Streamlining The Supply Chain With Enterprise Data Collection and Mobile Computing

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Streamlining The Supply Chain With Enterprise
Data Collection and Mobile Computing

• Tom Miller
• Senior Vice President, System and Solutions
• Intermec Technologies Corporation
• April 11th, 2000
• Supply-Chain World North America

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Intermec Technologies Corporation
Founded in 1966, division of UNOVA 850M
Revenue, 70 countries Mission is Maximizing
Supply Chain Performance and e-Fulfillment 180,0
00 HHCs delivered to supply chain customers in
1999 52 Local RF, 10 Wide Area, 38 Batch
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E-Commerce Creates New Fulfillment Opportunities
Seconds or Minutes
EC Integration SW Vendor or Custom Code From SI
Vendor
Public Internet
Proprietary APIs
E-Catalogs, E-Procurement, Messaging,
EDI, E-Payments, Interactive Apps.
Purch. Mgr. or Consumer
ERP Vendor or Other Packaged Application
Purch. Mgr. or Consumer
Warehouse
Carrier
Retailer Reseller
Manufacturer
Back-End EC
Available to Promise
Nonintegrated File Transfer and EDI
Days or Weeks
4
Shop.com
Business To Consumer Drives Fulfillment Technology
Growth
To drive the future integrated wireless
communications, data capture devices,
applications, RFID and solution integration with
partners will be a prerequisite for vendors
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Supply Chain Trends Issues

• Trends - Deloitte Consulting (Winter 1998 Study)
• 200 participants
• US/Canada cross section
• Aerospace Defense, Automotive, Chemicals,
  Consumer Products, High Tech, Pharmaceutical
• Results
• 42 are dissatisfied with results from supply
  chain.
• Majority have not moved beyond traditional ERP.
• Competition will be supply chain vs supply chain.
• Benefits from supply chain integration are
  enormous.

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Drivers of Supply Chain Management

• Outsourcing trends
• Customer demand speed, flexibility, reliability
  of delivery
• Globalization
• Responsiveness over efficiency
• New software ERP, sophisticated application
  software
• Flow of information more powerful than movement
  of physical products
• e-business acceleration

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The Critical Link In iSupply Chain Execution
In a Dot Com Economy - How Do You Manage The
High -Velocity of iSupply Chain Dynamics? Dot
Com Company 11 months out of 12 -ships 5000
orders a month 2 weeks out of 12 months -ships
25,000 orders a day
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iSupply Chain Throughput
Supply Chain Execution Performance Relies On -
Link Flow Process Information At Each Link
Throughout A Dynamic Chain
Accurate Information Becomes More Important Than
Products In The Warehouse .
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Dot Com Experience Failures

• Companies Lack Expertise To Manage Fluid Supply
  Chain
• Companies Lack Ability To Anticipate
• Massive Needs Fluctuations
• Dot Com B2B (partnership focus) and B2C
  (product focus)
• Commerce Fails If Any Link In The Supply Chain
  Fails
• Companies require execution tools and business
  processes
• to make the supply chain work

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Critical
Very Important
Important
Not Important
of Respondents
Deloitte Consulting Trends and Issues In Supply
Chain Management
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B2B B2C Market Factors
Ernst Young 1999 Consumer Goods Technology Study
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Ingredients For Supply Chain Management

• Anytime, anywhere visibility
• Focus on fulfillment and execution technologies
• Specialized business knowledge and partnerships
• Vendors who understand impact of e-business on
  supply chains
• Strategy to capture item level information as
  product moves through the chain

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Rapid Growing SMT Technologies
1992 B
1997 B
2002 B
92-97 CAGR
97-02 CAGR
ERP
3.1
13.0
40.8
43
33
ADC
3.6
7.7
14.3
21
17
LMT
0.3
1.8
13.6
57
66
TOTAL
7.0
22.5
68.7
34
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Source Venture Development Corporation
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Mobile Computing Enables Shorter Supply Chains
Gartner Group Through 2004, adoption of mobile
technologies will improve supply chain throughput
by 10 and customer services ratings by 20. (0.7
probability)
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A Personal Point of Sale
Convergence of Retailing With E-Tailing Personaliz
ed Devices Wireless Links Internet Ordering
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The Link In Supply Chain Fulfillment
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Mobile Computing Impacts Supply Chain Execution
Fulfillment Execution
Customer Management

• Anytime,anywhere
• Best experience
• Activity capture
• Customer Services

• Real-time status
• Order validation
• Full cycle product flow

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Supply Chain Integration
The Results?

• Old Supply Chains
• Serial links
• Days/Weeks
• Static
• Designed
• Manufacturer driven

• New Supply Webs
• Networked links
• Hours
• Dynamic
• Self-optimized
• Customer Driven

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Top Supply Chains
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Key Supply Chain Enablers
Tagging Linear Bar Code 2D Bar Code Complex
Image Intelligent Tag
Comm. Link Ethernet Picolink / Bluetooth Premises
RF Cellular Wide Area
Item ID Capture Laser CCD Image
Capture Read/Write Intelligent Tag
Appl. Program Interface Browser Windows 95/98 Win
CE Terminal Emulation
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Supply Chain Technologies

• RFID
  tag, printer, reader and
  computer integration
• PicoLink
  low cost, low power, wireless PAN
• Wireless Network Integration
  local, personal, wide area, standards based
• Open Standards Radio Integration designed for
  best performance

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Supply Chain Technologies

• Pen Based Computers
  rugged, small to large tablet devices
• Windows CE
  enterprise (ERP)
  application extensions
• CCD and Imaging
  smart performance for heavy
  data requirements
• Client/Server/Web Application Software scalable
  software platforms
• Network Management Tools

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(No Transcript)
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Enterprise Data Collection Supply Chain Model
Smart Source tag solution Product
Intelligence Security
Inventory Tracking Merchandising Quality
Control Process Control Diversion Control
Home
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Link Information Controls Link Output
Intelligtag controls the critical database
intelligence that travels every link in a
Dynamic iSupply Chain
The Tag provides database access at each link in
the chain - from raw goods - to the consumer
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Pervasive Computing
Vehicle Mount
Industrial Hand-held Computers
Stationary Terminals
Pen-based

• RF and Batch Handhelds
• DOS Terminal Emulation
• Intelligent Data Collection PC

• Windows 95 Terminal Emulation
• Intelligent Data Collection PC

• Windows 95/ Terminal Emulation
• Intelligent Data Collection PC with Windows NT/
  Windows CE/ Windows 98

• Notepad with Windows 95/ Windows CE
• Pen Tablet with Windows 95/ Windows 98

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Scalable Network For Required Applications
Intermec Networks
INTERMEC DEVICES
Rugged Tablets
End User Price / System
Laptop / Pen Tablet
Keypads
Pen Notepad - CE
Jupiter -CE
PDA/Browser
Cell Phone/WAP
ROI functionality
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System Design Dependent on Application

• Survey
• Inventory
• Contact list
• To-do list
• Inspection
• Few Screens
• No Edit checks
• No database
• Non Mission Critical Data
• Simple PIM
• Data collection
• Meter Reading
• Inspection
• Home shopping

• Schedule
• Price check
• Order Entry
• Work order
• Simple email
• Direct edit checks
• Not much data
• Non Mission Critical Data
• Full PDA PIM
• Time and attendance
• Routing and scheduling

• Email (full)
• Presentation
• Office functions
• On-demand
• Generic
• Flexible
• Non-directed
• Office
• Salesbuilder
• ERP
• Internet/ web

Functions Characteristics Applications

• Pricing
• Invoicing
• Forecasting
• Selling process
• Directed apps
• Complex Logic
• Specific to task
• Mission Critical, High Value Data
• Directed logic
• Portable Retail
• Insurance Adj
• Public Saftey
• Route Accounting
• TC / Dispatch

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Suitability For Use
Wireless Browser
Windows CE
Win 9X / NT
Area of excellence
Capability
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Companies Desire On-Line Mobility

• Drivers of change
• work anywhere-anytime
• extreme polarization of personalization and self
  service
• shrinking and thinning of the workstation
• small form factors are changing the workflow
  process
• growth on-line service and wireless access
• anywhere, anytime means instant access
• any service, anytime
• commodity transition from IT ownership to IT
  rental

Source Gartner Group - March 2000
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Getting The Right Fit
WAN Client Remote often connected wireless
transaction Execute applications locally but
rely on servers for updates Internet or
traditional API client server models Communicatio
ns based on WAN standards CDMA, GSM
etc. WAN/Internet makes implementation of
mobility easier Simulates continuous
connectivity Compromise solution, gives some
of benefits of always connected until WAN improves
Mobile Computer Remote disconnected
transctions Transactions in a disconnected
environment Batch communications at
intervals Computers are autonomous Dont require
full network coverage Must be more capable
therfore cost more
Wireless LAN Terminals Local, wireless connected,
terminal emulation Special purpose terminals for
applications running on wireless
networks Terminals simpler, cost less since
computation on the network Wont work without
continuous network connection User interface tied
to communications performance
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The Microsoft Factor
Pocket PC
Embedded/HPC - Win CE PDAs - Palm OS/Win
CE Smart Phones - Symbian/Win CE
Windows CE will become a supported OS in 90 of
enterprises by 2004 (0.7 probability) By
year-end 2--2, Windows CE will capture at least
50 of the market for handheld embedded systems (
0.6 probability). These are commonly called
Keypads, Industrial Handheld Computers By year
end 2001, Windows CE will capture 30 of the
market for PDAs and Smart Phones (0.6
probability)
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Wireless Networks-- Core Technology Areas
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Internet Network Communications Architecture
Distribution Center
Enterprise Wide Area Wireless Networks
Enterprise Wireless LANs
Retail store
Internet
Manufacturing
Corporate HQ
Mobility Communications Servers Software
Distribution Center
Home
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Wireless Technologies Are Converging
Source Gartner Group
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Where Do Wireless PANs fit in?
WLAN
WPAN
Local Host
Scanners
Printers
RFID Interrogation
WWAN
RFID Tag
Terminals (Portable, Mobile or Stationary)
Docks
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System Management Strategy

• Enable visibility into all supply chain system
  components
• Proactive system and network management
• Maximize system performance
• System Management Services for powerful
  management of the supply chain
• Investment protection

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Remote Requirements
Data Preparation for File Transfer
Configuration Security System Events and
Logging Alerts and Alarms
Selective File Transfer Establish Host
Link Optimized Sessions Error Recovery
System Admin Communication Mgmt System
Mgmt Data Mgmt
Centralized Control Flash/System/BIOS Upgrades SW
Download and Control Electronic Software
Distribution
Guaranteed Data Delivery Data Synchronization Data
Security
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Example Field Service Supply Chain
ABC.com
Schedule Service

• Mobile Solution
• Application
• Computer
• Printer
• Modem / Radio
• Accessories
• Communications
• System mgmt.
• Inventory management
• Warehouse
• Mobile
• Remote
• Asset management via RF-ID
• Supplies and Service

Website
Partner
Perform Service
Scheduler
Partner Wireless
Service info
Service Provider
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Overview - Home Service Supply Chain
Intermec Value Add

• Available independent providers
• Customer sets schedule

Partner.com Website
Schedule Service
Partner Scheduler
Perform Service

• Per use fee
• Monthly charge for system

Partner Wireless Service Provider
Service info
Independent Service Tech
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Example Retail e-Chain

• Franchised, affiliated, or company-owned stores
• Distribution centers or mobile inventory,

grocery.com Website
Intermec Value Add
Order Products
Partner Scheduler
Deliver Products

• Per use fee
• Monthly charge for system

Partner Wireless Service Provider
Dispatch
Retailer or Independent Delivery Service
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Case Study Pratt Whitney
Embarking on a three-year program to implement
ERP in its global operations, Pratt Whitney
turned to Intermec and Epic Data to lead the way
with automatic data collection technology.
Shortly after launching the initial
implementation at a joint venture facility with
Singapore Airlines, the benefits and productivity
gains were apparent. Now, data collection queries
on Intermec hand-held computers could travel
14,000 miles from Singapore to the host site in
Connecticut and back in less than two seconds.
PW jet engines power more than half of the
world/s commercial airline fleet, with over 600
airlines operating PW engines in more than 150
countries. The company itself operates six
facilities in four U.S. states where engines for
commercial and military customers are designed,
developed, assembled, and tested, and spare parts
are made. In addition, PW Engine Services
operates overhaul and repair facilities for large
commercial and military engines across the
country, with joint-venture locations in Europe
and Asia.
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Case Study Pratt Whitney (continued)
PW is in the midst of a massive, three-year
enterprise resource planning (ERP) project and
wants to lead the way with automated data
collection (ADC) technology. They want material
delivered just in time directly to the point of
use so they can assemble jet engines with a
minimal capital investment. With more than 40
warehouses in PW facilities around the world,
the ERP team chose a newly acquired overhaul site
in Singapore for the initial implementation of
the warehouse management component of the new ERP
system. They wanted to be able to take a
worldwide look at their inventory position of any
particular part. The ADC implementation included
six Intermec radio frequency (RF) access points
across the four warehouse locations, and 12
Intermec wireless portable terminals. On the day
they went live, they were fully operational
before the day ended. Now, they are putting the
exact same model in each of the five other
overhaul facilities that they currently own.
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3PL Supply Chain Application Example

• i-Deliver is a mobile workforce automation for
  pickup and delivery businesses.
• i-Deliver
• Helps companies pick up more shipments
• Helps optimize the delivery process
• Helps reduce lost shipments
• Streamlines the dispatcher and driver
  relationship
• Is easy to learn

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i-Deliver Within the PD Process
Location/Status
Real Time Wireless WAN
Line Haul
Wireless LAN
Yard Management Gate Management
Delivery
Pickup
Dock Warehouse
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Full Automation Opportunities in 3PL

• Yard and Gate Management
• Locate trailers in large yards
• Eliminate guard with gate tags
• Track vehicle statistics
• yard location tags (e.g. maintenance and fuel)
• Cummins tags and readers
• Customer Service
• Proactively track customer shipments
• Provide automated proof of delivery
• Accurately report OSD (over, short, damaged)
  deliveries
• Alternative Business
• Turn empty docks into mini warehouses and go
  after 3rd party logistics business

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Automation Opportunities in 3PL

• Dispatch
• Reduce dependency on radios
• Improve efficiency and decrease time spent
  communicating with drivers
• Track locations of drivers and spotted/hooked
  trailers
• Cross Dock
• Eliminate missing freight on the dock
• Eliminate misloads onto the wrong trailer
• More accurately load trailers to reflect the
  order of stops
• Track inbound freight from pick-ups to better
  plan outbound line haul freight and dock storage

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Business Drivers

• 3PL
• Shipment Tracking
• Delivery Efficiency
• Prevent misloads
• Dynamic Dispatching for Pickups
• Proof of Delivery
• GIS for planning
• Retain and attract customers

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Customer Benefits

• Feature
• Efficient communications between dispatchers and
  drivers

• Benefit
• Dispatcher is freed up to deal with important
  exceptions rather than mundane tasks
• Reduction or elimination of voice communications
  reduces operating costs and increases utilization
  of drivers and dispatchers
• Elimination of drivers paperwork improves driver
  morale and efficiency resulting in less employee
  turnover and increased loads
• Wirelessly dispatched pick-up orders and data
  messaging between drivers and dispatchers
  improves dispatcher efficiency

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Customer Benefits (cont.)
Feature Visibility to pickup data Efficient
cross-docking operations

• Benefit
• Real-time visibility to incoming freight provides
  early visibility to outbound load planning

• Real-time visibility to incoming freight improves
  efficiency and helps reduces misloads of outbound
  freight

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Customer Benefits (cont.)
Feature Accurate recording of pickup and delivery
events Improved customer service

• Benefit
• Reduces errors and improves operational
  efficiency by accurate recording information at
  the point of activity

• Accurate tracking reduces lost and late
  shipments
• Notification of delivery confirmation and OSD
  (Over- Short-Damaged) improves billing accuracy
  and customer relations
• Customer satisfaction

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Intermec Technologies Corporation
Mobile Computing The Enabler of Supply Chain
Performance
Maximizing supply chain performance for the world