AAFA Government Contracts Committee

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Avery Dennison - Retail Information Services
AAFA Government Contracts Committee March 24,
2006 Palm Springs Mischa Reis Director of
Marketing, RFID Security Products Mischa.Reis_at_av
erydennison.com 1-818-735-6004
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Agenda
Presentation Overview

• RFID technology market overview
• Implementing DoD RFID requirements
• AAFA RFID Savings Program

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RFID Label
An RFID label contains several layers
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RFID at work
RFID LABEL
Reader Antenna
Reader
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How does RFID differ from bar codes?
RFID has significant advantages over barcodes
Bar Code RFID Line-of-sight required Non
line-of-sight Proximity read only Read up to
4m Slow read (usually manual) Fast read (100s
items/sec) Single read Multi-tag simultaneous
read Limited data (EAN / UPC) 100 characters
Read only Read/Write
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Market Update

• Wal-Mart roll-out according to plan, seeing
  significant out of stock reduction benefits
• Target, Best Buy, Albertsons, Metro
• DoD has started adding the RFID clause to
  contracts on Nov 14, 2005
• Several apparel and footwear retailers starting
  item-level tagging pilots

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Agenda
Presentation Overview

• RFID technology market overview
• Implementing DoD RFID requirements
• AAFA RFID Savings Program

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DoD RFID Policy

• RFID DFARS issued 11/14/05 for the first phase
  requirement
• See www.acq.osd.mil/log/rfid/DFARS.htm
• Provides for use of Class 1 and Class 0 EPC
  compliant tags for use on case and pallet level
  shipments to 2 DLA sites
• San Joaquin Tracy, CA and Susquehanna New
  Cumberland, PA
• Includes all items in material classifications
• Class I, subclass Packaged Operational Rations
• Class II, Clothing, Individual Equipment and
  Tools
• Class IV, Personal Demand Items
• Class IX, Weapon Systems repair parts and
  components
• Tag specifications to comply to Mil Std. 129.
• RFID DFARS for the second phase requirement are
  at OMB for review and approval is expected Q1 06
• This would require additional material Classes
  IIIP, IV and VIII and additional DLA locations
  including all USDLA USTRANSCOM, and Direct to
  Services
• RFID DFARS for the third phase would include all
  suppliers, all Classes and all DoD locations

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Options

• How to fulfill the DoD RFID Labeling
  requirements?
• Option 1 Print RFID MSL in-house via RFID
  printer and software
• Option 2 Fully outsource RFID MSL label
  production to a Service Bureau / Ticket Express
• Option 3 Obtain supplemental RFID label from a
  Service Bureau / Ticket Express

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Option 3 Supplemental Label

• Ordering supplemental RFID labels from a Service
  Bureau
• Only need to specify three things
• Carton or pallet label
• C.A.G.E. code
• Quantity needed
• Labels arrive with your unique number written to
  the RFID chip, printed as a traditional barcode
  and printed in a human readable format
• Labels may be ordered in advance without specific
  order detail
• Service Bureau / Ticket Express system will
  manage serial number usage on an ongoing basis by
  CAGE code to ensure that each label is unique

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Option 3 Supplemental Label

• Usage of supplemental RFID labels in existing DoD
  applications
• DoD orders are processed and MSLs are produced
  in-plant using your existing process
• As DoD orders are labeled, a supplemental RFID
  carton (or pallet) label is applied beside the
  MSL label
• Adding unique number from the supplemental RFID
  labels (as MSLs are scanned or keyed into DoD
  DD250)
• Scan NSN number on item to carton for carton
  content file.
• Scan supplemental RFID carton label to build
  pallet content file.
• Scan supplemental RFID pallet label
• Upload scanned data to VIM-ASAP for use in WAWF
  to eliminate data entry errors
• Alternatively, unique numbers from the
  supplemental RFID labels can be simply keyed in

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Option 3 Supplemental Label
Current DoD process flow
Data capture into DD250

• Manual
• Scanner

Supplemental RFID label
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Agenda
Presentation Overview

• RFID technology market overview
• Implementing DoD RFID requirements
• AAFA RFID Savings Program

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RFID Savings Program
To help member companies implement RFID, AAFA has
negotiated volume pricing for RFID labels from
Avery Dennison Retail Information Services, a
leading supplier of labels, tickets and tags to
the apparel and footwear industry. These rates
are available exclusively to AAFA members who are
producers and providers of apparel and footwear
products. The program was developed at the
request of AAFA members and with the help of an
industry task group represented by four leading
companies.
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RFID Savings Program

• RP Benefits
• Gen 1 and Gen 2 labels
• Exclusive to AAFA members
• Volume pricing even for small orders minimum of
  5,000 labels
• Free sample labels for testing
• No cost to participate

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RFID Savings Program

• Getting started as easy as 1 2 3
• Complete a registration form (available here or
  at www.apparelandfootwear.org /
  www.ris.averydennison.com)
• Send / fax to AAFA (Mary Howell) at (703)
  522-6741
• Avery Dennison RIS will contact you with details

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RFID Savings Program
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