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Slide 1: RFID Solution Lifecycle Management Innovate. Execute.TM w w w . e f o r c e g l o b a l . c om
Slide 2: Agenda   About eFORCE Executive Flyover RFID  What is it? : What are the benefits? : What is hype and what is real? : How will it impact the industry?  RFID Strategic Opportunity Assessment Approach  Tasks, Timelines, Personnel, Deliverables and Pricing  RFID Pilot Compliance  RFID Deployment Solution Center Offering
Slide 3: Company Overview Overview   375+ people strong HQ in SFO, Delivery Capabilities in US, UK, 2 Development Centers in India (Kolkata, Chennai) Services - Enterprise Solutions         Industries       Enterprise Portals Content, Document, Digital Asset Management Enterprise Application Integration Customer Relationship Management Enterprise Infrastructure Legacy Migration Application Monitoring, Maintenance, Support Hi-Technology/Manufacturing/Automotive Financial Services, Insurance Life Sciences/Pharmaceutical Energy/Oil and Gas/Natural Resources Telecom, Publishing/Media & Entertainment Travel/Transportation/Logistics  Technology Core Competencies  J2EE, .NET, C, C++, SQL, XML, OpenSource  Standards-based Approach – RUP, OpenSource, J2EE, XML Flexible Business Arrangement     Technology Partners   Fixed-Price, Fixed-Time | T&M Dedicated Offshore Centers Offshore Build Operate Transfer (BOT) On-site, Off-site, Offshore  Application: Agentis, ATG, BroadVision, E.piphany, Interwoven, MatrixOne, RedHat, Siebel, Stellent, SeeBeyond, Saviion, TIBCO, Verity, Vignette, webMethods Infrastructure: Microsoft, Oracle, Sun Microsystems, IBM, BEA Systems
Slide 4: Agenda   About eFORCE Executive Flyover – RFID  What is it? : What are the benefits? : What is hype and what is real? : How will it impact the industry?  RFID Strategic Opportunity Assessment Approach  Tasks, Timelines, Personnel, Deliverables and Pricing  RFID Pilot Compliance  RFID Deployment Solution Center Offering
Slide 5: What is RFID ? How Does it Work ?  Radio Frequency Identification           Identify individual items Line of sight not required Stable in harsh conditions Read through most non-metals RFID tags cost: $.05 to $1.50 RFID readers: $10,000 to $100 INFRASTRUCTURE: Critical RFID Interface Auto ID Center Spatial capacity 1kbpsm (802.11b) Internet Item or Pallet SKU Reader ERP Server RFID Tag
Slide 6: What is RFID? How does it work?  RFID    identifies (SKU) individual items Cola can Vial of aspirin Component of aircraft engine  RFID    tags are paper thin labels consisting of Integrated chip Integrated antenna Two varieties: Passive tags and active tags with (battery) power source  RFID   readers can “read” many tags Line of sight not required Anti-collision prevents interference  RFID  readers may be Handheld or stationary
Slide 7: Beyond Barcode ePC 96 bits Header ePC Manager Object Class Serial Number 01.0203D2A.916E8B.0719BAE03C Header: 8 bits = 256 ePC Mgr: 28 bits = 268, 435,456 Object Class: 24 bits = 16,777,216 Serial Number: 36 bits = 687,194,767,361 268 million companies can each categorize 16 million different products and each product category may contain over 687 billion individual items !!
Slide 8: Beyond Barcode ePC 64 bits (Type I) Header ePC Manager Object Class Serial Number 01.0203D2A.916E8B.0719BAE03C Header: 2 bits ePC Mgr: 21 bits ~ 1 million Object Class: 17 bits Serial Number: 24 bits ~ 16 million 1 million companies who are current members of UPC / EAN can manage over 100,000 different products and each product may contain over 16 million items !!
Slide 9: The RFID Opportunity Spectrum Extensive Standards Maturity Enterprise Focus Supply Chain Focus Automate Existing WMS Functions Carrier Level Track and Trace RFID Retail Compliance Cost of Tags Goods Authentication and Tracking Supranet RFID 2007 Integrated Supplier-toEnd-User Use of Standards-Based RFID Privacy and Security Issues Emerge Retail Merchandising and Replenishment $ 0.01 Source: GARTNER RESEARCH
Slide 10: Benefits co-related to adoption rates Benefits Increases as more Items are Tagged High ITEM TAGGING - Store level promotions and pricing Opportunities & Benefits CASE TAGGING - Case theft - Unit/item theft - Pay-on-Scan - Consumer understanding - Product R&D - WIP inventory - Routing - Assembly - Aging/Quality control - MRP - Capacity planning - Product assortments - Product recall/warranty process PALLET TAGGING - Product diversion - Supplier VMI/replenishment - Production planning - DC/Goods receipt - Put-away - Retail OOS - Demand planning - Supply planning - Subcontracting/re-packer visibility - Pick, Pack & Ship - Physical counts & reconciliation Low - Inventory control and storage - Cycle counts - Real-time ATP Inventory - Consign/Hold Inventory 6 months Source: SAP Time +5 years
Slide 11: Sample RFID Implementations to date Uses Of RFID Span Numerous Industries Implementations of RFID Company Harley Davidson Toyota Phase 1 Item tagged Bins carrying parts of custom motorcycles during assembly Carriers containing car frames as they move through paint stations during production Beer kegs as they move through the supply chain Type of tag/chip Passive 13.56 MHz Passive 13.56 MHz Read/Write Read/Write Year/stage 1998/ rollout 2001/ rollout Outcome Automatically displayed manufacturing instructions for employees at each stage of the assembly process Streamlined manufacturing and vehicle tracking; saves on interest charges Read/Write TrenStar Passive 125-128 MHz Read/Write 2001/ rollout Improved demand forecasts and increase efficiency; identification of black-market sales and elimination of misdirected shipments Reduction of lost and misdirected paper rolls Improved customer service through better inventory management on shop floor; increase supply chain efficiency and data accuracy Avoid contamination by ensuring proper cleaning, asset visibility Compliance with the TREAD act and recall management Automated rerouting of baggage and increased accuracy (99.5% up from 70-85% accuracy with bar codes) to ensure that they send each bag back to the right airline 90% reduction in the number of containers required International Paper Gap Cores of larger paper rolls moving through the warehouse Denim apparel through the supply chain and onto store shelves Reusable plastic containers for carrying biohazardous waste Tires Passive 915 MHz Passive 13.56 MHz Read Only Read/Write 2003/ running 2001/ pilot Raxel Passive 905-928 MHz Passive 905-928 MHz Passive 905-928 MHz Read/Write 2002/ implemente d 2003/ running 2003/ deployment Michelin Read/Write Las Vegas Airport Airline baggage tags Read/Write Department of Defense Shipping containers Active433 MHz Read/Write 1994/ rollout
Slide 12: Where can RFID technology play a role?  Optimize supply chains  Provide complete visibility of each items' location, state and context throughout the entire supply and demand chain Implement build-to-demand manufacturing systems vs. build-to-forecast Improve demand and forecasting accuracy    Generate revenue    Accelerate New Product Introduction (NPI) cycles Improve on-shelf availability to prevent stock-outs Enable mass product customization by integrating customer usage and product information in adaptive CRM, SCM and PLM applications  Reduce costs and improve item management    Increase data quality and speed and prevent incorrect and incomplete orders Provide security enhancements, such as real-time asset and personnel monitoring Real-time event/process management and situational awareness
Slide 13: Potential Areas of Benefits from RFID Activity Storage Dispatch Claims Management Cross-Docking Receipt Claims Management Dispatch Storage Inventory Cost Asset Utilization Receipt Storage Replenishment Losses Area Warehouse Warehouse Supplier Hub RDC RDC RDC RDC All All Retail Retail Retail Retail Benefits of RFID over Barcode Automated, accurate inventory management Automated checking process Automated, accurate data records decrease claims generated Automated checking, reduced paperwork decrease admin Automated checking Automated, accurate data records decrease claims generated Automated checking process Automated accurate inventory Reduced inventory due to visibility through chain Improvement in asset Utilization Reduced paperwork Automated inventory management Improved efficiency Reduced loss (out of code, overstocking) from inventory visibility % of Cost Reduction 28% 26% 18.5% 18% 9.4% 20.8 5% 21.7% 55% 30% 2.8% 16.3% 4.5% 11% Potential Prioritization of Opportunities Short-Term Mid-Term Long-Term Total savings from a RFID linked supply chain cost compared to barcode driven supply chain cost structure 8.1%
Slide 14: What should you do with RFID in 2004? Figure 4 Companies Are Taking RFID Mandates Seriously “At what stage is your company in adopting RFID?” In production or upgrading Rollout underway or piloting 26% 20% 13% 7% 5% 8% 12% 10% 12% 23% Considering No Plans Don’t know Going into 2004 Distribution Manufacturing Retail All other Industries 15% 16% 38% 38% 44% 64% 12% 14% 13% 12% Base: 528 IT decision-makers at North American companies (percentages may not total 100 because or rounding) Source: Forrester’s Business Technographics® November 2003 North American Benchmark Study Source: Forrester Research, Inc.  Pilot EPC now  Several companies like Intel, P&G and Michelin have completed pilots and are identifying the benefits of the technology for their value chain initiatives  Explore other uses of RFID and X-Internet Technologies  Evaluate RFID within the context of a larger trend  Extended Internet>> That connect Information systems to physical assets, products and devices  Clearly define the benefits, costs, ROI and Risks through Pilots   The costs can add up very quickly (billions of tags, readers, network equipment, printers, storage, etc.) Training, implementation, data analysis and process optimization initiatives will cost even more than the hardware costs Thus it is imperative to clearly understand the business benefit of RFID 
Slide 15: What developments can you expect to see on the RFID front in 2005?  RFID traffic will flow to existing applications and networks   Figure 5 A Collection Of Vendors Is Necessary For EPC Pilot Design Example vendors Manugistics Manhattan Associates RedPrairie SAP Oracle ConnecTerra DataBrokers GlobeRanger OAT Systems IBM Sun RF Code Intermec Tyco Int. Alien Tech. Matrics Zebra Tech. Savi Technology Symbol Tech. SAMSys ThingMagic Philips SemiConductor Texas Instruments Avery Dennison Future >>> IP Networks Short to Mid Term >> Existing VAN to ERP/WMS Applications  The major benefits of ROI will come from event triggering based on RFID data Multi-vendor strategy to RFID solutions Maturity in dealing with the privacy issues that derailed the early pilots Data Management Hardware/readers  Chips/tags  Source: Forrester Research, Inc.
Slide 16: Pitfalls to Avoid  Use RFID only if it is intrinsic to your project  Many of the business cases currently publicized as justification for RFID have nothing to do with RFID. They are more to do with data synchronization or systems integration and can be achieved without RFID Vigorously assess the incremental benefits of RFID to incremental cost of RFID. If RFID is not intrinsic to the benefits, do without it.   The real benefits of RFID will be realized by re-engineering processes around RFID  Short to Mid Term >> Manufacturing and Warehousing Longer Term >> Retail Store   Keep away from initiatives that are defined solely by RFID’s ability to share data across the enterprise  Use a critical eye on these “RFID Poster Boy” business justifications as they can be realized without RFID in most cases  Improving POS data through the use of RFID  Most POS issues are related to POS infrastructure not data collection The trust and strategic issues of sharing data between manufactures and retailers will not be resolved with new technology    End-to-End Supply Chain Visibility – This is an integration problem that will not be solved through RFID Lot Traceability – This again is an integration problem that can be resolved through barcode. It can be enhanced by RFID but RFID is not the “silver bullet” Visibility into Receipts – This issue can be managed with enforcement of stricter ASN (Advanced Ship Notice) transactions 
Slide 17: Proposal Outline  About eFORCE Flyover – RFID  Executive  What is it? : What are the benefits? : What is hype and what is real? : How will it impact the industry?  RFID Strategic Opportunity Assessment - Proposed Engagement Approach  Tasks, Timelines, Personnel, Deliverables and Pricing  RFID  Pilot Compliance RFID Deployment Solution Center Offering  Why eFORCE?
Slide 18: Overview of Our Approach Understand the existing & future business environment & supply chain strategy for integration & collaboration with business partners Analyze the business across a complete set of KPI’s and leverage opportunities through the application of RFID Tie the resulting opportunities to a set of business problems and/or objectives Define a strategy, prioritization & categorization, and roadmap to leverage RFID opportunities
Slide 19: Areas of Assessment? RFID Assessment RFID Solution Design Measurement Framework RFID Solution Delivery Strategic Renewal Client – Supply Chain & Enterprise Solutions strategy Strategy Strategic Intent Process Process Review Process Design Process Realization Organization Personnel Review Business Architecture Organizational Alignment Technology Preliminary Solution Technology Architecture Technology Delivery Management Road Map Detailed Road Map Scorecards
Slide 20: Why use this Approach? Review and Assessment of Business Strategy Identify the business benefit in terms of growth and market positioning, and determine the drivers behind growth over the short/long term. Ensure the business model has the requisite FLEXIBILITY to adapt to changing business needs. Identify & Qualify the Business Benefits Assess what are the key business competitive advantages that reduce operational costs or enhance revenue generation or improve customer service ability through the leverage of RFID. Link Business Processes to Business Value Identify the key business processes that will need re-alignment to secure the business benefits. Leading Through Business Define Deployment & Enabling Tools Identify the supporting technology and leverage components from existing investments 2
Slide 21: The Deliverables are Classified Under… Identify key business goals/objectives over the next 0-4 years to ensure the RFID based SCM evolution plan provides the required flexibility to evolve with business needs also provides the framework for the logical growth in coverage of the supply chain initiatives that drives the value back to the enterprise and its value-chain partners Deployment Strategy Measurement Strategy Growth Strategy Provides the framework to measure financial and non-financial value creation through the evolution of the supply chain efforts within and outside the four walls of the enterprise through the use of RFID Provides the necessary exit points within the Operational Model to extend the process of collaborating with the value-chain partners
Slide 22: What Influences the Deliverables? Influencing Factors   Deployment Strategy     Supply Chain Strategy Organizational Readiness Process Readiness Technology Readiness Business Partner Readiness Business Objectives Supply Chain Drivers Shareholder Value Creation Business Objectives Technology Readiness Process Readiness Business Partner Assessment Information Assessment Business Objectives Supply Chain Strategy  Measurement Strategy      Growth Strategy   
Slide 23: What are the Project Deliverables? Deliverables  Benefits  Deployment Strategy      RFID Deployment Roadmap Identification of Leverage & Process Grouping Information Integration Model to support RFID deployment Organization Impact Analysis Model (Risk Analysis) Ability to Execute Model  Details the rollout strategy to support the business processes and at the same time identifies point of leverage that accelerate deployment and mitigate associated risks. Identifies the RFID strategy and ensures that the technology strategy supports the business imperatives and priorities  Measurement Strategy   Metric- Process Model (Level 0) Define Measurement Variables  Defines the business metrics and relates them to the corporate strategy using the balanced scorecard approach  Growth Strategy   Define the Extended Value-Chain Structure Define Inter-Enterprise Touch-Points and Information Requirements  Identifies the extended valuechain and the supporting process touch-points in an RFID deployment 2
Slide 24: Sample Project Timeline Task Name RFID Evolution Plan Project Kick-Off Supply Chain Strategy Definition Supply Chain Strategy Review Develop Evolution Plan Components Level 1 Process Review Metrics Identification Assessment of Inter-Enterprise Information Requirements Business Unit Risk Assessment Organizational Assessment Impact Analysis Technology Landscape Review Development of Roadmap/Strategy Business Function Rollout Strategy Definition of Technology Clusters High-Level Investment Plan Final Presentation Review of Strategy Fine-tune Strategy Final Presentation & Project Close-Out Duration 35 days 1 day 2 days 2 days 11 days 7 days 2 days 2 days 2 days 4 days 1 day 3 days 14 days 6 days 3 days 5 days 3 days 1 day 1 day 1 day Start Mon 3/8/04 Mon 3/8/04 Tue 3/9/04 Tue 3/9/04 Thu 3/11/04 Thu 3/11/04 Mon 3/22/04 Wed 3/24/04 Thu 3/11/04 Fri 3/26/04 Fri 3/26/04 Mon 3/29/04 Thu 4/1/04 Thu 4/1/04 Fri 4/9/04 Wed 4/14/04 Wed 4/21/04 Wed 4/21/04 Thu 4/22/04 Fri 4/23/04 Finish Fri 4/23/04 Mon 3/8/04 Wed 3/10/04 Wed 3/10/04 Thu 3/25/04 Fri 3/19/04 Tue 3/23/04 Thu 3/25/04 Fri 3/12/04 Wed 3/31/04 Fri 3/26/04 Wed 3/31/04 Tue 4/20/04 Thu 4/8/04 Tue 4/13/04 Tue 4/20/04 Fri 4/23/04 Wed 4/21/04 Thu 4/22/04 Fri 4/23/04
Slide 25: Critical Success Factors  Client needs to ensure that management commitment & executive sponsorship exists to see the project through. Accurate and timely delivery of information required from Client. End-user empowerment and support/insight to make necessary changes in business process and practices. Client will have to assign key functional and technical resources to the project for effective knowledge transfer and project success (project commitment). Both scope and functional requirements of the project need to be clearly defined at the beginning of the project in order to ensure that all team members understand what exactly needs to be done (scope creep) for the successful completion of the project. The Client project leader needs to have the adequate organizational and executive support necessary to gather, organize and provide all the data and resources required for the successful completion of the project (visible executive support). Project visibility within the organization needs to be high in order to ensure proper departmental support & involvement when needed (visibility & internal communication).       2
Slide 26: Agenda  About eFORCE Flyover – RFID  Executive  What is it? : What are the benefits? : What is hype and what is real? : How will it impact the industry?  RFID Strategic Opportunity Assessment - Proposed Engagement Approach  Tasks, Timelines, Personnel, Deliverables and Pricing  RFID  Pilot Compliance RFID Deployment Solution Center Offering  Why eFORCE? 2
Slide 27: Overview of RFID Deployment Solution Center  The RFID Deployment Solution is designed to assist Wal-Mart suppliers with RFID compliance, pilot programs and shipment preparation to the three WalMart DC’s located in North Texas (Cleburne, DeSoto and Sanger). In order to accomplish this, the RFID Deployment Solution has an integrated offering, partnering with several providers of RFID technology, hardware and software to provide a single-sourced solution that will allow: Suppliers to meet the RFID requirements mandated by Wal-Mart and other retailers Technology vendors (RFID, hardware and software) to showcase their solutions by providing a working system to continuously evolve RFID solutions for the marketplace Provide a model for national and global roll-outs by suppliers to the retail RFID enabled community. We will encourage participation of the vendor community. Expand beyond Texas with this unique business model that can be duplicated beyond the Dallas marketplace in other 3PL warehouses    
Slide 28: What is the RFID Deployment Solution Center? An o pe ra tio n a l 3 PL w a re h o us e to h a n d le th e c o m ple te life c yc le o f RFID d e plo ym e n t a n d pilo t c o m plia nc y In s im ple te rm s , th e RFID De plo ym e n t Ce n te r e xis ts to pro vid e a n a re na fo r e xe c utio n b a s e d RFID s o lutio n s . It is a n o pe ra tio na l 3 PL w a re h o us e utilize d fo r th e e xe c utio n o f th e te c h n o lo g y th a t is a ke y c o m po n e n t to lo ng -te rm s upply c h a in e ffic ie n c y Hardware (Zebra, Sun, CCL) Retailers/ Suppliers m a king it w o rk Systems (EXE, Savant) a llo w s re ta ile rs , re ta il v e n d o rs , tra n s po rta tio n pro v id e rs a n d te c h n o lo g y pa rtn e rs c o m e to g e th e r to o ptim ize RFID s o lutio n s a n d a llo w s b us in e s s e s to id e n tify w h e re th e y c a n m a ke im pro v e m e n ts a n d g ive s th e m th e a b ility to te s t th e s ug g e s te d im pro ve m e n ts b e fo re A collaborative working environment provides im ple m e n tin g th e m – to s e e if th e y w ill pro vid e th e d e s ire d re s ults . the foundation for making it happen Operations (DC Logistics, Transport Ind.) und e rs ta nd it im pro ve it My 1 6, 2004 a pa g e 3 2
Slide 29: RFID Deployment Solution Center  Through the RFID Deployment Solution Center, RFID product and service firms act as a single-source solution for Wal-Mart suppliers that want to achieve compliance with WalMart’s Texas vendor requirements or deploy RFID to other applications. Our pallet and case tagging, cross docking, conveyor tag testing and consolidation services make the RFID Deployment Center the first fullfunction RFID deployment facility for distribution environments. It provides systems, test environments, warehousing distribution operations and transportation solutions to Wal-Mart supplier organizations. We offer the unique ability to seamlessly integrate disparate RFID technologies into a comprehensive solution that meets the specific logistical needs of each customer. RFI De p lo ym e n t So lu tio n Ce n te r (1 5 0 ,0 0 0 s f) D Inbound F low Outbound F low  To Tag ging Area Outbound S taging Tes t Track & Racking  My 1 6, 2 00 4 a pa g e 4 THE RFID DEPLOYMENT SOLUTION CENTER The RFID Deployment Solution Center is a 150,000 sq. ft. distribution facility for designing, testing, validating and deploying RFID logistics systems, hardware, software and other technology components. This state-of-the-art technology center is designed to simulate distribution center environments. RFID solutions can be independently verified as compliant with Wal-Mart and other RFID mandates. 2
Slide 30: RFID Deployment Solution Center - Portfolio Of Offerings  Compliance Testing   On-Going RFID Compliance  Tagging to meet the requirements of WalMart, the DoD or other channel members. Our Deployment Center offers highquality RFID equipment-testing facilities meeting the Wal-Mart specs.     Ideal environment for suppliers to develop, test and roll-out RFID solutions for on-going compliance with Wal-Mart and other retailers. Package itself Packaging configuration Pallet configuration Tag Type (between vendors, active versus passive, etc.) Reader configuration and antennae placement  Business Process Modeling and Solution Design  Model your business processes and design integrated RFID solutions that will reduce a supplier’s investment in  Systems    Operations  Complete, custom solutions for reading/exchanging data in real-time environments. We provide warehousing, tagging and support services to ensure Wal-Mart compliance  Education Forums   Transportation  Educate members on RFID technologies, applications, solutions and advancements. We offer quality, non-asset based logistics solutions and strategic support services.  Complete Program Management  Assess, Plan, Implement and Operate a complete turnkey RFID Deployment Solution 3
Slide 31: Agenda  About eFORCE Flyover – RFID  Executive  What is it? : What are the benefits? : What is hype and what is real? : How will it impact the industry?  RFID Strategic Opportunity Assessment - Proposed Engagement Approach  Tasks, Timelines, Personnel, Deliverables and Pricing  RFID  Pilot Compliance RFID Deployment Solution Center Offering  Why eFORCE?
Slide 32: eFORCE Summary                 Blue-chip client base Strong management team with experience in IT Services Proven expertise in implementation of leading software packages, systems integration, and custom development Strong vertical industry/domain expertise Strong technology alliances with leading ISV’s Global Delivery Model - Offshore and Onshore development, maintenance and support Corporate fiscal and operations discipline Strategic focus on customer satisfaction 3
Slide 33: w w w . e f o r c e g l o b a l . c om Innovate. Execute.TM 3