"getting your business ready for rfid"
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Getting Your Business Ready for RFIDWestern Pallet Association
January 23, 2006
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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
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Discussion Agenda
• Lexite™ and SmartStick™ Overview• IBM and RFID • On Demand Business Model• Implementing On Demand RFID Solutions • Next Steps
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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
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The RFID Enabled Pallets
• 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 SmartStick™
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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
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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
© 2006 IBM Corporation
Radio Frequency Identification (RFID) for the Pallet Industry
Mike SorensenIBM Global Services
© 2006 IBM Corporation9
RFID capabilities at IBM
On Demand Business Model
Implementing On Demand RFID Solutions in the Pallet Industry
IBM, HPE and YOU - Next Steps
© 2006 IBM Corporation10
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
© 2006 IBM Corporation11
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
© 2006 IBM Corporation12
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
© 2006 IBM Corporation13
Data Integration(Data Warehouse)
Pallet Manufacturers
RFID InfrastructureProviders
Fortune 1000Pallet Users
(FMCG)
RFID Enabled Pallet Framework
© 2006 IBM Corporation14
Logistics Model
Your Customer A
Your Customer B
Your Customer C
(You) Pallet
Manufacturer/Aggregator
Model Driver: Everyone Needs to Make Money
Your Customer D
Your Customer A HUB 1
Your Customer A HUB 2
© 2006 IBM Corporation15
Logistics Model
Your Customer A
Your Customer B
Your Customer C
(You) Pallet
Manufacturer/Aggregator
HUBDataCollection
Model Driver: Everyone Needs to Make Money
Your Customer D
Your Customer A HUB 1
Your Customer A HUB 2
© 2006 IBM Corporation16
Logistics Model
Your Customer A
Your Customer B
Your Customer C
(You) Pallet
Manufacturer/Aggregator
HUBDataCollection
Model Driver: Everyone Needs to Make Money
Your Customer D
Your Customer A HUB 1
Your Customer A HUB 2
© 2006 IBM Corporation17
Logistics Model
Your Customer A
Your Customer B
Your Customer C
(You) Pallet
Manufacturer/Aggregator
HUBDataCollection
Model Driver: Everyone Needs to Make Money
Your Customer D
Your Customer A HUB 1
Your Customer A HUB 2
© 2006 IBM Corporation18
Logistics Model
Your Customer A
Your Customer B
Your Customer C
(You) Pallet
Manufacturer/Aggregator
HUBDataCollection
Model Driver: Everyone Needs to Make Money
Your Customer D
Your Customer A HUB 1
Your Customer A HUB 2
© 2006 IBM Corporation19
Benefits to you and your customer from RFID
Source: IBM Business Consulting Services analysis, Auto-ID Center
Cost Revenue Operational Effectiveness
• 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
•Improved product availability on shelf•Increased cross channel selling opportunities •Enhanced ‘point of decision’ sales capabilities
Illustrative
Increased Profitability
© 2006 IBM Corporation20
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
© 2006 IBM Corporation21
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!
© 2006 IBM Corporation22
Call me . . . So we can learn and implement RFID together
Mike SorensenIBM Global Services4000 Executive Parkway, Suite 300San Ramon, CA 94583
(925) [email protected]