Your Business Connected

RFID in the Real World Adoption, Benefits and TrendsDelivering real-time visibility into your businessBurley KawasakiDirector Product ManagementMicrosoftDo your systems talk business? 1

RFID Reached Its Tipping PointAnd No One NoticedFor too long, the fortunes of RFID and the Wal-Mart supplier mandate have been inextricably linked. At the recent Microsoft RFID Solution Days event, though, nary a word was mentioned about the retail giant. In fact, listening to the audience of almost 300 technology vendors and end users discuss their projects, products, and services, it became apparent the industry has weaned itself away from its dependency on Wal-Mart, and grew in other directions. For RFID technology adoption, this is its tipping point.

John Fontanella AMR Research

Do your systems talk business? | #2

How is RFID being used?Reduce errors in health care service deliveryReduce loss due to lost baggageImprove maintenance and repair of assetsTrack IT assets to avoid loss of PI of customersAvoid counterfeit passes/chipsImprove customer loyalty programsReduce labor costs in resorts with self serviceConsolidating payment processing

Hospitality

Health CareAirline, BanksOil & GasReduce inventoryReduce cost and time in shipping and receivingImprove order accuracyTraceability for product recalls

ManufacturingSupply ChainRetailReduce out of stocks with inventory visibilityReduce loss due to TheftReduce Product Swaps/Brand AuthenticationImproved promotional executionDo your systems talk business? | #33Two broad categories of benefits

Improving bottom-line efficiencies Saving direct labor required to receive, ship, and store productReducing inventory shrinkageReducing losses due to product expiry or spoilageReducing inventory levels and associated holding costs

Recapturing top-line revenuesReducing payouts for recalled or returned productReducing lost product and sales from shipping errorsReconciling invalid order claims or chargebacksReducing lost sales from stock-outs

BizTalk RFID DeploymentsManufacturing/Supply Chain: iGPSMore than 97 percent of the 600 million replacement pallets produced in the United States every year are made of wood. Environmental impact, also subject to increased treatments and fumigation to prevent spread of insects and diseases. Wood pallets are also heavy, high price of fuel leads to unrecoverable costs.iGPS was first company to provide manufacturers and retailers with all-plastic pallet pool. But the iGPS pallets cost 2.5 times as much to produce as comparable wood pallets, which made it imperative that the company track them efficiently to offer a cost-competitive alternative to wood pallets. iGPS needed an efficient, precise way to track and manage its innovative and valuable plastic pallets in real time across global supply chains.

Benefits: Tracks assets in real time - track its assets anywhere and at all times, even where RFID would not have worked well or at all before; rules prevent duplicate readsPrevents losses and theft - find and plug supply-chain leaks. monitor inventory history and send an alert if it appears that theft is taking place at a specific location, saving money for iGPS and its customer. On a larger scale, with the data-mining tools iGPS can see loss and theft patterns and make strategic adjustments.Optimizes pallet use - With the data-mining tools iGPS can also figure out where its pallets typically get delayed in the supply chain and take action to accelerate them. iGPS learned that its pallets often slow down in the retailer network. Because iGPS can tell exactly when a pallet enters and leaves the retail network, it can offer retailers incentives to return pallets within set time limits.Enables accurate invoicing because of faulty visibility on pallets in the supply chain, billing was more art than science. A pool operator might want to bill a customer for lost pallets, for instance, without accurate records to back up the billing claims. Eases inventory management - Customers can use it to locate and recall defective products while theyre still in transit, before they hit store shelves.

Retail: RiteCareRiteCare Pharmacy (India) operates a rapidly growing chain of pharmacy stores in Hyderabad. RiteCare stocks thousands of product SKUs from several distributors. Pharmaceutical operations can be very complex because products must be carefully tracked for batch numbers, expiration date, and dosage. Seasonal fluctuations and the addition of new products can also create challenges for warehouse storage and picking and packing operations. RiteCare wanted to scale its warehouse operations to accommodate a rapid increase in stores, without significantly increasing overhead. It also wanted to reduce order turnaround time and improve order accuracy.

BenefitsCut order fulfillment time in half: With the paper-based picking and packing processes, order turnaround time in the RiteCare warehouse took four days. locate items in minutes instead of hours because they know exactly where to find products and can quickly confirm that they have the correct batch and dosage. Quickly locating the products increases the productivity of pickers thus enabling RiteCare to grow without additional costs. Reduced inventory by 60 percent: A large percentage of orders now comes in one door and goes out the other to the stores on the same day. Stopped storing most of the slow-moving products, which represents about a 60 percent reduction in the inventory we have to carry and manage. Increased the accuracy of fulfilling store orders to 97 percent. much clearer view of the flow of products through the warehouse, and because the RFID reader alerts pickers if they try to put a product into the wrong tote, this solution has helped increase the accuracy of fulfilling store orders to 97 percent.

Hospitality: Vail ResortsRFID systems will be used for Vails 2008-2009 season ski passes at Vail, Beaver Creek, Breckenridge, Keystone and Heavenly.The easy scan process makes getting through lift queues easier and more convenient by using RFID technology to give skiers and snowboarders the option to keep their passes inside their jacket and be automatically scanned by a Vail Resorts employee in the lift line.With Intermec RFID readers, we will be able to significantly enhance our guest experience by making the lift line process easier and more convenient for our guests who have purchased any of our four season pass products, said Robert Urwiler, chief information officer for Vail Resorts.

Healthcare: SYMXSYMX is a global provider of medical equipment services, solutions, and products that offer comprehensive capabilities and innovative options for healthcare. Created an automated and adaptive solution for inventory visibility and managed workflow that dramatically improves patient safety. Real-time asset location and tracking. Using high-resolution radio frequency identification (RFID) and infrared technologies, a healthcare worker can easily request, track, and monitor assets from a computer, kiosk, or mobile device. Enhanced patient care and safety. The solution provides customizable workflow routing and rules that trigger e-mail and text-message alerts when assets are used in potentially unsafe or unauthorized ways. Open architecture and integration. BizTalk adapters made ATLAS compliant with HL7 and HIPAA. Reduced administrative overhead and expenses. By ensuring equipment visibility, maximized utilization, and inventory accuracy, ATLAS reduces wasted time, labor, and expenditures.

4Realizing the ROI on RFIDKey Drivers:Scope of the required tagging levelEconomics of tag cost relative to item value Position and relationship in the supply chainVolume of products taggedDegree of systems integration

Forrester, July 2008 The ROI Of RFID For Supply Chain Visibility Do your systems talk business? | #Feeling the pressure to incorporate RFID into their manufacturing and logistics operations, some companies will tend to implement technology for technologys sake. Buyer beware: Implementing RFID does not instantly guarantee a fast path to return on investment (ROI). To impact the bottom line, the decision to implement RFID must be linked to a definitive business goal and is application dependent.

Drivers of ROIScope of the required tagging level. Both the startup and ongoing costs of an RFID system depend upon the number of tags and readers required costs that can grow as tagging granularity progresses from pallets to cases to individual merchandise. So while a pharmaceutical manufacturer may seek item-level tagging to satisfy serialization and ePedigree mandates, a consumer products distributor may target only case-level visibility to drive the majority of its visibility gains.Economics of tag cost relative to item value. All else being equal, products with a higher average selling price will have tag costs that are a lower percentage of the overall price seen by the customer. This means that firms often struggle to decide which product categories make sense to tag all of them or just the high-ticket items?Position and relationship in the supply chain. Manufacturers, distributors, and retailers have markedly different perspectives as well as mutual dependence on the value from the RFID-enabled visibility. These varying perspectives can make the financial outlook of each organization's individual costs, benefits, and risks very blurry.Volume of products tagged - ROI conclusions are dependent on the volume of products tagged with RFID. By assuming a relatively high level of 80% of products tagged, the economic returns are greater as fixed costs are amortized over more benefits.Degree of systems integration. Systems integration will connect enterprise applications to the RFID-generated event repository so that basic location events can be correlated with business contexts such as a purchase order and invoice from an ERP system, expiration dates and location information from a warehouse management system, and shipping details from a transportation system. Additionally, we've assumed event data can be securely shared between organizations either via a local trading partner registry or discovery service as a result of this full integration effort.

5

Visual Studio & .NETOslo - ModelingPartners

+ Cloud ServicesOn-PremisesDo your systems talk business? | #

Future Application Architecture Trends

Cloud Application

On-Premise Application

On-Device Application

Mobile DevicesInnovative ExperiencesDo your systems talk business? | #2/24/2009 1:46 AM 2006 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

7BizTalk RFID Goal - Enable Widespread Adoption!!!Make RFID SimpleReduce time to build RFID solutionsReduce deployment timeLeverage existing investments in systemsLower Total Cost of Ownership (TCO)

Do your systems talk business? | #8Make RFID SimpleBroad Plug and Play device supportReduce time to build RFID solutionsRich platform and tools for RFID solutionsRapid software development kitReduce deployment timeBackup/restore configurationsUpgrade firmware across all devicesLeverage existing investments in systemsERP or other systems that are already deployedBusiness Intelligence SystemsLower Total Cost of Ownership (TCO)

Thank You!Do your systems talk business? | #Q&ADo your systems talk business? | #