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Transi'on	
  to	
  RFID	
  -­‐	
  
Challenges	
  and	
  Benefits	
  for	
  Logis3cs	
  Providers	
  and	
  their	
  
Customers	
        	
  
	
  
Port	
  Logis'cs	
  Group	
  	
  
Greg	
  Morello	
  
Chief	
  Marke'ng	
  Officer	
  

	
  
Port	
  Logis'cs	
  Group	
  is	
  a	
  	
  
  Third-­‐Party	
  Logis'cs	
  Provider	
  

   §  Located	
  at	
  Import	
  “Gateways”	
  
   §  Warehousing	
  
   §  Transporta:on	
  
   §  Distribu:on	
  
   §  Value-­‐Added	
  Services	
  
Retail	
  Industry	
  Expert	
  




    Apparel	
  &	
     Household	
      Home	
  	
     Consumer	
  
                                                                         Hardware	
  
   Accessories	
       Appliances	
     Goods	
        Electronics	
  
Mul'-­‐Channel	
  Distribu'on	
  
    RETAILERS	
     MANUFACTURERS	
     INTERNET	
  FULFILLMENT	
  	
  
Cri'cal	
  RFID	
  Capabili'es	
  for	
  
Logis'cs	
  Providers	
  
	
  
       Inbound	
  Scan	
  &	
  Verify	
  
       Pick	
  –	
  Pack	
  (order)	
  Valida'on	
  
       Outbound	
  Scan	
  &	
  Verify	
  
       “Tag	
  Neutral”-­‐	
  on-­‐site	
  prin3ng,	
  bulk	
  encoding	
  
	
  
RFID	
  Challenges	
  for	
  
Logis'cs	
  Providers	
  
	
  
   Scale	
  (data)	
  
   Speed	
  
   Transi'on	
  
          	
  Mul3ple	
  customers,	
  systems,	
  
          capabili3es,	
  technologies,	
  
          hardware	
  types	
  

   	
  
85,133,900	
  




 39,982,700	
  




Cartons	
         Items	
  
Carton-­‐Level	
                        Item	
  Level	
  
Inventory	
  Control	
                  Inventory	
  Control	
  
	
                                      	
  
       Inbound	
  Receipt	
                    Inbound	
  Receipt	
  
       Loca'on	
                               Loca'on	
  
       Quan'ty	
  	
                           Quan'ty	
  
       Outbound	
  Ship	
  Confirm	
            Size	
  
                                               Color	
  
	
                                             Style	
  
                                               Packaging	
  
                                        	
  
                                        Value	
  Added	
  Services	
  
                                             Ki]ng,	
  Repack,	
  
                                             Ticke'ng…	
  
§  RFID	
  	
  Program	
  Goals	
  
     §  Inventory	
  Visibility	
  &	
  Mgmt.	
  
     §  Order	
  Fulfillment	
  Accuracy	
  
     §  RFID	
  Enabled	
  Supply	
  Chain	
  

     §  Warehouse	
  Processes	
  
           §  100%	
  inbound	
  RFID	
  Scan	
  	
  
           §  Pick	
  Valida'on	
  
           §  100%	
  outbound	
  RFID	
  Scan	
  

     §  Realize	
  Benefits	
  of	
  RFID	
  
         tagged-­‐goods	
  at	
  Retail	
  
         Stores….	
  
Benefits	
  for	
  our	
  Clients	
  
	
  
       Accuracy	
  
       Item-­‐Level	
  Inventory	
  Visibility	
  
       Reduced	
  or	
  eliminated	
  “charge-­‐
       backs”	
  
       Compliance	
  with	
  major	
  retailer	
  
       requirements	
  

	
  
Logis'cs	
  Provider	
  Benefits	
  
                                      	
  
                           Produc'vity	
  
                                Accuracy	
  
             Inventory	
  Reconcilia'on	
  
                        Locate	
  Product	
  
              Compe''ve	
  Advantage	
  
Connec'vity	
  Leverage	
  in	
  3PL	
  RFID	
  Model	
  



                     BUSINESS	
  
                     PROCESS	
  




                   INTEGRATED	
  	
  
                     &	
  OPEN	
  	
  
                     SYSTEM	
  


INTER-­‐                                      INTER-­‐
CONNECTIVITY	
                           OPERABILITY	
  
Summary	
  –	
  from	
  the	
  Logis'cs	
  Provider’s	
  
Point	
  of	
  View…	
  
	
  
       Large	
  retailer	
  requirements	
  -­‐	
  as	
  always	
  -­‐	
  will	
  drive	
  RFID	
  
       acceptance	
  and	
  usage	
  
       Benefits	
  are	
  real	
  and	
  measureable	
  for	
  3PLs,	
  manufacturers	
  
       Mul'ple	
  systems	
  /	
  hardware	
  /	
  processes	
  will	
  need	
  to	
  
       peacefully	
  co-­‐exist	
  during	
  the	
  transi'on	
  

	
  

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Greg Morello, CMO, Port Logistics Group (PLG)

  • 1. Transi'on  to  RFID  -­‐   Challenges  and  Benefits  for  Logis3cs  Providers  and  their   Customers       Port  Logis'cs  Group     Greg  Morello   Chief  Marke'ng  Officer    
  • 2. Port  Logis'cs  Group  is  a     Third-­‐Party  Logis'cs  Provider   §  Located  at  Import  “Gateways”   §  Warehousing   §  Transporta:on   §  Distribu:on   §  Value-­‐Added  Services  
  • 3. Retail  Industry  Expert   Apparel  &   Household   Home     Consumer   Hardware   Accessories   Appliances   Goods   Electronics  
  • 4. Mul'-­‐Channel  Distribu'on   RETAILERS   MANUFACTURERS   INTERNET  FULFILLMENT    
  • 5. Cri'cal  RFID  Capabili'es  for   Logis'cs  Providers     Inbound  Scan  &  Verify   Pick  –  Pack  (order)  Valida'on   Outbound  Scan  &  Verify   “Tag  Neutral”-­‐  on-­‐site  prin3ng,  bulk  encoding    
  • 6. RFID  Challenges  for   Logis'cs  Providers     Scale  (data)   Speed   Transi'on    Mul3ple  customers,  systems,   capabili3es,  technologies,   hardware  types    
  • 7. 85,133,900   39,982,700   Cartons   Items  
  • 8. Carton-­‐Level   Item  Level   Inventory  Control   Inventory  Control       Inbound  Receipt   Inbound  Receipt   Loca'on   Loca'on   Quan'ty     Quan'ty   Outbound  Ship  Confirm   Size   Color     Style   Packaging     Value  Added  Services   Ki]ng,  Repack,   Ticke'ng…  
  • 9. §  RFID    Program  Goals   §  Inventory  Visibility  &  Mgmt.   §  Order  Fulfillment  Accuracy   §  RFID  Enabled  Supply  Chain   §  Warehouse  Processes   §  100%  inbound  RFID  Scan     §  Pick  Valida'on   §  100%  outbound  RFID  Scan   §  Realize  Benefits  of  RFID   tagged-­‐goods  at  Retail   Stores….  
  • 10. Benefits  for  our  Clients     Accuracy   Item-­‐Level  Inventory  Visibility   Reduced  or  eliminated  “charge-­‐ backs”   Compliance  with  major  retailer   requirements    
  • 11. Logis'cs  Provider  Benefits     Produc'vity   Accuracy   Inventory  Reconcilia'on   Locate  Product   Compe''ve  Advantage  
  • 12. Connec'vity  Leverage  in  3PL  RFID  Model   BUSINESS   PROCESS   INTEGRATED     &  OPEN     SYSTEM   INTER-­‐ INTER-­‐ CONNECTIVITY   OPERABILITY  
  • 13. Summary  –  from  the  Logis'cs  Provider’s   Point  of  View…     Large  retailer  requirements  -­‐  as  always  -­‐  will  drive  RFID   acceptance  and  usage   Benefits  are  real  and  measureable  for  3PLs,  manufacturers   Mul'ple  systems  /  hardware  /  processes  will  need  to   peacefully  co-­‐exist  during  the  transi'on