Integrated Logistics Scenarios April 15, 2005

2 2Integrated Logistics Scenarios 2005 RosettaNet. All Rights Reserved. Synergy of Integrated Standards The Key is Aligning All Three eBusiness Flows Information Physical Financial Aligning the Information and Physical Flows… Enables immediate visibility to the total supply chain Reduces operating costs Improves delivery speed Increases customer satisfaction Aligning the Financial and Information Flows… Enables automated accounts receivables Credits customer accounts immediately to allow additional purchases Provides faster visibility to funds and improves investment speed SupplierCustomer

3 3Integrated Logistics Scenarios 2005 RosettaNet. All Rights Reserved. Synergy of Integrated Standards Gain Synergy by Aligning All eBusiness Flows SupplierCustomer Logistics Service Provider Info Flow: Request Purchase Order Info Flow: Request Shipping Order Physical Flow: Deliver Product Financial Flow: Credit Advice from Bank

4 4Integrated Logistics Scenarios 2005 RosettaNet. All Rights Reserved. Synergy of Integrated Standards Aligning the Movement of Products and Information SupplierCustomer 3. Notify Advance Shipment (PIP 3B2) with Serial Shipping Container Codes (SSCC) 3. Notify Shipping Documentation (PIP 3B18) (with SSCCs) 4. RFID tags applied to containers and pallets using supplier-defined SSCCs Logistics Service Provider 1. Request Purchase Order (PIP 3A4) RFID Read aligns with PIP ® PIP ® Initiates Shipment 2. Assign Serial Shipping Container Codes (SSCCs) 5. RFID read automates shipping receipt using SSCCs EPC#: BLUE

5 5Integrated Logistics Scenarios 2005 RosettaNet. All Rights Reserved. 3. Payment Instructions (SWIFT XML with URI) Synergy of Integrated Standards Aligning the Movement of Currency and Information SupplierCustomer Customer’s BankSupplier’s Bank 1. Notify Invoice (PIP 3C3) PIP ® Initiates Bank Payment 4. Interbank Clearing on legacy systems forwarding URI with funds 3. Notify Remittance Advice (PIP 3C6) with Unique Remittance Identifier (URI) 5. Credit Advice (SWIFT XML with URI) URI is the key to enable sellers to automate accounts receivables Quicker visibility of funds 2. Assign Unique Remittance Identifier (URI)

6 6Integrated Logistics Scenarios 2005 RosettaNet. All Rights Reserved. RFID and Unique Codes Introduction Radio Frequency Identification (RFID) solutions utilize a combination of standards –Tags are labels with microchips that emit radio signals –Readers are devices that pick up the radio signals –Codes provide unique identification numbers to track pallets, cartons, and serialized items –Information is associated with each code to provide visibility into the supply chain

7 7Integrated Logistics Scenarios 2005 RosettaNet. All Rights Reserved. Serial Shipping Container Code (SSCC) –18 digit code used to uniquely identify a case, pallet or container –Could be used as both barcode and/or encoded on a RFID tag –RosettaNet PIPs ® 3B2, 3B12, 3B13 and 3B18 include container ID: ShippingContainerIdentifier.ProprietarySerialIdentifier RFID and Unique Codes Unique Container and Pallet Codes 72 bit code Serial ExtensionCompanyCheckSerial Number SERIAL SHIPPING CONTAINER CODE Extension Digit 4 bits Company Prefix 36 bits Serial Reference 28 bits Check Digit 4 bits

8 8Integrated Logistics Scenarios 2005 RosettaNet. All Rights Reserved. RFID and Unique Codes Using Container Codes with RFID Tags and Readers Container code stored on RFID Tag 2 EPC#: BLUE Reader reads Code from RFID Tag 4 EPC#: BLUE RFID Tag applied to container or pallet 3 Unique Container Code 1 Unique Container Code assigned Serial ExtensionCompanyCheckSerial Number SERIAL SHIPPING CONTAINER CODE Extension Digit 4 bits Company Prefix 36 bits Serial Number 28 bits Check Digit 4 bits EPC#: BLUE

9 9Integrated Logistics Scenarios 2005 RosettaNet. All Rights Reserved. Electronic Product Code (EPC) –Adopted GTIN Structures –Support up to 288M Companies, 16M Object Classes, and 68B serial numbers –Encoded on a RFID tag –Versign to run an EPC code registry RFID and Unique Codes Unique Serialized Product Code HeaderCompanySKUSerial Number A F DCO ELECTRONIC PRODUCT CODE TYPE 1 Header 8 bits EPC Manager 28 bits Object Class 24 bits Serial Number 36 bits 96 bit code

10 10Integrated Logistics Scenarios 2005 RosettaNet. All Rights Reserved. Overview of Approaches Document Exchange Collaboration Pallet and box identification keys carried on RFID chips will be used in existing eBusiness documents How partners exchange PIPs ® will remain largely unchanged Visibility to supply chain information is dependent on individually predefined TPA’s

11 11Integrated Logistics Scenarios 2005 RosettaNet. All Rights Reserved. Document Exchange Collaboration Order-to-Cash eBusiness Process Suppliers Logistics Service Provider 7. Notify Shipment Receipt (PIP 4B2) 8. Notify Invoice (PIP 3C3) 4. Request PO Change (PIP 3A8) Customer 6. Notify Advance Shipment (PIP 3B2) 9. Notify Remittance Advice (PIP 3C6) 9. Financial Payment – Bank Credit Advice Physical Information Legend – B2B Flows Financial 1. Delivery of Products per Agreement 2. Request Purchase Order (PIP 3A4) 3. Distribute Inventory Report (PIP 4C1) 5. Request Shipping Order (PIP 3B12) Confirm Order Confirm Change 7. Receipt of Products by Customer 6. Shipment of Products for Customer PO RFID Read Initiates PIP ® PIP Initiates Bank Payment RFID Read Initiates PIP

12 12Integrated Logistics Scenarios 2005 RosettaNet. All Rights Reserved. Document Exchange Collaboration Inventory Mgmt (VMI) eBusiness Process Suppliers Logistics Service Provider 6. Notify Consumption (PIP 4B3) 7. Notify Invoice (PIP 3C3) 2. Notify Forecast Reply (PIP 4A5) Customer 6. Notify Consumption (PIP 4B3) 9. Notify Remittance Advice (PIP 3C6) 9. Financial Payment – Bank Credit Advice Physical Information Legend – B2B Flows Financial 2. Distribute Inventory Report (PIP 4C1) 1. Notify Threshold Release Forecast (PIP 4A3) 3. Notify Advance Shipment (PIP 3B2) 3. Shipment of product 8. Receipt of Products by Customer 7. Shipment of Product PIP Initiates Shipment PIP Initiates Bank Payment RFID Read Initiates PIP PIP ® Initiates Shipment 4. Notify Shipment Receipt (PIP 4B2) RFID Read Initiates PIP 4. Shipment Receipt 8. Notify Shipment Receipt (PIP 4B2) 7. Notify Advance Shipment (PIP 3B2) RFID Read Initiates PIP RFID Read Initiates PIP

13 13Integrated Logistics Scenarios 2005 RosettaNet. All Rights Reserved. Document Exchange Collaboration International Shipment eBusiness Process SupplierLogistics Service Provider Customer 2. Confirm Shipping Order (PIP 3B13) 1. Request Shipping Order (PIP 3B12) 3. Notify Advance Shipment (PIP 3B2) 4. Notify Shipping Doc-SED/Cert. Origin/Com. Invoice (PIP 3B18) 5. Distribute Shipment Status (PIP 3B3) 6. Notify Shipment Doc for Customs Declaration (PIP 3B18) 5. Distribute Shipment Status (PIP 3B3) 7. Notify Shipment Receipt (PIP 4B2) 5. Shipment Arrives at Customs Physical Information Legend – B2B Flows Financial PIP ® Initiates Shipment 4. Product Shipment RFID Read Initiates PIP 7. Shipment Receipt By Customer RFID Read Initiates PIP 6. Shipment Clears Customs Import Customs Carrier

Integrated Logistics Scenarios © COPYRIGHT 2005 ROSETTANET – ALL RIGHTS RESERVERD 14 Summary RFID can be implemented today to automate logistics processes Relevant RosettaNet PIPs ® support SSCC codes RosettaNet is working with EPCglobal to ensure standards alignment