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EPCglobal – TLS IAG Pilot Phase II Summary (Shanghai to Los Angeles via Tokyo)

EPCglobal – TLS IAG Pilot Phase II Summary (Shanghai to Los Angeles via Tokyo). NRI Shinichi Ishii MTI Tsuyoshi Kurosaka. Phase 2 Pilot Execution Structure. Air Cargo: Pilot Logistics Players. Japan. Toshiba Holdings. Head Office Toshiba PC JP. USA. Consignee TLS (NYK Logistics US).

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EPCglobal – TLS IAG Pilot Phase II Summary (Shanghai to Los Angeles via Tokyo)

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  1. EPCglobal – TLS IAG Pilot Phase IISummary(Shanghai to Los Angelesvia Tokyo) NRI Shinichi Ishii MTI Tsuyoshi Kurosaka

  2. Phase 2Pilot Execution Structure 2007 Nomura Research Institute, Ltd.

  3. Air Cargo: Pilot Logistics Players Japan Toshiba Holdings Head Office ToshibaPCJP USA Consignee TLS (NYK Logistics US) China Shipper Toshiba TIH 3PL Toshiba TLGH Forwarder (Im) UPS Carrier NCA Forwarder (Ex) UPS Air cargo terminal Op. NCA (Shanghai Airlines Cargo) Air cargo Terminal Op. NCA Truck Company UPS Truck Company UPS Aircargo terminal Op. NCA Bonded Truck 2007 Nomura Research Institute, Ltd.

  4. System Structure in Air Cargo Toshiba / TLGH NCA GS1 HK Comware Sense Tech Application (CE) Application (TLS) EPCIS(CE) EPCIS(TLS-Asia) EPCIS(TLS-US) Capturing AP Capturing AP Capturing AP Capturing AP Capturing AP EPC middle EPC middle EPC middle EPC middle EPC middle Terminal AP Terminal AP SIO SIO SIO SIO SIO Sense PSION TIH/TLGH Shanghai Airline Cargo NCA NCA NYK Logi. Americas JAPAN CHINA US 2007 Nomura Research Institute, Ltd.

  5. Phase 2Objectives and Event Flow Overview 2007 Nomura Research Institute, Ltd.

  6. Air Pilot Objectives • Utilize EPC/RFID Technology components and EPCglobal standards on Air transport • Use various GS1 identifiers with multiple cargo layers, both of passive and active tags, and multiple EPCIS networks • Use a passive tag with SGTIN-198 in order to put actual item reference number into it. • Verify active tag technology on air transport using stop/wake functions. • Enable visibility at critical events in the air supply chain • Specify critical events and design an air supply chain use case • Improve air supply chain visibility among multiple trading partners • Apply EPC/RFID Technology to a LCL case • Apply EPC/RFID technology to a LCL case, which includes transship, aggregating and disaggregating from RFID perspective, on the way to a destination • Ensure visibility even in the LCL case • Consider a specific chain of custody between TLS and CE industries • Consider a specific chain of custody between TLS and CE industries in the whole air supply chain • Build EPCIS by each industry (TLS & CE) depending on the role among different countries and demonstrate the interoperability • Prepare and investigate shipment and commercial information in order to take advantage of RFID/EPC technology for import/export procedures • Investigate import/export procedures including shipment and commercial documentations • Consider taking advantage of RFID/EPC technology for import/export procedures 2007 Nomura Research Institute, Ltd.

  7. Air Pilot Objectives 2007 Nomura Research Institute, Ltd.

  8. Joint Conception with TLS and CE • Cooperation on information sharing with manufacturer and logistics company • Consumer electronics maker generally wants to track and trace product with layer 0 to layer 3. On the other hand TLS usually do it with layer 3 to layer 5. Therefore, in this pilot, Toshiba Logistics wants to have an EPCIS managing under layer 3 information as a consumer electrics manufacturer, and TLS to have another EPCIS managing upper layer 3 information. Joint Pilot Test between TLS and CE Layer 5 Vehicle EPCIS (TLS) Layer 4 container Active tag with SSCC Layer 3 Unit Load Interoperability test Level 2 Transport Unit item EPCIS (CE) Passive tag with SGTIN Level 1 Packaging Level 0 Item 2007 Nomura Research Institute, Ltd.

  9. Logistics Flow and Read Events Overview (From China to USA) According to the pilot logistics flow from supplier’s factories in China to consignee warehouse in the US, the products are transported from Hangzhou that the shipper is located to Shanghai by truck. From Shanghai to Los Angeles, they are carried by air, including a transship at Tokyo. Finally, they are also delivered from LAX airport to consignee warehouse in Long Beach by truck. 2007 Nomura Research Institute, Ltd.

  10. Logistics Flow and Read Events Overview (From China to Japan) Air-transportation from Shanghai. There are 7 read events (all active) in Shanghai. Manufacture in Hangzhou. There are 9 read events (2 passive & 7 active) in Hangzhou. The products are packed as a pallet in Hangzhou. UPS carry it to Shanghai CFS and proceed documentation. The products are built up to a ULD by NCA in Shanghai airport, and shipped to Japan. Transship at Tokyo. There are 6 read events (all active) in Tokyo. To transship to Los Angeles, NCA break the ULD and rebuild another ULD in Narita airport. 2007 Nomura Research Institute, Ltd.

  11. Logistics Flow and Read Events Overview (From Japan to USA) Air-transportation to LAX. There are 4 read events (all active) in LAX. NCA deliver the cargo from Shanghai to LAX via Tokyo. The ULD is broken down to the pallet at NCA warehouse. Consignee in Long Beach. There are 4 read events (2 passive & 2 active) in Long Beach. UPS deliver the pallet from LAX to the final consignee in Long Beach. 2007 Nomura Research Institute, Ltd.

  12. Physical Flow Information Flow Read / data point w/process # R Logistics Flow fromChina to USA (PO-Pallet） (1) 4. Forwarder Warehouse (Shanghai Airport) 5. Air Cargo Terminal (Shanghai Airport) 3. Bonded Drayage (Hangzhou to Shanghai) 1.Factory (China, Hangzhou) 2. Factory Warehouse (China, Hangzhou) Terminal Operator Shanghai Airlines Cargo (As a F/W’s warehouse) Factory TIH (Hangzhou) Factory Warehouse (3PL) TLGH Drayage (Forwarder) UPS Custom Clearance (Forwarder) UPS Export Processing Zone (EPZ) Shanghai Airport EPCIS (CE) EPCIS (Transport) ⑦ GRAICommission ⑨Aggre-gation ⑩Read tag ⑫Read tag ⑱Read tag ⑲Disag-gregation (⑫Read tag) ⑤Apply and read tag ⑥Aggre-gation ⑨Read tag (21)Read tag ③Apply tag ④Read tag ⑩Read tag on leaving from WH ⑰Bonded drayage ⑬Bonded drayage ⑱Read truck tag on Arriving at WH R5 R6 R5B R7 ⑦Commission Truck No. (GRAI) with active tag ⑲Disaggregate Truck tag with Pallet tags R5A R6A R7A ⑤Commission SSCC with active tag and read ⑯load into truck ⑭Unload from truck (22)Hand over cargo to carrier (TO) ⑧Load into the bonded truck and read ⑫Gate out of EPZ and read tag R3 R7B ⑨Aggregate Trucktag with Pallet tags ②Palletize based on S/R R4 (21)Receive and read pallet tag ⑮Receive and export documentation ⑳X lay inspection R2 ⑪Custom clearance at EPZ customs office ④Slap on carton and read tag (then wrapped) ⑥Aggregate active tag with passive tags (Packing into the carton and slap barcode) CONTINUE ※Bonded truck must go to UPS warehouse R1 2007 Nomura Research Institute, Ltd. ③Print and apply passive tag based on P/O ①Receive carton

  13. Logistics Flow fromChina to USA (PO-Pallet）(2) Physical Flow Information Flow Read / data point w/process # R R9 6. Air Cargo Terminal (Shanghai Airport) 8. Air Cargo Terminal (ACT) (JPN, NRT) 7. On Air (China to Japan) Terminal Operator NCA Carrier NCA Terminal Operator NCA Narita (Tokyo) Airport Shanghai Airport EPCIS (Transport) EPCIS (CE) (25)Apply and read tag (26) Aggre-gation (27)Read tag (31) (32) Read tag (35) (36) Read tag (23)Read tag (33)Read tag (36) Aggregate active pallet tag with active air pallet tag (35)Commission Air pallet No. (GRAI) with active tag and read (25)Commission Air pallet No. (GRAI) with active tag and read (30) Unload from aircraft R10 (29) Air Shipment (27)Read tag on leaving from ACT (28) Load into aircraft R13 R13A R11 R8 (31)Receive and read tag R12 R9A (24)Loading on air pallet and wrapping (34) Reloading (transship) on (another) air pallet and wrapping (26) Aggregate active pallet tag with active air pallet tag (32)Break air pallet for transship and disaggregate air pallet tag with pallet tag R12A (23)Receive and read tag (33) Read pallet tag 2007 Nomura Research Institute, Ltd. CONTINUE

  14. Logistics Flow fromChina to USA (PO-Pallet）-(3) Physical Flow Information Flow Read / data point w/process # R 11. Forwarder Warehouse (Shanghai Airport) 8. Air Cargo Terminal (ACT) (JPN, NRT) 9. On Air (Japan to US) 10. Air Cargo Terminal (US, LAX Airport) 13. NYK Warehouse (US, LA) 12.Drayage (LA) Custom Clearance (Forwarder) UPS Terminal Operator NCA Drayage UPS Sales Company’s Warehouse NYK Logistics US Terminal Operator NCA Carrier NCA LAX Airport EPCIS (Transport) EPCIS (CE) (37)Read tag (41)Read tag (42) Disag-gregation (43)(45) Read tag (52) Read tag (53) Disag-gregation (54)(55) Read tag (46)Bonded drayage (50) Drayage (38) Load into aircraft (39) Air Shipment (40) Unload from aircraft (51)Arrive at WH (52) Receive and read tag R14 (49)Load into truck R17 R18 R15 (37) Read tag on leaving from ACT (45) Read tag on leaving from W/H (41)Receive and read tag (53) Break pallet and disaggregate pallet tag with carton tag R18A (44) Load into truck R16 (47)Unload from truck (48) Receive and import documentation R16A (42)Break air pallet and disaggregate air pallet tag with pallet tag (43)Read pallet tag R19 R20 2007 Nomura Research Institute, Ltd. (54)Tally and read carton tag (55)Inspection and read carton tag

  15. Narita Airport (Tokyo) Shanghai Airport (Shanghai) LAX Airport (Los Angeles Shipper Warehouse (Hangzhou) Consignee Warehouse (Long Beach) EPCIS (TLS Asia) EPCIS (TLS US) EPCIS (CE) EPC data Interoperable EPCIS (CE) GLN GLN GLN GLN GLN GLN GLN GLN GLN Truck Master Airway Bill GRAI GRAI GRAI Aggregating Disaggregating Disaggregating ULD Disaggregating GRAI GRAI GRAI GRAI GRAI Aggregating Pallet Aggregating SSCC SSCC SSCC SSCC SSCC SSCC SSCC SSCC SSCC Disaggregating Carton Aggregating House Airway Bill SGTIN SGTIN SGTIN Purchase Order, Delivery Notice, Invoice # Key Identifier through China to USA via Japan 2007 Nomura Research Institute, Ltd.

  16. Visibility through Accessing Application • Query Key and Visibility are based on a Chain of Custody • (Condition) • INCOTERMS in the pilot is Ex-Works. • Vehicle tagging is only tested in China. • Shipper/Consignee requests to use SSCC as a tracking key because SSCC is attached on transport unit. • Pallet # is not standardized while ULD # is standardized by IATA. 2007 Nomura Research Institute, Ltd.

  17. Phase 2Pilot Execution Result 2007 Nomura Research Institute, Ltd.

  18. Air Pilot Objectives and Results (1) • Utilize EPC/RFID Technology components and EPCglobal standards on Air transport • All passive tag and active readings were successfully captured. • Especially, active tag was also workable in the air supply chain including stop/awake functions during the actual air transportation. • Passive tag that SGTIN 196 is recorded was also worked well. • All EPC identifier data which include SGTIN, SSCC, GRAI, and GLN shared, queried and subscribed between TLS EPCIS and CE EPCIS. Active tag (SIO) for pallet, ULD, and vehicle Passive tag (Hibiki) for carton In order to use active tag in the air supply chain, active tag (SIO) has a stop/awake function. It is used for pallet, ULD, and vehicle as well. In order to put actual item reference number into it, SGTIN and Hibiki tag were used for carton. 2007 Nomura Research Institute, Ltd.

  19. Air Pilot Objectives and Results (1) • Enable visibility at critical events in the air supply chain • Specified a use case of air LCL transport from China to USA including transship in Japan. (See P12 – P14) • Visibility was successfully secured in carton, pallet, ULD, and vehicle levels through EPCISs among multiple trading partners. (See P19) 2007 Nomura Research Institute, Ltd.

  20. Air Pilot Objectives and Results (1) Accessing Application through EPCIS CE and EPCIS TLS NTT Comware Accessing Application CE TLS From users perspective, layer information is highly required because cargo layer and package outlook is different by each product. When the cargo go through the read point behind the schedule that the user define standard time, cell is automatically shown in yellow color and the alarm mail is sent to the person in charge. Here is the exactly changing point of custody from Toshiba Logistics as a CE to UPS as a TLS provider. CE EPCIS handle information under layer 3 while TLS EPCIS do upper layer 3 in this pilot case. 2007 Nomura Research Institute, Ltd.

  21. Air Pilot Objectives and Results (1) • Apply EPC/RFID Technology to a LCL case • LCL transship at Narita Airport was completed without any problems, which included aggregating and disaggregating RFIDs. • Consecutive supply chain information within EPCISs was also secured even after the transship. Re-build ULD and attach tag Remove and Disaggregate from ULD Transship Operation at Narita Airport Wake up and aggregate with the otherULD Break down ULD 2007 Nomura Research Institute, Ltd.

  22. Air Pilot Objectives and Results (2) • Consider a specific chain of custody between TLS and CE industries • Manufacturer consigned their cargo to TLS provider with SSCC level meaning that CE EPCIS reposited tracking data only under SSCC level (SGTIN and SSCC). On the other hand, TLS EPCIS tracked and traced it with SSCC and over (SSCC and GRAI). • SSCC acted as information bridge between manufacturer and TLS provider and its interoperability was surely secured. • Prepare and investigate shipment and commercial information in order to take advantage of RFID/EPC technology for import/export procedures • Investigated the possibility of customs office’s cooperation by means of system connection, but failed eventually. • Found that container physical entry into bonded area and its information captured by RFID would be a potential trigger that customs broker could start import/export procedures. 2007 Nomura Research Institute, Ltd.

  23. Pilot Execution in China (1) ② ① In the first execution in TLGH, we found that wrong captured data was sent to EPCIS because the captured data of the rehearsal was remained in the reader and was not erased before the execution. Therefore, the team restart the execution again. Because the wrong data was sent and connected to P/O and Invoice# in the first execution, the wrong linkage in EPCIS was to be modified. It was remotely modified while the team did the second execution at the same time. As a result, the recoded execution time of R1 and R2 was not in order. 2007 Nomura Research Institute, Ltd.

  24. Pilot Execution in China (2) ③ ③ ④ The team rushed the second execution in TLGH because we had planed to finish the reading events to R6 before 11:00 that we had set the alarm. Therefore, we uploaded captured data from R3 to R5B all in once after R5A reading. As a result, the recorded execution time of R4-R5 and R5A-R5B were not in order because commission event of R5 and reading event of R5B were recorded the exact timing that the reader captured EPC data while aggregation events of R4 and R5A were recorded the timing that the captured data was stored into the repository. The alarm function of R6 rolled actually sending an alarm mail to the persons in charge because UPS arranged a truck which was not registered as a bonded truck. Therefore, we had to wait until the truck was registered on that site. 2007 Nomura Research Institute, Ltd.

  25. Pilot Execution in China (3) ⑤ UPS truck was delayed a bit while the team had asked them to tender the cargo until 10:00, which we had also set the alarm. As a result, the alarm function on R7B rolled as well. 2007 Nomura Research Institute, Ltd.

  26. Pilot Execution in Japan Nothing difficult happened in the execution in Japan. 2007 Nomura Research Institute, Ltd.

  27. Pilot Execution in the US Nothing difficult happened in the execution in the US. 2007 Nomura Research Institute, Ltd.

  28. Operational KPI Results Comparing with the standard KPI on site operation with a barcode hand-held reader (NYK US), lead time of reading with a RFID hand-held reader reduce by almost 60%. 2007 Nomura Research Institute, Ltd.

  29. Tracking and Tracing Application Results (Sample as a air carrier) • As a Air Carrier • Master Airway Bill Number 2007 Nomura Research Institute, Ltd.

  30. Another Issues and Challenges • <Regulatory Issue> • Pilot Test in Export Process Zone (EPZ) • It takes long time to get permission to bring RFID equipments and use those devices in the EPZ. • Radio wave use permission is still vague • Using radio wave needs both of the central and local governments permission. It also takes a long time. • Cooperation with Customs Office is still limited • We had several meetings with the central Customs Office in China. They showed strong interest in the EPCglobal pilot, but still faced the difficulty to open their door (cooperation with their EDI clearance system). • UHF band is opened, but still few hand-held reader to get permission • Ministry of Information Industry and State Radio Regulation Committee (SRRC) opened UHF band and stipulated the regulation on hand-held UHF reader. However, there are few hand-held reader which got permission to use all over in the China, meaning few option for end users. 2007 Nomura Research Institute, Ltd.

  31. Another Issues and Challenges • <GS1 key code Issue> • Vehicle identifier • We used GRAI as a vehicle (truck) identifier temporarily in stead of using GLN. Need further discussion and guide line for end users. • There is no standard rule to change vehicle number to GRAI or GLN. Vehicle numbering rule is decided by each country in deed. • Location identifier • We used temporal GLN as a location identifier temporarily because any participants did not get GLN before the execution. We need to consider to use another popular standard number like UN/LOCODE or longitude/latitude especially for the public place such as port, airport, CFS, and so on from users perspective. • <Hardware Issue> • Automated operation or few human intervention is expected • To apply EPC/RFID technology into the user real operations and give concrete benefits to them, it would be highly expected that all the operation related to RFID is conducted automatically or with few human intervention. 2007 Nomura Research Institute, Ltd.

  32. Another Issues and Challenges • <Software Issue> • There is no standard way to certificate multiple accessing applications to EPCIS. • In the Phase 2, the accessing application provided by NTT Comware used two certification ways, which included SSL certification to CE EPCIS provided by NTT Comware and basic certification to TLS EPCIS provided by GS1HK because there is no standard. • In the future, many accessing application would access to one EPCIS. For example, shipper/consignee application would access to ocean carrier's EPCIS to get physical container visibility information. • Aggregation and Disaggregation with business transaction information • We used business transaction information like Purchase Order #(P/O), Delivery Order #(D/N), Invoice #, Master Air Waybill #(MAWB), and House Air Waybill #(HAWB) as query keys to EPCIS because the pilot users need to track and trace the physical movement by them. • However, we would need further discussion on how to aggregate and disaggregate with the physical cargo movement information, in other word, cooperation with legacy EDI system. 2007 Nomura Research Institute, Ltd.

  33. Thank you for your assistance in Shanghai !! 2007 Nomura Research Institute, Ltd.

  34. Thank you for your assistance In Los Angeles !! 2007 Nomura Research Institute, Ltd.

  35. Thank you 2007 Nomura Research Institute, Ltd.

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