RFID / EPC ECR Europe National Initiatives

1. RFID / EPCECR Europe National Initiatives - Handout -

2. Potentials and Challenges

3. supplier of raw materials outlet transport transport transport goods receipt shelf management stock issue goods assurance check-out RFID / EPC in the supply chain manufacturer retail warehouse consumer goods receipt goods receipt production control picking stock issue picking stock issue payment systems purchase management Theft prevention exchange / guarantee handling traceability

4. Expected effects of RFID • Possible benefit • theft reduction • decrease of personnel costs • decrease of inventory costs • asset reduction • better use of allowance • shorter time of delivery • higher inventory turnover time • higher accuracy • prevention of out-of-stock situations • reduction of transcriptions • customer loyalty • more flexible assortement • Application area • tracking • routing • goods movement • controls • inventory processes • redistribution • goods receipt • register handling • return shipment • anti-theft device • marketing control • additional information Effect reduced costs increased turnover

5. Wherein are the challenges? process adoptions technology standardisation costs Challenges / problems implementation guidelines critical mass training & personal infrastructure environmental protection (consumer healthcare) migration consumer privacy

6. International Framework(Extract)

7. EPCglobal

8. EPCglobal Organisationsstruktur EANUCC Board EPCglobal Board Operating Committee Suggest NewTechnologies Develop Use Cases Businessrequirements User Action Group Technical Steering Committee Software Action Group Hardware Action Group Auto-ID Labs

9. D-A-CH activities

10. CCG key project RFID / EPC GlobalEPC Global (UAGs) - developmentGSMP - harmonisationGCI - representation of nationa/european interest WestEAN WEST - development ECR Europe - harmonisation European Adaption Program - representation of nationa/european interest EPC in Germany (supported by members of "EPC-foundation initiative")- administration- information, marketing- development- consulting / user support

11. Key issues of the CCG project RFID / EPC Technology Standardisation Processes Marketing Consulting / Distribution EPC Administration

12. EPC service packages of CCG Service package 1: Informational Membership, e.g. • free and exclusive information event on EPC every year • access to a national password protected homepage • discount on CCG services and events Service package 2: EPCglobal Membership, e.g. • registration as member of EPCglobal • access to international EPCglobal working groups • using of licensed components of the EPC system • access to EPC hard- and software specifications (Savant, PML)

13. Products - short term MIP MIP MIP Process description - long term EPC specification Recommendation Recommendation Regulations Best practise examples Key aspects of activity Subject EPC Processes Theft prevention Consumer privacy EPC pilots

14. Insight: processes Deliveries • Description of the selective process chain • Description of data change • Definition information profiles • Deduction of requirements to data management and IT systems • Deduction of requirements to advance the EPC tag data concept and EPC Information System • Documentation of working results asrecommendation

15. Insight: processes process scenario I Process chain - downstream - GR= Goods receipt GI = Goods issue IM = Inventory Management SM = Shelf Management Outlet DC retailer Consumer Production GR GI IM GR GI SM Cross-Docking GI GR GI SM Logsitic level Cases Items Pallets Pallets RAI SSCC Assortment Frozen Textile Dry Fresh Beverages

16. Status and next steps • EPCglobal • CCG is working in different User Action Groups • EPC Tag Data Standard • EPC Data Exchange • Pilots and Implementation • European Adoption Program(see below) • next step: participation at the EPC summit on 16 -18. March 2004 • GCI EPC Work Group • active member since July 2003 • next step: participation at GCI EPC work group meeting on the 18-19. March 2004 • European Adoption Group • project sponsorship together with e-Center, UK • commitment on issues and plans for 2004 on 11. February 2004

17. Status and next steps • EAN West RFID Project • project sponsorship together with e-Centre, UK • West EPC harmonisation • administration • services • pricing • ECR Europe • lead for ECR Europe through ECR D-A-CH project to analyse process modification through RFID • CCG / ECR D-A-CH • project leadership for ECR D-A-CH • next step: commitment on working plan and milestones on the 03. March 2004 Working Groups D-A-CH - Coordination Group (D-A-CH) - RFID Secundary Packaging ( A ) - RFID Tertiary Packaging (G ) - Theft Production

18. Overview ofChallenges for ECR Initiatives

19. Challenges for ECR Initiatives Supply Chain, e.g. • Release of existing ECR recommendations • Gap-Analysis • Describing RFID processes in context • Vendor Managed Inventory • Buyer Managed Inventory • Cross Docking • Unit Loads • Pallets • Returnable assets • Cases • . . . . 1 Production with integrated RFID Tagging Production 2 Goods issue / stock receipt 3

20. Challenges for ECR Initiatives Infrastructure of • manufacturer production lines • warehouse modification (e.g. stock receipt area, shelf, fork lift) • outlet modification (e.g. shelf, stock receipt, check out, shopping cart • truck modification (e.g. RFID reader)

21. Challenges for ECR Initiatives • Point up the benefits for users • Preparing the ECR Initiatives for the requirements of the future market • Developing migration models and recommendations • step 1: e.g. from barcode to barcode and RFID tag • step 2: e.g. from barcode to RFID tag • step 3: e.g. from nothing to RFID tag • ...

22. Wherein are the challenges? process adoptions technology standardisation costs Challenges / problems implementation guidelines critical mass training & personal infrastructure environmental protection (consumer healthcare) migration consumer privacy • Define further attention to tackle these challenges and to support standard bodies