iGPS intelligent GLOBAL POOLING SYSTEMS

RFID Technology in the Supply Chain

TOMORROW’S SUPPLY CHAIN TECHNOLOGY TODAY jms 4-09

Intelligent Global Pooling Systems - Presentation Summary

iGPS is a pallet rental service (pallet pooling) company working with

customers to facilitate the movement of products from manufacturers to distributors and retailers. iGPS Provides a highly durable, RFID-tagged and bar code plastic pallet. This Presentation and discussion will provide an in-depth view of how EPC Global RFID tagging effectively provides track and trace capabilities within the supply chain. Discussion includes; a review of scanning methods, system infrastructure requirements and an overview of the iGPS business model

iGPS is a pallet rental service (pallet pooling) company working with customers to facilitate the movement of products from manufacturers to distributors and retailers. Through pallet pooling, customers enjoy the use of pallets and only pay for their specific usage through fees, including pallet rental. iGPS retains complete ownership rights to all pallets wherever the location

iGPS provides a highly durable, RFID-tagged and bar code plastic pallet, in a rental service

Intelligent Global Pooling Systems LLC (“iGPS”)

The worldwide pallet pooling industry is currently dominated by CHEP International (a subsidiary of Brambles) –  CHEP has 90 million pallets in the U.S. and 235 million worldwide –  Next largest company is PECO has approximately 2 million wood

pallets –  iGPS will rapidly deploy over 60 million RFID tagged Plastic Pallets

in the future

Addressable global pooling market is estimated to be over $14 billion Current pallet pooling consists almost entirely of wood pallets

Industry Overview

iGPS Business Overview

Uniquely identified using 4 EPC standard “GEN 2” RFID tags and 4 redundant bar code labels are on every pallet (for locations without RFID readers at this time)

System components are currently using “Best of Breed” approach with our strategic partners: •  Information Systems (Ryder, epcSolutions) •  Pallet Manufacturers (Schoeller Arca, the worlds largest plastic

pallet manufacturer) •  Logistics (Ryder Logistics)

Targeting world-class manufacturing, distribution and retail customers •  Initial focus on Fast Moving Consumer Goods (FMCG) •  Will expand reach to Pharmaceuticals, Electronics and Home

Improvement

The iGPS solution provides numerous benefits: •  Power of tracking and tracing through RFID

(Driven by Technology and Operational Processes) •  Superiority of Plastic •  Increased efficiency of the iGPS pooling model •  Improved customer supply chain productivity •  Benefits of sustainability

iGPS Benefits

Each iGPS pallet has 4 identical RFID tags embedded in its frame with state-of-the art EPC Gen 2 RF technology –  Supply chain visibility –  Track/trace capability –  Inventory accuracy –  Reduce/eliminate lost pallets –  “3-way readability” – RFID, bar code, and alpha-numeric –  iSUM2 System – the most scalable real-time pooling information

system in the world, built on the latest technology from Microsoft

The Power of RFID

•  At the start of 2007, the cumulative number of RFID tags sold over the last 60 years was 4.282 billion

•  24% of that number were sold in 2006 and 16% in 2005

•  1.02 billion RFID tags sold in 2006 (35% of those being RFID cards vs. labels)

RFID Growth Numbers

Pallet Identification •  EPC Gen 2 Passive – Tags •  UPC and Serial Number – Labels

Readers/Scanners •  Symbol/Motorola •  Alien •  Fork Lift Truck •  Other

Portals •  Custom per site •  Dock Door Channel Portals and Free Standing

The Components of an RFID Solution

The Components of an RFID Solution Cont.

Edge Servers •  HP (RFID read capture and user GUI display) •  LAN, Wireless or WAN Attached

iSUM2

•  HP Remote and Central Server (transactions/data collection) Software

•  Microsoft Server OS •  epc Doc Manager •  Microsoft SQL 2003 •  MS .NET 2.0 Framework

Bloodhound •  Pallet Tracking Master Database •  Logistics System Interface •  Billing

iTRAC •  Order Management •  Transportation Management, Logistics Optimization

The Components of an RFID Solution

iGPS Pallet Pooling Model Manufacturing

Plant Retail/Wholesale

Distributor

iGPS Depot

RFID Read

iSUM2 tm

RFID Read RFID Read

Issues - Truckloads of Pallets

Transfers - Palletized Loads

Returns – Truckloads of Pallets

iGPS Transactional RFID Software

iGPS

iGPS Pallet Pooling Model - iDepot

Manufacturing Plant

(i.e., grocery products) RFID Read Transfers - Palletized Loads

iSUM2 ™

iGPS Transactional RFID Software

RFID Read

Retail/Wholesale Distributor

(i.e., Warehouse or Club)

Retailer - iDepot

RFID Solution Challenges

•  Cost • Hardware • Software •  Infrastructure

•  Reliability • Equipment Connectivity • 100% Reads

•  Data Integration • Middleware • WMS and ERP • Customization

•  End-to-End System Management •  Remote Monitoring •  Operator Feedback •  Reconciliation

Ongoing Service Requirements

•  Highest Quality and Reliability •  Cost Effective •  Flexible / Adaptable •  Scalable •  Maximum Integration •  Easy to Use (Clients and iGPS) •  Complements Industry Directions and Technology (GS1) •  Delivery of Core Customer Service Components

iGPS iSUM2 Systems Architecture

RFID DATA CAPTURE

(iSUM2 Edge)

DEPOT INVENTORY DATABASE

V3 LOGISTICS &

TRANSPORTATION MANAGEMENT (ORD-TM)

Bloodhound

TRANSACTION MASTER

DATABASE

EDGE WMS INTERFACE MODULES

RFID DATA CAPTURE

(iSUM2 Edge) RFID DATA CAPTURE

(iSUM2 Edge)

RFID DATA CAPTURE

(iSUM2 Edge)

iLedger BILLING

MANAGEMENT

iTRAC CUSTOMER SERVICE

(Web Portal)

EDGE WMS INTERFACE MODULES

EDGE WMS INTERFACE MODULES

(Enterprise Edge)

FINANCE and ACCOUNTING MS Dynamics

AX

IGPS OWNED

iAdmin REPORTING

iSUM2 Central

RFID DATA CAPTURE

(iSUM2 Edge)

RFID DATA CAPTURE

(iSUM2 Edge)

Scanning Solutions

•  Generic Pallet Scanning Solution Examples

•  Server and Network Topography

iSUM2 Handheld Solution

• Process The pallet moves along the manufacturing line to a staging area. A mobile iSUM2 application on the Motorola MC-9090 mobile handheld is used to scan the barcode on the pallet of goods representing the LPN and then the RFID tag embedded within the pallet. These two scans link the two items and are stored within the memory of the handheld device. The handheld is then synchronized over wireless LAN, and the information is transferred to the local iSUM2 database. Periodically, the local iSUM2 database is synchronized with iSUM2 Orlando at which point the association information is transferred to the iSUM2 Orlando system. The GRAI is matched to the LPN via the discrete scans as specified by the user.

iSUM2 Dock Door Solution

• Process The pallet passes through the dock door on a forklift. The RFID reader scans the Asset ID and sends it to iSUM2 Manufacturer and stores it in the local iSUM2 Database in the Raw Tag Read Table. iSUM2 Manufacturer then executes a query to the WMS. The result of the Query gives the Ship To and the Order Information for that Dock Door at that time. Then iSUM2 Manufacturer creates a Order Transfer Header/ Details pair that is sent to the Order Transfers/Order Details Table in the iSUM2 database. (the Transfer Header is the Order, the details are GRAI’s.) iSUM2 Local takes the Order Transfers/Order Details and moves it to iSUM2 Central that stores it in the Order Transfers/ Order Details Staging Tables in the iSUM2 Central database.

iSUM2 LPN Install Solution - In-Line

• Process The pallet moves along the manufacturing line. After the LPN is applied, the pallet will pass through a section where there is an Alien RFID reader and Microscan barcode scanner. The RFID reader is mounted with two antennas that read the built-in RFID tags found within the pallets. This information is then forwarded to the local iSUM2 database. The Microscan barcode scanner is controlled by the Moxa box device. The scanner is positioned to read the LPN off of the pallet, and relays the information to the Moxa box which in turn sends it directly to the local iSUM2 database. Once the local iSUM2 server receives both the LPN and RFID information, the local iSUM2 application examines the timing of the reads, and associates the pallet to the shipment associated to the LPN. This information is stored locally, and then pushed up to iSUM2 Orlando database via AS2.

Production Line Data Capture Example

Data Connectivity Diagram

Questions

Appendix

iGPS Tradeshow Presentation

Solution

Depot

Manufacturer

Retailer iDepot

iTrac Order

Bloodhound

Return

Full Flow

Depot

Manufacturer

Retailer iDepot

iTrac Order

Bloodhound

Return

New Order

Order Depot

Manufacturer

iTrac Order

Bloodhound

Order Request

We need another shipment of pallets by the end of the week

We’ll put in the order, and they should be there by Friday

Depot A1: Ship 570 pallets no later than Thursday for Friday Delivery

ORDER REQUEST # 001206b0

Depot Issue

Depot

Manufacturer

iTrac Order

Bloodhound

Depot Issue

Bill of Lading

Manufacturer Transfer

Depot

Manufacturer

Retailer iDepot

iTrac Order

Bloodhound

Manufacturer Transfer

Products are associated to the pallet

Orders are requested by the Retailer

Shipments are transfer to the Retailer

Manufacturer Retailer Transfer

Depot

Manufacturer

Retailer

Products are associated to the pallet

Orders are requested by the Retailer

Shipments are transfer to the Retailer

Transfer

Manufacturer System Transfer

Depot

Manufacturer

Retailer iDepot

iTrac Order

Bloodhound

Return

Retailer Issue and Return

iDepot Issue

Bill of Lading

Return to Depot