Integrated Logistics Scenarios
April 15, 2005
22 Integrated Logistics Scenarios
2005 RosettaNet. All Rights Reserved.
Synergy of Integrated Standards The Key is Aligning All Three eBusiness Flows
InformationPhysicalFinancial
Aligning the Information and Physical Flows… Aligning the Information and Physical Flows… • Enables immediate visibility to the total supply chain • Reduces operating costs• Improves delivery speed• Increases customer satisfaction
Aligning the Financial and Information Flows…Aligning the Financial and Information Flows…• Enables automated accounts receivables• Credits customer accounts immediately to allow additional purchases• Provides faster visibility to funds and improves investment speed
SupplierCustomer
33 Integrated Logistics Scenarios
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Synergy of Integrated Standards Gain Synergy by Aligning All eBusiness Flows
SupplierCustomer
Logistics Service Provider
Info Flow: Request Purchase Order
Info Flow: Request Shipping Order
Physical Flow: Deliver Product
Financial Flow: Credit Advice from Bank
44 Integrated Logistics Scenarios
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Synergy of Integrated Standards Aligning the Movement of Products and Information
SupplierCustomer3. Notify Advance Shipment (PIP 3B2) with Serial Shipping Container Codes (SSCC)
3. Notify Shipping Documentation (PIP 3B18) (with SSCCs)
4. RFID tags appliedto containers and pallets using supplier-defined SSCCs
Logistics Service Provider
1. Request Purchase Order (PIP 3A4)
RFID Read aligns with PIP®
PIP® Initiates Shipment
2. Assign Serial Shipping Container Codes (SSCCs)5. RFID read
automatesshipping receipt using SSCCs
EPC#: BLUE
01103760
55 Integrated Logistics Scenarios
2005 RosettaNet. All Rights Reserved.
3. Payment Instructions (SWIFT XML with URI)
Synergy of Integrated Standards Aligning the Movement of Currency and Information
SupplierCustomer
Customer’s Bank Supplier’s Bank
1. Notify Invoice (PIP 3C3)
PIP® Initiates Bank Payment
4. Interbank Clearing on legacy systems forwarding URI with funds
3. Notify Remittance Advice (PIP 3C6) with Unique Remittance Identifier (URI)
5. Credit Advice(SWIFT XML with URI)
URI is the key to enable sellers to automate
accounts receivablesQuicker visibility of funds
2. Assign Unique Remittance Identifier (URI)
66 Integrated Logistics Scenarios
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RFID and Unique Codes Introduction
Radio Frequency Identification (RFID) solutions utilize a combination of standards
– Tags are labels with microchips that emit radio signals
– Readers are devices that pick up the radio signals
– Codes provide unique identification numbers to track pallets, cartons, and serialized items
– Information is associated with each code to provide visibility into the supply chain
77 Integrated Logistics Scenarios
2005 RosettaNet. All Rights Reserved.
• Serial Shipping Container Code (SSCC)
– 18 digit code used to uniquely identify a case, pallet or container
– Could be used as both barcode and/or encoded on a RFID tag
– RosettaNet PIPs® 3B2, 3B12, 3B13 and 3B18 include container ID: ShippingContainerIdentifier.ProprietarySerialIdentifier
RFID and Unique Codes Unique Container and Pallet Codes
72 bit code
Serial Extension Company CheckSerial Number
0 081123400 2304596 2 SERIAL SHIPPING CONTAINER CODE
Extension Digit4 bits
Company Prefix36 bits
Serial Reference28 bits
Check Digit4 bits
88 Integrated Logistics Scenarios
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RFID and Unique Codes Using Container Codes with RFID Tags and Readers
Container code stored on RFID Tag2
EPC#: BLUE
01103760
Reader reads Code from RFID Tag 4
EPC#: BLUE
01103760
RFID Tag applied to container or pallet3
UniqueContainer
Code
1 Unique Container Code assigned
Serial Extension Company CheckSerial Number
0 081123400 2304596 2 SERIAL SHIPPING CONTAINER CODE
Extension Digit4 bits
Company Prefix36 bits
Serial Number28 bits
Check Digit4 bits
EPC#: BLUE
01103760
99 Integrated Logistics Scenarios
2005 RosettaNet. All Rights Reserved.
• Electronic Product Code (EPC)
– Adopted GTIN Structures– Support up to 288M Companies, 16M Object Classes,
and 68B serial numbers– Encoded on a RFID tag – Versign to run an EPC code registry
RFID and Unique Codes Unique Serialized Product Code
Header Company SKU Serial Number
01 . 0000A89 . 00016F . 000169DCOELECTRONIC PRODUCT CODE TYPE 1
Header8 bits
EPC Manager28 bits
Object Class24 bits
Serial Number36 bits
96 bit code
1010 Integrated Logistics Scenarios
2005 RosettaNet. All Rights Reserved.
Overview of ApproachesDocument Exchange Collaboration
• Pallet and box identification keys carried on RFID chips will be used in existing eBusiness documents
• How partners exchange PIPs® will remain largely unchanged
• Visibility to supply chain information is dependent on individually predefined TPA’s
1111 Integrated Logistics Scenarios
2005 RosettaNet. All Rights Reserved.
Document Exchange Collaboration Order-to-Cash eBusiness Process
Suppliers
Logistics Service Provider
7. Notify Shipment Receipt (PIP 4B2)8. Notify Invoice (PIP 3C3)
4. Request PO Change (PIP 3A8)
Customer
6. Notify Advance Shipment (PIP 3B2)
9. Notify Remittance Advice (PIP 3C6)9. Financial Payment – Bank Credit Advice
PhysicalInformation
Legend – B2B Flows
Financial
1. Delivery of Products per Agreement
2. Request Purchase Order (PIP 3A4)
3. Distribute Inventory
Report (PIP 4C1)
5. Request Shipping Order (PIP 3B12)
Confirm Order
Confirm Change
7. Receipt of Products by Customer
6. Shipment of Products for Customer PO
RFID Read Initiates PIP®
PIP Initiates Bank Payment
RFID Read Initiates PIP
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Document Exchange Collaboration Inventory Mgmt (VMI) eBusiness Process
Suppliers
Logistics Service Provider
6. Notify Consumption (PIP 4B3)
7. Notify Invoice (PIP 3C3)
2. Notify Forecast Reply (PIP 4A5)
Customer
6. Notify Consumption (PIP 4B3)
9. Notify Remittance Advice (PIP 3C6)9. Financial Payment – Bank Credit Advice
PhysicalInformation
Legend – B2B Flows
Financial
2. Distribute Inventory Report (PIP 4C1)
1. Notify Threshold Release Forecast (PIP 4A3)
3. Notify Advance Shipment (PIP 3B2)
3. Shipment of product
8. Receipt of Products by Customer
7. Shipment of Product
PIP Initiates Shipment
PIP Initiates Bank Payment
RFID Read Initiates PIP
PIP® Initiates Shipment
4. Notify Shipment Receipt (PIP 4B2)RFID Read
Initiates PIP
4. Shipment Receipt
8. Notify Shipment Receipt (PIP 4B2)
7. Notify Advance Shipment (PIP 3B2)
RFID Read Initiates PIP
RFID Read Initiates PIP
1313 Integrated Logistics Scenarios
2005 RosettaNet. All Rights Reserved.
Document Exchange Collaboration International Shipment eBusiness Process
Supplier Logistics Service Provider
Customer
2. Confirm Shipping Order (PIP 3B13)
1. Request Shipping Order (PIP 3B12)
3. Notify Advance Shipment (PIP 3B2)
4. Notify Shipping Doc-SED/Cert. Origin/Com. Invoice (PIP 3B18)
5. Distribute Shipment
Status(PIP 3B3)
6. Notify Shipment Doc for Customs Declaration (PIP 3B18)
5. Distribute Shipment Status (PIP 3B3)
5. Distribute Shipment Status (PIP 3B3)7. Notify
Shipment Receipt(PIP 4B2)
5. Shipment Arrives at Customs
PhysicalInformation
Legend – B2B Flows
Financial
PIP® Initiates Shipment
4. Product Shipment
RFID Read Initiates PIP
7. Shipment ReceiptBy Customer
RFID Read Initiates PIP
6. Shipment Clears Customs
Import Customs Carrier
Integrated Logistics Scenarios© COPYRIGHT 2005 ROSETTANET – ALL RIGHTS RESERVERD14
Summary
• RFID can be implemented today to automate logistics processes
• Relevant RosettaNet PIPs® support SSCC codes
• RosettaNet is working with EPCglobal to ensure standards alignment