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Speed to Market
RFID at Liz ClaiborneSolving an Internal Distribution Issue
Brian O’Donnell7/22/04
Driving RFID Driving RFID
Compliance Return on Investment Solve an internal
requirement / issue
ComplianceCompliance
Compliance mandates are driving the majority of all RFID implementations– To meet this challenge, corporations are
utilizing RFID in the last steps in the distribution process.
• Potential save/return for the originating corporation is limited.
• Many are not reaping any benefit in the implementation
ROIROI
Cost of chips still in the $.30 - $.45 range– To be financially attractive
• Cost per tag / unit must be in the $.015 - $.02
– Need ability to drive down cost of usage• Reuse tags• Increase the quantity per tag
Additional cost must also be factored in
Additional Costs Additional Costs
Reader - $1,000 - $10,000 Software
– Middleware– Modifications to current platform to
accommodate data Conversion Cost
– Attaching tag to item– Associating a tag with a number
Integration Costs– Modifying current systems to handle large amounts of
data Ongoing Maintenance
Reuse tagsReuse tags
Tags can be applied to reusable items– Pallets– Totes– Trolleys
Solve Current Material Handling Solve Current Material Handling ProblemProblem
Identify an area within the supply chain that would benefit from the technology– Traditional methods are not meeting
requirements• Barcodes• Automation• Manual operation
RFID vs. BarcodesRFID vs. Barcodes
BARCODE Read one barcode at a
time
Requires line of site
Information fairly limited – do not track sku’s uniquely
Can’t update information on a label
RFID Read multiple ID’s
simultaneous 1000’s per second
Does not require line of site
Store more information
Ability to write/update information on a tag
Problems with RFIDProblems with RFID
Tags are still very expensive– Chip based tags: $.30 - $.45
Standardization of EPC not finalPrivacy ConcernsPaybacks are still risky
Solving an Internal IssueSolving an Internal Issue
Conventional GOH TrolleysConventional GOH Trolleys
Trolleys are utilized to transport garment on hanger goods through out the distribution center
Diverting is controlled by a switch manually set on a trolley
Divert mechanisms are preset for
Conventional Trolley SystemConventional Trolley System
Problems with Conventional TrolleysProblems with Conventional Trolleys
Pins are constantly breaking– Ongoing maintenance
Bent trolley cause misdivertsDivert mechanism are constantly out
of alignmentDestinations are limited
– 50 distinct locationMulti pin trolleys are expensive
Solve Issue with Barcodes?Solve Issue with Barcodes?
Cost of implementation is high– Scanner at each divert point
Barcodes consistently are damaged
Misreads are high Requires additional interfaces
with WMS
Utilized SmartTrak. SmartTrak is an RFID
based routing system using Read-Write tags embedded in the trolley.
First Distribution center in the US to utilize RFID to route trolleys
Each trolley knows its destination, and at each switching point, tells the switch to open or not.
Issue solved with RFIDIssue solved with RFID
Programming the TrolleyProgramming the Trolley Targeting the trolley.
– Hand Held version.• The operator sets the destination with a portable
programming unit by simply keying the desired location and pressing the enter button on the programmer while pointing the unit at the trolley.
– Touch Screen version.• The operator presses the destination on a display
and each trolley is programmed for the selected destination.
– The trolley is now programmed with the desired location. The trolley now may be inducted onto the overhead garment conveyor randomly.
DivertingDiverting
Diverting. When the trolley comes into the range of the antenna, the destination is read from the programmable computer chip.
– If the Destination code contained in the chip matches the destination code for the antenna, the switch is opened for the trolley.
Liz Claiborne - CincinnatiLiz Claiborne - Cincinnati
Cincinnati FacilityCincinnati Facility Located in West Chester, OH 900,000 Sq. Ft. Opened August 2002 Product Mix - Accessories and Apparel Design Capacity - 32.5 mm Units GOH Storage Capacity – 1.5mm Units Technology Deployed
– Cross Belt Sortation– GOH Sortation– High Speed Carton Sortation– SmartTrak
Smarttrac SystemSmarttrac System
The TagThe Tag
Read/Write incased in glass.
Operates on the 134.2 kHZ Frequency
Dimensions ~ ¼ ” x 1 ¾”.
Range +/- 3” when used in a trolley.
Live cycle >100,000 writes.
Cost about $3.50 each.
Tag, not to scale.
Tag embedded in trolley.
ReceivingWrite Station
3 Level MezzanineTransfer Station
Divert Points
Empty TrolleyWrite Station
Write Station/Divert Point
AdvantagesAdvantages
No moving mechanical parts to jamb or break in the reader.– Durable transponder is
embedded in the trolley.Distributed switching
application highly robust as encoders and tracking PLCs are not required.
Advantages con’tAdvantages con’t
Virtually unlimited number of destinations possible
The system works with a lighter duty, less expensive trolley than those required with conventional pin readers
Less expensive and more reliable than a barcode based application
ConclusionConclusion
RFID as a technology by itself will not be the end all solution.
Companies must redefine their operation and make smart decisions of where this technology is applicable.