Unit 5.pptx MODERN WAREHOUSING METHODS MBA

MODERN WAREHOUSING METHODS MBA

1. Modern Warehousing Methods Modern Warehousing – Automated Storage & Retrieval Systems & their Operations – Bar Coding Technology & Applications in Logistics Industry – RFID Technology & Applications – Advantages of RFID Dr. J. Sasiganth SHIMS 1

2. MODERN WAREHOUSING Dr. J. Sasiganth SHIMS 2

3. Warehousing definition War e housi n g is use d f o r the sto ra g e o f bu il d i n g ma t erial s . Modern w ar e hous e turnover f r o m the transport, sto ra g e methods and bu il d i n g fac ilit ie s w oul d v alu e the ra t iona l arran g e m e n t o f channel s. T h e space s ar e mana g ed accordin g t o the n e eds o f each bus i n e ss , t o en sur e prop e r m o ve m e n t o f g oods . Dr. J. Sasiganth SHIMS 3

4. W a r e h o u s e st o r a g e b y the st o r a g e o f i t e m s S ol i d f o r m o f articles Gas g oo d s and p ow d e r e d g oo d s L i qu i ds S t o r a g e of r a w ma t er ial s Sem i - f i ni s h e d F i n i sh e d p r oducts Dr. J. Sasiganth SHIMS 4

5. Single S t o r a g e S u i t able f o r s t o r a g e of m e t a l m at eri a l s , bu il d i ng m at e r ia l s , m i n e r al s , m a ch i n e r y , v eh i cle s , o i l , c h e m i c al s , w oo d and its p r od u c ts Multi S t o r a g e G e n e r a l s t o r e m e r c h and i se , ele c t r o n i c equ ipme n t , f oo d , rubber p r oduct s , p h ar m aceut i c al s , E T C Cylindr i c al S t o r a g e G e n e r a l s t o r a g e o f b u lk ce m e n t, d r y o r e s l a g , f ly ash, b u lk g r ai n , o i l , g a s and othe r g a s e s Dr. J. Sasiganth SHIMS 5

6. T Y PES OF WAREHO U SE S P AC E GOVERNMENT OR STATE C O M M E R C I A L TRA NS IT Dr. J. Sasiganth SHIMS 6

7. T Y PES OF WAREHO U SE S P AC E Dr. J. Sasiganth SHIMS 7

8. St r at eg i e s of dep o sits and w a r e h o u s e s H o w m a n y w a r e h o us e s shou l d b e e m pl o y e d Wh i ch t ype shou l d b e use d t o me e t m ar k e t r equi r e m e n t s D e t er m in e the r o l o f the w a r e h o us e Dr. J. Sasiganth SHIMS 8

9. W ar e h o usin g strat egi c plan Dr. J. Sasiganth SHIMS 9

10. W ar e h o u s i n g , P r e p a r a t i o n and Planning Space l a y o u t Th e a r e a s t h a t should be planned a r e both the g e n e r a l s t o r a g e a r e a s and the a r e a s f o r g oo d s r e c e i p t , c onsignme n t picking and g oods disp a t c h . It is a lso d e si r a bl e t h a t space should be s e t a side f o r the f ollo w in g a ctivit i es: E q u i p m e n t ma i n t e n a n c e and par k ing. C h a r g i n g of e q uip m e n t b a tt e r i es s uc h as pallet truc k s. R e fu ell in g of truc k s. An a r e a f o r g ar b a g e di s po s a l . A qu a r a n ti n e a r e a f o r k ee p i n g r e j ec t e d g ood s . An em pl o y ee r e s t a r e a . W ash r oom ; a nd An admini s t r a ti on office. Dr. J. Sasiganth SHIMS 10

11. All o w s uf f i cie n t s pace f o r e a s y a c ces s t o t he st a c k s f o r inspecti n g , loading and unlo a ding. Sizing the g ood s r e c ei p t and desp a t c h a r ea ; Allow space f o r st o r a g e of clea n ing m a t erial s and sup p lies; Alloc a t e a r e a s f o r da m a g e d i t e m s b y c onsignme n t num b er; Allow suf f icie n t space t o r epa c k a g e da m a g e d i t e m s and place it in s e pa r a t e st a c k s ; W are h ou s i n g , P r ep a r at i o n and Planning P l a n n i n g Allo c a t e space f o r e a ch type of p r odu c t and lo c a tin g number; Dr. J. Sasiganth SHIMS 11

12. Spa c e u t ili z a t io n and handling W ar e hous i n g , P r e p a r a t i o n and P l a nn i n g Dr. J. Sasiganth SHIMS 12

13. Optimizing Warehouse Operations M i nimi z e the number of t ouche s . S t o c k m at e r ial s usi n g logi c a l seque n cin g th a t is m e anin g f u l f o r w o r k e r s G a th e r r e a l - t i m e o p e r a t io n s i n t elli g e n c e on w a r e h o usin g p r o c e ss e s . W a r e hou s e o pe r a t i o n s e f fi c ie n c y is k e y t o the suc c ess o f a n y c o m p a n y t h a t p r o c e s se s , ships orders. Dr. J. Sasiganth SHIMS 13

14. E s t ablis h k e y p e r f o r m a n c e indic a t o r s . Optimizin g Wa r e h o use Ope r atio ns G ai n e n d - t o-e nd visi bi l ity th r o u g h o u t the f a c ili t y an d p r o c e ss e s . Imple me n t equipm e n t t o au t om a t e w a r e housin g p r ocesse s . Dr. J. Sasiganth SHIMS 14

15. W A R E HO U S I N G P RO C ES S R a w m a t e r i al w a r e h ou s e A n al y z es t h e i n v e n t ory Send o r d e r s Pu r c h a s in g De p arm e n t O r d e r s a p p r o v al Ask su p pl i e r s Send I n v o i c e f or P a y me n t Th e p r odu c t come s t o the P a n c ali Dr. J. Sasiganth SHIMS 15

16. Aut o mate d S t o r a g e an d Re t rieval System Dr. J. Sasiganth SHIMS 16

17. Automated St orag e an d Retrieval System(AS R S) I t co n s i sts of a v a r iety of co m p u t e r - co n t r o l l e d s y s t ems f or a u t o m at i c a l l y pl a c i n g a n d r et r i e ving loads f r om def i ne d s t o r age locations Dr. J. Sasiganth SHIMS 17

18. Wh y w e cho o s e A S R S ????? O r ders s p en d i n g t o o m u c h ti m e in t he f actory, causing cus tom e r d e l i v e r ie s t o th e la t e M u c h ti m e spend f or sea r ch i ng Los t or d a m a g e d p r o d uc ts a n d i n a ccu r a t e records W a s t e m u c h space W o r k e r s a r e e x p o s e d t o d a n g e r s I f the an s w er t o all of these questions is “ YES ” f or a g i v en ma t er i a l ha n dl i n g s y s t em, t h e n th e s y s t em ca n be Dr. J. Sasiganth SHIMS 18

19. Bas i c str u ctur e o f A S / R S S t o r ag e structu r e S/R m ac h i n e ( S t o r a g e / R e t r i e v a l ) S t o r ag e m o d u l e s (e.g., p a ll et s f or u n i t loads) one or mo r e p ic k up- a n d - d ep os i t s tatio n s Ex t ern a l h an d li n g s y s t em Dr. J. Sasiganth SHIMS 19

20. Bas i c str u ctur e o f A S / R S S t o r a g e struct u r e F a b r i c a t e d s tee l R ack f r ame w o r k Supp o rts the lo a d c o nta i n ed i n the A S/ R S T o sto r e I n v e n tor y i t ems S t o r a g e / R e t ri e v a l M a chine I t i s c a p a b l e of bo th horizont a l a nd v e r ti c a l m o v em en t Us e d t o m o v e ite m s i n a n d o u t o f t i n v e n t o r y Dr. J. Sasiganth SHIMS 20

21. Bas i c str u ctur e o f A S / R S S t o r a g e Modules Un i t l o ad co n t a i n e r s i s u sed t o h o l d an i nv e n t o ry i t e ms s u c h a s p a l l e ts, s t e el w i r e ba s k ets, c o nta i n e r s etc The m o d u l e s a r e g e n e r a l l y made t o a stan d a r d b a s e s i ze c a p a b l e o f b e i n g s t o r ed i n t h e s t r u c t u r e an d m o v e d b y S/R Machin e s P ic k u p an d D e po s it ( P /D ) Stat i o n s lo a ds t r a n s f e r r ed t o i n a n d out of the A S/ R S s t ations loc a t e d a t the e n d of aisl e s N u m be r o f P / D S tat i o n s de p e n d s u p o n t he o r gin poin t f r om i n c o mi n g a n d outgo in g lo a ds Dr. J. Sasiganth SHIMS 21

22. Bas i c str u ctur e o f A S / R S 5 . Ex t ernal han d l i ng s y s t em bri n g l o a d to A S/ R S an d ta k es l o ad A wa y Eg - P a ll e t truc k e t c Dr. J. Sasiganth SHIMS 22

23. SS I S c h a f e r 16 t h Janua r y 1937 F r i tz – S cha f er (she e tmet a l go o ds) F i r s t P r od uc t s T r a n s p o r t co n t a i n e r s K it c h e n P a nel s Dr. J. Sasiganth SHIMS 23

24. SS I S c h a f e r 194 8 T a n spo r t b o x es R el o a c t e d Neu n ki r c h e n - S a l c h e n do r f . Dr. J. Sasiganth SHIMS 24

25. SS I S c h a f e r  195 5 R a pi d P r od u c t i o n  P r od u c e b o x es  37 2 emp l o y e es a n d 400 b o x es/ d a y Dr. J. Sasiganth SHIMS 25

26. Since its incepti o n in 1 9 3 7 , S S I S C HA E F E R h a s bee n a n owne r - o p e ra t e d , G erm a n f a mily c o m p a ny . W i th over 5 su b sid i arie s w or ldwi d e , S S I S C HAE F E R is a strong a n d reliable partner W e a r e one of the wor l d's larges t tota l solutions provi d ers a n d compone n ts m a nu f acturer s in the following sectors Lo g istics systems Storag e a n d c o n veying W o r k s t a t io n s Lo g istics software e Waste Management SS I Schafer Dr. J. Sasiganth SHIMS 26

27. SSI SCHAFER Mech anis m used  A u t o m a tic O r der P i c k i n g  Handli n g s y s t em and R o b o t s  Co n v e y or s y s t ems  A u t o m a t ed G uide d v ehicle  S t o r ag e a n d r e t ri e v a l s y s t em Dr. J. Sasiganth SHIMS 27

28. Conveyors Dr. J. Sasiganth SHIMS 28

29. A u t o m a t e d Guide d V eh i c l e Dr. J. Sasiganth SHIMS 29

30. A u t o m a t e d sto rag e an d R e t r i e v a l syste m Dr. J. Sasiganth SHIMS 30

31. Applications Uni t lo a d storage an d h andlin g s y s t em - W a r eh o u sin g f or finish e d g o o d s / P r o d u c t s O r d er P ick i ng – U s ed t o s t o r e an d r et r i ev e ma t e r ia l s i n les s t han full uni t loa d qu a ntit i es such a s ma n - o n - boa r d or min i - loa d applicat io ns W o r k-i n - p r o c ess – S u ppor t j u s t - in - ti m e p r o d u ct i on ac t i viti e s , b u f f er s t o r age , a n d a s in t eg r a l par t of assemb l y s y s t ems Dr. J. Sasiganth SHIMS 31

32. Conclusi o n A S / R S i s a g r eat s y s t em w hich w a s d e v el o pe d t o i m p r o v e the s t o r a g e s y s t ems use d i n ind u s t r i e s t o h a nd le, s t o r e an d r et r i e v e m a t e r ials w i t h p r ecisions, accu r ac y and speed unde r de f in ed deg r ee o f au t o m a t ion . Dr. J. Sasiganth SHIMS 32

33. B A R C O D E T E C H N O L O G Y Dr. J. Sasiganth SHIMS 33

34. I t is an au t o m ati c i d e n ti f i catio n t ech nology Ba r co d e is a p r ed e f i n e d f or ma t of d a r k b a r s and w h i t e s p a c e s S tr u c t u r e d t o co n tai n a s p e ci f i c p i ec e of i n f o r m atio n I t a ll o w s r ea l - time d at a t o b e co l l ec t e d accu r a t e l y and r ap id l y C o m binatio n of b a r co d e t echnology w i t h c o m p u t e r and a p p l ic a t io n s o f t w a r e i m p r o v e s p er f o r m a nc e , p r o d u c t i v it y and p r o f i tabi lit y W h a t i s b a r c o d e ? Dr. J. Sasiganth SHIMS 34

35. Why use barcodes? As far back as the 1960s, barcodes were used in industrial work environments. Some of the early implementations of barcodes included the ability identify rail, road, cars, etc…… In the early 1970s, common barcodes started appearing on grocery shelves. To automate the process of identifying grocery items, UPC barcodes were placed on products. Today, barcodes are just about everywhere and are used for identification in almost all types of business. Dr. J. Sasiganth SHIMS 35

36. Wh en b a r co d e s a r e use d in th e b u s i n e s s p r oce s s , p r o c ed u r e s a r e au t o m a t e d t o i n c r ea s e p r o d u ct i v it y and r e d uc e hu m a n e r r o r . Wh e ne v e r th e r e i s a n ee d t o accu r a t e l y i d e n t ify or t r ac k s om ething, b a r - co d i n g s hou l d be u s e d . F o r ex a m p le , in a d at a e n try w o r k e n v i r on m e n t , w o r k e r s m a y b e r e q u i r e d t o e n t e r a n e n orm ou s a m ou n t of d at a i n t o a cu s t o m e r d atab as e s y s t e m . I n s t e a d of m anua l l y t y pi n g a cus t o m e r i d e n t i f i ca t i on n u m be r i n t o a d atab as e , if t he i n f o r m a t io n is co n t a i n e d in a b a r co de , a d at a e n tr y op e r a t o r m a y sc a n it in . T h i s w o u l d in c r e a s e a u tom a t io n and r e d u c e h um a n e r r o r . Dr. J. Sasiganth SHIMS 36

37. B a r c o de T ype s T he t y p e o f b a r co d e t o us e f o r a pa rt icular s it u a tio n d ep en d s u p o n : T he u s e . The d a t a e n co d e d in th e b a r co d e . Ho w th e b a r co d e wil l be p r i n t e d . Dr. J. Sasiganth SHIMS 37

38. Th e re ar e t w o ty p es o f ba r c od e s: L i near b a r c o d e s 2D b a r c o d e s . Dr. J. Sasiganth SHIMS 38

39. So m e esta b lis h e d b a rcode in d ustry stan d ar d s i n clu d e Dr. J. Sasiganth SHIMS 39

40. A p p li c a t i o n o f B a r c o de  F O R L A BO R A T ORI E S  BC A p r o v i d e s lab e ls , pr i n te r s a n d ba r c o de sc a n n e r s specif i ca l l y f o r the L ABOR A T O R Y e n v i r o nm e n t . Ou r lab e ls , suita b l e f o r a l l pr i n te r s an d m os t soft w a r e pa c kages , c a n wi t h sta n d m o i st u r e , r e f r i g e r at i o n a n d a v a rie t y of s o lu t i o n s . The adhes i v e c a n a ls o b e gl o v e f r ee . Dr. J. Sasiganth SHIMS 40

41. A pp lic a t i o n o f B a r c o d e  F O R L I BRARI E S  BCA p r o v i d e s c onsu l ta ti o n , equ ipme n t f r o m a v a r i e t y o f m a nu f a c t u r e r s and 25 y ea r s e x p e r ie nc e in the d at a c o l l ect io n m a r k e t . W e p r o v i d e the so l ut i on s t o y ou r s i tu a ti o n , no t an o f f the she l f pac k a g ed so l ut i on. Dr. J. Sasiganth SHIMS 41

42. A pp lic a t i o n o f B a r c o d e  F O R I N DU S T R Y  BC A p r o vi d e s consu l tat i on , e q u ip me n t f r o m a v a r ie t y of m a nu f act u r e r s and 2 5 y e a r s e x p e r ie n c e in the d a t a c o l l ect i on m a r k e t . W e p r o v i d e the so lu t i o n s t o y o u r situa t i on , no t an of f the she l f p a ck a g e d so lut i o n. Dr. J. Sasiganth SHIMS 42

43. E v a l u a ti o n o f B a r c o de On e o f th e m os t c o m m o n t o o l s f o r r e a d i n g ba r cod es i s the hand h eld ba r cod e s c ann e r . Al l o f th e ba r cod e sc a n n e r s r e c o m m end e d and s old b y ID A u t o m a t i o n h a v e b u il t - in d e c o d e r s t h a t c a n r ea d s e v e r a l d if f e r e n t ba r c o d e type s . Mo s t o f t he sc a n n e r s sold b y ID A u t o m a t i o n r e c e iv e their p o w er f r o m th e P C key b o a r d o r U S B p o r t so n o e x t e r n al po w er supp l y is r e q u i r e d . W h e n a b a r c o de is sc a n ned , the d a t a i s s e n t t o th e P C as i f i t w a s t y pe d usin g a key b o a r d . Dr. J. Sasiganth SHIMS 43

44. No t al l sc a n n e r s c a n sc a n ba r c od e s t h a t a r e p r i n t ed a t v ery small x d i m e n s i o n s ( th e x d i m en s i o n i s th e w i dth o f the n a r r o w b a r in th e c o d e ) , s o it is a d v i s a b l e t o c h eck the ba r cod e sc a n ne r m a nua l t o m a k e s u r e th e s c an n er c a n r e ad th e small x dimen s i o n ba r c o d e s . A l so , m a k e s u r e th e p r i n t er c a n a c c u r a t e l y r e p r od u c e small x dime n sion ba r cod e s . The ID A u t o m a t i o n Plug ‘ n P l a y Ba r cod e Sc a nn er w ill sc an lin e a r ba r cod es c o n s i s t e n t l y a t 4 t o 32 mils i n s i z e and u p to 4 . 2 " i n w i d t h f r o m a d i s t a n c e o f 4 " t o 8 " a t 20 sc a n s p e r s e c o n d and c a n b e p r o g r a mm ed t o sc a n f u n c t i o n k e y s f r o m ba r cod e s . Dr. J. Sasiganth SHIMS 44

45. B a r c o de S c anner Han d held , si ngl e line Han d held , si ngl e line F i xed m o unt , mult i - line Dr. J. Sasiganth SHIMS 45

46. A d v a n t a g e s  R EP R ESEN T U N IQU E IDE NTITY O F A P R O D U C T AC C U R A C Y O F D A T A INPUT ( ER R O R FRE E ) LA BOU R S A V I N G S B Y A V OI D I N G MA N U A L S Y S T E M MOR E A C CU R A T E D ES P A T C H  C O S T EFFIC I ENT R E A L TI M E D A T A C O LL E C T I ON M E A S U RE M E N T O F W OR K IN P R O G RE S S TH R O U G H O U T THE F A C T O R Y R APID AC C E S S T O T O T A L P R O D U C T I ON C O S T S Dr. J. Sasiganth SHIMS 46

47. S y s t e m F ai l u r e m a y c o s t m o r e d e l a y s . S c r a t c he d or crum p led b a r co d e s m a y cau s e p r ob l e m s D at a m u s t b e co d e d in th e b a r co d e I n lase r scanning, d u r a b i l i ty and co s t a r e the t w o d i s a dv a n ta g e s D i s ad v a n t a g e s Dr. J. Sasiganth SHIMS 47

48. RFI D T ech n ol o g y in Su p pl y C h ai n s Dr. J. Sasiganth SHIMS 48

49. RFI D an d SCM Dramat i c c ha n g e i n the man a gem e n t o f sup ply ch a i ns Ext r a o r d i n a r y „Ass e t T r ac ki n g‟ a b il i ty Wa l -Mart, Targe t. e tc. ha v e t h ei r su pp l ie r s RFID e n a ble d Wo r l d - wide d e mand o f RFI D tags $ 1 millio n F M C G s an d Food Proces s ing co mpanie s at va rio u s levels o f RFI D i mpl e menta t io n – P a l l et , C ase , I te m l e vel Dr. J. Sasiganth SHIMS 49

50. Overview o f RFID Re a d e rs a n d T a g s cap a b l e o f tr a nsm i tt i ng a n d stori n g in f orm a ti o n Tags Tag r ea d ers Edge se rv e r s Mid d le ware Appli c at i o n softwa r e Dr. J. Sasiganth SHIMS 50

51. Dr. J. Sasiganth SHIMS 51

52. Sy s tems Dr. J. Sasiganth SHIMS 52

53. Dr. J. Sasiganth SHIMS 53

54. Tags (Transpo n de r ) Acti v e longe r di st an ce (electronic t oll s) t ag s c anno t b e c lo se to t h e reader large r m e m ories po w ere d b y interna l bat t er y s our ce e x pens i v e , larger , hea v ier , abou t 1 y ear s li fe acti v e tags are m ore effecti v e in “ c hallenge d en v iron m en t ” Pas s i v e Po w ere d f r om the r eade r s L i ghter , sma l l er , an d c heape r to produ ce U s e d in cl o se range Memory Read-only Read/W rite Comb i nat i on Dr. J. Sasiganth SHIMS 54

55. T a g C o n s truction Memory unit – R A M, RO M , N o n -vo l ati l e program m ab l e. Logical Uni t - Process o r An a log Uni t - A n tenna A nalogue Circui t ry Da ta T rans f er P o w e r su pply Digita l Ci rc uit ry Cont r o l Logi c , Se c urit y Logi c M i c r op r o c e s s or M em ory U nit Non - Vol at il e M e m ory R A M R O M Dr. J. Sasiganth SHIMS 55

56. Freque n cy F r e q u enc y B an d Cha r acte r i s t i cs Ty p ica l Appli cations Low 100- 500 kHz S h ort to me d ium r ead range I n expe n sive l o w r eading s p e e d . (Mainly Passive) A cc es s c on t r o l , Ani m a l i dentific a t i on , C ar i mm o b i l is e r, WI P in v e nto ry I n ter m ediate/ H igh 10-300 M Hz Sho rt t o m ediu m r ea d r ang e po t en tially ine x pens i ve m ediu m r ead in g s pee d (M ai n l y Pa ss i ve) Access cont r ol Smart ca r d s , Item lev e l cont r ol, T i c keting, I n d u strial and sci e ntifi c . Ult r a High 300- 950 M H z 2.4-5.8 GHz Lo n g r ead range High r eadi n g s p e e d Li n e of sig h t r equi r ed Ex p ensive (Active / Passive) Rail r oad car monitor i ng T oll coll e ct i on systems Dr. J. Sasiganth SHIMS 56

57. Rea d Range Most com m o nly u s e d 6 4 b its to 2 5 6 b its 1 3 .5 6 MHz 5 1 2 b its - prog r a m m able Dr. J. Sasiganth SHIMS 57

58. Dr. J. Sasiganth SHIMS 58

59. Rea d e r s Ante n n a ( o rie nt ati o n , p ola ri z at i o n , Proto c o l ) Mult i - pr oto c o l an d Mult i -fr e qu e n c y (New) Mid d le ware Read e r i nt e gr a tio n , Da t a filt er i ng Appli c at i o n Software Filt e r an d p r o c e s s da t a - fee d t o c u s tom ers s y s t em s e. g. E RP , CR M , WMS et c. Dr. J. Sasiganth SHIMS 59

60. SCM benefit s f r o m RFID Trac k ing he l p s in Inventory reduction Incr eas e d vis i bility I m prove d dec i si o n making Improved co l l a b o ration amo n gs t t h e partners I m prove d pric i ng Fe w e r stock - outs Magn itu d e o f b en e fits Area o f a pp l ic a tion Lev e l o f a pp l ic a ti o n (pal let , case, item) Dr. J. Sasiganth SHIMS 60

61. SCM Benef i ts from RFID Manufa c tu r ing Pro c e s s Track the p r od u ction o f the part Instruct i o n s to p roduce Fe e db a ck t o the ERP sys te m a bo ut the status Effic i e n t b ottle n ec k man a g e ment Dis t rib ut i o n Pro c e s s Effici e n t c o nsi g nmen t ha n dl i n g P a l l et s w i th mi x e d cas e s (non- u n iform ) b e n e fit m ore Warehouse manag e ment S h orte r orde r - t o -cash cycle Dr. J. Sasiganth SHIMS 61

62. SCM Benef i ts from RFID Coll a bo r at i on Incr eas e d mat ch i n g o f s u pp l y an d demand R e ducti o n i n bu l l- w h i p ef f ect I m provemen t i n forecastin g an d demand M an a g e ment Imp r o v em e n t i n I nve nt o ry Shri n k a g e Two p ercen t o f total sa l e s i s l ost i n i n ventory shrinka g e E mplo y e e the f t (48%) Shopli f ting (3 2%) Administrati v e an d pap e r e rror (1 5%) Vendor fraud (5 %) Inc r ea s e i n numbe r o f empt y pa c k e ts Dr. J. Sasiganth SHIMS 62

63. SCM Benef i ts from RFID Coll a bo r at i on Incr eas e d mat ch i n g o f s u pp l y an d demand R e ducti o n i n bu l l- w h i p ef f ect I m provemen t i n forecastin g an d demand management Imp r o v em e n t i n I nve nt o ry Shri n k a g e Two p ercen t o f total sa l e s i s l ost i n i n ventory shrinka g e E mplo y e e the f t (48%) Shopli f ting (3 2%) Administrati v e an d pap e r e rror (1 5%) Vendor fraud (5 %) Inc r ea s e i n numbe r o f empt y pa c k e ts Dr. J. Sasiganth SHIMS 63

64. SCM Benef i ts from RFID St o ckouts Con s ti t ute a major i s su e i n r et a i l in d us t ry App x. 1 1 % o f the t o p 20 S K U s are o ut o f stock a t a n y time 1 3 % for f ast mo v in g/ pr o mot e d g o o ds RFID s sm a rt sh e l ves can h e l p to re d uce t h e pr o bl e m Pricing Helps in „ Diffe r ent i a l ‟ a n d „ Dy nami c ‟ Pri ci n g Dr. J. Sasiganth SHIMS 64

65. More dat a , faster rate, lon g di stance Bar c o d e 1 2 - 1 4 bi t info . V s. RFI D 6 4 - 512 b it R e a d s e veral item s i n same ti m e Don‟t need to open ca s es or palle t s to read indi v idual items Manufactu r in g batc h, p r odu c tion hi story, p r odu c t han d ling in stru c tions, sto r ag e o r deliver y in stru c tions, expiratio n date s, w ar r ante e an d othe r details RFI D- Uniqu e coding, produ c ts indi v iduall y track e d (Visibili t y a s well a s Utilization) Bar C o d e Vs. RFID Dr. J. Sasiganth SHIMS 65

66. Bar C od e Vs. RFID Bar C o de De f i c i e ncy RFID S o lution L i ne of s i g h t t e chnolo g y A b le to sc a n a nd read f r om di f ferent an g l e s and thr o u g h certa i n m a t eria l . U n able to wi t hstand harsh condi t ions ( d ust, co r r o si v e), m ust be c l eaned and n o t di f f o r m ed. A b le to f u nct i on m uch b e t t e r in such co n dit i ons No data adit i on o p t i on W rite ena b le No u n ique identifi c a t ion U n ique co d e i ng is p o ssible and i t em can be tra c ked at indiv i d u al l e vel Slow and l a b o ur intensive Fast and l e ss l a b o ur intensive Easy to t a m per a n d co p y Di f ficult to co p y and t a m per Li t t l e p o t e ntial f o r f u rther de v e l o p m ent T ech n ology ad v ance m ent is possible, New Chip, bet t er packagin g . Dr. J. Sasiganth SHIMS 66

67. Logistics Dr. J. Sasiganth SHIMS 67

68. Portal Applicatio n s Dr. J. Sasiganth SHIMS 68

69. Conveyo r / Assembl y Line Dr. J. Sasiganth SHIMS 69

70. RFID in manufacturing Dr. J. Sasiganth SHIMS 70

71. ASSET TRACKING Dr. J. Sasiganth SHIMS 71

72. Hand Held RFID Dr. J. Sasiganth SHIMS 72

73. Shipp i ng Validat i on Dr. J. Sasiganth SHIMS 73

74. Red u ction In Ou t - o f -stock Smart sh e l ves – A u tom ati c in d ic a tion ou t - o f - stock, l e vel measurement, wro n g ite m i n wro n g p l ac e , e x p i red prod u ct Diff e r e nt i at i n g ite ms ( s lo w/fa s t movin g) R e spo n sive …optimiz i ng demand –price K n o w customer p reference q u ic k ly 1% up l if t i n s h el f a v a i la b i li t y eq u at e s to 0. 5 % sales inc r e ase – R e d u ced o u t o f stocks b y a p pro x imate l y 1 6 perce n t in 1 2 stores (wa l -mar t) Pri c e is di s p l a y e d o n s h el v e s – – Qui c k, i n stanta n e o u s pric e ch a n g e Dr. J. Sasiganth SHIMS 74

75. Ease Of R ea l Time Da t a Sharing RFI D wil l s o l ve t h e p e re n n i a l p ro b l e m of for e casting i n a p p a rel in d ustry T h e e a sy r e a l ti m e ti m e d a ta shar i ng b e twe e n the store a n d m a n u fact u rrer will bri n g the fl e xibil i ty Su p pl i e r m a n a g e d inve n tory – Wa l -M a rt + P&G Dr. J. Sasiganth SHIMS 75