Rfid Journal Webinar Microsoft S3 Edge Final April14

© 2009 S3Edge Inc. All Rights Reserved.

Real Time Visibility Systems

2© 2009 S3Edge Inc. All Rights Reserved.

Ingo HeelDirector, Operational Excellence

Microsoft Industry [email protected]

Anush KumarCTO & VP Business Development

S3 Edge [email protected]+1 (310) 943 7992

mailto:[email protected]


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RFID Applications Today: A Taxonomy

Applications of RFID technologyOpen Systems

Supply chain visibilityInter-company coordination

CPG - retail supply chain

Distribution

Closed systemsStand-alone RFID applicationsPeople, pet and asset tracking

Transportation (toll booths)

Real Time Visibility SystemsAsset management and tracking

Transportation and logistics

Enterprise Resource Planning

Warehouse Management systems

Drivers• Cross company standardization• Compliance• Ubiquitous adoption• Cost per tag

Drivers• Point solution with needs

of vertical markets

Drivers• Seamless extension of

existing enterprise applications

• Implementation of client-specific business process

• Return on investment

Solutions with measurable ROI & value that we’re going to talk about today.



Connected Enterprise: Current State

Enterprise SoftwareApplications

Physical World they Manage

Enterprise applications are only loosely connected to the physical world they manage.

• 3PL• Supply chain• CPG• Distribution

• Discrete Mfg• Aerospace• Automotive

• Shipping• Airlines• 3PL

• IT Assets• Healthcare Assets• Yard management• Retail In-Store

TargetMarket

Transportation & Logistics

Enterprise Resource Planning

Warehouse Management

Systems

Asset Tracking &

Management



Consider the following…

42.413

13.2

million bags were mishandled or delayed in 2007 by the airlines

% of all orders are either shipped with the wrong item or quantity or delivered late to the customer

Retail shrink is estimated to be $13.2B in the US

Virtually all these errors would be eliminated by connecting the controlling enterprise application to

physical world activities in real-time.

19% of items put away in a large warehouse operation whose actual location does not match the WMS



The Opportunity

Warehouse Management

Systems

EnterpriseResource Planning

Enterprise SoftwareApplications

Physical World they Manage

Real Time Visibility SystemsConnects business applications to the physical world

New Category Of Enterprise Application

• CPG• 3PL• Distribution• Retail

• Discrete Mfg• Aerospace• Automotive

• Airlines• Shipping• 3PL

• IT Assets• Healthcare• Yard management• Retail In-Store

TargetMarket

Transportation & Logistics

Asset Tracking &

Management



S3Edge Snapshot• Company

– Founded in 2007; Offices in Hyderabad, Portland, LA– Core software team that built the Microsoft BizTalk

RFID products (server & mobile)• Products

– Packaged Software for Real Time Visibility - On-Device, On-Premise, On-Demand

– BizTalk RFID software for all the leading RFID equipment manufacturers

• Solutions: Real Time Visibility Systems [RTVS] for– Warehouse Operations– Discrete Manufacturing (Work-In-Process)– Asset Tracking



Topics we’re going to cover today

1. The components of a RTVS

2. Understand the key business characteristics to look for in order to get significant benefits from a RTVS

3. Learn how to get up and running quickly – and get immediate returns with a RTVS

4. Walk through 2 customer case-studies that demonstrates RTVS at work

5. Get an insiders look at the packaged flows supported by the S3Edge RTVS applications

6. Takeaway a quick-start guide to deploy a RTVS



Components of a Real Time Visibility System• Hardware

– Servers (host and edge)– RFID Readers (fixed readers, hand held readers, fork lift readers)– RFID Tags (location tags and item tags)

• Software– Network and device configuration and management (local and remote)– Distributed processing workflows (host, edge server, mobile readers)– Reports and alerts– Linkage to legacy system

• Professional Services– Analysis, solution design, installation and deployment services– Customization (LoB integration, workflow specific processing)

• Ongoing support– Hardware maintenance– Software Maintenance (service packs) & Ops (backup, restore)

Turnkey, Packaged Solution for Real-Time Visibility



RTVS: Software Architecture

On-Device Applications

ManagementConsole

System Status Displays

Fixed RFID Readers

Hand-held RFID Readers

Existing Enterprise Applications

Web Services

API

SQL Svr DB

On-Device Applications

DeviceProvider

Client Specific

Logic

Device Management and ControlSubsystem

Mobile Fork LiftReaders

Date Entry & Display Devices

Out-of-the-box Templates & Workflow

Engine

Dashboard / Portal



Attributes that will see most benefit from a RTVS

• Complex multi-step material movement with extensive human involvement

• Processes that have time sensitive materials movement requirements

• Vertically integrated businesses• Environments with wide throughput fluctuations• Utilize returnable containers• Commonly loose track of inventory, orders, etc..• “Tribal knowledge creep” for operation of

warehouse or factory floor



3 phases of a RTVS deployment

Observe Direct Improve



Observe Phase: Record and Replay

• Minimal change to existing processes• Record on-the-ground activity• Capture pick-and-place sequences, asset movement

– Pallet/tote/item cycle times– Location cycle times– Forklift cycle times– Flow monitors

• Replay and understand events and points of interest

The objective is to clearly identify and measure points in the existing material flow where high-cost

errors occur



Observe Phase: Investment needed

RFID Tags

Locations

Pallets/Totes

Cases/ItemsHardware Components Software (RTVS) Components


Direct Phase Goals: Eliminate high cost errors

• Immediate detection and notification when errors occur– Prevent the domino effect

• Alert users and present choices• Integrate logic to enforce standard operating procedure

sequences and best practices• At the same time encourage initiative, not busy work• Allow flexibility where possible - user actions may occur out of

order but still be in compliance• Define cooperative warehouse and manufacturing processes

The objective is to provide real-time alerts and direction to catch errors as they happen and

prevent them from cascading



Direct Phase: Investment needed

Devices

Vehicle mount displays

Handheld Readers

Stack lights and other displaysHardware Components Software (RTVS) Components



Improve Phase: Continuous process improvement

• Goals:– Systematic record keeping– Both common path and exception flows– KPIs, dashboards, analytics– Offline analysis for systemic faults– Make process changes with confidence

• Investment needed:– Customization: Extract, transform for data aggregation– Customization: New process flows, analytics and KPIs

The objective is to dynamically build out a central business information platform that grows with your

evolving operational needs for real-time data.



Re-cap: 3 phases of a RTVS deployment

Observe Direct Improve



Store orders shipped with 50%less turnaround time and

lesser mis-ships

Products from suppliers received, associated & put-away

in totes with RFID tags

Incoming store orders cross-referenced with

products received

Totes satisfying incoming orders directly sent to cross-dock

Additional totes slotted at warehouse, location dynamically

associated based on bin tag

Location information used to pick remaining orders with hand-held application

Case Study: RiteCare Pharmacy



Results

• Reduce labor costs by 50% – Direct the work of staff with optimal productivity

• Eliminate errors and cascading violations during:– Data Entry– Receiving (Excess or Short)– Shipping (Excess , Short, Incorrect)– Inventory Movement

• Eliminate manual inventory• Reduce returns and charge-backs due to shipping of

excess, incorrect inventory• Ensure 95% to 99% order fill rates



New orderis created

Order tracking starts

Order attachedto glass blank

Station reads open orders

Instructionsprovided tooperators

Order processed on

time!

Case Study: GKB Hi-Tech



Results

• Reduce labor costs by 50%– Increase labor productivity

• Reduce errors, improve inventory management– Eliminate ‘lost’, ‘excess’, or ‘incorrect’ parts– Reduce cycle times and errors in replenishment– Reduce excess and obsolete inventory

• Reduce production issues– Reduce scrap and rework– Decrease customer violations

• Reduce dwell times– Prevent delayed orders



Location

Item with zone log

Functionality• Palletization• Receiving• Put-away• Inventory Movement• Stocktaking• Picking• Vehicle Manifest Verification• Shipping• Remote Device & User Mgmt.• On-Device Workflows [Handheld & Forklift /

VMC]Configuration Points• Asset attributes• Process Flows• Exception Reporting

Out of Box Process Flows:Warehouse Operations

Direction

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Out of Box Process Flows:Work-in-Process & Asset Tracking

Functionality• Configure plans in Excel• Associate / Dis-associate Asset

with tag & order from LoB app• Track Asset [Start / Stop]• Search for Assets• Event Tracking (by System, by

Station, by Asset)• Increase / Decrease order

priority remotely• Enforce Temporal & Spatial

SLA’s • Verify Contents• Remote Device & User Mgmt.Configuration Points• Plan and Asset attributes • Process Flows• Exception reporting



Final form of deployed solution

Locally Hosted Option• S3Edge RTVS installed at clients location• Operationally maintained by client IT staff

S3Edge Hosted Option• S3Edge RTVS installed at hosting center• Operationally maintained by S3Edge



Getting Started

• Quantify the current state of your operation– How many assets do you have in play during “normal” operations– Quantify labor costs for ‘normal’ activities related to these assets– Quantify labor costs associated with exception handling and error

recovery activities

• Deploy an observational system– Hardware and software to capture real data on current system– Minimal or no change to the current processes– Identify the low-hanging fruit which have immediate return

• Expand the observational system to eliminate errors– Focus on the high-return items– Automatic alerts and warnings– Automatic reconciliation

• Refine and evolve processes over time



Recap – You now have…

1. An in-depth understanding of what constitutes a RTVS

2. Guidelines for determining if it makes sense to deploy a RFID based solution for the business issues you are looking to solve

3. The know-how to quickly deploy an Observational RTVS with near term ROI

4. Seen examples of RTVS at work in a warehouse and manufacturing setting

5. Reviewed the packaged flows supported by the S3Edge RTVS applications for warehouse visibility and work-in-process asset tracking

6. An Insiders Guide to kick-start a RTVS deployment!



Resources / Links• Contact, demo / site visit request

– Anush Kumar [email protected], +1 (310) 943 7992– Mark Anastas [email protected], +1 (503) 523 9715– Website www.s3edge.com

• Case-studies– RiteCare Pharmacy (Warehouse Visibility)– GKB Hi-tech (Work-in-Process Tracking)

• RFID World Asia (Singapore, April 21-24)– Join us at the keynote session and at the Microsoft booth

(4R13 & 4S13)

• RFID Journal Live (Orlando, April 27-29)– Visit us at the Microsoft booth (614)– Get a copy of 1st book on BizTalk RFID, co-authored by Ram

Venkatesh (CEO, S3Edge)

• Blog http://rtvs.wordpress.com



http://www.s3edge.com/

http://rtvs.wordpress.com/



Appendix



Our Technology Partners

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Rfid Journal Webinar Microsoft S3 Edge Final April14

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