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© 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
3© 2009 S3Edge Inc. All Rights Reserved.
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.
4© 2009 S3Edge Inc. All Rights Reserved.
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
© 2009 S3Edge Inc. All Rights Reserved.
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
6© 2009 S3Edge Inc. All Rights Reserved.
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
7© 2009 S3Edge Inc. All Rights Reserved.
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
8© 2009 S3Edge Inc. All Rights Reserved.
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
9© 2009 S3Edge Inc. All Rights Reserved.
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
10© 2009 S3Edge Inc. All Rights Reserved.
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
11© 2009 S3Edge Inc. All Rights Reserved.
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
© 2009 S3Edge Inc. All Rights Reserved.
3 phases of a RTVS deployment
Observe Direct Improve
© 2009 S3Edge Inc. All Rights Reserved.
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
© 2009 S3Edge Inc. All Rights Reserved.
Observe Phase: Investment needed
RFID Tags
Locations
Pallets/Totes
Cases/ItemsHardware Components Software (RTVS) Components
© 2009 S3Edge Inc. All Rights Reserved.
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
© 2009 S3Edge Inc. All Rights Reserved.
Direct Phase: Investment needed
Devices
Vehicle mount displays
Handheld Readers
Stack lights and other displaysHardware Components Software (RTVS) Components
© 2009 S3Edge Inc. All Rights Reserved.
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.
© 2009 S3Edge Inc. All Rights Reserved.
Re-cap: 3 phases of a RTVS deployment
Observe Direct Improve
19© 2009 S3Edge Inc. All Rights Reserved.
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
20© 2009 S3Edge Inc. All Rights Reserved.
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
21© 2009 S3Edge Inc. All Rights Reserved.
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
22© 2009 S3Edge Inc. All Rights Reserved.
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
23© 2009 S3Edge Inc. All Rights Reserved.
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
24© 2009 S3Edge Inc. All Rights Reserved.
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
© 2009 S3Edge Inc. All Rights Reserved.
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
26© 2009 S3Edge Inc. All Rights Reserved.
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
27© 2009 S3Edge Inc. All Rights Reserved.
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!
28© 2009 S3Edge Inc. All Rights Reserved.
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
29© 2009 S3Edge Inc. All Rights Reserved.
Appendix
30© 2009 S3Edge Inc. All Rights Reserved.
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