Role of Technology in Supply Chain Management Soma Sekhar Director, TrackIT Solutions FZ LLC RFID Supply Chain & Logistics Group

1000 per month x 60

Have you heard of…??!!!!! Mercedes Benz, Germany Mercedes Benz, Germany Mitsubishi Motor, Japan Mitsubishi Motor, Japan Toyota,Japan Toyota,Japan Renault, France Renault, France Volvo, Sweden Volvo, Sweden Macimex, Mexico Macimex, Mexico Dana Corp. U.S.A. Dana Corp. U.S.A.

Have you heard of ….. Bharat Forge Bharat Forge, Pune, India : 2 nd largest & the most technologically advanced forge shop in the world Bharat Forge, Pune, India : 2 nd largest & the most technologically advanced forge shop in the world

The Global economy The Global economy Business cycles Business cycles Sharper, shorterSharper, shorter The global value chain The global value chain Smart sourcingSmart sourcing Value chain visibility : transparency Value chain visibility : transparency

Successful companies are Supply Chain Masters View as strategic View as strategic Implement end to end integrated processes Implement end to end integrated processes Across forms, systems, peopleAcross forms, systems, people Execute supply chain initiatives to achieve uncommon results Execute supply chain initiatives to achieve uncommon results Drive supply chain innovations continually Drive supply chain innovations continually

What have they achieved Zara delivers new styles in 3 to 6 weeks from demand ( comp : 5 months) : 11,000 styles per year Zara delivers new styles in 3 to 6 weeks from demand ( comp : 5 months) : 11,000 styles per year BA : Increased profits in a slowing economy BA : Increased profits in a slowing economy : saved £ 50 M, £ 70 M expected thru strategic sourcing : saved £ 50 M, £ 70 M expected thru strategic sourcing

And the Chain is Exploding Global air freight volume will grow 3 times in the next 20 years Global air freight volume will grow 3 times in the next 20 years Emirates SkyCargo: 1 M tonnes plan Emirates SkyCargo: 1 M tonnes plan Dubai port ( among top 11 worldwide) Dubai port ( among top 11 worldwide) 2.4 M containers, growth 24 %2.4 M containers, growth 24 % Hong Kong, Bangkok, Amsterdam Hong Kong, Bangkok, Amsterdam

Current Challenges Retail Retail Inventory tracking Out of Stock Warehouse visibility Theft Extended Supply Chain Defense forces Defense forces Automated asset check-in / check-outAutomated asset check-in / check-out Security during transportationSecurity during transportation Tracking and Visibility of assetsTracking and Visibility of assets Sensor IntegrationSensor Integration MRE expiry date trackingMRE expiry date tracking

What is the solution? RFID: Radio Frequency IDentification is a wireless form of automatic identification (Auto- ID) technology that allows for non-contact reading of data RFID: Radio Frequency IDentification is a wireless form of automatic identification (Auto- ID) technology that allows for non-contact reading of data RFID tag technology, provides that unique Identification. A Unique ID on each asset makes it track-able anywhere and everywhere

RFID reader “energizes” tag which then transmits stored information back to reader Uniquely identifies each instance of a product as well as the product type (so you know which box was scanned)Uniquely identifies each instance of a product as well as the product type (so you know which box was scanned) Line of sight NOT requiredLine of sight NOT required Information can be updated (class 2 and above)Information can be updated (class 2 and above) Laser reader interprets barcode to determine UPC number Static informationStatic information Line of sight requiredLine of sight required Problem reading soiled barcodeProblem reading soiled barcode At UPC level, system doesn’t know if 3 different items were scanned or if the same item was scanned 3 times At UPC level, system doesn’t know if 3 different items were scanned or if the same item was scanned 3 times Is RFID tag an improvised barcode?

RFID Reader RFID Data RFID Reader RFID tag placed on items, cases and pallets at manufacturer / supplier Merchandise is ‘read’ as its shipped by supplier and received at the DC Merchandise is ‘read’ as its shipped by DC and received by the store/Club Merchandise is ‘read’ as it leaves the store backroom/Club storage rack and enters the sales floor Streamlined customer checkout and home ‘grocery’ list RFID Enabled Supply Chain

Passive RFID Tag Operation 1. Reader sends power & commands to the tag READER TAG 3. Reader sends data to host 2. Tag responds with data D2A9.16E8B8.719BAE03C

Active RFID tag Tag acts like a beacon – continuously communicates and a reader picks up the signal Tag acts like a beacon – continuously communicates and a reader picks up the signal Longer range (10-100m or more) Longer range (10-100m or more) re-usable re-usable Memory for data storage Memory for data storage Sensor integration Sensor integration Costlier Costlier

Telemetry Transmission of an asset’s position through Transmission of an asset’s position through TelecommunicationsTelecommunications (SMS,GPRS,CDMA etc.) (SMS,GPRS,CDMA etc.) Satellite communicationsSatellite communications

Multi-Level Identification : Right Technology Layer 5: Movement Vehicle GPS & Telemetry Layer 4: Container Layer 3: Unit Load Active RFID Layer 2: Transport Unit Layer 1: Packaging Layer 0: Item Passive RFID & Barcode

                         Nested Asset Visibility

Business Segments adopting RFID technology Logistics – Distribution centers, Warehouses, Cargo Logistics – Distribution centers, Warehouses, Cargo Ports & container tracking Ports & container tracking Defense asset tracking Defense asset tracking Smart buildings (personnel, sensors coupled with tags and tracked assets) Smart buildings (personnel, sensors coupled with tags and tracked assets) Palette tracking Palette tracking Access Control & selective video monitoring Access Control & selective video monitoring High value item tracking, such as Jewellery, electronics, watches etc. High value item tracking, such as Jewellery, electronics, watches etc. Many more … Many more …

Business Transformations demand technology innovations And ….. Tech innovations drive business transformations Tech innovations drive business transformations

Thank you