ROOM 4 – BUSINESS CASE
RFID and the Logistics Service ProviderSpeaker:
Jeremy DuddlestenManger, WMS Implementations, Contract Logistics - U.S.
Kuehne + Nagel
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RFID and the Logistics Service ProviderKuehne + Nagel’s RFID Value Proposition
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About Kuehne + Nagel• Founded in 1890
• Headquartered in Schindellegi, Switzerland• Leader in integrated, global logistics solutions
• #1 in sea freight• Top 5 in airfreight volume• Global contract logistics infrastructure• Lead Logistics solutions• 600 offices in 96 countries, 18,500 specialists• Financially strong
• Global quality & consistency• Minimal reliance on agents• ISO 9001 Global Accreditation
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Agenda
• RFID in the context of Kuehne + Nagel• Contract Logistics Services:
• Helping customers meet RFID requirements issued by major retailers
• Leveraging RFID for operational performance improvement and inventory control
• Transportation & Freight Forwarding Services• Leveraging RFID for improved visibility, command and
control in the logistics supply chain
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Contract Logistics Project Context
• Kuehne + Nagel Contract Logistics: Providing Compliance Services• Leading retailer requests suppliers to provide RFID
tagging at case and pallet level• Customer: Leading Provider of consumer medical
devices
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RetailDistribution
Center
Warehouse(Alsip, IL)
Data Center(Naugatuck, CT)
CustomerSales Office
Kuehne + Nagel RFID Process
OrderInfo
Customer
OrderData
Order
ManufacturerManufacturer
TaggedItems
Non- taggedItems
• RFID tagprinting
• Palletization
• Case/Palletvalidation
OrderShipment
Retail
• Validate casesand pallets
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WAN
Solution Components
Data Center(Naugatuck, CT)
Warehouse(Alsip, IL)
WMSDatabase
Omron V740 RFID Readers
ALEWrite/Read
Request
Write/ReadResponse
Palletization Data
Zebra Smart- label
Printer
ALE
Order Data
SMSDatabase
SOAP
RFIDDatabase
Act
ion
Workflow
Act
ion
Act
ion
Avicon epcExpress
ConnecTerra RFTagAware
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Tag and Ship Process
• Cases pass through RFID portal as pallet is built.• During palletization epcExpress will associate RFID
tags to the pallet including pre-tagged items.• Verification portal reads contents of pallet. This can
be compared to actual order.
Unlabeledcarton
RFIDprinter
Labeledcarton
RFIDconveyor portal
Labeledcarton
Labeledshipping pallet
Shipmentverification portal
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Sample Use Cases
• Case/Pallet tag(s) are automatically printed.• 6 case tags and 1 pallet tag are printed.• SKU “GHJ” is already tagged, a new tag will not be printed.
WMS
Y2GHJPallet_3
N1DEFPallet_3
N5ABCPallet_3
IS TAGGEDTAGSSKUCONTAINER
ID
ORDER# 12345
Y2GHJPallet_3
N1DEFPallet_3
N5ABCPallet_3
IS TAGGEDTAGSSKUCONTAINER
ID
ORDER# 12345
OrderData
epcExpressEPC Tag Printer
Pallet Labels: 1Case Labels: 6
Mixed Pallet – with previously tagged SKU
• Damaged tags can be re-printed.• Test printing tags for newly added SKUs.• Order data is not required to be received to print tags.
Manual Tag Printing
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Learnings…
Expected Actual
RF Engineering• RFID tagging of medical supplies• Sweet spot analysis
Containerization• Where should containerization happen?
• Order system vs. Shipping system vs. RFID process level?
Integration• Sending information between existing systems and
epc Express• Speed of connectivity between shipping system,
RFID middleware and RFID hardware
Easy Moderate Involved
• No liquids, little metal, no interference.
• Tags applied to cases after pallet built.
• Auto printed tags, but palletization done manually because data received at both container and single case level.
• Logic added for capturing container data and loose case data.
• Data sent asynchronously to printer to avoid delay of response.
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…Learnings
Expected Actual
Printer Setup• Setup printer and create labels
• Re-calibrate for different tag sizes (4x6, 4x2)
• Tag printing performance
epc Express Functionality• Requiring re-print for tag replacement, quick printing of test tags, flexibility to create tag when necessary• Validate tag reads of shipments in pilot phase
Easy Moderate Involved• Difficulty aligning text
and tags on smart-labels.
• Calibration tricky due to tag issues, tag alignment, and print speed.
• Time consuming to find optimal configuration.
• Manual tag printing screen was used quite often.
• Validation portal at time of shipment logged tags read on entire pallet.
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Using RFID to Control the Import of Industrial PrintersLICON Pilot Project
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Pilot Project Scope
• Cooperation of
• Key proof points:• Use of EPC/RFID across continents• Use of EPC/RFID to provide supply chain
visibility• Exchange of data in open, multi-party supply
chain
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Project Scenario
EuropeNorth America
Munich DC(Kuehne+Nagel)
Munich Airport(Lufthansa)Customer
Poing Factory(Océ)
JFK Airport(Lufthansa)
• Océ Industrial Printers tagged and read in Poing, GY• Shipments read and verified at Kuehne + Nagel, Munich Airport• Shipment read and verified at Lufthansa, JFK Airport
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Project Pain Points
EuropeNorth America
Munich DC(Kuehne+Nagel)
Munich Airport(Lufthansa)Customer
Poing Factory(Océ)
JFK Airport(Lufthansa)
• Supply Chain Visibility –Lack of in-transit shipment visibility• Event Management – Lack of real-time event correlation from
supply chain with execution plan• Shipment Complete – Lack of on-time shipment complete
information causing deployment delays
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Technology Stack
Supply Chain Visibility
Avicon epcRMS
EPC middleware
Siemens OHS
Avicon epcExpress™
Device management
Siemens OHS
ConnecTerraRFTagAware
Readers Samsys 9320 Multi Protocol
Air Interface ISO 18000-6 B
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Route Map Server
Plans & Schedules
ExecutionDataepcRMS (Route Map Server)
• Publish plans & schedules• Incorporate actual execution
data• Identify issues & meaningful
events
EuropeNorth America
Munich DC(Kuehne+Nagel)
Munich Airport(Lufthansa)Customer
Poing Factory(Océ)
JFK Airport(Lufthansa)
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Using Route Maps for Visibility<RMSRMPDetail segment="1">
…<node code="KN-MUC">
<previous><NodeCode>OCE-PG</NodeCode>
</previous><next>
<NodeCode>LH-JFK</NodeCode></next>
</node><Action>inbound</Action>
<Schedule><ExpectedDate>20040703
</ExpectedDate><ExpectedTime basis="UTC">1600
</ExpectedTime><Delay value="h">1.5</Delay>
</Schedule></RMSRMPDetail>
• Route maps represent plans and schedules for supply chain operations
• Route maps are initialized by the supply chain coordinator – in this case the freight forwarder
• Route maps are updated with actual execution data as execution progresses
• Route maps are the basis for event detection and management
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Sample Route Map ViewNode
Location CodePlanned KN-MUC
Actual KN-MUC
Delta None
InboundSchedule
Planned Jul-03 2004; 1600 UTCActual Jul-03 2004; 1500 UTCDelta 0 days; -1:00 hour
Item EPCsPlanned 3114F6478CB2D05E65000000; 3114F6478CB2D05E66000000;
3114F6478CB2D05E67000000Actual 3114F6478CB2D05E65000000; 3114F6478CB2D05E66000000; Delta 3114F6478CB2D05E67000000
OutboundSchedule
Planned Jul-04 2004; 0900 UTCActual NADelta NA
Item EPCsPlanned 3114F6478CB2D05E65000000; 3114F6478CB2D05E66000000;
3114F6478CB2D05E67000000Actual NADelta NA
Acceptable deviation
Short shipment
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Achievements• Item-level visibility across the supply chain
• Shipments & shipped items• Supply chain nodes and physical locations• Transitions between nodes• Comparison of plan to actuals
• Multiple participants execute a shared plan and report status• Shared, centrally hosted visibility infrastructure• Centralized logic detects meaningful business events and
triggers alerts• Lightweight and flexible integration allows for easy integration of
new participants and new networks• Leverage EPCGlobal standards – extended with logistics
business logic
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More Information
• LICON Website: www.licon-logistics.com
• Whitepaper: www.Avicon.com
• Microsoft Project Video: Avicon exhibit
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