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1© 2005 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialRFID for Retail Training
RFID Enabled Warehouse for Retail
Herb WangExecutive DirectorCisco SystemsJuly, 2006
Delivering Intelligence to RFID
2© 2005 Cisco Systems, Inc. All rights reserved.RFID for Retail Training Cisco Confidential
Agenda
• RFID Application for Retailers
• Background of Bailian Group
• Overall Review on Project–Project Phases
–Current Status
–Cisco’s Technology Support RFID for Supply Chain
3© 2005 Cisco Systems, Inc. All rights reserved.RFID for Retail Training Cisco Confidential
RFID Application for Retailers
4© 2005 Cisco Systems, Inc. All rights reserved.RFID for Retail Training Cisco Confidential
Industry DriversSupply Chain: RFID Value is bi-directional
5© 2005 Cisco Systems, Inc. All rights reserved.RFID for Retail Training Cisco Confidential
Slap & Ship (Compliance)Encode and apply tags to goods, Record EPS data, No business process context
Value
ROI
Enable collaboration and visibilitySecurely exchange EPC data with partners; Enable tracking and tracing across supply chain
Zero latency decision support using RFID dataAnalytics & reporting; Create actionable insight; Extract more value from RFID investment
RFID enabled adaptive Enterprise Integrate into ERP, SCM, CRM, Legacy and other back-end systems; Leverage captured data to drive business decisions
Industry
The Current Industry Dilemma
FunctionalitySource: SAP
6© 2005 Cisco Systems, Inc. All rights reserved.RFID for Retail Training Cisco Confidential
Background of Bailian Group
7© 2005 Cisco Systems, Inc. All rights reserved.RFID for Retail Training Cisco Confidential
综合业务事业部General Enterprise Division
物流事业部Logistics Division
房产置业事业部Real Estate Division
专业专卖事业部Specialized Business Division
购物中心事业部Shopping Mall Division
超商事业部Supermarket Division
生产资料事业部Materials Division
百货事业部Merchandise Project Division
百联八大事业部Brilliance Group has eight divisions
百联简介Introduction of Brilliance Group
• No 1 Retailer in China• Multiple Retail Business Format• More 200K Employees• More Than 7400 Stores• 1,100 Billion RMB Revenue• RMB 45 Billion Asset (not including real estate)
Highlight
8© 2005 Cisco Systems, Inc. All rights reserved.RFID for Retail Training Cisco Confidential
• 上海百联配送有限公司• Shanghai Brilliance Distribution Co., Ltd.
• 上海商业储运有限公司• Shanghai Commercial Warehousing & Transportation Co., Ltd.
• 上海现代物流投资发展有限公司
• Shanghai Modern Logistics Development Investing Co., Ltd.
• 上海华联配送实业有限公司
• Shanghai Hua Lian Logistics Co., Ltd.
• 上海汉克国际货运有限公司
• Shanghai Helka International Transportation Co.,Ltd .
百联物流旗下拥有:The affiliate companies include:
百联物流简介Introduction of Brilliance Logistics
9© 2005 Cisco Systems, Inc. All rights reserved.RFID for Retail Training Cisco Confidential
Bailian Logistics IT Environment
10© 2005 Cisco Systems, Inc. All rights reserved.RFID for Retail Training Cisco Confidential
Purpose: Step 1 - Warehouse Optimization
• AON RFID Solution–Short range mobile RFID readers to read RFID tags on pallets and storage rack units
–Accurate tracking of inventory as they are being stored in the correct storage racks
–Automated process to validate correct product put-away
–Automated process to validate picking process
• Problem Definition–Manual process to store inventory in storage rack leads to incorrect misplaced inventory
–Unable to locate misplaced inventory
–Manual process to validate the picking process
11© 2005 Cisco Systems, Inc. All rights reserved.RFID for Retail Training Cisco Confidential
Overall Review on Project
12© 2005 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialRFID for Retail Training
Retailer3PLCPG MFG
DistributionCenters
DistributionCenters
Warehouse
ConsolidationConsolidation TransportationTransportation WarehouseWarehouse ShippingShipping De-consolidationDe-consolidation
Goo
ds F
low
Proc
esse
sEn
ablin
g In
fras
truc
ture
&
App
licat
ions
Global Digital Supply Chain – Phase Approach
DistributionDistributionManufacturingManufacturing
Standard Network and InfrastructureStandard Network and Infrastructure
Supply
Manufactures
Demand
Retailers
Pilot ApplicationsPilot Applications
3PL 3PLWarehouse
Asset/ Inventory MgtAsset/ Inventory Mgt Warehouse MgtWarehouse Mgt Secure TradelaneSecure Tradelane Logistics Track & TraceLogistics Track & Trace
EPC Dataflow
EPC Dataflow
EPC Dataflow
13© 2005 Cisco Systems, Inc. All rights reserved.RFID for Retail Training Cisco Confidential
Project PhasesPhase 1 – Q4 2005
A – Physics Test: Comparison between Japanese UID with EPC standards. Prove the feasibility of technology
B – Warehouse management using RFID as the enabling technology for a local positioning and navigation system. EPCIStrial in Bailian environment
Phase 2 – Q2 2006
Deploy tested technology to 6000 Sqm warehouse in Bailian for business operation and build business case by ROI calculation. Finalize RFID solution and build ecosystem.
Phase 3 – Q4 2006
Track and trace of products from supplier to the distribution warehouse and retailer by establishing an EPC network for logistic data sharing between retailers and CPG manufacturers
14© 2005 Cisco Systems, Inc. All rights reserved.RFID for Retail Training Cisco Confidential
RFID Tagged Storage Racks
Real Warehouse
AON
EXE WMS
Phase Approach: Technical Requirements
• AON Technical Functionality :–ALE Event filtering to read RFID tags
–Correlation logic to associate pallet and storage rack locations
–Alert generations for exceptions handling when inventory is incorrectly stored
–Extensible adapter framework for integration with WMS Systems to update inventory management systems
SQL DB
Short Range RFID reader on
Forklift
AON
15© 2005 Cisco Systems, Inc. All rights reserved.RFID for Retail Training Cisco Confidential
Tyco Agile 2Reader/Antenna
Shelf Tags
RFID Phase 2 Architecture
Cisco 2811 routerWith AON module
switch
Teklogix VMT
AP
WiFi
Teklogix handheld
Pallet Tags
AON host
AON Oracle DB server
RF .netServer
WMS DBserver
VerSign EPCserver
ONSStandard Data interface
16© 2005 Cisco Systems, Inc. All rights reserved.RFID for Retail Training Cisco Confidential
Current Status
• 6000 SqmWarehouse• 2 Forklifts equipped with RFID readers• More than 3000 tags installed on shelf and on floor• Four handheld readers in use• Cisco wireless network in place• Technical Issues
17© 2005 Cisco Systems, Inc. All rights reserved.RFID for Retail Training Cisco Confidential
Cisco Technology for RFID
18© 2005 Cisco Systems, Inc. All rights reserved.RFID for Retail Training Cisco Confidential
Cisco Application-Oriented Networking (AON)
• The first and only network-embedded intelligent message routing system
• Moves key application infrastructure functions into the network where they can be easily shared
• Makes message-level communication, visibility, and security ubiquitous throughout the enterprise
Adding Functionality in the Network
Announced in
June 2005Announced in
June 2005
19© 2005 Cisco Systems, Inc. All rights reserved.RFID for Retail Training Cisco Confidential
Cisco’s Place in the RFID EcosystemA
ctiv
e/Pa
ssiv
e Ta
gs
System Integration
ISO/ANSI standards (active)
Intelligent FoundationIntelligent Foundation
Network Planning/Support
WiFi“Readers”
Location
WiredReaders
EnterpriseApplications
Supply Chain Management
WirelessReaders
Printers
EPCIS
ONS
HandheldReaders
EPCglobal standards (passive)
AONMiddleware
20© 2005 Cisco Systems, Inc. All rights reserved.RFID for Retail Training Cisco Confidential
Delivering Intelligence to RFID