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Invenio – RVI

Cell: +389 75 466 466


E-mail: ivan.sulev@gmail.com
Str. М.H. Jasmin, 52-2/3 1000, Skopje, RM
RFID – Radio Frequency Identification
RFID is a technology that enables tracking of objects through radio waves with
identification of the RFID tags that are placed on the object.
Market Potential
 Every company that needs effective control and inventory management
 No regional restrictions
Industrial

Healthcare
Retail/CPG

Government

Logistics Field Service


Market Potential
Organizations that are already using RFID
RFID vs. Barcodes
RFID Barcode
Read Rate High Throughput. Multiple (>100) tags can be read Very low throughput. Tags can only
simultaneously be read manually one at a time.
Line of Sight Not required. Items can be oriented in any Definitely required. Scanner must
direction, as long as it is in the read range, and physically see each item directly to
direct line of sight is never required. scan, and items must be oriented in
a very specific manner.
Human Capital Virtually none. Once up and running, the system is Large Requirements. Laborers must
completely automated. scan each tag.
Read / Write More than just reading. Ability to read, write, Read only. Ability to read items and
Capability modify, and update. nothing else.

Durability High. Much better protected, and can even be Low. Easily damaged or removed;
internally attached, so it can be read through very cannot be read if dirty or greasy.
harsh environments.
Security High. Difficult to replicate. Data can be encrypted, Low. Much easier to reproduce or
password protected, or include a “kill” feature to counterfeit.
remove data permanently, so information stored is
much more secure.
Event Triggering Capable. Can be used to trigger certain events (like Not capable. Cannot be used to
door openings, alarms, etc.). trigger events.
Forces Driving Adoption
 Increased mandate

 Decreased prices for technology adoption


- Use of Gen2 technology that enables lower cost for better efficiency,
better accuracy, more information and better safety

 Increased acceptance
- Research done by the US Computing Technology Industry Association:
 46% of the consumer goods market, 34% form the food &
beverages industry and 24% from the textile industry has already
implemented RFID solutions.
Phases of Implementation

High TRANSFORMATION

 Transform operating/business
OPTIMIZATION models

 Enable new sources of revenue


 Increase control
COMPLIANCE
 Reduce labor requirements  Enable collaboration with
 Enable Warehouse external clients/suppliers
 Meet minimum requirement
Opportunities & Benefits

Management
(e.g. DoD, Wal-Mart)
 Enable JIT  Maintain item historical records
manufacturing/logistics (where it has been and what it
 Replace or supplement existing  Enable real time decision has been through)
barcode systems/applications support
 Provide internal track/trace of  Track/Trace goods throughout
 Increase accuracy and decrease goods/people the value chain both internally
error rates of existing  Automate and speed processes and externally
applications (inventory (e.g. cross docking)
Low management, etc.)
Low Complexity High
Bringing Business Value
 Measurable impact to labor costs

 Real reduction in errors via automation – reduction in mis-shipments, lost inventory,


and errors in redundant data reads

 Real gains in productivity by better managing the use of skilled resources through
automation

 Industry recognized qualitative impacts which returns improved customer service,


lessened warrantee handling,

 Driving regulatory impacts - compliance activities to meet governmental regulations

 Automated POS - skilled resources in front of customers, not behind a cash register

 Real savings of 15-35% on operating costs

 ROI of 7 months to a year


Real Benefits from RFID use

 The Wall-Mart Case


Key Factors

 Innovative solution

 Superior Value for Money

 Knowledge and expertise

 Flexibility in solution and finances required

 Human resources

 Quality partners as suppliers


RFID in the Retail Sector
RFID in the Retail Sector
 Reduce warehouse and distribution labor costs
 Reduce Point-Of-Sale (POS) labor costs
 Automated POS - more productive allocation of HR
 Inventory control at every moment
 Reduce inventory
Improve forecasting and planning
 Reduce theft
 Reduce out-of stock conditions
 Improve customer experience
Operational Improvements
Results from RFID Implementation

 The Wall-Mart Case


RFID in the Wholesale Sector
The Receiving Aspect
 PO, Multiple PO, EDI/ASN receiving
 Multiple receivers per PO/Shipment
 Vendor cross-reference maintenance from handheld data collection device
 Real-time reconciliation of actual receipt to purchase order
 Automatic back order fulfillment
 Cross dock routing
 Damaged goods routing
 Quality control quarantine
 Pallet/carton/piece control
 Lot/batch control
 Product serialization
 Daily receiving summaries
Improvement in Material Handling
 Directed and/or non-directed control increases employee efficiency
 Cube and weight-based slotting optimizes space/rack utilization
 Temporary location management continually tracks inventory
 Inventory cross edits for accuracy
 Real-time location/movement updates operator
 Min-Max and Demand primary replenishment keeps fast items in quick pick areas
 Velocity tracking based on bin-hits
 Override capabilities
 Operator productivity reporting
Faster Order Picking
 Cross dock routing reduces material handling

 User-defined order picking process provides warehouse flexibility

 Location and product scan verification increases shipping accuracy

 Bulk storage location management

 Primary pick location management increases picking efficiency

 Piece and carton picking management

 Operator productivity measurement and reporting


Accurate Order Packing & Shipping

 Order verification

 Shipping manifest, bill of lading, packing list

 Shipping container markings

 Order tracking

 Sort by carrier

 EDI/ASN information support


Instant Inventory Counting & Reporting

Inventory Counting Reporting


 Cycle count during normal operations  Productivity tracking
 True perpetual inventory  Employee tracking
 Real-time inventory updating  Item tracking
 Controlled and random cycle counts at every moment  Location tracking
 Physical counts done instantly
 ABC count classifications

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