Avery Dennison - RFID

Retail Information Services - RFID

Confidential 1

AAFA – Government Contracts CommitteeMarch 24, 2006Palm Springs

Mischa ReisDirector of Marketing, RFID & Security [email protected]+1-818-735-6004

Avery Dennison - Retail Information Services

mailto:[email protected]


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Agenda

1. RFID – technology & market overview

2. Implementing DoD RFID requirements

3. AAFA – RFID Savings Program

Presentation Overview


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An RFID label contains several layers:

Printable face-stock

Adhesive

RFID inlay(chip + antenna)AdhesiveLiner

RFID Label


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RFID ”at work”

Reader Antenna

Reader

RFID LABEL

1. Reader sends data and power to label

2. Label responds with data when interrogated


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Bar Code RFID

Line-of-sight required Non line-of-sight

Proximity read only Read up to 4m

Slow read (usually manual) Fast read (“100s” items/sec)

Single read Multi-tag simultaneous read

Limited data (EAN / UPC) 100+ characters

Read only Read/Write

How does RFID differ from bar codes?

RFID has significant advantages over barcodes


Confidential 6

Market Update

• Wal-Mart roll-out according to plan, seeing significant out of stock reduction benefits

• Target, Best Buy, Albertson’s, Metro …

• DoD has started adding the ‘RFID clause’ to contracts on Nov 14, 2005

• Several apparel and footwear retailers starting item-level tagging pilots


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Agenda






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DoD RFID Policy

• RFID DFARS issued 11/14/05 for the first phase requirement– See www.acq.osd.mil/log/rfid/DFARS.htm– Provides for use of Class 1 and Class 0 EPC compliant tags for use on case and

pallet level shipments to 2 DLA sites » San Joaquin – Tracy, CA and Susquehanna – New Cumberland, PA

– Includes all items in material classifications» Class I, subclass Packaged Operational Rations» Class II, Clothing, Individual Equipment and Tools» Class IV, Personal Demand Items» Class IX, Weapon Systems repair parts and components

– Tag specifications to comply to Mil Std. 129.

• RFID DFARS for the second phase requirement are at OMB for review and approval is expected Q1 ’06

– This would require additional material Classes IIIP, IV and VIII and additional DLA locations including all USDLA USTRANSCOM, and Direct to Services

• RFID DFARS for the third phase would include all suppliers, all Classes and all DoD locations


Confidential

How to fulfill the DoD RFID Labeling requirements?

• Option 1: Print RFID MSL in-house via RFID printer and software

• Option 2: Fully outsource RFID MSL label production to a Service Bureau / “Ticket Express”

• Option 3: Obtain supplemental RFID label from a Service Bureau / “Ticket Express”

Options


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Ordering supplemental RFID labels from a Service Bureau

• Only need to specify three things1. Carton or pallet label2. C.A.G.E. code 3. Quantity needed

• Labels arrive with your unique number written to the RFID chip, printed as a traditional barcode and printed in a human readable format

• Labels may be ordered in advance without specific order detail

• Service Bureau / Ticket Express system will manage serial number usage on an ongoing basis by CAGE code to ensure that each label is unique

Option 3 – Supplemental Label


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Usage of supplemental RFID labels in existing DoD applications

• DoD orders are processed and MSLs are produced in-plant using your existing process

• As DoD orders are labeled, a supplemental RFID carton (or pallet) label is applied beside the MSL label

• Adding unique number from the supplemental RFID labels (as MSLs are scanned or keyed into DoD DD250)

1. Scan NSN number on item to carton for carton content file.2. Scan supplemental RFID carton label to build pallet content file.3. Scan supplemental RFID pallet label4. Upload scanned data to VIM-ASAP for use in WAWF to eliminate data entry errors

• Alternatively, unique numbers from the supplemental RFID labels can be simply keyed in



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Current DoD process flow:

AveryDennison

TicketCenter

Supplemental RFID label:

Data capture into DD250


•Manual

•Scanner


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Agenda






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To help member companies implement RFID, AAFA has negotiated volume pricing for RFID labels from Avery Dennison Retail Information Services, a leading supplier of labels, tickets and tags to the apparel and footwear industry.

These rates are available exclusively to AAFA members who are producers and providers of apparel and footwear products. The program was developed at the request of AAFA members and with the help of an industry task group represented by four leading companies.

RFID Savings Program


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R$P Benefits

• Gen 1 and Gen 2 labels

• Exclusive to AAFA members

• Volume pricing even for small orders – minimum of 5,000 labels

• Free sample labels for testing

• No cost to participate



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Getting started – as easy as 1 – 2 – 3

1. Complete a registration form (available here or at www.apparelandfootwear.org / www.ris.averydennison.com)

2. Send / fax to AAFA (Mary Howell) at (703) 522-6741

3. Avery Dennison RIS will contact you with details



Confidential 17


Application Form

CONTACT INFORMATION

Name: Title:

Company:

Street Address:

City:

State: Zip/ Postal Code:

Phone: Fax:

E-mail:

I understand that the information I receive on the AAFA RFID Savings Program, including pricing, is not to be shared with individuals outside of my company.

Signature Date

Please return form to:

Mary Howell Vice President, Industry Relations, AAFA

Tel: (703) 797-9045, Fax: (703) 522-6741 [email protected]

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Avery Dennison - RFID

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