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Role of Technology in Supply Chain Management

Supply Chain & Logistics Group. Role of Technology in Supply Chain Management. RFID. Soma Sekhar Director, TrackIT Solutions FZ LLC +971 50 7974934 soma@trackitme.com. 1000 per month x 60. Have you heard of…??!!!!!. Mercedes Benz , Germany Mitsubishi Motor, Japan Toyota ,Japan

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Role of Technology in Supply Chain Management

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  1. Supply Chain & Logistics Group Role of Technology in Supply Chain Management RFID Soma Sekhar Director, TrackIT Solutions FZ LLC +971 50 7974934 soma@trackitme.com

  2. 1000 per monthx60

  3. Have you heard of…??!!!!! • Mercedes Benz , Germany • Mitsubishi Motor, Japan • Toyota ,Japan • Renault, France • Volvo, Sweden • Macimex, Mexico • Dana Corp. U.S.A.

  4. Have you heard of ….. Bharat Forge • Bharat Forge , Pune , India : 2nd largest & the most technologically advanced forge shop in the world

  5. The Global economy • Business cycles • Sharper , shorter • The global value chain • Smart sourcing • Value chain visibility : transparency

  6. Successful companies are Supply Chain Masters • View as strategic • Implement end to end integrated processes • Across forms , systems, people • Execute supply chain initiatives to achieve uncommon results • Drive supply chain innovations continually

  7. What have they achieved • Zara delivers new styles in 3 to 6 weeks from demand ( comp : 5 months) : 11,000 styles per year • BA : Increased profits in a slowing economy • 2000-02 : saved £ 50 M , £ 70 M expected thru strategic sourcing

  8. And the Chain is Exploding • Global air freight volume will grow 3 times in the next 20 years • Emirates SkyCargo: 1 M tonnes plan • Dubai port ( among top 11 worldwide) • 2.4 M containers , growth 24 % • Hong Kong , Bangkok, Amsterdam

  9. Current Challenges • Retail • Inventory tracking • Out of Stock • Warehouse visibility • Theft • Extended Supply Chain • Defense forces • Automated asset check-in / check-out • Security during transportation • Tracking and Visibility of assets • Sensor Integration • MRE expiry date tracking

  10. What is the solution? RFID:Radio Frequency IDentification is a wireless form of automatic identification (Auto-ID) technology that allows for non-contact reading of data A Unique ID on each asset makes it track-able anywhere and everywhere RFID tag technology , provides that unique Identification.

  11. Is RFID tag an improvised barcode? RFID reader “energizes” tag which then transmits stored information back to reader • Uniquely identifies each instance of a product as well as the product type (so you know which box was scanned) • Line of sight NOT required • Information can be updated (class 2 and above) Laser reader interprets barcode to determine UPC number • Static information • Line of sight required • Problem reading soiled barcode • At UPC level, system doesn’t know if 3 different items were scanned or if the same item was scanned 3 times

  12. RFID Enabled Supply Chain Merchandise is ‘read’ as its shipped by supplier and received at the DC 1 2 RFID Data RFID Reader RFID tag placed on items, cases and pallets at manufacturer / supplier 3 Merchandise is ‘read’ as its shipped by DC and received by the store/Club RFID Reader Merchandise is ‘read’ as it leaves the store backroom/Club storage rack and enters the sales floor 4 RFID Reader 5 Streamlined customer checkout and home ‘grocery’ list

  13. TAG 1. Reader sends power & commands to the tag 21.203D2A9.16E8B8.719BAE03C 2. Tag responds with data 3. Reader sends data to host Passive RFID Tag Operation READER

  14. Active RFID tag • Tag acts like a beacon – continuously communicates and a reader picks up the signal • Longer range (10-100m or more) • re-usable • Memory for data storage • Sensor integration • Costlier

  15. Telemetry • Transmission of an asset’s position through • Telecommunications (SMS,GPRS,CDMA etc.) • Satellite communications

  16. GPS & Telemetry Layer 5: Movement Vehicle Active RFID Layer 4: Container Layer 3: Unit Load Passive RFID & Barcode Layer 2: Transport Unit Layer 1: Packaging Layer 0: Item Multi-Level Identification : Right Technology

  17. Nested Asset Visibility                                                         

  18. Business Segments adopting RFID technology • Logistics – Distribution centers, Warehouses, Cargo • Ports & container tracking • Defense asset tracking • Smart buildings (personnel, sensors coupled with tags and tracked assets) • Palette tracking • Access Control & selective video monitoring • High value item tracking, such as Jewellery, electronics, watches etc. • Many more …

  19. Business Transformations demand technology innovations And ….. Tech innovations drive business transformations

  20. Thank you

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