RFID in the

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RFID in the DOD Supply Chain

Ed Coyle DOD Logistics AIT Office ed.coyle_at_dla.mil
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Facing new challenges

• Rapidly moving force on a dynamic battlefield
• Demand for better information on assets
• Need for more effective management of inventory

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DOD Logistics Priorities

• Support current operations
• Ensure success of the DPO
• Streamline material flows
• Explore and implement Vendor Managed Inventory
  opportunities
• Accelerate Performance-Based Logistics (PBL)
• Develop a way ahead for achieving maintenance
  excellence (e.g., Lean)
• Implement a balanced scorecard and performance
  metrics
• Ensure Logistics Enterprise Integration efforts
  are coordinated and interoperable
• RFID/UID/CBM

Deployed Forces
Commercial commodity flows
Weapons Systems
Infrastructure
Memo to Acting Under Secretary of Defense
(ATL) February 10, 2004
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Defense Logistics is Big Business
SKU/NSN - 5.2M
Orders - 26M annually
Contracts 8200 / day
Open Storage 20.5 M Sq Ft
Covered Storage 52.2 M Sq Ft
1.75M air shipments 208K S/T air cargo
5.1million M/T sealift 100,000 containers
annually
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Why RFID now the drivers

• Wal-Mart Passive Only
• Texas today
• The rest of the world to follow
• DOD Passive and Active
• Ten years of operational active already
• Jan 2005 passive tag rollout begins
• FDA
• Pedigree tracking already in force
• mid 2005 Nontampering programs kick-in
• Home Land Security and Port Security
• Operation Safe Harbour, CSI, CT-PAT, 9/11
  Commission recommendations being reviewed in
  Congress now

• Notable adopters
• Tesco, Target, Home Depot, Metro Group, Best Buy,
  Gillette, PG, Kimberly-Clark, Albertson's,
  Kroger's, Marks Spencer already in programs.
  This list is growing.

Its here. What are you going to do about it?
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The RFID Vision

• Implement knowledge-enabled logistics through
  fully automated visibility and management of
  assets in support of the warfighter

Using good information to reduce bad inventory.
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Active RFID Requirements

• Freight containers, consolidated air pallets,
  large engine containers shipped to overseas DOD
  receiving points

• Tags are unique to the DOD and will rarely be a
  contractual obligation on suppliers

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Passive RFID Requirements

• Cases pallets shipped to key DOD receiving
  points beginning Jan 2005 in accordance with
  supplier implementation plan

• Tags will be EPC-compliant and will be a
  contractual obligation on suppliers

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Advance Shipment Noticeassociate RFID with
material

• EDI 856
• UDF/FTP
• Web page form

Advance Shipment Notice
Manufacturers/Suppliers
DEBEX
Distribution Centers/Depots
WAWF

• Advance Shipment Notice 856 will be a
  transportation based transaction

• Pallet
• External Container
• CLINs

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Passive RFID Implementation Plan for DOD
Suppliers
January 1, 2006
43,000 DoD Manufacturers/Suppliers

• Classes of Supply
• Begin All Classes
• Level of Tagging
• Shipping Containers, Palletized Unit Loads,
  Exterior Containers
• Ship to locations
• Strategic CONUS DLA Depots, TRANSCOM Facilities
  Service Maintenance Facilities

New contracts and revisions
Classes of Supply
Level of Tagging
Ship to Locations
January 1, 2007

• Classes of Supply
• All Classes
• Level of Tagging
• Shipping Containers, Palletized Unit Loads,
  Exterior Containers, UID Item Unit Pack
• Ship to locations All Locations

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Next Steps

• Publish DFARS Rule for passive RFID
• Finalize RFID ASN to WAWF
• Provide Education and Outreach to the Acquisition
  Community
• Perform Safety Certification Testing (HERO, HERF,
  HERP) for passive RFID
• Complete contract vehicle for passive RFID
• Receive and Ship Tagged Materiel

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Questions
For more information http//www.dodrfid.org http
//www.dodait.com
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DODs enabler to the Integrated Supply Chain
Cases/Pallets are labeled with passive RFID tags.
Cases are associated to pallet
Cases/Pallets are read as they are received and
new shipments are labeled. Orders are verified
for accuracy
Cases/Pallets are associated with Active RFID to
provide TAV.
Data is timely and accurate via network of linked
readers allowing asset visibility along the
entire supply chain
Manufacturers/Suppliers
Customer
TMO/Supply/Theater Depots
Commercial/Military Carriers
Distribution Centers/Depots/TDCs
The cases/pallets are automatically received
with few disputes and info is shared with the
AISs. Reconfigured shipments receive a new RFID
Tag.
When shipments are reconfigured a new RFID Tag is
created for the pallet and associated with cases
on that pallet
Customers have visibility of requisitions and are
confident in the status provided by the system