Inventory Management

1

PRECONFERENCE SEMINAR

RFID for Warehouse and

RFID for Warehouse and

Inventory Management

Linking RFID to Inventory-Management

B

t P

ti

Best Practices

Your presenter

Ygal Bendavid, Ph.D

• Professor, Department of M&T, Université du Québec à Montréal -UQAM's School of Management

• http://www.mantech.uqam.ca/

• Email: [email protected]

• Co-founder, Academia RFID

• http://www rfidacademia com/

Ygal Bendavid ₃

• http://www.rfidacademia.com/

• Training & certification

• Seminars @ RFID Journal Live since 2006

Preconference seminar Agenda

“RFID for Warehouse and Inventory Management”

• 11h30 AM: Linking RFID to Inventory Management Best Practices

• 12h15 PM: Targeting the Correct RFID Techno. for the Right Project

• 1h00PM: Lunch

• 1h45 PM: Key Steps in Building an Inventory Mgt. RFID Solution: Build Your Own RFID Portal

• 2h30 PM: Designing Your RFID Solution

Ygal Bendavid ₄

• 3h15 PM: Break

• 3h30 PM: Building Your RFID Business Case

Objective of the presentation

• Understand how RFID ties in with

warehouse inventory & SCM

• Identify how RFID facilitates warehouse

best practices

• Position RFID as an enabler of more

Ygal Bendavid

efficient W&IM

What is Inventory Management

• Inventory is the stored accumulation of

transformed resources (e.g. materials,

information, and money)

• Inventory management is the activity

of planning and controlling accumulation

of the resources that flow through

supply networks, operations and

processes

So… RFID’s goal is to reduce inventory?

Ygal Bendavid

7

Inventory Management is finding the

right stock balance

Vs

Ygal Bendavid

Inventory Management is finding a

balance between extremes

Excess stocks Customers Shareholders Stock outs Customer  Inventory &  Ygal Bendavid satisfaction y Operating costs

…

but there is a cost to inventory

• Ties up money (working capital) • Can become obsolete

• Can be damaged or deteriorate over time • Can be lost…or expensive to retrieve • Can take up excessive storage space (vs.

its value)

• Can involve high admin & insuranceCan involve high admin. & insurance costs

Inventory Management & RFID

The underlying objective of

The underlying objective of

inventory management is to

– Increase customer service – Reduce inventory costs – Reduce operating costs

Ygal Bendavid

• SO… HOW CAN RFID HELP?

Warehousing is in the supply chain

… about speed to market, total cycle time reduction

• As retailers look to increase sales, they will focus less on 'least cost supply chains' in favor of 'best managed supply chains.‘

$

• “while a retailer may save $.10 to move a pair shoes by optimizing their transportation they are missing out on $40.00 in gross margin opportunity by improving their in stock levels and therefore driving increased sales.

• It is about improving the customer experience.

• Merchants which are focused and reducing their “reaction time," (time an item is sold to the time it back on the shelf ) will win the retail game.

Ygal Bendavid

• In 2012 and beyond it needs to be about speed to market,total cycle time reduction which eliminates variability, and therefore reduces inventory."

Source Jim Barnes, president of consulting firm enVista

What business people want

Value!

• They want a solution to a problem

Th i f i h i h

• They want information they can use to improve the way they do business

• They don't care where the information comes from or how it was gathered since it is accurate

• They want visibility across the warehouse and the SC

Th t l !

Ygal Bendavid

• They want value!

• They don’t want to buy (RFID) technology

What business people want

What business people want

Visibility: Capturing data, translating it into information accessing this information!

Ygal Bendavid

http://thetimetimes.com/

What is (EPCIS) Visibility Data?

Visibility on events dimensions

RFID Event EPC (SGTIN) :ACAD00000000000010002543 EPCs (SCCCs) :ACAD00000000000010001212 2012‐04‐03 13:55:00 EPC (GLN): ACAD00000000000010001234 Receiving Source: adapted from Using EPCIS Data Sharing for Full Supply Chain  Visibility K. R. Traub, Ken Traub Consulting LLC, 17.4 deg

From data capture to information

management

From (in entor ) data

– What: 00098700…

Wh 10h30 AM

• From (inventory) data capture to (inventory) information management • With RFID data, it's not just

what you know; it's what

d ith h t k

– When: 10h30 AM – Where: (X, Y) – Why: Shipping to XX – How: 17 deg. Cel

Ygal Bendavid

you do with what you know

Warehouse management design

Warehouse –pressures- actions &

…RFID

Achieving Corporate goals through

effective WM & logistics

…A conbination of Ygal Bendavid Source: PACE Model from Aberdeen Group, Jan. 2012 …A conbination of strategic actions, organisation capabilities and enablking tecchnologies

Warehouse Mgt. best practices…

Obtain ASN for inbound deliveriesObtain ASN for inbound deliveries - Obtain ASN for inbound deliveries - Reject unplanned receipts

- Directly enter receipt into computers - Put away items immediately after receipt

- Eliminate the receiving function (direct delivery to prod.) - Repackage incoming items into increments ordered by

Obtain ASN for inbound deliveries Reject unplanned receipts

Directly enter receipt into computers

Ygal Bendavid

Repackage incoming items into increments ordered by customers

- Assign docks on the minimum warehouse travel time - etc See: Bragg, S. Inventory best practices, 2004

RFID as an enabler of more

efficient Inventory Management

• Provide information to support key

pp

y

decisions (e.g. order quantity)

• Ensure better inventory management

(e.g. FIFO, inventory turnover, etc.)

• Facilitate physical counting…

• Reduce the impact of probabilistic

p

p

demand

But Inventory Management can be more

From increasing your competitiveness to strategic differentiation

Ygal Bendavid

Warehouse Management strategies

& RFID potential application

Labor Management Task Management Slotting Load Building/Cubing Advanced Ygal Bendavid Source: Adapted from Aberdeen, High Performance strategies for Optimizing the warehouse, 2007 Picking Advanced replenishment

Automated Min/Max replenishment, demand based replenishment, Top off repl.; etc

Inventory Management strategies

& RFID-enabled 2Bin Kanban system

RFID 2Bin  Replenishment 

System

ERP/WMS

Source: http://www.logi‐d.net/

Inventory Management strategies

& RFID potential in advanced replenishment

1. WHO opened the  cabinet

2 WHAT item has been

( ) real time data improves service

2. WHAT item has been   removed  3. At WHAT time 4. For WHICH patient it is  intended) 5. Trigger a  Replenishment! Source: Mobile Aspects _{Source: Terso} Source: Wavemark

(…) real‐time data improves service,

streamlines inventory, improves

expiration & recall management and eliminates the need to maintain excess

Warehouse management design

From the Smart Container to a Mobile Warehouse!

A‐Plant onsite tool‐rental trailers

• New Business model!

Ygal Bendavid Source: ODIN technologies on www.rfidjournal.com Note: ODIN, Acquired by Quake Global, 2013 New Business model! • Fully automated system  to provide 24‐7  access to the exact equipment needed… • Billed for what is used

See: http://www.aplant.com/and http://odinrfid.com/

Warehouse management design

Bring the shelves to the workers “automating order fulfillment”

(…) Instead of being stored in static shelving, flow racks or carousels,

products are stored in mobile inventory pods in the center of the warehouse hil t Ygal Bendavid Sourcehttp://www.kivasystems.com/solutions/system‐overview/ while operators stand at inventory stations around the perimeter…

Inventory/Warehouse Management

on RFID Journal

Ygal Bendavid

http://www.rfidjournal.com/inventory‐warehouse‐management

Useful references

A more exhaustive search

Classics  http://www.google.ca/ Standards association  http://www.aimglobal.org/ RFID news   http://www.rfidjournal.com/ http://www.rfid24-7.com/ http://www.nfcworld.com/ http://www.linkedin.com/groups/RFID-48706  http://www.gs1.org/epcglobal RFID Vendors  http://www.impinj.com/Applications/ Case_Studies.aspx http://www.motorola.com/Business/ US-Social networks  https://twitter.com/search?q=rfid&src=typd http://www.linkedin.com/groups/RFID-48706 EN/Business+Product+and+Servic es/RFID/Deployments Etc.

Thank you!

Ygal Bendavid

UQAM,School of business 315 Ste‐Catherine est Local R‐3570 Montréal (Québec) Canada H2X 3X2

Academia RFID 9916 Côte de liesse, Montréal QC Canada [email protected] Ygal Bendavid Montréal (Québec) Canada H2X 3X2 Tel: 514‐987 3000 (x 2429) Web site: www.mantech.uqam.ca Montréal QC Canada H8T 1A1 Tel: 514 631 8282 – Fax: 631 9696 Web site: http://www.rfidacademia.com 32