in collaboration with Finland Post Improves Roll-Cage Asset Management Using State- of-the-Art RFID Technologies New RFID track-and-trace solution at Finland Post maximizes utilization of roll-cage assets, improves operational performance and customer service for real ROI “ The project was a success and our next step will be upgrading the devices and the whole environment to the gen2. Our target is to improve our own process and create new value-added services to our customers based on the RFID technology. ” Heljä Salomaa, Director, Finland Post The Situation Finland Post (Posti) is the leading provider of delivery and logistics services in Finland and selected markets in Northern Europe. Each year Posti replaces thousands of its roll-cage transport units due to damage or losses across its logistics supply chain. This annual recurring cost totals millions of euros. Posti was keen to assess if Radio Frequency Identification (RFID) technology could provide it with a track-and-trace solution that would improve its roll-cage asset management issues. This would help Posti to ensure that its roll cages were in the right place at the right time, understand internal/external operational bottlenecks and ultimately improve customer service. The Solution Using a tried and tested approach based around a controlled RFID lab environment, Capgemini worked with selected partners including BEA Systems to apply its deep experience in RFID engineering and supply chain management. This helped to develop an open-standards-based best-of- breed “passive UHF” RFID track-and- trace solution. The lab evaluation, testing and solution design resulted in a robust operational pilot solution developed specifically to meet the needs of a challenging environment at Posti, meeting a 100% read-rate performance.
Transcript
in collaboration with
Finland Post Improves Roll-CageAsset Management Using State-of-the-Art RFID TechnologiesNew RFID track-and-trace solution at Finland Post
maximizes utilization of roll-cage assets, improves
operational performance and customer service for real ROI
“The project was a successand our next step will be
upgrading the devices and thewhole environment to the
gen2. Our target is to improveour own process and create
new value-added services toour customers based on the
RFID technology.”Heljä Salomaa,
Director, Finland Post
The SituationFinland Post (Posti) is the leadingprovider of delivery and logisticsservices in Finland and selectedmarkets in Northern Europe. Eachyear Posti replaces thousands of itsroll-cage transport units due todamage or losses across its logisticssupply chain. This annual recurringcost totals millions of euros.
Posti was keen to assess if RadioFrequency Identification (RFID)technology could provide it with atrack-and-trace solution that wouldimprove its roll-cage assetmanagement issues. This would helpPosti to ensure that its roll cages werein the right place at the right time,understand internal/externaloperational bottlenecks and ultimatelyimprove customer service.
The SolutionUsing a tried and tested approachbased around a controlled RFID labenvironment, Capgemini worked withselected partners including BEASystems to apply its deep experiencein RFID engineering and supply chainmanagement. This helped to developan open-standards-based best-of-breed “passive UHF” RFID track-and-trace solution.
The lab evaluation, testing andsolution design resulted in a robustoperational pilot solution developedspecifically to meet the needs of achallenging environment at Posti,meeting a 100% read-rateperformance.
How Finland Post andCapgemini Worked TogetherFinland Post was established in 1638.The existing business was createdwhen Finland Post Corporationbecame a public company in 2001.The company operates as threedivisions:
• Messaging for letter,magazine/newspaper and maildelivery
• Information logistics
• Logistics.
The group had net turnover of € 1.3billion in 2005 and employed morethan 24,400 people.
Posti engaged Capgemini to help itdevelop and implement an RFIDtrack-and-trace solution tosignificantly improve its roll-cage assetmanagement issues, enabling visibilityof roll-cage movements and areduction in asset overhead costsassociated with damage and loss.Capgemini applied its proven phasedapproach for RFID implementationprojects.
Establishing FundamentalsThe initial phase of any RFID projectis divided into three key work streamsthat run in series:
• Business case
• Process capture
• Hardware definition.
The ResultThe track-and-trace solution willenable Posti to ensure that roll cagesare in the right place at the right time.It will also reduce managementoverhead for roll-cage assets, improveinternal operational processes andultimately improve customer service.Posti also expects to realize a goodROI from a full implementation andrealize longer-term supply chainbenefits through improved operationalefficiency and differentiated servicepotential.
The RFID lab activity was undertakenusing Capgemini’s CollaborativeBusiness Experience, with senior Postimanagers and operators fully involvedand encouraged to participate duringthe lab testing. This participationbrought significant valued experienceand challenge to the project. The labwill also be used to develop thelonger-term RFID solution for Posti byevaluating and testing a range offuture RFID technologies and newclient requirements.
Training was essential to ensure thatthe operational users were familiarwith, and understood, all aspects ofthe pilot. Experienced Posti deliverydrivers were involved early in thepilot development phase. Key userrequirements were built into theRFID-enabled handheld applicationsoftware.
Portal readers automatically detect themovement of roll cages into and outof the Helsinki Sortation Center. Theportals vary in size and also havedifferent scanning requirements (i.e.,one way and multi-directional). Thepilot also extended to Posti customers,with customer RFID tags placed instrategic locations on customerpremises. This allowed the Postidelivery driver to confirm hispresence at the customer site by asimple scan of the RFID tag with anRFID-enabled handheld device.
The Posti delivery vehicles and driversare provided with RFID tags enablingvehicle tracking/secure access to siteand operator secure access to theRFID handheld application software.This also allows RFID data to beassociated with driver/vehicle deliveryand collection events throughout thePosti internal and external operationalprocesses.
The business case was developed toenable a financial understanding ofthe potential technology investmentversus the benefits, both financial andoperational. RFID education was alsoundertaken at this stage to ensure thatPosti’s expectations were realistic andachievable.
Process capture enables deepunderstanding of the operationalprocesses and procedures that will beaffected by the RFIDhardware/software technologyintegration. The hardware definitionstudy enables the operationalenvironmental and integrationrequirements to be considered inorder that specific RFID technologyrequirements can be established. Oncedetailed RFID technologyrequirements are established, the mostappropriate technology can beselected and tested. In this instance,passive UHF RFID technology wasselected.
Lab Testing and Technology PilotA wide range of passive UHF RFIDvendor technologies were evaluated incontrolled laboratory tests.Thisenabled a best-of-breed open-standards technology to be selectedfor the proof-of-concept (POC)technology pilot based on empiricallab test results. The POC pilotsolution was then preconfigured inthe lab environment ready forinstallation into Posti’s operationalenvironment.
Capgemini FinlandCapgemini UKConsumer Products, Retail & DistributionRadio Frequency IdentificationSupply Chain
In collaboration with
Approved byHeljä Salomaa, Director, Finland Post
Ville Kentala, Account Director, Capgemini
Damien Ryan, Project RFID TechnicalLead, Capgemini
A key spin-off benefit is theopportunity to analyze RFID trackingdata, which can provide full visibilityinto operational supply chainprocesses. This is expected to helpPosti realize longer-term supply chainbenefits through improved operationalefficiency and differentiated servicepotential.
In addition, driver incentive schemescan be put in place as it is nowpossible to accurately measureindividual driver repatriation of empty
roll cages (for example, thosecollected at client premises andreturned to Posti operations). This is asignificant operational benefit.
The capture of this critical operationalsupply chain data, not previouslyavailable to Posti managers, will allowPosti to focus resources in the rightplace at the right time, enabling theorganization to make the best possibleuse of its assets and people.
providers of Consulting, Technology and Outsourcing services, has a uniqueway of working with its clients, called the Collaborative Business Experience.
Backed by over three decades of industryand service experience, the CollaborativeBusiness Experience is designed to help our clients achieve better, faster,more sustainable results through seamless access to our network of world-leading technology partners and
collaboration-focused methods and tools.Through commitment to mutual successand the achievement of tangible value,we help businesses implement growthstrategies, leverage technology, and thrivethrough the power of collaboration.
Capgemini employs approximately 61,000people worldwide and reported 2005global revenues of 6,954 million euros.
More information about our services, offices and research is available atwww.capgemini.com
About Capgemini and the Collaborative Business Experience
The track-and-trace data is accessiblevia the BEA Systems’ RFID Track andTrace Portal. The portal provides atotally flexible way to access the dataand allows Posti to present RFID datain both report and screen formats.The value of the RFID tracking data isonly just being realized.
The key architecture elements for thestrategic adoption of RFID for Postiare now understood and a flexible,scalable platform is available to Postifor the next phase of this project.
Realizing BenefitsThe RFID track-and-trace solutionwill enable Posti to ensure that rollcages are in the right place at the righttime, as well as reduce managementoverhead for roll-cage assets, improveinternal operational processes andultimately improve the customerservice.
For the first time Posti has accuratedata relating to roll-cage movements,such as actual delivery times andlocations for specific roll-cage assets.This data can now reveal roll-cage“total” cycle times and dwell times(into and out of the Posti premisesand the premises of its customers).This data will help Posti focusmanagement resources efficiently,better understand its supply chainprocesses, and ultimately improve thequality of service statistics and roll-cage repatriation data.
Consumer Products, Retail & Distribution the way we do it
