracks» Maintenance
Shops
– Customer Sites
17
RFID and GPS Container Tracking Intermodal Containers
Savi Pilot – RFID Based with Ship GPS:– Use RFID tags with Sensors on
containers with Savi port tag reading infrastructure
– Pull GPS coordinates from carriers on ship location carrying Dow intermodal containers into Savi ASP
IBM Pilot – GPS on Container Only:– Use GPS tracking devices with sensors
on containers and track position and environmental data without port infrastructure
– Tracking location of container throughout the voyage
Value:– In-transit monitoring of floating inventory – Flexibility in diverting in-transit inventory
to meet customer needs– Improvement in knowing what’s where
18
RFID Container Tracking - Intermodal Containers with RFID & GPS
• Savi Networks - RFID– Freeport to Shatian, China– Houston to India – Value:
• Inventory visibility of in-transit product
• Container level security monitoring
• In-transit Environmental Monitoring
• Customs clearance
• IBM – GPS‐ Exel Houston to KTN Antwerp‐ Savi integration‐ GPS tracking devices & sensors
• In Port with cellular coverage use GSM • At Sea use Satellite GPS coverage
21
Bar Code Tracking Cylinders and Small Containers• Vikane
– Hosting environment upgrade– Vikane software version upgrade– Vikane software enhancements
• SafeChem– Chlorinated Solvents– 38 locations throughout Europe– Metal cleaning application only– 4Q 2008
• DAS Herbicides– 2009 Implementation– 5,500,000 containers annually– 4 European production sites
• Chlorine– Site tracking requirement
• Other Intellitrack– DBS - Marietta Georgia– Dow Automotive – Midland– DBS – Wilmington, IL– R&D Warehouse – Shanghai, China– Michigan Ops Site Logistics
}}
MET Level 1 Global Tracking
MET Level 2 Site Tracking
22
Improved Shipment Visibility Benefits(Estimates)
• 50% improvement in response time to identify and resolve in-transit problems
• 20% reduction in excess product / safety stock inventory
• 20% reduction in container fleet• Up to 90% improvement in reliability of
delivery time windows• Elimination / early detection of product theft• Elimination of the historical 10-15% human
error rate associated with manual work processes to capture and enter data
Railcar Tracking
23
Selective Services
Base Services
RoadTransport
Consolidator/Distribution
Center
RoadTransport Vessel
TransitPort Vessel
Port ofDischarge
DistributionCenter
RoadTransport
RetailStoreFactory
RailTransport
Networks of Heterogeneous technologies: RFID, GPS, GPRS, SatCom. Barcode
Service Platform • Info Assurance• SOA • Data Rights Mgmt• Multi-hypothesis Tracking• Interface Integration
Next Generation AIDC Solutions
24
The Business Case for AIDC Solutions Throughout the Supply Chain
•Any Questions ?• David Shannon, SVP Marketing
• SAVI/Lockheed Martin• +1-650-316-4738
• J. Craig Casto, Global Auto ID Leader• The Dow Chemical Company
• +1 304-747-7019• [email protected]