rfid world lexar webinar - final
TRANSCRIPT
Lexar Media Streamlines Manufacturing and Warehouse Operations with RFID
March 25, 2008
Agenda
Lee MarSenior Logistics Analyst & RFID Project Lead
Edwin C. WinderExecutive VP
Laurie SullivanRFID World Site Editor
Joe WhiteVP of RFID Business Development & Marketing
RFID World
Laurie SullivanRFID World Site Editor
Lexar
Lee MarSenior Logistics Analyst & RFID Project Lead
Lexar Media Overview
• Subsidiary of Micron Corporation
• > $700 M in revenues
• Maker of USB jump drives, memory cards for cameras, video recorders, PDA, digital picture frames
• Supplier to Wal-mart, BestBuy, Target, Kodak, Officemax
• Headquartered in Fremont, CA with operations worldwide
Lexar’s Supply Chain• Number of Active SKUs – 200+• Avg. Monthly Shipments – 30,000+ (4000+ Wal-Mart)• Orders are typically shipped in cartons and pallets• Shipped via Fedex, UPS and other LTL Carriers• Outsourced Transportation & Logistics to 3PL providers• Typical Order To Shipment Time – 5 days• Peak Period – Black Friday, Christmas holidays
IT Infrastructure• ERP: SAP• WMS: Leverage 3PL’s application• Shipping Software: Leverage 3PL’s software• EDI support: ASN, PO, Invoice
Lexar Operation Overview
Vendor 1
Vendor 2
Vendor n
Port ofOrigin
Port ofDestination
Warehouse 1
Warehouse 2
Warehouse n
Carrier
Asia USA
Customers
Inside the Warehouse
Orders
Purchases
ProductionProcess
Barcode Support
Planning Manufacturing FulfillmentPurchasing
InspectInspectReceiveReceive
ShipShip PackPack DirectedDirected Pick Pick
Cost
Kitting
WIP
TransferCount
Move
Replen-ish
Label
Putaway
Inbound Distribution Visibility Challenges
Warehouses & Distribution Centers
Inventory Mgmt Challenges
• Inaccurate inventory stock
• Inventory shrinkage• Limited work-in-process
visibility
Order Mgmt Challenges
• Inaccurate order receipts & fulfillment
• Delayed proof of receipts & delivery
• Short-receipts and mis-shipment of merchandise
DC Performance Challenges
• Inefficient utilization of warehouse resources
• Higher labor costs resulting in higher costs of processing an order
• Loss of productivity
• What is my production status?
• What is my order status?
• How much inventory do I have?
• How much do I have to make to fulfill my orders for the day?
• Where are all my assets that need to be serviced?
• Improve shipment accuracy by eliminating count errors,
reduce shrinkage
• Improve order fulfillment by reducing shipment errors,
decrease costs and increase quality
• Improve financial reconciliation by providing accurate, on-
demand shipment and delivery information
Key Business Drivers
Improved visibility, security and quality are key drivers
Lexar’s Business Requirements
• Manage orders in real time
• Optimize 3PL operations for sustained competence
• Strengthen cross-functional collaboration to improve efficiency
• Get visibility into the complete shipment lifecycle at 3PL and at customer’s DC
RFID Implementation Roadmap
2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009
Phase I:Pilot
Phase II:Beyond
Compliance
Phase III:Operational
Biz Intelligence
-Number of RFID Tags –Per year
WalMart Compliantvisibility in the shipping process(Select SKUs & DCs)
Extended Solution• Visibility into kitting,
packing, staging, shipping and ship confirm processes
Control of the entire shipment lifecycle
• Central monitoring dashboard
• integrating operational data with goods receipt acknowledgements
SmartDC – Distribution Visibility Platform
2M
1M
500k
RFID Infrastructure
RFID LabelPrint Stations
RFID EnabledForklifts
RFID EnabledLines
RFID EnabledDock Door
KeyTone SmartDC
ERP
WMS
Supplier ID 43979Supplier Name J ack & TobbsReport Date
Checked Out Date Container ID1/3/2007 J -90440403 814/5/2007 J -90440413 107/5/2007 J -91034402 18/5/2007 J -09791888 23
13/5/2007 J -90891066 220/6/2007 J -09906597 45
3/7/2007 J -90770555 5610/7/2007 J -77975041 5
23/7/07 J -77953292 715/8/07 J -95584221 9
1/ 6/ 2007 to 31/ 6/ 2007
Days Outstanding
Visibility Dashboards
KPI Reports
Supplier I D 43979Supplier Name J ack & TobbsReport Date
Checked Out Date Container I D1/3/2007 J -90440403 814/5/2007 J -90440413 107/5/2007 J -91034402 18/5/2007 J -09791888 23
13/5/2007 J -90891066 220/6/2007 J -09906597 453/7/2007 J -90770555 56
10/7/2007 J -77975041 523/7/07 J -77953292 715/8/07 J -95584221 9
1/ 6/ 2007 to 31/ 6/ 2007
Days Outstanding
Supplier I D 43979Supplier Name J ack & TobbsReport Date
Checked Out Date Container I D1/3/2007 J -90440403 814/5/2007 J -90440413 107/5/2007 J -91034402 18/5/2007 J -09791888 23
13/5/2007 J -90891066 220/6/2007 J -09906597 453/7/2007 J -90770555 56
10/7/2007 J -77975041 523/7/07 J -77953292 715/8/07 J -95584221 9
1/ 6/ 2007 to 31/ 6/ 2007
Days Outstanding
RFID enabled warehouse
Orders
Purchases
ProductionProcess
InspectInspectReceiveReceive
ShipShip PackPack DirectedDirected Pick Pick
Cost
Kitting
WIP
TransferCount
Move
Replen-ish
Label
Cross DockPutaway
Tags are applied at manufacturing with unique UPC ID for each case
These cases are picked against an order
Cases shipped as-is or in pallet. Shipment label created with unique UPC ID for every shippable container
Contents of each container verified with the customer PO
Forklift operator directed to specific dock door to load when pallet is picked
Benefits from RFID
• Improved inventory accuracy by eliminating count errors
• Improved accuracy in shipments• Improved customer service and satisfaction levels• Reduced overall operating costs• Cost-effective Sarbanes-Oxley compliance• Real-time business information for better decision-
making• Ability to scale up and down to meet seasonal
demands — without requiring additional investment
KeyTone Technologies
Edwin C. WinderExecutive VP
KeyTone Overview
• End-To-End Visibility for Operational Excellence – That’s What We Do !
• Our goal is to simplify RFID adoption and help enterprises improve visibility, efficiency and agility
• 50+ Global 1000 customers• Strong partnerships with leading RFID technology
companies• Provide end-to-end solution by leveraging our software
platforms• SmartDC – Distribution Visibility• SmartWIP – Work-In-Process Tracking • AssetTrace – Asset Lifecycle Management
SmartDC – Distribution Visibility Platform
• Automate Receipt Reconciliation
• Eliminate Material Movement & Put-Away Errors
• Conduct Accurate Cycle Count Faster
• Real time work in process tracking
• Improve line utilization
• Automate order verification
• Eliminate mis-shipments
Solution For Every Supply Chain Challenge
Supplier Warehouse Store
Inventory Mgmt Challenges
• Inaccurate inventory stock
• Inventory shrinkage• Limited work-in-process
visibility
Order Mgmt Challenges
• Inaccurate order receipts & fulfillment
• Delayed proof of receipts & delivery
• Short-receipts and mis-shipment of merchandise
DC Performance Challenges
• Inefficient utilization of warehouse resources
• Higher labor costs resulting in higher costs of processing an order
• Loss of productivity
In-Transit Visibility Solution• Real Time truck & load tracking• Reduce loading & shipment errors
Inventory Mgmt Solution
• Improved inventory accuracy
• Up-to-date inventory location
• Assembly/Kitting WIP accuracy
Order Mgmt Solution• Accurate receipt/shipment
verification with order info• Auto receipt
acknowledgement, ship confirm
• Faster and accurate order fulfillment
DC Performance Solution
• Improved dock-to-stock time
• Improved line utilization• Increased throughout
Approach to Lexar Implementation• Phase I
• Translated Lexar’s vision into measurable objectives• Enabled existing shipping process with RFID• Deployed SmartDC Express – Small footprint solution to get Lexar
compliant with Wal-Mart’s mandate• Leveraged RFID information to deliver custom reports to benchmark the
processes• Phase II
• Enabled tagging at manufacturing to gain increased visibility• Enabled dock doors with RFID to ensure right orders where loaded in the
right truck• Leveraged RFID information to handle customer related receiving exception• Enabled a web based portal to deliver reports on demand
• Phase III• Upgraded SmartDC Express to SmartDC Enterprise to provide the ability to
gain visibility into other distribution processes• Increased “read” opportunities by enabling forklifts with RFID readers and
software for load verification• Developed custom reports for order lifecycle management
Best Practice
• Choose a platform that is flexible
• Choose a solution that adapts to your processes
• Deploy a solution that compliments your existing
enterprise applications (ERP, WMS, MES etc.)
• Solution should be low maintenance
• Ensure that the physics, process and systems work
in concert
• User Experience is key
• Start using RFID information
RFID Enabled Enterprise Ecosystem
Order Management
System (ERP)
Warehouse Management
System (WMS)
Customer Relationship Managemen
t System (CRM)
Manufacturing Execution
System (MES)
Asset Management
System (AMS)
DataWarehouse
Business Intelligence Portal
Enterprise Applications Layer
Customer Analytics
Financial Analytics
Supply Chain Analytics
Merchandise planning & allocation
Forecasting, buying, replenishment
Inventory Management
Warehouse management, logistics & distribution, out-of-
stock, reverse distribution
ManufacturingWork-in-process
inventory, production management, recipe &
tool management
Sales and Marketing
Brand management, promotions,
advertising, signage
FinanceRegulatory
compliance, claims & deduction
management, asset audits, cash flow
management
Business Process Layer
Enterprise Infrastructure Backbone
Messaging Data Transformation
Monitoring & Management Barcode
W.I.PDistribution Visibility Platform
Order management, inventory
management, DC performance management
Work-In-Process Platform
Material tracking, Overall Equipment
Effectiveness, Product Genealogy
Asset Tracking Platform
Asset inventory, discovery and security
Real Time Supply Chain Execution Layer
DC ops
Asset tracking
Operational Intelligence Dashboards
Order Fulfillment Dashboard
Assembly Tracking Dashboard
Inbound Receiving Dashboard
Outbound Shipment Dashboard
Asset Monitoring Dashboard
Asset Violation Dashboard
Asset Check-in/Out Dashboard
W.I.P Dashboard
Equipment Effectiveness Dashboard
Equipment Status Dashboard
Inventory Tracking Dashboard
Operational KPI Reports
Order Management
System (ERP)
Warehouse Management
System (WMS)
Customer Relationship Managemen
t System (CRM)
Manufacturing Execution
System (MES)
Asset Management
System (AMS)
DataWarehouse
Business Intelligence Portal
Enterprise Applications Layer
Customer Analytics
Financial Analytics
Supply Chain Analytics
Merchandise planning & allocation
Forecasting, buying, replenishment
Inventory Management
Warehouse management, logistics & distribution, out-of-
stock, reverse distribution
ManufacturingWork-in-process
inventory, production management, recipe &
tool management
Sales and Marketing
Brand management, promotions,
advertising, signage
FinanceRegulatory
compliance, claims & deduction
management, asset audits, cash flow
management
Business Process Layer
Enterprise Infrastructure Backbone
Messaging Data Transformation
Monitoring & Management Barcode RFID
KeyTone Operational Business Intelligence Applications enables enterprises to improve efficiency, visibility and agility by leveraging RFID business
information for real time decision making
End-To-End Solutions Approach
KeyToneTechnologies
Motorola
StrategicPartnership
RFID Hardware Out-of-Box Solutions
Motorola
Joe WhiteVP of RFID Business Development & Marketing
Motorola RFID At A Glance
High Performance Asset Tags
“Best Performer - Significant Margin”
Visibility Within the 4 Walls
RD5000 Mobile Reader
Dense-Reader Certified
XR Series Fixed Readers
MC9000 Handhelds
No Comparable Reader On The Market
• 20% Market Share*• Established Leadership
• RF, Wireless, Mobility
Broad Product Portfolio
300 Combined RFID-Centric Patents Leader in Deployed RFID
– Deep Vertical & Application Experience
Industry Leader
Wi-NG
Wireless & RF Innovation
* Handheld & Fixed Readers• Source: EMb Market Intelligence, VDC 2007
RFID Trends• Supply Chain Slow to Build Out….
…….But Growing!• Modest Velocity of UHF RFID Adoption with “Inflection
Point” in 2010• Active Pilot Activity with Shift From. . .
Motorola Vision• Bullish on RFID – Too Much Value/Benefit across Too Many, Already-
Entrenched Industries• Increased Mobility with New Form Factors for Application• Increased Manageability with Enterprise Offering• Comprehensive/Integrated Wireless Solution Offering
Mandated “open loop” applications (multiple trading partner eco-systems) to. . .
…“closed loop”,ROI-driven Applications
Ret
ail
Man
uf.
Tran
sp.
& L
ogis
tics
Ener
gyU
tiliti
es
Focus: Small Number of Target Markets with Clear ROI
Product Traceability
Item Level Visibility
Supply Chain Management
Asset Management
• FOCUS: Retail item level, Aviation• BUILD: Horizontal applications - Asset Tracking / Supply Chain Management• INNOVATE: Food Chain, Cold Chain
RFID Deployment Lessons Learned• Current deployment practice focused on choke points (E.g. dock doors)
• Products transition choke points rapidly• Limited read opportunities with stationary readers - reduced read accuracy
• Visibility beyond choke points• It’s in the warehouse – But Where?
• ROI per choke point• Dependent on the product traffic through that point• E.g. DCs typically have only 20-30 % of their dock doors active at any one
time
RFID & Mobility - Enhancing visibility and ROI
• Material Handling Equipment - MHE has the most interaction with assets
– Thus, most read opportunities
• Fixed readers not designed for vehicle mounting
– Obtrusive cabling/antennas
• Increased, granular product visibility
• Increased utilization per reader– Investment protection
• Increased automation– Real-Time Inventory Cycle Counts– Vehicle Drivers not manually recording
Application Spectrum
Fixed Readers Mobile ReadersMobile Readers
RFID On MHE Increased Efficiency
• Handheld readers for Exception Processing
– For mobile, operator interaction tasks
Mobile Product Set
Pallet Jacks Skate Wheel Conveyors Forklifts
Mobile CartsPallet JacksShrink Wrappers
Clamp TrucksPortals
RD5000 with Interactive Sensing Technologies
• Rugged small form-factor with Integrated antenna• 802.11 a/b/g, Bluetooth • Battery-power*
• Cutting edge technologies to optimize and automate RFID operations
• Proximity sensor• Ultrasonic sensor to detect proximity to pallets,
cartons, etc.• Indicates distance to obstructions in the 3-7 foot range
• Acceleration sensor• Can detect acceleration (between -2 and +2 g’s) along
all 3 axes• Uses include detecting vehicle and fork motion to
trigger decision points
ProximitySensor
Motorola & RFIDExperience
• Long history in RFID: since 2001• ISO 2000certified/ mature operations• Global industry experience
Innovation• Over 75 years of technology innovation• Broad RF leadership • Over 300 RFID Patents
Products• Most complete suite of RFID products in the industry• Wireless, Mobile, Scanning & RFID• RFID Performance Leader
Lexar RFID Case Study
Thank You!
For More Information
– www.motorola.com/rfid
– Ph: 732 233 3883
– www.keytonetech.com
– Ph: 888 816 0727 x100