Optimizing Sustainable Strategies with

Innovation and Technology for the Industry

5 October 2010

112 Years of Change

Crown Soda Machine 1898

Coca Cola opened its first bottling

plant in 1899

- 150 people

- around 200,000 bottles a year

Today

Soft drinks bottling plant

- 6 people

- 2,000 units per minute

- almost 400 million bottles per year

FMCG Growth

• The FMCG industry is huge – around €700bn

in Europe and USD$1.5 trillion globally (at

retail value). This compares with about

USD$480bn for the global automotive

manufacturing industry» Sequoia Partnership

Change Agent

• Change is Constant

• Always adopting new management

techniques

– Blue Ocean

– LEAN

– JIT

• Always adopting new technologies

– Auto-ID technologies like Bar code and RFID

Recognize by You

• Working Together to Fulfill Consumer Wishes

Better, Faster and at Less Cost» Efficient Consumer Response

Leader in Change

Raw MaterialRaw Material ManufacturerManufacturer WarehouseWarehouse Customs

Check Point

Customs

Check PointAir/Sea/Land

Transport

Air/Sea/Land

TransportCustoms

Check Point

Customs

Check PointDistribution

Warehouse

Distribution

WarehouseRetailer &

Consumers

Retailer &

Consumers

Flow of Money

Logistics Priorities

• 11 percent of company revenues devoted to logistics

• Perfect order fulfillment (87 percent)

• Rapidly sensing and responding to changes in consumer demand (83 percent)

• Shortening new product time-to-market and supply chain integration (81 percent)

» Based on the 15th Annual Third-Party Logistics Study from Capgemini Consulting, Georgia Institute of Technology and Panalpina on September 27, 2010

End to End Visibility with EPCIS for Supply Chain

Distribution

Warehouse

Distribution

WarehouseManufacturerManufacturer Air/Sea/Land

Transport

Air/Sea/Land

TransportRetailer &

Consumers

Retailer &

ConsumersRaw MaterialRaw Material

EPCIS

Customs

Check Point

Customs

Check PointCustoms

Check Point

Customs

Check Point

RFID or Sensors or Barcode or Labels

WarehouseWarehouse

• A Repository of item-level event data.

• Sharing item-level event data between business partners in a standardized way.

• Provides Visibility of item-level that allows Traceability.

• Allow Business intelligence to detect inefficiencies in supply chains.

• Provides Visualization of EPCIS repository data.

EPCIS

Saving in traceability costsT

race

ab

ilit

y C

ost

s

Saving Percentage(%)

0

Saving in

transport cost

Saving in

turnover

losses

Saving in

disposal costs

Saving in costs for

tracking and tracing

operations

61.5%

10050

On the impact of RFID and EPCIS on traceability management: a mathematical model by Eleonora Bottani

ROI RFID Model

RFIDBENEFITS

BUSINESS

OBJECTIVES

DRIVERS

KEY

FACTORS

RFID

IMPACT

Automatic

scanningReal time

Information

access

Real time

locations

visibility

Unique

Serial Numbers

Manual operations

reduction and

automation

Lead times

reduction

Standards

based

Materials

flow

enhancement

Detailed

distribution

routes

Inventory level and

location in real time

Automatic and real timeScanning and

Conciliations

Distribution

information

Global

Standards

Operational

Efficiency

Track &

Trace

Low

Costs

Service Level

Quality

Peru

Call for Volunteers

1 Day RFID System Study worth RM10,000

&

iPod Shuffle

www.smartag.my

Auto-ID Technology Usage

Finished Goods Tracking

� Current system relies very heavily on barcode & serial no.

� When there is order, warehouse ship out the right goods with the right model

and amount.

� It is challenging when production/order is at peak times.

� Wrong shipment and double handling of cargo has been proven to be costly

for manufacturers. RFID comes into play!

Barcode Process Flow

production line

conveyor belt

doorway out of

production line area

LOADING BAY

manual barcode scan

(handheld) done at

this point

Production����

Palletization���� Barcode Scan����

Physical Tally����

Loading����

Printing and

sticking of

barcode label

done at this

point

PALLETIZATION

AREA

RFID Process Flow

production line

conveyor belt

Production����

Palletization����

PALLETIZATION

AREA

Printing and

sticking of

barcode with

RFID label

done at this

point

RFID doorway

scan out of

production line

area

LOADING BAY

Loading����

RFID Check-out Scan����

RFID scan

done at gate-

OUT

Optimized Process Flow

ProductionPalletizatio

n

Bar Code

Scanning

Physical

Tally

Typical Process Flow

ProductionPalletizatio

n

RFID

Scan

Improved Flow with RFID

LOADING

www.smartag.my

Example of RFID Usage

Loading Bay System

� Factory and Warehouse are normally some distance apart. Some even

10-15 mins away. Wrong shipment to the wrong bay, and wrong amount

of

materials are common.

� The Solution:

� Install RFID Reader at Guard House / Main Entrance

� Scan container with RFID, compare with order with system, BIG

display of LCD Screen to show which bay to go to.

� At bay, RFID reader will scan, if wrong container coming in, buzzer

will

alarm.

www.smartag.my

Example of RFID Usage

Container Tracking

� Some factory practice Just-In-Time (JIT) manufacturing process where raw

materials are delivered to factory area 2 hours before consumption.

� Sometimes, materials arrived late or insufficient amount were delivered.

� In addition, mechanical seal is applied for every shipment to/fro, costly in the long

run.

� The Solution:

� Use RFID re-useable e-Seal (safe cost)

� Containers leaving/entering warehouse or factory is scanned; we know the

cargo arrives late/early everytime.

� If wrong materials is send, give alarm, action taken immediately.

RFID Tag

EPCIS in Supply Chain

e-Logistic Tracking

11 22

1. Truck is affixed with RFID Seal at the warehouse after stuffing.

2. Handheld reader is used to initialize outgoing container e-seal or verify

incoming shipment of container with RFID Seal.

3. Information are transmitted via GPRS or WiFi to Smartack™ server

33

RFID Cargo shipment TagContainer Truck

Handheld with

Active ReaderCentral Server

Tracking at Check Points

Check Point 2

Seal Status: Lock

Tempered: No

Within Allowed Time: Yes

CLEAR TO GO

Seal Status: Lock

Tempered: YES

Within Allowed Time: Yes

TEMPERED! Retain for

Checking

Check Point 1

Seal Status: Lock

Tempered: No

Within Allowed Time: NO

Suspicious! Exceed

allowed travel time

www.smartag.my

Example of RFID Usage

Trolley Tracking

� Trolleys / RTIs are most common asset in the factory. Like others, they

go missing too. Misplaced, “Mislocated”, etc..

� The Solution:

� Install RFID Reader as Choke Points/Portal in Warehouse & Factory

� Scan trolleys going IN/OUT of the two premises, and store

information in backend database.

� Web user interface provides management with statistics of

tracking

real-time.

Thank you

“USE US TO GET AHEAD”