Get Ready… Get Set… GO! From Evaluation to Action Moving RFID Projects Beyond the Pilot Phase Professor Bill Hardgrave, Director RFID Research Center,

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Presentation transcript:

Get Ready… Get Set… GO! From Evaluation to Action Moving RFID Projects Beyond the Pilot Phase Professor Bill Hardgrave, Director RFID Research Center, University of Arkansas Joe White Vice President, RFID Motorola Enterprise Mobility Solutions Motorola RFID Solutions

RFID Evolution Closed Loop In-Company Value Beyond UHF, Beyond HF... Value Beyond Middleware Horizontal Asset Management Item-Level Benefits Before Supply Chain RFID Sensing Technology Technologies Value Beyond The Supply Chain Closed Loop Defining Factor Proven Business Value/ROI Unplanned, New Applications Gen 2 Success Proliferation of Locationing Technologies Multi-Technology Integration Industries & Applications

Where It’s At... Retail Asset Management Here and Now 2009 and Beyond Aggressive Growth in Defined Markets Retail Item Level Visibility Supply Chain Management Cold Chain - Perishables Aviation/Baggage Tracking Transp. & Logist. Govt. Manuf. Leading Adoption

From Evaluation to Action Getting Ready Education | Evaluation Getting Set Deployment Definition GO! When? How Deep?

Getting Ready Education Technology Evaluation Management/Stakeholder Buy-In Data Ownership Business Process Analysis Getting Ready The Technology Works! Validating the Application, Not the Technology Buying Solutions / Solution Sets, Not a Product At The End of The Day, A Better Way To Count!

Business Process Analysis Will identify: Needed Read Points Data Flow Low Hanging Fruit Output: Determine Technologies Identify Stakeholders Target Areas of Benefit Its a mandatory process that will determine your success or failure! High Number of SKU’s High Valued Items High Velocity Items Closed Loop Reusable Traceable Tagging Logistics Is RFID the Right Fit?

Technology Evaluation Data Capacity Capability Asset Requirements Range Geography Costs Security Environment Industry Traction Innovation Curve The Right Identification Technology may be a combination of technologies Range Cost EAS UWB UHF RFID WIFI Proximity Vicinity Local Battery Assisted UHF HF/NFC Barcodes

Getting Set Communicate Out Clearly Defined Pilot Set Measureable Goals Avoid Scope-Creep Site Surveys Technology Selection 100% Science, 0% Art Ecosystem Build Out SW, HW, Integration Complete Solution vs. Ad Hoc Industry/Deployment Expertise Getting Set Start Somewhere...

GO! Validation Expectations/Assumptions Evaluate Lessons Learned Adjustments When to go Open Loop? Prepare/Espouse Consumer Privacy Objections Follow the Early Leaders... GO !

RFID at AA

Overview In the beginning: Wholesale clothing (t-shirts) began in 1998 Emphasize vertical integration, sweatshop-free, American made products Pro-labor philosophy First retail store in Montreal in 2003 Today: Retail is composed of 240 stores and growing AA employs over 9000 Wholesale represents half of revenue - approx. 65% of sales One manufacturing facility located in downtown L.A.

Getting Ready - Environment Closed-loop system Made in U.S.A. Quick Inventory turnover 26,000+ SKU’s Boutique sales floor Inventory management labor intensive Young, enthusiastic employees Getting Ready

Pilot Goals Test RFID capabilities for accuracy, performance and adaptability. Increase visibility thru item level tagging Effective management of inventory Improve accuracy/reliability Decrease labor and margin for human error Keep sales 100% Keep it simple Low Impact Getting Ready

Hardware Matching the appropriate hardware to solution. Motorola/Symbol 9090 handhelds for “cycle counting” Motorola/Symbol XR440 Readers w/ AN400 Portals Commissioning Station

Software TrueVUE Essentials Out of box functionality to address RFID goals Test hardware U.S. company Location near factory

RFID Tags Avery Dennison AD222 hang tag and sticker tag Performance vs. form factor Durable/reliable Attach with existing price tag Reusable

Location for Pilot Columbia University store in NYC Average sales comparably Large stockroom Dedicated staff Location/resources Exit strategy Getting Set

Getting Set - Installation Hardware Network Portals/stairwells Commissioning stations Black boxes for POS/transfers 2 Handhelds Insulate metal shelving Software Server Commissioning Handheld Testing Accurate reads Speed Reliability Staff acceptance

Getting Set - Preparation Remove unnecessary inventory Tagging 100% of inventory Commissioning 4 stations consisting of: IntelliPad Barcode scanner PC w/ VUE commissioning software Getting Set

Inventory Management Scanning/counting Sales floor – 1 Zone Stockroom – 22 Zones Movement of product Stairwell portals Between front and backroom Receiving new product/incoming transfers Tag/commission Cycle count to inventory Maintain 100% sales floor occupancy Using all capture points w/ VUE software Real-time reporting

Results Counting inventory using 2 handhelds Sales floor 2 people, 2 hours Approx. 12,000 items Validations proved 99+% accuracy Stockroom 2 people 3.5 hours Approx. 28,000 items Item counts proved 99% accuracy Moving inventory through portals Capturing items moving between backroom and front 80+% accuracy using traditional carrying methods 90+% accuracy with modified methods GO !

Lessons Learned Handhelds Performance 90 degree rule Lag/hesitation Long range reads Shadowing of tags Folded items: fluff tags with free hand Hanging items: separate and shake hangers Metal Contact interference RF barrier Hangers: orient handheld below hangers Fixtures on wall: spacers

Lessons Learned Captures at portals More product = lower accuracy Carry less items Shake items in-front of antenna to expose tags Reads through walls and RF reflection Create shielding Adjust attenuation and angle of projection Operations Wrongly encoded tags Flawed inventory data Handheld misuse

It’s Going Enterprise system up and running Source tagging at L.A. factory Santa Monica Store Immediate sales increase of 15% Removed over 60 hours of labor/week 20 stores in NYC RFID ready Tagging At Manufacture Challenge: tagging store’s current stock 700,000+ items in NYC alone Store level tagging when receiving transfers GO !

Toward Better Counting READY Commitment Definition SET 1 Store 40K Items GO! 20 Store Roll-Out 800K Items 4 Months 5 Months 6 Months National Rollout => NOV 225 Stores

Get Ready… Get Set… GO! From Evaluation to Action Moving RFID Projects Beyond the Pilot Phase Motorola RFID Solutions Thank You!