RFID John Wiley & Sons Inc Higher Education Initiative In conjunction with Agenda • • • • • • • • RFID For Dummies Wiley Business Drivers & Process Flow External Cost Summary Supplier Participation & Acceptance Data Standards & EPC Global Practical Approach to Implementation The Distribution Center Questions RFID For Dummies RFID For Dummies • Who Uses them? – US Department of Defense – Transportation Industry – Pharmaceutical Industry – Clothing Manufacturers – Consumer Goods – Technology Asset Managers – Closed Loop Supply Chain Systems RFID For Dummies • How can they be used? – Asset Management/Tracking – Security/Theft Protection – Inventory/Retail Shelf Management – Safety/Recalls/Sell By – Quality Control – Piracy Protection – Closed Loop Internal Proprietary Systems RFID For Dummies • How are Tags Being used Pallet Level Relates all cartons to specific pallet Carton Level Relates all items to a specific carton Item level Creates a unique identity of a item RFID For Dummies • What’s Real……What’s not – EZ Pass, Ski Lift Passes, Spot – Is It Big Brother? – Does It Invade Personal Privacy? – Can It Protect You? Wiley Business Drivers • • • • • • • • • Re-importation/Gray Market Comp/Gratis Copy Returns Piracy identification Purchase from Wholesaler Return to Publisher Complete Set Supplied – Part Set returned Active Retail Shelf Product Examination WileyPlus Registration Code Management Returns Policy Enforcement Better Business Intelligence High-Level RFID Process Flow Printers Embed RFID Tags in Books US Distribution Associate RFID Tags to Outbound Order Returns Center Wiley Asia Asia Customer Wiley UK EMEA Customer Comp/Gratis Copies Americas Customer Compare Customer on Return Invoice to Customer on Outbound Order per RFID Tag 9 Line Type Use Case Potential Business Action Standard - No action required. Product Reimportation - Refuse credit for returns not associated to outbound order from same customer. - Stop selling to customers (bookstores/wholesalers) outside U.S. if reimporting product into U.S. Comp Copy Resale - Refuse credit to bookstores who return comp copies - Contact Professor to whom returned comp was given Supply Chain Drivers • Improved Receiving – Verify Quantities Via Carton Tags • Improved Full Carton Picking – Carton Picking Verification • Improved Loose Piece Picking – Carton Content Inspection • Faster Returns Processing • Improved Inventory Accuracy – Tracking At Pallet/Carton level External Cost Summary • Product Costs (USD) – Fully Loaded Variable Cost Embedding RFID Tags Is Between $0.20 - $0.25 per Unit • Distribution Center Costs (USD) – – – – – – – – Design Study $15,000 Conveyor Tunnels $16,000 Quality Control Station $1,800 Single Antenna Readers $2,000 QC Supervisor/RFID Printer $5,600 Returns Workstation $2,000 Handheld Reader $4,295 Standalone Portal/Tunnel $18,000 11 External Cost Summary • Distribution Center Costs (USD) – – – – – – Software (MobileXe) $7,500 Hardware Installation $20,000 Supplier Integration (FTP, Com) $21,750 Project Management $20,000 Training & Documentation $3,000 Network, Electrical, Conveyor $30,000 • Internal IT Software Costs 12 ???? Supplier Participation & Acceptance • U.S. Suppliers – R.R. Donnelly – Courier – Worldcolor – formerly Quebecor • Use MobileXe Pave Software – Print, Apply, Verify & Exchange – Multi-publisher & Multi-site – EPC Compliant • Phase Implementation – Phase I – SGTIN Item Level Tagging – Phase II- SGTIN Carton Level Tagging EPCglobal • What is EPCglobal? – EPCglobal is leading the development of industry-driven standards for the Electronic Product Code™ (EPC) to support the use of Radio Frequency Identification (RFID) • How Do They Influence Our Industry? • What Prevents Publishing From Embracing EPC? Tag Data Standards • Identity – ISBN….GTIN…..SGTIN • EPC Versus Publishing Standard – EPCIS • Established Open Framework • Books, Widgets We’re All The Same – Publishing specific • Inconsistent Data Formats • Not Retail Compliant Practical Implementation Approach • Define Objectives – Create Business Drivers – Pilot – Identify Reasonable Scope • Involve Print Suppliers Upfront • Source an Integrator – Need Specific RFID Item Level Experience – Don’t Be Their Science Project • Identify Internal Touch points – Develop Integrated Workflow – Identify Distribution Workflow Changes – Don’t Underestimate Effort Practical Implementation Approach • Use Readily Available Components – Use Off-The-Shelf RFID Tags – Use Proven RFID Hardware • Use Industry Standards – Implement EPC Data Structures • Don’t Over Engineer • Test….Test…..Test again Standalone Portal/Tunnel Full Case Tunnel Loose Carton Tunnel Quality Control Kitting Singles Packaging Questions? • John Wiley & Sons – Lou Peragallo – [email protected] Jeff Kurschner – [email protected] (310)-377-9733