Savi Technology, Inc

Ravi RajapakseChief Technology Officer

© Savi Technology 2004

Savi Technology, Inc

as they move through global supply chains.

Management and Security of Supply Chain Assets and Contents …

HistoryFounded in 1989, acquired by Texas Instruments (1995), then Raytheon(1997), management buy-out (1999).

SolutionsReal time managements & security of goods in the supply chain from factory to foxhole, supplier to retailer

EvolutionHardware Active tag vendor -> Global Systems Integration and Enterprise SoftwareDefense logistics -> Global Commercial Supply Chain

RFID TechnologyOver 10 years of proven experience in commercial and DoD RFID applications

Commercial and military applications in over 50 countriesContainer and Cargo Tracking/Security : TAV, SST, OSC (Starbucks, Canadian Tire, Vitra)In-facility Asset Tracking : CCAD, SARSReusable container management : Woolworths, Envirotainer, Spoornet

Partnerships with major global port operators Represent 70% of goods shipped via ocean into the US (HPH, PSA, P&O, China Merchant and Kaoshung)Implementing container tracking and security infrastructure

© Savi Technology 2004

Global Container/Asset Visibility NetworkOperating at 433 MHz

TAV Network

Hutchison

PSA

P&O

SSA Marine

© Savi Technology 2004

Commercial Initiative Smart Secure Tradelanes™ (SST)

• Global Security Network – Initial Implementations in 2002/2003

• Business Problem: Low visibility to security status and location of ISO Container movements

• Solution: Transportation Security provides baseline capability in container security consistent with government requirements Synchronize with CSI, OSC, C-TPAT, as well as the 24 Hour Advance Manifest Information Rule

• Project Brief: SST is a private/public initiative to help secure the global supply chain. Initiated by Strategic Council of Security Technology

• Lessons Learned: Viable global solution. Value of information extends beyond security to enable better supply chain management.

• 72 Participants and Partners representing 70% of US Ocean Container Imports, including:

• 16 Ports• 11 Tradelanes• 20+ Shippers

• 4 times ROI in Phase I61,500,000 World Import / Export TEU’s

$307.8 billion Value of US Imports via Container

© Savi Technology 2004

• Rotterdam

• Karachi

• Thilawa

• Felixstowe

• Thamesport

• Harwich

• Des es Salaam

• HIT• Cosco-HIT• MSH• RTT

• Kwangyang• Pusan

• Shanghai

• Ningbo

• Yantian

• Xiamen

• Shantou

• Jiangmen

• Nanhai

• Jiuzhou

• Gaolan

• Dammam

• Jakarta

• Laemchabang

• Port Klang

• Varacruz

• Ensenada

• Manzanillo

• Cristobal

• Balboa

• Buenos Aires

• Freeport

Leveraging Global Ports: Hutchison Port Holdings

• Global Port Operators– Hutchison Port Holdings– PSA Corporation – P & O Ports

• Domestic Port Authorities– Port of Seattle, – Port of New York/New Jersey, – Port of Tacoma, – Port of Long Beach, – Port of Los Angeles

• Shippers: 12 committed• Carriers: 3 committed• Technology Providers

– Qualcomm, – Savi Technology, – Oracle,– Symbol, – Sun Microsystems

• Service Providers– Parsons Brinckerhoff, – Sandler Travis Trade Advisory

Services, – SAIC

Major Participants

Smart Secure Tradelanes™ (SST)

Secretary Powell demonstrates Savi Security solution at

APEC CEO Summit in Thailand, Oct. 18th,

2003

© Savi Technology 2004

Global Commercial Implementations

2nd largest railroad outside of the United States - owning or operating 80 percent of the freight rail system in Africa

UK Retailer : Tag all dollies (20,000+) and track their movement from DC to Retail store

Envirotainer operates 3,000 temperature-controlled ULDs, servicing 60 international airports in over 35 countries

© Savi Technology 2004

Conveyance Types Across Supply Chain

ITEM

PACKAGE

TRANSPORT UNIT

PALLET

CONTAINER

MOVEMENT VEHICLE

Bar Code

Satellite

Active RF

Passive RF

• Supply chain has small objects at either end and big objects (containers) in the middle.

• Shipper and retailer lose track of their goods in the middle.

• Long range technology is needed for this ‘middle’ transportation domain.

• Short range small asset technologies at either end.

Distribution Center

FactorySupplier Customer

© Savi Technology 2004

The Right Technology for the Right Conveyance

Layer 5: Movement Vehicle

Layer 4: Container

Layer 3: Unit Load

Layer 2: Transport Unit

Layer 1: Packaging

Layer 0: Item

Satellite

Passive RFID

Barcode

Class 1 Gen 2 ISO 18000-6

ActiveRFID

Class 4 Active Tag ISO 18000-7

Selection Considerations

• Global operation – frequency selection

• High metal environment• Flexibility• Signal Penetration• Transaction rates/speed• Tag density per reader• Long range vs resolution• Long life – power consumption• High data storage• Cost• Size• Mounting location and RF

visibility• Commercial availability• Environmental robustness• Reliability• Ease of use• Communications• Networkability

© Savi Technology 2004

Regulatory /Spectrum Issues

• 433Mhz for RFID– Good RF Characteristics :

• Good penetration and propagation with reasonable antenna size– Widest Global acceptability

• One of the few Frequencies acceptable for RFID both in the US AND EUROPE. Rest of the world tends to harmonize with one or the other.

• De facto standard for DoD in more than 45 countries• Exceptions : Japan, China, Korea – now opening this for RFID.

• General Design

– RFID devices are short range devices - by design– Good sharing of spectrum is necessary even for our own devices.

• Specific Areas for Improvement– Rule change on duty cycle, allowing longer transmissions durations for RFID, is a key change.

The FCC Recently increased duration of transmissions in port environments for greater data transfers. This would allow container manifests to be uploaded and downloaded much faster.

– Any assistance in getting ITU and other National bodies to embrace similar regulation will be very welcome.

• Overall– FCC has been very open to helping RFID industry provide value to their customers while sharing

spectrum. – As our customers request more features, we would like to continue to work with the FCC in

enabling those capabilities.