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Getting Your Business Ready for RFID Western Pallet Association January 23, 2006

AND. Getting Your Business Ready for RFID Western Pallet Association January 23, 2006. Introduction. Pat Winters Executive VP and Founder at Hunter Paine Enterprises Working diligently to bring Lexite™ to market Recently developed the SmartStick™ for RFID enabled pallets

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Getting Your Business Ready for RFID Western Pallet Association January 23, 2006

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  1. AND Getting Your Business Ready for RFID Western Pallet Association January 23, 2006

  2. Introduction • Pat Winters • Executive VP and Founder at Hunter Paine Enterprises • Working diligently to bring Lexite™ to market • Recently developed the SmartStick™ for RFID enabled pallets • Excited to introduce IBM and the pallet industry’s first On Demand Solution for RFID enabled pallets • Mike Sorensen • Member of the IBM Global Services Group • On Demand technology provider for all aspects of Hunter Paine • High tech solutions provider with a passion for solving customer problems and creating unique solutions • Industry leader in the implementation of RFID business solutions

  3. Discussion Agenda • Lexite™ and SmartStick™ Overview • IBM and RFID • On Demand Business Model • Implementing On Demand RFID Solutions • Next Steps

  4. Lexite™ Update • HPE is working diligently to develop the manufacturing capabilities necessary to bring Lexite™ to the market in quantity • Recent test results show Lexite™ consistently outperforms wood • Lexite™ will enhance pallet pool performance and increase value of legacy pallet assets

  5. New patent pending technology from Hunter Paine Enterprises Creates value for the logistics and transportation industries Quick, inexpensive, reliable, and permanent method of mounting RFID tags to pallets Meets customer requirements for RFID compliance The RFID Enabled Pallets The SmartStick™

  6. Why RFID enabled pallets? • Creates an additional revenue stream for the pallet manufacturer • Enhances your credibility with your customer base • Opens a new market and additional sales potential • Broadens your product base • Provides a viable RFID solution to your customer IBM provides the infrastructure to make RFID enabled pallets and the SmartStick™ viable

  7. Questions and comments I’ve heard from you . . . • How can I make money with RFID? • Where am I going to get the money to get started? • RFID is way too complicated to understand and it is changing every day • EPC can’t get their act together with a defined direction • I’m only the pallet provider. Why do I have to drive RFID to the market? • I can’t imagine an Industry Provider taking responsibility for implementing the solution for pallets

  8. Radio Frequency Identification (RFID) for the Pallet Industry Mike Sorensen IBM Global Services

  9. RFID capabilities at IBMOn Demand Business ModelImplementing On Demand RFID Solutions in the Pallet IndustryIBM, HPE and YOU - Next Steps

  10. Why am I here? • IBM is a leader in the commitment to RFID implementation • Infrastructure from the pallet manufacturer is essential • IBM needs a solid foundational block for future success • We want to apply the RFID solution to the pallet industry • We have the know how and resources to make it work

  11. IBM’s RFID Capabilities • End-to end design, deployment and maintenance • Services, hardware and software • Business case justification • Strategy and roadmap development • Solution design, choice of technologies and standards • In house state of the art RFID test facilities • Pilot testing • Enterprise deployment • Hosting and outsourcing • On demand business model • Financing

  12. IBM On Demand Business Model • Access to expertise of IBM and RFID industry leading technology • One stop shop – IBM handles it all • Hardware, software and middleware design and implementation solutions are the responsibility of IBM • Pallet logistics and tracking are your responsibility • With the right business model, IBM can help finance • You pay for the RFID system as you use it • Upfront initiation fee • Pennies per month per pallet IBM manages the technology, you manage the pallets

  13. RFID Enabled Pallet Framework Data Integration (Data Warehouse) Fortune 1000 Pallet Users (FMCG) RFID Infrastructure Providers Pallet Manufacturers

  14. Logistics Model Your Customer A HUB 1 Your Customer A HUB 2 Your Customer A (You) Pallet Manufacturer/ Aggregator Your Customer B Your Customer D Your Customer C Model Driver: Everyone Needs to Make Money

  15. Logistics Model Your Customer A HUB 1 Your Customer A HUB 2 Your Customer A HUB (You) Pallet Manufacturer/ Aggregator Data Collection Your Customer B Your Customer D Your Customer C Model Driver: Everyone Needs to Make Money

  16. Logistics Model Your Customer A HUB 1 Your Customer A HUB 2 Your Customer A HUB (You) Pallet Manufacturer/ Aggregator Data Collection Your Customer B Your Customer D Your Customer C Model Driver: Everyone Needs to Make Money

  17. Logistics Model Your Customer A HUB 1 Your Customer A HUB 2 Your Customer A HUB (You) Pallet Manufacturer/ Aggregator Data Collection Your Customer B Your Customer D Your Customer C Model Driver: Everyone Needs to Make Money

  18. Logistics Model Your Customer A HUB 1 Your Customer A HUB 2 Your Customer A HUB (You) Pallet Manufacturer/ Aggregator Data Collection Your Customer B Your Customer D Your Customer C Model Driver: Everyone Needs to Make Money

  19. Illustrative Benefits to you and your customer from RFID Revenue Cost Operational Effectiveness • Improved product availability on shelf • Increased cross channel selling opportunities • Enhanced ‘point of decision’ sales capabilities • Improved product visibility • Improved asset & labor visibility • Improved data accuracy • Reduced handling requirements • Greater temperature & rotation capability • Improved planning, forecasting & allocation • Reduced labor costs • Lower shrink costs • Lower inventory costs • Reduced reconciliation costs • Reduced returns costs IncreasedProfitability Source: IBM Business Consulting Services analysis, Auto-ID Center

  20. What IBM needs from the pallet industry: • Your logistics and industry expertise • Closed loop durable pallet pools from your customer base • For RFID implementation, we need to be able to track the pallets • We need solid shipping platforms that will last (Lexite™) • Understand the value • We need to know what it is worth to you and your customer • to know what is on that pallet and • to know where the pallets are • We need to develop a financially sound business model

  21. What IBM needs from the pallet industry: • Access to end users • We need to use your relationships and customer base • We need Fortune 1,000 companies with committed RFID initiatives and a budget to move forward • Warehouse to warehouse local implementation • Formal and informal pallet industry organizations to integrate for national distribution • Commitment • We need a commitment to move forward together over a period of time. RFID implementation will not happen overnight. • We need a commitment from you to provide the industry expertise • Start Small – Grow Quickly Everyone needs to make money!

  22. Call me . . . So we can learn and implement RFID together Mike Sorensen IBM Global Services 4000 Executive Parkway, Suite 300 San Ramon, CA 94583 (925) 277-5035 msorense@us.ibm.com

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