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RFID User’s Group
Dr. Dale RogersCenter for Logistics ManagementUniversity of Nevada
RFID User’s GroupInternational PaperMemphis, TN20 January 2005
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RFID Users GroupAGENDA
Memphis, TennesseeThursday, January 20, 2005
7:30 – 7:45 Board the bus8:00 – 8:05 Sign & Collect NDA Agreements8:05 – 8:15 Welcome & Introductions8:15 – 9:15 International Paper overview9:15 – 11:00 Tour of this facility11:00 – 12:00 Open discussion and questions from the tour12:00 – 1:00 Lunch/networking1:00 – 1:30 Research Project Presentation & Discussion RFID: What’s Happening Now? Dr. Dale Rogers1:30 – 2:00 Intermec - tags and equipment2:00 – 2:30 Wal-Mart update2:30 – 3:00 Next steps3:00 Board the bus for the hotel
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RFID Users’ Group Mission
Facilitate discussionWork through problemsProvide on-going benchmarkingDevelop best practicesPerform applied research
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SCM: Art versus Science
1990 2020
Science
Art
Per
cent
Art
vs.
Sci
ence
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Volume of Data
Early RFID technology trials have established that the amount of data generated by pallet, case and item tracking via RFID tags will be 100 to 1,000 times the volume that companies currently retrieve when using traditional bar coding systems.
About 50 percent of organizations believe that their current infrastructure can accommodate anticipated RFID data volumes.
In October 2005, Teradata announced that Wal-Mart’s data warehouse exceeded half a petabyte.
Before
RFID
After
RFID
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How ready is your firm to operate in an RFID environment? August 2004
Have not started40%
Around 10% ready10%
Around 25% ready40%
Around 50% ready10%
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How ready is your firm to operate in an RFID environment?January 2005
RFID Readiness
Have not started57%Around 5%
ready14%
Around 75% ready29%
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Do you know how the implementation of RFID will impact your systems? August 2004
No82%
Yes18%
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Do you know how the implementation of RFID will impact your systems? January 2005
No43%
Yes57%
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Do you know how the implementation of RFID will impact your supply chain processes? August 2004
No73%
Yes27%
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Do you know how the implementation of RFID will impact your supply chain processes? January 2005
No29%
Yes71%
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Do you believe that the investment your firm will likely make in new technologies, systems and
processes will be worthwhile in the long run? August 2004
Not certain36%
Yes64%
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Do you believe that the investment your firm will likely make in new technologies, systems and
processes will be worthwhile in the long run? January 2005
Not certain57%
Yes43%
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What are your greatest concerns related to acquiring and implementing RFID? (Please rank the following with 1=greatest concern and 10=least concern)
2.85.92.07.8Management inattention
2.45.00.86.3System adjustments
2.78.54.55.7Do not know “where to start”
2.96.62.95.3Inadequate resources to successfully complete project
2.25.62.15.3Required changes to current processes
2.74.02.54.7Requirements are a “moving target”
2.63.91.94.2Invest in wrong technologies and processes
3.05.53.03.0Unclear benefits
3.03.51.72.7Cost of technology
σ8-04
Mean 8-04
σ1-05
Mean 1-05Concern
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How much would you estimate the cost acquiring and implementing RFID will be?
Responses ranged from $75K to “Hundreds of Millions.”
Most of the respondents have little idea what the final costs will be.
Cost uncertainty is a concern. Clearly an area for additional research.
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ROI Suppliers less sure of benefits than they were a few
months ago. Many suppliers say a real return on investment is
currently years away Ninety percent of those firms surveyed say that "a timely
and substantial ROI" is a prerequisite for launching any major RFID initiative in their organizations.
A large portion of RFID investment is expected to occur during 2005.
A little over half of suppliers believe that RFID system deployment will reduce labor costs and boost process efficiencies in their firms
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Read Rates
Many users report that RFID read rates are currently below acceptable levels.
Rates below 70% are not uncommon with specific products/processes.
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Progress Update Fifty-three suppliers started shipping cases and pallets with RFID
tags to the Wal-Mart DC outside Dallas in the beginning of January 2005.
Wal-Mart expects to have 108 suppliers shipping cases and pallets with RFID tags by the end of January 2005. The remaining 29 (out of 137) are expected to come online by the end of February 2005.
Wal-Mart is on schedule to expand its RFID initiative to 12 distribution centers and 600 stores by October 2005.
In January 2005, Wal-Mart has installed RFID equipment in 104 stores.
By the beginning of 2006, Wal-Mart's top 300 suppliers will be required to tag cases and pallets of selected products with RFID tags. By the end of 2006, the retailer expects its entire supplier base (up to 20,000 suppliers) to be "engaged in RFID in some form or fashion."
Tesco is deploying RFID equipment across 35 distribution centers and approximately 1,300 retail outlets by Fall 2005. Tesco plans to implement more than 4,000 readers and 16,000 antennae.
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How might a “users group” focusing on RFID be the most help to you?
Sharing Real-world cases and experiences Everyone is working independently on RFID and financial
analyses made for only one use rather than leveraging the use over many applications throughout the supply chain, including point of sale and reverse flow
Highlight costs, concerns, and difficulty of RFID implementation
Examine results of companies experiencing RFID requirements. Create a forum that can feedback major concerns to Wal-Mart without exposing individual companies. Help each of us stay current on RFID technology and trends.
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Software Requirements
The volume of data, and the need for precise control and monitoring of RFID readers, requires deploying customized middleware that links readers with corporate ERP systems and other supply chain infrastructure.
Concern about overwhelming network loads likely to mean firms will implement middleware solutions to mitigate redundant volumes and excess reads.
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Structure Versus Behavior
Structure determines behavior
Behavior does not determine structure
