CASE STUDYMEGATRUX

CUSTOMER PROFILE Company Megatrux,Inc. RanchoCucamonga,CA

Industry Transportation/3PL KEY BENEFITS• 100%accuracyinshipments,

eliminatingmis-shipsandtheassociatednegativeimpactoncustomerserviceandcosts

• Reductioninlaborcoststhroughprocessautomation

• Improvedwarehousethroughput• Newcustomerservice

differentiators:-Real-timecustomizabletracking

websiteforcustomers-RFIDcomplianceservices

• Rapidreturnoninvestmentexpectedinjust14to16months

Megatruxisaone-stopglobalsupplychainforover100oftheworld’smajorretailers.WithoverthreemillionsquarefeetofwarehousingspaceintheUS,thecompany’saward-winningmulti-modaldomesticandinternationalthirdpartylogistics(3PL)freightmanagementservicesincludeland,seaandair,providingtheend-to-endsupplychainshippingservicesretailersneedtomoveanyamountofproductfromoverseasmanufacturerstothewarehouseandontothestoreshelf.

Thefreightmoverisalwayslookingforwaystoimproveanddifferentiatetheserviceitdeliverstoitscustomers.Megatruxwantedfewermis-ships,lowerlaborcosts,higherwarehousethroughputandbetterinventorytrackingandmanagement.Inshort,Megatruxwantedasharpercompetitiveedgeinaglobalmarketplace.

Keydecision-makershadalreadybeeninvestigatingthecapabilitiesofRFID...andtheyhadsomeexcitingideasabouthowitcouldbeusedtodelivernewcustomerservices.Theywerereadytomoveonthoseideas.

FREIGHT MANAGER MOVES UP TO NEXT GENERATION WAREHOUSE

RFID DELIVERS STRONG COMPETITIVE ADVANTAGES FOR SUPPLY CHAIN

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CASE STUDYMEGATRUX

THE CHALLENGEProtect service levels … and profitabilityHeadquarteredinRanchoCucamonga,California,MegatruxconsistsofninesubsidiaryfreightmanagementserviceswitheightwarehousesthroughouttheUnitedStates,andshipstoretailgiantsincludingWal-Mart,JCPennyandBedBath&Beyond.

Megatruxisalwaysonthelookoutforwaystoleveragetechnologytomaintainanedgeinthehighlycompetitive3PLindustry,wherecustomerserviceandleanpricingareking.Withrisingfuelcoststhreateningalreadyslendermargins,thecompanywasseekingawaytofurtherstreamlineoperationstoreducelaborcosts–whileimprovingcustomerservicelevels.Inaddition,sincemanyMegatruxcustomersarealsoWal-Martsuppliers,thecompanywasalreadyawareofthevaluethatRFID-enabledshippingcouldprovide–andRFIDsolutionswerealreadyunderinvestigation.

THE SOLUTIONAn RFID-enabled warehouseMegatruxdeterminedthatdeployingRFIDinthewarehousewouldaddressmultiplebusinessneeds.Theefficiencyandaccuracyofeverydaywarehouseoperationswouldbeimprovedbyautomatingtraditionallymanualprocesses.Thevaluablereal-timedatafromRFIDcouldallowMegatruxanditscustomerstomonitorthe‘rightnow’statusofshipmentsatanytimeoftheday.Andthecompanycouldalsoofferanewservice–RFIDcompliance–toitscustomers.

AMotorolaRFIDsolutionwasputtothetestatMegatrux’sbusiestwarehouse–a175,000squarefootfacilityinCaliforniathatprocessesoveronemillioncasesforWal-Martalone,everyyear.KCPelle,ExecutiveVicePresidentofTheMegatruxCompaniescommented:“WhenitcametoselectingavendorforourRFIDimplementation,wewantedthebest–andMotorolawastheclearleaderindatacapturesolutions.Together,MotorolaandShip2Saveofferedthetechnologicalandindustryexpertiseweneededtoachievesuccessfromdayone.”

ThesolutiondeployedconsistedofMotorolaindustrialclassfixedRFIDreadersandantennasatthefiveimportandexportwarehousedockdoors;twoRFIDGen2EPCthermallabelprintersforon-the-spotprintingofRFIDtags;aMotorolaMC9090-GRFIDHandheldReadertoenableanywhereanytimereadingofRFIDtags;andthegluethatenabledtheeasyintegrationofthe

KEY SYSTEM COMPONENTS Motorola products• MotorolaIndustrialRFIDFixed

Readers

• MotorolaAN400High-performanceRFIDAntennas

• MotorolaMC9090-GRFIDHandheldReader

Data Management Application• OperationManagementSystem

(S2S-OMS®)middlewareapplicationfromShip2Save

Partner • Ship2Save

solutionintothecompany’sexistingbusinesssystems–Ship2Save’sOperationManagementSystem(S2S-OMS®)middlewareapplication.

Theresultwasthestreamliningofoperationsthroughoutthewarehouse:

RFID at the inbound dock doorNow,asshipmentsarriveatthedockdoors,RFIDlabelsareprintedonthespotandaffixedtoeachandeveryincomingshipmentatthecaseandpalletlevel.Aftertagging,thecasesandpalletsmovepastthedockdoorswheretheMotorolaRFIDreadersandantennascapturetherawinformationontheRFIDtagandautomaticallytransmitthedataviaawiredconnectiontotheS2S-OMSmiddleware.Ship2Save’smiddlewareapplicationthenactsasacrucialmiddleman,interpreting,filteringandproperlyformattingthedatafortransmissiontotheMegatruxwarehousemanagementsystem(WMS).

RFID at the outbound dock doorWhenshipmentsleavethewarehouse,thereadersandantennascapturetheRFIDinformationonthepallettag,whichistransmittedinstantlytotheWMSviaShip2Save’smiddleware.Thereceiptofthatinformationtriggerstheautomaticissuanceofinvoicesandadvancedshippingnotices(ASNs).Andreal-timesystemintelligenceenablesanalarmtobetriggeredintheeventadriverattemptstoloadthewrongpalletontothewrongtruck,sendingavisualqueuetothemonitorslocatedovereachdockdoor.

RFID on the move in the warehouseAMotorolaMC9090-GRFIDHandheldReaderexpandstheabilitytoutilizetheinformationontheRFIDtaggedgoodsbeyondthefixedreadersatthedockdoor.Byaddingmobility,MegatruxwasnowabletoextendthebenefitsofRFIDtoadditionalinventoryprocesses.Forexample,aquickscanoftheshelvesorloadsinthestagingareanowenablestheinstantlocationofaspecificshipmentorbox.Andmobilityalsoallowstheon-the-spotassociationofboxandpallettagstoensurethateachpalletcontainstherightboxes.

RFID on the move out on the roadIntegrationoftheRFIDsolutionwiththecompany’sglobaltrackingsystem(GPS)expandsvisibilityofreal-timeshipmentlocationtothetrucksontheroad.Now,Megatruxnotifiescustomerswhenthetruckiswithinonehundredmilesofitsdestination,enablingthefacilitytopreparefortheshipment,intheyardandattheloadingdock.

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THE BENEFITSBetter service, fewer errors, reduced labor costs…and a rapid return on investment (ROI)TheRFIDsolutionproveditsworthbydeliveringamultitudeofbenefits:

• Fasterthroughputforfasterservice:Manymanualstepswereeliminatedfromthewarehouseprocesses–forexample,incomingandoutgoingshipmentsnolongerrequirethephysicalattentionofaworker.Now,theRFIDreadersautomaticallycaptureandtransmitallneededdatainrealtime.Asaresult,workersprocessmoreordersperday,improvingshippingtimesandcustomersatisfaction–andreducinglaborcosts.

• 100%accuracyinshipmentseliminatesmis-ships:WithRFID,Megatruxcanbesurethattherightcustomerreceivestherightshipmentattherighttime,eliminatingthehighcostofdissatisfiedcustomersandmis-ships.

• Expansionofcustomerservicesforasharpercompetitiveedge:TheRFIDsolutionallowsMegatruxtoofferitscustomerstheabilitytotrackshipmentsinrealtime–fromdoortodoor.Andtheabilitytooffernewvalue-addRFIDcomplianceservicesforWal-Martandothersuppliersprovidesacompetitivedifferentiatorandanincrementalsourceofrevenue–andasabonus,helpoffsetthecostoftheRFIDsolution.

• Arapidpayback:theRFIDsolutionprovidessuchawealthofbusinessbenefitsthatthecompanyexpectsafullreturnoninvestmentinashort14to16months.

SaysKCPelle,ExecutiveVicePresidentofTheMegatruxCompanies:“OurRFIDsolutionisnotonlyamajordifferentiator,itkeepsusinthetoptierofprovidersinthe3PLindustry.Wehavethereal-timevisibilityweneedtoprovideapersonalizedwebsiteforourcustomersthatallowsthemtoaccesscurrentandcompletetracking,shippingandlogisticsperformancedataforallaspectsoftheshippingprocess.Theflexiblesystemenablestheeasymanipulationofthedatatomeetanyspecificcustomerneeds.Theautomationofbusinessprocessesenablesourwarehouseworkerstohandleunbelievablevolumes,translatingintoamajorsavingsinlaborcosts.Addtheinherenterror-proofingthatRFIDaffords,andwe’renowabletovirtuallyguaranteethatwhenourcustomersshipthroughMegatrux,theycancountonreceivingtherightproductattherighttime–andattherightplace.”

The future: a rapid expansion of RFIDGiventhesuccessofthisRFIDimplementation,MegatruxalreadyhasfutureplansforRFID–deploymentinotherU.S.-basedwarehousesinthenext18months.Inaddition,thecompanyplanstoexpandRFIDtointernationaloperations,andislookingatimplementingMotorola’sRD5000MobileRFIDReaderonforkliftsandothermaterialhandlingequipmenttoexpandthebenefitsofRFIDacrossallwarehouseprocesses.

SaysPelle,“WeputRFIDtothetestinourbusiestwarehouse–anditpassedwithflyingcolors.TheMotorola/Ship2SavesolutionhasbecomethefoundationforacompletemobileRFIDwarehousesolutionthatwillreachbeyondthedockdoorstotoucheveryareaofwarehouseinventorymanagement–fromput-awayandpickingtoshippingandinventorycounts.“

“Our RFID solution is not only a major differentiator, it keeps us in the top tier of providers in the 3PL industry..”KC Pelle, Executive Vice President of The Megatrux Companies

WithMotorola’sportal-encasedfixedRFIDreadersinstalledatthedockdoor,incomingshipmentsareautomaticallyreconcileduponreceiptandproperlystagedforput-away.Theabilitytoreadthetagsinreal-timeonoutgoingshipmentsenablesautomaticcreationoftheinvoiceandAdvancedShippingNoticeaswellasthepreventionofmis-ships—andavisualqueueissenttothemonitorabovethereaderintheeventthesystemdetectsthatthewrongpalletisbeingloadedontothewrongtruck.

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CASE STUDYMEGATRUX

FormoreinformationonhowMotorola’sbroadportfoliooffixed,mobileandhandheldRFIDreaderscanimproveyouroperations,pleasevisitusonthewebatwww.motorolasolutions.com/RFIDoraccessourglobalcontactdirectoryatwww.motorolasolutions.com/contactus

MOTOROLA,MOTO,MOTOROLASOLUTIONSandtheStylizedMLogoaretrademarksorregisteredtrademarksofMotorolaTrademarkHoldings,LLCandareusedunderlicense.Allothertrademarksarethepropertyoftheirrespectiveowners.©2012MotorolaSolutions,Inc.Allrightsreserved.

Corporate Headquarters 9942 Cote de Liesse Montreal, Quebec H8T 1A1 Canada Web www.ship2save.com

ABOUT OUR PARTNERInoperationsince2001,Montreal(Quebec)basedShip2SavespecializesindesigningandimplementinginnovativeRFIDsolutionsforthetransportation,warehousing,seafreight,retail,consumerproductgoods(CPG),aerospace,petrochemicalandautomotiveindustriesinNorthAmerica.Thecompanydevelopsanddeployscustomizedhardwareandsoftwaresystemsthatintegrateintothecustomer’sexistinglegacysystemswhileworkingwiththespecificindustrystandardsofeachcustomer’sparticularmarketniche.Ship2Save’sofferingincludesacoreproprietarymiddleware(Ship2SaveOperationManagementSystem),anassettrackingapplication(UnitinTransitSystem),anavailablearrayofleadingRFIDhardware,certifiedRFIDcoursesandRFIDSystemintegrationservicesthatincorporatecustomizedsoftware,hardwareandformaltrainingintoeffectivebusinessdevelopmentmodels.

Ship2Save’suniqueproductlines,flexibleandproficientsoftware,businessdevelopmentmodels,anddistinctivedeploymentservicescombinetoofferourcustomerscosteffectiveandhighqualitysolutionstomeetoperationalgoalsandlogisticsrequirements.OuronsiteRFIDresearchanddevelopmentfacilitiesprovidewarehousingandlogisticsservicesforthetestinganddeploymentneedsofeveryproject.In-houseexpertsvalidateallprojectaspectswithoutdisruptiontothecustomer’snormaloperations.WithShip2Save,RFIDdeploymentsareacceleratedwhiledevelopmentcostsareminimized,resultinginanoverallclearimprovementtoourcustomer’sbottomline.