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Get Ready… Get Set… GO ! From Evaluation to Action Moving RFID Projects Beyond the Pilot Phase

Get Ready… Get Set… GO ! From Evaluation to Action Moving RFID Projects Beyond the Pilot Phase. Professor Bill Hardgrave, Director RFID Research Center, University of Arkansas Joe White Vice President, RFID Motorola Enterprise Mobility Solutions. Motorola RFID Solutions. RFID Evolution.

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Get Ready… Get Set… GO ! From Evaluation to Action Moving RFID Projects Beyond the Pilot Phase

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  1. Get Ready… Get Set… GO!From Evaluation to ActionMoving RFID Projects Beyond the Pilot Phase Professor Bill Hardgrave, Director RFID Research Center, University of Arkansas Joe White Vice President, RFID Motorola Enterprise Mobility Solutions Motorola RFID Solutions

  2. RFID Evolution Closed Loop In-Company Value Beyond UHF, Beyond HF. . . Value Beyond Middleware Horizontal Asset Management Item-Level Benefits Before Supply Chain RFID Sensing Technology Value Beyond The Supply Chain Industries & Applications • Closed Loop Defining Factor • Proven Business Value/ROI • Unplanned, New Applications Technologies • Gen 2 Success • Proliferation of Locationing Technologies • Multi-Technology Integration

  3. Supply Chain Management Govt. Transp. & Logist. Manuf. Retail Item Level Visibility Cold Chain - Perishables Aviation/Baggage Tracking Where It’s At . . . Aggressive Growth in Defined Markets Retail Here and Now Asset Management 2009 and Beyond Leading Adoption

  4. From Evaluation to Action • Getting Ready • Education | Evaluation • Getting Set • Deployment Definition • GO! • When? How Deep?

  5. At The End of The Day, A Better Way To Count! The Technology Works! • Validating the Application, Not the Technology • Buying Solutions / Solution Sets, Not a Product Getting Ready Getting Ready • Education • Technology Evaluation • Management/Stakeholder Buy-In • Data Ownership • Business Process Analysis

  6. Is RFID the Right Fit? High Number of SKU’s High Valued Items High Velocity Items Closed Loop Reusable Traceable Tagging Logistics Business Process Analysis • Will identify: • Needed Read Points • Data Flow • Low Hanging Fruit • Output: • Determine Technologies • Identify Stakeholders • Target Areas of Benefit Its a mandatory process that will determine your success or failure!

  7. Technology Evaluation Capability Range Costs Environment Innovation Curve Data Capacity Asset Requirements Geography Security Industry Traction The Right Identification Technology may be a combination of technologies Range UWB Local WIFI Battery Assisted UHF UHF RFID Vicinity Barcodes EAS Proximity HF/NFC Cost

  8. Getting Set Getting Set • Communicate Out • Clearly Defined Pilot • Set Measureable Goals • Avoid Scope-Creep • Site Surveys • Technology Selection • 100% Science, 0% Art • Ecosystem Build Out • SW, HW, Integration • Complete Solution vs. Ad Hoc • Industry/Deployment Expertise Start Somewhere. . .

  9. GO! • Validation • Expectations/Assumptions • Evaluate Lessons Learned • Adjustments • When to go Open Loop? • Prepare/Espouse Consumer Privacy Objections GO ! Follow the Early Leaders . . .

  10. RFID at AA

  11. Overview • In the beginning: • Wholesale clothing (t-shirts) began in 1998 • Emphasize vertical integration, sweatshop-free, American made products • Pro-labor philosophy • First retail store in Montreal in 2003 • Today: • Retail is composed of 240 stores and growing • AA employs over 9000 • Wholesale represents half of revenue - approx. 65% of sales • One manufacturing facility located in downtown L.A.

  12. Getting Ready - Environment • Closed-loop system • Made in U.S.A. • Quick Inventory turnover • 26,000+ SKU’s • Boutique sales floor • Inventory management labor intensive • Young, enthusiastic employees Getting Ready

  13. Pilot Goals • Test RFID capabilities for accuracy, performance and adaptability. • Increase visibility thru item level tagging • Effective management of inventory • Improve accuracy/reliability • Decrease labor and margin for human error • Keep sales floor @ 100% • Keep it simple • Low Impact Getting Ready

  14. Hardware • Matching the appropriate hardware to solution. • Motorola/Symbol 9090 handhelds for “cycle counting” • Motorola/Symbol XR440 Readers w/ AN400 antenna’s @ Portals • IntelliPads @ Commissioning Station

  15. Software • TrueVUE Essentials • Out of box functionality to address RFID goals • Test hardware • U.S. company • Location near factory

  16. RFID Tags • Avery Dennison AD222 hang tag and sticker tag • Performance vs. form factor • Durable/reliable • Attach with existing price tag • Reusable

  17. Location for Pilot • Columbia University store in NYC • Average sales comparably • Large stockroom • Dedicated staff • Location/resources • Exit strategy Getting Set

  18. Getting Set - Installation • Hardware • Network • Portals/stairwells • Commissioning stations • Black boxes for POS/transfers • 2 Handhelds • Insulate metal shelving • Software • Server • Commissioning • Handheld • Testing • Accurate reads • Speed • Reliability • Staff acceptance

  19. Getting Set - Preparation • Remove unnecessary inventory • Tagging • 100% of inventory • Commissioning • 4 stations consisting of: • IntelliPad • Barcode scanner • PC w/ VUE commissioning software Getting Set

  20. Inventory Management • Scanning/counting • Sales floor – 1 Zone • Stockroom – 22 Zones • Movement of product • Stairwell portals • Between front and backroom • Receiving new product/incoming transfers • Tag/commission • Cycle count to inventory • Maintain 100% sales floor occupancy • Using all capture points w/ VUE software • Real-time reporting

  21. Results Counting inventory using 2 handhelds • Sales floor • 2 people, 2 hours • Approx. 12,000 items • Validations proved 99+% accuracy • Stockroom • 2 people 3.5 hours • Approx. 28,000 items • Item counts proved 99% accuracy Moving inventory through portals • Capturing items moving between backroom and front • 80+% accuracy using traditional carrying methods • 90+% accuracy with modified methods GO !

  22. Lessons Learned Handhelds Performance 90 degree rule Lag/hesitation Long range reads Shadowing of tags Folded items: fluff tags with free hand Hanging items: separate and shake hangers Metal Contact interference RF barrier Hangers: orient handheld below hangers Fixtures on wall: spacers

  23. Captures at portals More product = lower accuracy Carry less items Shake items in-front of antenna to expose tags Reads through walls and RF reflection Create shielding Adjust attenuation and angle of projection Operations Wrongly encoded tags Flawed inventory data Handheld misuse Lessons Learned

  24. It’s Going • Enterprise system up and running • Source tagging at L.A. factory • Santa Monica Store • Immediate sales increase of 15% • Removed over 60 hours of labor/week • 20 stores in NYC RFID ready • Tagging At Manufacture • Challenge: tagging store’s current stock • 700,000+ items in NYC alone • Store level tagging when receiving transfers GO !

  25. READY Commitment Definition SET 1 Store 40K Items GO! 20 Store Roll-Out 800K Items Toward Better Counting 4 Months 5 Months 6 Months National Rollout => NOV • 225 Stores

  26. Get Ready… Get Set… GO!From Evaluation to ActionMoving RFID Projects Beyond the Pilot Phase Motorola RFID Solutions Thank You!

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