Is this the right time to incorporate RFID technologies into your business? What is the ROI?’

AiDC Solutions Limited www.aidc-solutions.co.uk1

Is this the right time to incorporate RFID technologies into your business?

What is the ROI?’

David MyersCEO AiDC Solutions LimitedChairman AIM UK

Prague – 30th March 2011

AiDC Solutions Limited www.aidc-solutions.co.uk

• Calculating ROI• RFID Diagnostic• Real-world examples

Agenda


Define the business process• Inputs, Activities, Outputs

• Define the Costs of the Activities• Time, People, Objects, Space

Technology Options

In Supply Chain we look at:• Receiving/Raw Materials• WIP• Shipping

‘There is no ROI with RFID’


Consider what RFID DOES not what RFID IS

RFID is a technology which improves visibility

Closed Loop Supply ProcessASNs, Production Scheduling, WIP, inbound/outbound logistics, Resource Utilisation

Open Loop Supply ProcessWIP Flows, Inventories, Safety Stock, Storage

Value is the elimination of cost in the forms of time, unnecessary manual work, equipment, surplus inventories or space.

www.aidc-solutions.co.uk

Vehicle

Container

Pallet

Tote Bin

Case

Singles

Vehicle

Container

Pallet

Tote Bin

Case

Singles

Diagnostic Matrix


Pallet Tagging

ReusableLow CostAutomatic Pallet ReadingLabour SavingsRead/Write


Low Cost (Under 70 cents)RobustReusableAutomatic Tote ReadingLabour SavingGood Payback

Robust

Tote/Tray Tagging


MetalFluid / High % Water Wood /Paper

Not reusableCost of the tag becoming very significantBuried Tags in pallet not readableMulti Tag reading

Product and Packaging Material

Case

Case Tagging

http://images.google.co.uk/imgres?imgurl=http://www.packyourpallet.com/images/qpm33.gif&imgrefurl=http://www.packyourpallet.com/optimal.htm&h=294&w=266&sz=8&tbnid=d0E3J4HrKjkJ:&tbnh=111&tbnw=100&start=6&prev=/images%3Fq%3DCases%2Bon%2BPallet%26hl%3Den%26lr%3D%26sa%3DG

http://images.google.co.uk/imgres?imgurl=http://www.alcoolital.it/Image/Scatole/pallet.jpg&imgrefurl=http://www.alcoolital.it/Prodotti/Confezionamento/1024-puro99.htm&h=939&w=906&sz=45&tbnid=T0YyQdauiusJ:&tbnh=146&tbnw=141&start=14&prev=/images%3Fq%3DPallet%26hl%3Den%26lr%3D%26sa%3DG

http://images.google.co.uk/imgres?imgurl=http://www.fotosearch.com/comp/FDS/FDS101/Cheese-Wheel-Single.jpg&imgrefurl=http://www.fotosearch.com/FDS101/cheese-wheel-single/&h=194&w=300&sz=11&tbnid=NNPcEzNdEFcJ:&tbnh=71&tbnw=110&start=6&prev=/images%3Fq%3DSingle%2Bcheese%26hl%3Den%26lr%3D%26sa%3DG


Hadfields Stockport

• Rug & Carpet Supply• 200,000 Custom made

rugs• Barcode labels supplied

to manufacturers• Thousands of variants• Variety of manufacturers


Hadfields Stockport

• Container Deliveries• 3,000 to 4,000 rugs

per delivery• 60 deliveries per year


Hadfields Stockport

Incoming Stock;• Unloaded and checked

manually• Unload time 3 days for 7

men


Hadfields Stockport

RFID enabled labels• Unloaded and placed into

container with known quantity of rugs

• Container wheeled past reading gate and RFID tags read

• Quantity verified• Information tied to stillage• Sent to store


Hadfields Stockport

RFID advantage;• Unloading - reduced from

147 hours to 20 hours• Cost saving per year

£58,000 • Added Bonuses;• Stock accuracy• Despatch and tracing

accuracy


• Poor Printing and label Positioning causes Read Errors

• Read Errors cause Downtime/ReworkErrors like this cost NGFE on average

£25,000 Per Year


Saving

£18,500 Per Year


Potential Saving

£50,000 Per Year

One Label – Means Less Bobbin Cleaning


• Access Pass• Toll Roads• Transportation (Smartcard)• Tote box, Pallet & Load ID• Clothes tracking (M&S)• Libraries

RFID - it’s all around you!

http://www.intellident.co.uk/4.00/en/sm_selfServiceOverview.php


RFID Growth

Sales $ Millions


Call

AiDC Solutions Limited+44 1422 399530

or visit

aidc-solutions.co.uk

Is this the right time to incorporate RFID technologies into your business? What is the ROI?’

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