RFID at HP,

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RFID at HP,

• Salil Pradhan
• Chief Technologist, RFID

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Putting our learnings to work for you today
EXTERNAL
Service provider HP provides consulting and
integration services for customers implementing
RFID
Market provider HP provides customers with
RFID-enabled goods
Standards leader
DEPLOY
DEPLOY
HP helps develop global standards
Innovation leader RFID technology, sensor
infrastructure, security and management
User HP uses RFID in its own operations
INTERNAL
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HP Supply Chain today

• 137,000 printers shipped daily
• 82,000 PCs shipped daily
• 2M Industry Standard Servers shipped annually
• 110,000 retail outlets
• 20M calls/year at Sales contact centers
• 370M customer orders annually
• An eOrder placed every 9 seconds
• 77.7M unique visits/month to hp.com

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HP Operations
Multipleroutes-to-market
Value Direct
HP portfolio
Customers
Enterprise
HP-led
Volume Direct
SMB
Value Indirect
Consumer
Partner-led
Volume Indirect
Broadest customer base in the technology
industry
Broadest portfolio of IT products/services in
the world
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HPs supplier base
Major locations of HP product materials,
components and services suppliers
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HPs Journey with RFID
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Brief Timeline of RFID at HP

• 2002
• August - Supply Chain / Logistics Councils
  authorize RFID pilot
• September - first proof of concept kicked off at
  Memphis printer facility
• 2003
• January - Chester, VA ( inkjet pens ) chosen as
  the next RFID pilot site
• April - Memphis POC shows positive ROI, RFID Core
  Team launched
• June - WalMart issues first retailer request for
  tagged goods
• July - HP launches NA Retail RFID program
  worldwide
• 2004
• Feb HP joins EPCGlobal
• April - Memphis in production, HP shipping
  tagged goods to WalMart
• November - 21 RFID capable sites in Latin
  America, Mexico, USA and Asia

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The WalMart requirement Retaining your customer

• Began shipping tagged product to Wal-Mart April
  2004 as part of initial pilot
• Commenced on schedule in January 2005 shipping
  all Wal-Mart products tagged at case and pallet
  level
• Today more than 60 tagged products are shipped to
  Wal-Mart from 28 sites globally
• HP is piloting with many of the worlds largest
  retailers

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Retail IPG RFID Plan
Base Manufacturing
In transit
Regional
Walmart
Walmart, Sams Club and Neighborhood Market Stores
Product Completion Center
Distribution
AiO Personal Printers
Malaysia Flextronics
FGI Direct
AiO Personal Printers
Shanghai Calcomp
Memphis Menlo
Memphis Flex
Walmart DC1 Sanger, Texas
Scanners Cameras
Shenzhen Mentor Media
FGI Direct
IDS Air
Walmart DC2 Cleburn, Texas
BangkokVenture
AIO
Hong KongCanon
Toner
FGI Direct
Walmart DC3 De-Soto, Texas
GuadalajaraFlex
Toner/PersonalLaserjet
TokyoCanon
GuadalajaraJabill
Supply Site
Personal LJ
Canon China
Tag Site
Virginia Sonoco
InkJet Supplies
Various
Delivery Site
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HP RFID Geographic Scope
RFID impacts businesses, operations and
Customers in all Regions. Therefore program
scope is global and pan HP in nature
Commercial sites Retail sites
28 sites now RFID capable More in progress
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Memphis Factory Inkjet Hardware

• First to ship tagged cases and pallets to
  Wal-Mart April 2004
• Full site implemented in October 2004
• Will tag 6M printers in 06
• Tagging pallets cases with EPC Class 1 915Mhz
  tags
• May 06 Lines Gen2 ready
• July 06 Fully converted

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Sao Paulo Factory
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Using RFID to build visibility in the Supply Chain
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Value proposition for RFID

• Could we use RFID to enhance the flow of goods in
  our Supply Chain?
• Automating identification of items through the
  process flow
• Eliminating manual effort
• Increasing granularity of item, location, and
  time data
• Eliminating processes which only identified items
• Eliminating dwell time between processes
• Using RFID based data to radically change
  processes
• Carry key data on an item for faster local
  processing

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Benefits Learnings
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Is It Worthwhile ?

• Yes. but its not always obvious as to why and
  how. The key advantages are
• Labor Savings
• Process Accuracy
• Inventory Accuracy
• Proof Of Delivery
• Improved Operational Data
• Improved Operational Performance
• Advanced Ship Notice ( Dispatch Advice )
• Predictive Event Management
• Common Shared Data

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Lessons learned

• With slap and ship you just spend money use
  the information
• pallet logical build process reduced from minutes
  to seconds
• Improvements in transfer of pallet/case-level
  inventory between manufacturing and distribution
  center sites
• Operational benefits from improvements in
  outbound processes
• Memphis site receives material from Chester
  integration tested
• Automated identification at key stages of the
  assembly production line to gain manufacturing
  efficiencies
• Master data management influences the NPI process
• Global deployment not easy

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Lessons learned (2)

• Tags, readers, middleware vendors not
  consolidated yet
• Scalability, collaboration not proven yet
• Data synchronization is KEY
• Dont wait to know everything or youll have the
  competitive advantage of a 100M sprinter in a
  marathon
• Youll get conflicting advice and information. In
  the end you need to go and just implement it to
  learn
• Pilot, learn, adjust then roll out
• Start with simple ideas like replacing barcode
  scans, then work up to the full EPC architecture
• Crawl, walk, jog, run then sprint seems to work

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For more information
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