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RFID World Lexar Webinar - final
- 1. Lexar Media Streamlines Manufacturing and Warehouse Operations with RFID March 25, 2008
- 2. Agenda Lee Mar Senior Logistics Analyst & RFID Project Lead Edwin C. Winder Executive VP Laurie Sullivan RFID World Site Editor Joe White VP of RFID Business Development & Marketing
- 3. RFID World Laurie Sullivan RFID World Site Editor
- 4. Lexar Lee Mar Senior Logistics Analyst & RFID Project Lead
- 5. Lexar Media Overview • Subsidiary of Micron Corporation • > $700 M in revenues • Maker of USB jump drives, memory cards for cameras, video recorders, PDA, digital picture frames • Supplier to Wal-mart, BestBuy, Target, Kodak, Officemax • Headquartered in Fremont, CA with operations worldwide
- 6. Lexar’s Supply Chain • Number of Active SKUs – 200+ • Avg. Monthly Shipments – 30,000+ (4000+ Wal-Mart) • Orders are typically shipped in cartons and pallets • Shipped via Fedex, UPS and other LTL Carriers • Outsourced Transportation & Logistics to 3PL providers • Typical Order To Shipment Time – 5 days • Peak Period – Black Friday, Christmas holidays IT Infrastructure • ERP: SAP • WMS: Leverage 3PL’s application • Shipping Software: Leverage 3PL’s software • EDI support: ASN, PO, Invoice
- 7. Lexar Operation Overview Vendor 1 Vendor 2 Vendor n Port of Origin Port of Destination Warehouse 1 Warehouse 2 Warehouse n Carrier Asia USA Customers
- 8. Inside the Warehouse Orders Purchases Production Process Barcode Support Planning Manufacturing FulfillmentPurchasing InspectInspect ReceiveReceive ShipShip PackPack DirectedDirected PickPick Cost Kitting WIP Transfer Count Move Replen- ish Label Putaway
- 9. Inbound Distribution Visibility Challenges Warehouses & Distribution Centers Inventory Mgmt Challenges • Inaccurate inventory stock • Inventory shrinkage • Limited work-in-process visibility Order Mgmt Challenges • Inaccurate order receipts & fulfillment • Delayed proof of receipts & delivery • Short-receipts and mis- shipment of merchandise DC Performance Challenges • Inefficient utilization of warehouse resources • Higher labor costs resulting in higher costs of processing an order • Loss of productivity • What is my production status? • What is my order status? • How much inventory do I have? • How much do I have to make to fulfill my orders for the day? • Where are all my assets that need to be serviced?
- 10. • Improve shipment accuracy by eliminating count errors, reduce shrinkage • Improve order fulfillment by reducing shipment errors, decrease costs and increase quality • Improve financial reconciliation by providing accurate, on- demand shipment and delivery information Key Business Drivers Improved visibility, security and quality are key drivers
- 11. Lexar’s Business Requirements • Manage orders in real time • Optimize 3PL operations for sustained competence • Strengthen cross-functional collaboration to improve efficiency • Get visibility into the complete shipment lifecycle at 3PL and at customer’s DC
- 12. RFID Implementation Roadmap 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 Phase I: Pilot Phase II: Beyond Compliance Phase III: Operational Biz Intelligence -Number of RFID Tags – Per year WalMart Compliant visibility in the shipping process (Select SKUs & DCs) Extended Solution • Visibility into kitting, packing, staging, shipping and ship confirm processes Control of the entire shipment lifecycle • Central monitoring dashboard • integrating operational data with goods receipt acknowledgements SmartDC – Distribution Visibility Platform 2M 1M 500k
- 13. RFID Infrastructure RFID Label Print Stations RFID Enabled Forklifts RFID Enabled Lines RFID Enabled Dock Door KeyTone SmartDC ERP WMS Supplier ID 43979 Supplier Name Jack & Tobbs Report Date Checked Out Date Container ID 1/3/2007 J-90440403 81 4/5/2007 J-90440413 10 7/5/2007 J-91034402 1 8/5/2007 J-09791888 23 13/5/2007 J-90891066 2 20/6/2007 J-09906597 45 3/7/2007 J-90770555 56 10/7/2007 J-77975041 5 23/7/07 J-77953292 7 15/8/07 J-95584221 9 1/6/2007 to 31/6/2007 Days Outstanding Visibility Dashboards KPI Reports Supplier ID 43979 Supplier Name Jack & Tobbs Report Date Checked Out Date Container ID 1/3/2007 J-90440403 81 4/5/2007 J-90440413 10 7/5/2007 J-91034402 1 8/5/2007 J-09791888 23 13/5/2007 J-90891066 2 20/6/2007 J-09906597 45 3/7/2007 J-90770555 56 10/7/2007 J-77975041 5 23/7/07 J-77953292 7 15/8/07 J-95584221 9 1/6/2007 to 31/6/2007 Days Outstanding Supplier ID 43979 Supplier Name Jack & Tobbs Report Date Checked Out Date Container ID 1/3/2007 J-90440403 81 4/5/2007 J-90440413 10 7/5/2007 J-91034402 1 8/5/2007 J-09791888 23 13/5/2007 J-90891066 2 20/6/2007 J-09906597 45 3/7/2007 J-90770555 56 10/7/2007 J-77975041 5 23/7/07 J-77953292 7 15/8/07 J-95584221 9 1/6/2007 to 31/6/2007 Days Outstanding
- 14. RFID enabled warehouse Orders Purchases Production Process InspectInspect ReceiveReceive ShipShip PackPack DirectedDirected PickPick Cost Kitting WIP Transfer Count Move Replen- ish Label Cross Dock Putaway Tags are applied at manufacturing with unique UPC ID for each case These cases are picked against an order Cases shipped as-is or in pallet. Shipment label created with unique UPC ID for every shippable container Contents of each container verified with the customer PO Forklift operator directed to specific dock door to load when pallet is picked
- 15. Benefits from RFID • Improved inventory accuracy by eliminating count errors • Improved accuracy in shipments • Improved customer service and satisfaction levels • Reduced overall operating costs • Cost-effective Sarbanes-Oxley compliance • Real-time business information for better decision- making • Ability to scale up and down to meet seasonal demands — without requiring additional investment
- 16. KeyTone Technologies Edwin C. Winder Executive VP
- 17. KeyTone Overview • End-To-End Visibility for Operational Excellence – That’s What We Do ! • Our goal is to simplify RFID adoption and help enterprises improve visibility, efficiency and agility • 50+ Global 1000 customers • Strong partnerships with leading RFID technology companies • Provide end-to-end solution by leveraging our software platforms • SmartDC – Distribution Visibility • SmartWIP – Work-In-Process Tracking • AssetTrace – Asset Lifecycle Management
- 18. SmartDC – Distribution Visibility Platform • Automate Receipt Reconciliation • Eliminate Material Movement & Put-Away Errors • Conduct Accurate Cycle Count Faster • Real time work in process tracking • Improve line utilization • Automate order verification • Eliminate mis-shipments
- 19. Solution For Every Supply Chain Challenge Supplier Warehouse Store Inventory Mgmt Challenges • Inaccurate inventory stock • Inventory shrinkage • Limited work-in-process visibility Order Mgmt Challenges • Inaccurate order receipts & fulfillment • Delayed proof of receipts & delivery • Short-receipts and mis- shipment of merchandise DC Performance Challenges • Inefficient utilization of warehouse resources • Higher labor costs resulting in higher costs of processing an order • Loss of productivity In-Transit Visibility Solution • Real Time truck & load tracking • Reduce loading & shipment errors Inventory Mgmt Solution • Improved inventory accuracy • Up-to-date inventory location • Assembly/Kitting WIP accuracy Order Mgmt Solution • Accurate receipt/shipment verification with order info • Auto receipt acknowledgement, ship confirm • Faster and accurate order fulfillment DC Performance Solution • Improved dock-to-stock time • Improved line utilization • Increased throughout
- 20. Approach to Lexar Implementation • Phase I • Translated Lexar’s vision into measurable objectives • Enabled existing shipping process with RFID • Deployed SmartDC Express – Small footprint solution to get Lexar compliant with Wal-Mart’s mandate • Leveraged RFID information to deliver custom reports to benchmark the processes • Phase II • Enabled tagging at manufacturing to gain increased visibility • Enabled dock doors with RFID to ensure right orders where loaded in the right truck • Leveraged RFID information to handle customer related receiving exception • Enabled a web based portal to deliver reports on demand • Phase III • Upgraded SmartDC Express to SmartDC Enterprise to provide the ability to gain visibility into other distribution processes • Increased “read” opportunities by enabling forklifts with RFID readers and software for load verification • Developed custom reports for order lifecycle management
- 21. Best Practice • Choose a platform that is flexible • Choose a solution that adapts to your processes • Deploy a solution that compliments your existing enterprise applications (ERP, WMS, MES etc.) • Solution should be low maintenance • Ensure that the physics, process and systems work in concert • User Experience is key • Start using RFID information
- 22. RFID Enabled Enterprise Ecosystem KeyTone Operational Business Intelligence Applications enables enterprises to improve efficiency, visibility and agility by leveraging RFID business information for real time decision making
- 23. End-To-End Solutions Approach KeyTone Technologies Motorola Strategic Partnership RFID Hardware Out-of-Box Solutions
- 24. Motorola Joe White VP of RFID Business Development & Marketing
- 25. Motorola RFID At A Glance High Performance Asset Tags “Best Performer - Significant Margin” Visibility Within the 4 Walls RD5000 Mobile Reader Dense-Reader Certified XR Series Fixed Readers MC9000 Handhelds No Comparable Reader On The Market • 20% Market Share* • Established Leadership • RF, Wireless, Mobility Broad Product Portfolio ♦ 300 Combined RFID-Centric Patents ♦ Leader in Deployed RFID – Deep Vertical & Application Experience Industry Leader Wi-NG Wireless & RF Innovation * Handheld & Fixed Readers • Source: EMb Market Intelligence, VDC 2007
- 26. RFID Trends • Supply Chain Slow to Build Out…. …….But Growing! • Modest Velocity of UHF RFID Adoption with “Inflection Point” in 2010 • Active Pilot Activity with Shift From. . . Motorola Vision • Bullish on RFID – Too Much Value/Benefit across Too Many, Already- Entrenched Industries • Increased Mobility with New Form Factors for Application • Increased Manageability with Enterprise Offering • Comprehensive/Integrated Wireless Solution Offering Mandated “open loop” applications (multiple trading partner eco-systems) to. . . …“closed loop”, ROI-driven Applications
- 27. Retail Manuf. Transp. &Logistics Energy Utilities Focus: Small Number of Target Markets with Clear ROI Product Traceability Item Level Visibility Supply Chain Management Asset Management • FOCUS: Retail item level, Aviation • BUILD: Horizontal applications - Asset Tracking / Supply Chain Management • INNOVATE: Food Chain, Cold Chain
- 28. RFID Deployment Lessons Learned • Current deployment practice focused on choke points (E.g. dock doors) • Products transition choke points rapidly • Limited read opportunities with stationary readers - reduced read accuracy • Visibility beyond choke points • It’s in the warehouse – But Where? • ROI per choke point • Dependent on the product traffic through that point • E.g. DCs typically have only 20-30 % of their dock doors active at any one time
- 29. RFID & Mobility - Enhancing visibility and ROI • Material Handling Equipment - MHE has the most interaction with assets – Thus, most read opportunities • Fixed readers not designed for vehicle mounting – Obtrusive cabling/antennas • Increased, granular product visibility • Increased utilization per reader – Investment protection • Increased automation – Real-Time Inventory Cycle Counts – Vehicle Drivers not manually recording Application Spectrum Fixed Readers Mobile ReadersMobile Readers RFID On MHE Increased Efficiency • Handheld readers for Exception Processing – For mobile, operator interaction tasks Mobile Product Set
- 30. Pallet Jacks Skate Wheel Conveyors Forklifts Mobile CartsPallet JacksShrink Wrappers Clamp TrucksPortals
- 31. RD5000 with Interactive Sensing Technologies • Rugged small form-factor with Integrated antenna • 802.11 a/b/g, Bluetooth • Battery-power* • Cutting edge technologies to optimize and automate RFID operations • Proximity sensor • Ultrasonic sensor to detect proximity to pallets, cartons, etc. • Indicates distance to obstructions in the 3-7 foot range • Acceleration sensor • Can detect acceleration (between -2 and +2 g’s) along all 3 axes • Uses include detecting vehicle and fork motion to trigger decision points Proximity Sensor
- 32. Motorola & RFID Experience • Long history in RFID: since 2001 • ISO 2000certified/ mature operations • Global industry experience Innovation • Over 75 years of technology innovation • Broad RF leadership • Over 300 RFID Patents Products • Most complete suite of RFID products in the industry • Wireless, Mobile, Scanning & RFID • RFID Performance Leader
- 33. Lexar RFID Case Study Thank You! For More Information – www.motorola.com/rfid – rfidinfo@motorola.com – Ph: 732 233 3883 – www.keytonetech.com – sales@keytonetech.com – Ph: 888 816 0727 x100
Hinweis der Redaktion
- Thank you Laurie. I would like to thank everyone for attending this Webinar. I hope that thru this discussion, you will see that RFID is more than just a “slap and ship” compliance for WM
- To give you an idea of who Lexar media is…. Sub of Micron Technology Corporation 2. Revenue 700M plus 3 Maker of retail flash products such as USB jump drives, memory cards for point and shoot and digital SLR 4. Some of our customers are WM, Best Buy, Target, Kodak, Office Max to name a few 5. Lexar’s headquarter located in Fremont CA
- Lexar has over 200 active FG SKU’s Monthly shipments of 30,000 shipments Orders are typically shipped in cartons or pallets Lexar has chosen to outsource to a 3PL provider Order cycle time is 5 days Peak Period Holidays and Black Friday ______________________ IT infrastructure Use SAP as our ERP system Use our 3PL’s WMS system for shipping We use EDI system for PO’s, ASN, and invoicing
- Our operational overview at a high level 1)Product is built in a semi-finish good state 2) Shipped from Supplier’s port to a US port 3) Moved to our warehouses 4) Final packaging is completed then shipped to our customers world wide
- Within our warehouses: 1) receive against a PO, inspect the product, then it is putaway 2) A build order is sent to the warehouse where the final retail packaging is completed and built up into case packs 3) A customer order can now be sent to the warehouse for shipping 4) The cases are now shipped as individual cases or as a pallet load
- Lexar was faced with the same challenges that every other manufacturing company has; Some high level challenges that we all ask is What do I have in production? 2) What state is my order in? 3) How much inventory do I have? 4) Do I have enough to make my days shipment? 5) Am I working smart by fully optimizing my resources? Being more specific Is my inventory accurate 2) What is my shrinkage 3) Need better visibility into the mfg process 4) Where there any short ships or over shipments 5) Inaccurate of order receipts 6) Utilization of warehouse resources 7) Loss of productivity
- <number> …those were some of the challenges that lead to these Key Business drivers Improve shipment accuracy 2)Improve order fulfillment by reducing shipping errors 3)Improve financial reconciliation by helping to provide better delivery information
- At the beginning of creating the RFID solution Lexar had some business requirements Manage orders in real time 2) Optimize the 3PL operations 3) Strengthen cross-functional collaborations to improve efficiency 4) Get visibility into the shipment lifecycle at the 3PL and customer’s DC
- Lexar started out with a phase approach In 2004 Lexar became an early adopter of RFID by volunteering to be one of the “Next 200 RFID Suppliers for WM” thus we begun working on Phase 1, which started out meeting WM’s RFID mandate by selecting specific SKUs and shipping to specific RFID enabled DCs. Started small to gain knowledge 2)As we gained knowledge and experience through 2005 we began Phase 2 which was to extend the solution to get more visibility into the whole kitting, pick, pack, and ship process a) It’s here that we realized that we needed more read points b) which translated to more equipment c) we chose Keytone from the beginning because of their Smart DC which was scalable, gave us visibility into the process as we grew , robust enough to allow multiple hardware solutions. This allowed us the flexibility to use Motorola’s 5000 reader 3) In 2007 we started phase 3 which was to extend through the Enterprise by scaling up the Smart DC using the RD500 reader without having to add anymore hardware or software a) now we will be able to visibility and control into the shipment lifecycle thru the central monitoring dashboard 4) So, as you can see in our graph, Lexar started out small consuming about 200K of RFID tags then ramped up to consuming over 1M tags 5) It is key to choose your vendors wisely. Choose ones that can grow as you learn and give you the flexibility to optimize your process as you come to learn what RFID can do for you
- Our RFID infrastructure now has 1)multiple print stations for creating case labels and shipping labels 2)Ability to enable forklift readers 3)RFID enabled conveyor belts 4)RFID enabled dock doors --------------------------------------- All of this is managed through Keytone’s Smart DC. it interfaces with our ERP system, and WMS, 2) Produces Dashboards 3)Can now create KPI (Key performance index) reports
- Now inside of our RFID enabled warehouse and the final phase has been completed we can see What cases are picked for what Sales order 2)If the shipment is either a pallet load or small parcel load 3) Each shipment is verified against the customer PO 4) Forklift operators will be directed to specific dock doors and the pallet will have been verified when it is picked up
- Some of the improvements that we will have gained with RFID: 1)Improved inventory accuracy 2)Accurate shipments that have been electronically verified 3)Abitlity to have real-time information on orders to make a more accurate decision on orders if something changes 4)Ability scale up and down to meet seasonal demands without requiring additional investment …Laurie?
- Choose a platform that is flexible – which can protect your investment by seamlessly scaling as your needs grow Choose a solution that adapts to your processes – which will cause minimal disruption to your existing process and leverage your current workflow Deploy a solution that compliments your existing enterprise applications (ERP, WMS, MES etc.) Solution should be low maintenance - low overhead with the ability to manage it remotely Ensure that the physics, process and systems work in concert - To get the most from RFID, ensure that the physics, process and systems work in concert User Experience is key – make sure that your operators can use the system without any loss of productivity Start using RFID information – this is the only way you will be able to benchmark your supply chain and optimize it for efficiency
- Motorola brings the concept of Wireless Anywhere to RFID from wireless data capture in the field to Motorola’s world of private radio networks in the Campus/Facility. New form factors (Motorola Handsets) provide the future of RFID mobility. Motorola provides the end to end solution, and scalable platforms to manage and scale across the enterprise.
- Retail ILT: 8.7B Baggage: 3.5B Cold Chain: 1B