1. Copyright © 2003, Cap Gemini Ernst & Young Business Dimension Functional Excellence Integration Silo Organization Departmental Performance Cost Decision Functional Technology Point Solution Time Focus Months to Weeks Moving to Adaptiveness From Internal Silos to Networked Ecosystems Moving to Adaptiveness From Internal Silos to Networked Ecosystems

2. Copyright © 2003, Cap Gemini Ernst & Young Business Dimension Functional Excellence Integrated Supply Chain Integration SiloEnterprise Organization DepartmentalCentralized Performance CostCost & Service Decision FunctionalProcess Focused Technology Point SolutionERP / Bolt-on Time Focus Months to Weeks Weeks to Days Moving to Adaptiveness From Internal Silos to Networked Ecosystems Moving to Adaptiveness From Internal Silos to Networked Ecosystems

3. Copyright © 2003, Cap Gemini Ernst & Young Business Dimension Functional Excellence Integrated Supply Chain Adaptive Supply Chains Integration SiloEnterprise Extended Enterprise Organization DepartmentalCentralizedCollaborative Performance CostCost & Service Profit & Productivity Decision FunctionalProcess-Focused Event-Based, Agent-Assisted Technology Point SolutionERP/Bolt-On Interdependent, Web-Connected Time Focus Months to Weeks Weeks to DaysReal-Time MINDSET EXECUTION Moving to Adaptiveness From Internal Silos to Networked Ecosystems Moving to Adaptiveness From Internal Silos to Networked Ecosystems

4. Copyright © 2003, Cap Gemini Ernst & Young Moving to Adaptiveness Some Enabling Processes / Technologies Moving to Adaptiveness Some Enabling Processes / Technologies  RFID (Radio Frequency Identification)  Supply Chain Outsourcing (BPO)  Consumer-Based Replenishment  Service Parts Logistics  Product Lifecycle Management  Supply Chain Event Management  Performance Metrics in SCM  Supplier Relationships

5. Copyright © 2003, Cap Gemini Ernst & Young Sources: ABI, VDC, Philips, IDTechEx, HP Docs  Device: a tag / label with identification that is read electronically  Minimal issues with orientation and obscurity compared to barcodes  Tags can be electronic chips  Have storage capabilities and power sources that provide versatility  System: device + reader/writer + controller  Device – tag / label  Reader/writer – to communicate with device  Controller – manages data interface with computer systems RFID RFID Technology Allows Goods to Be Identified and Monitored Via a Wireless Tag RFID RFID Technology Allows Goods to Be Identified and Monitored Via a Wireless Tag In short, RFID is like a bar code that can talk

6. Copyright © 2003, Cap Gemini Ernst & Young  Applications  Tracking, Tracing, Inventory Management  Anti-Counterfeiting  Safety, Security  Numerous others RFID RFID: A $15B to $25B Market by 2015 RFID RFID: A $15B to $25B Market by 2015  Market players  Alien Technology  Checkpoint  Matrics  Intermec As with all new technologies, there are issues, barriers, and adoption challenges  Common standard  Tag cost  System integration  Privacy  Readability

7. Copyright © 2003, Cap Gemini Ernst & Young RFID Experts Predict Cost per Tag Will Be as Low as 5¢ Within 18 Months (in 2001: $30 per tag) RFID Experts Predict Cost per Tag Will Be as Low as 5¢ Within 18 Months (in 2001: $30 per tag)  Gillette ordered 500 million tags this year  P&G thinks RFID can cut its inventory levels almost in half  Wal-Mart have put its suppliers on notice, using RFID will become a requirement to remain a supplier No other technology in the last 20 years has had as much potential to impact the economy’s trillion-dollar inventory levels as RFID!

8. Copyright © 2003, Cap Gemini Ernst & Young Raw Material Manufacturer Finished Goods / Warehouse Distribution Retailer Shrinkage Item Level Inventory Tracking Product Lifecycle Management Proof of Delivery Vendor Managed Inventory Fleet Maintenance & Repairs Plant Maintenance In Store Availability Automatic Checkout Last 50 yards Asset Tracking Waste Disposal Inventory Reduction Intelligent Shelf Security Automatic Receiving In Store Inventory In Store Reactive Marketing Product Related On Sell Improved Production Planning VisibleEvent Driven ProactiveIntelligent Responsive CollaborativeReal Time CoordinatedClosed-Loop Characteristics of Adaptive Supply Chain Execution The solution now exists with no shortage of problems to solve. The key is to drive functionality beyond “a super-barcode” The solution now exists with no shortage of problems to solve. The key is to drive functionality beyond “a super-barcode” RFID There are Numerous Applications of RFID Across the Supply Chain RFID There are Numerous Applications of RFID Across the Supply Chain