Transcript RFID at Liz Claiborne Solving an Internal Distribution Issue

Speed to Market
RFID at Liz Claiborne
Solving an Internal Distribution Issue
Brian O’Donnell
7/22/04
Driving RFID
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Compliance
 Return on Investment
 Solve an internal
requirement / issue
Compliance
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Compliance mandates are driving the
majority of all RFID implementations
– To meet this challenge, corporations are
utilizing RFID in the last steps in the
distribution process.
• Potential save/return for the originating
corporation is limited.
• Many are not reaping any benefit in the
implementation
ROI
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Cost of chips still in the $.30 - $.45
range
– To be financially attractive
• Cost per tag / unit must be in the $.015 - $.02
– Need ability to drive down cost of usage
• Reuse tags
• Increase the quantity per tag
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Additional cost must also be factored in
Additional Costs
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Reader - $1,000 - $10,000
Software
– Middleware
– Modifications to current platform to
accommodate data
Conversion Cost
– Attaching tag to item
– Associating a tag with a number
Integration Costs
– Modifying current systems to handle large amounts of
data
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Ongoing Maintenance
Reuse tags
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Tags can be applied to reusable
items
– Pallets
– Totes
– Trolleys
Solve Current Material Handling
Problem
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Identify an area within the supply
chain that would benefit from the
technology
– Traditional methods are not meeting
requirements
• Barcodes
• Automation
• Manual operation
RFID vs. Barcodes
BARCODE
RFID
 Read one barcode at a  Read multiple ID’s
time
simultaneous 1000’s
per second
 Requires line of site
 Does not require line
of site
 Information fairly
 Store more
limited – do not track
information
sku’s uniquely
 Ability to write/update
 Can’t update
information on a tag
information on a label
Problems with RFID

Tags are still very expensive
– Chip based tags: $.30 - $.45
Standardization of EPC not final
 Privacy Concerns
 Paybacks are still risky
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Solving an Internal Issue
Conventional GOH Trolleys
Trolleys are utilized to transport
garment on hanger goods through
out the distribution center
 Diverting is controlled by a switch
manually set on a trolley
 Divert mechanisms are preset for
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Conventional Trolley System
Problems with Conventional Trolleys

Pins are constantly breaking
– Ongoing maintenance
Bent trolley cause misdiverts
 Divert mechanism are constantly out
of alignment
 Destinations are limited
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– 50 distinct location
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Multi pin trolleys are expensive
Solve Issue with Barcodes?
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Cost of implementation is high
– Scanner at each divert point
Barcodes consistently are
damaged
 Misreads are high
 Requires additional interfaces
with WMS
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Issue solved with RFID
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Utilized SmartTrak.
 SmartTrak is an RFID
based routing system
using Read-Write tags
embedded in the trolley.
 First Distribution center in
the US to utilize RFID to
route trolleys
 Each trolley knows its
destination, and at each
switching point, tells the
switch to open or not.
Programming the Trolley

Targeting the trolley.
– Hand Held version.
• The operator sets the destination with a portable
programming unit by simply keying the desired
location and pressing the enter button on the
programmer while pointing the unit at the trolley.
– Touch Screen version.
• The operator presses the destination on a display
and each trolley is programmed for the selected
destination.
– The trolley is now programmed with the desired
location. The trolley now may be inducted onto the
overhead garment conveyor randomly.
Diverting
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Diverting. When the trolley
comes into the range of
the antenna, the
destination is read from
the programmable
computer chip.
– If the Destination code contained in the chip
matches the destination code for the antenna, the
switch is opened for the trolley.
Liz Claiborne - Cincinnati
Cincinnati Facility
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Located in West Chester, OH
900,000 Sq. Ft.
Opened August 2002
Product Mix - Accessories and Apparel
Design Capacity - 32.5 mm Units
GOH Storage Capacity – 1.5mm Units
Technology Deployed
– Cross Belt Sortation
– GOH Sortation
– High Speed Carton Sortation
– SmartTrak
Smarttrac System
The Tag
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Read/Write incased in
glass.
Operates on the 134.2
kHZ Frequency
Dimensions ~ ¼ ” x 1
¾”.
Range +/- 3” when used
in a trolley.
Live cycle >100,000
writes.
Cost about $3.50 each.
Tag, not to scale.
Tag embedded in trolley.
3 Level Mezzanine
Transfer Station
Receiving
Write Station
Write Station/Divert Point
Empty Trolley
Write Station
Divert Points
Advantages

No moving mechanical parts
to jamb or break in the
reader.
– Durable transponder is
embedded in the trolley.
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Distributed switching
application highly robust as
encoders and tracking PLCs
are not required.
Advantages con’t
Virtually unlimited number of
destinations possible
 The system works with a
lighter duty, less expensive
trolley than those required
with conventional pin readers
 Less expensive and more
reliable than a barcode based
application
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Conclusion
RFID as a technology by itself will
not be the end all solution.
 Companies must redefine their
operation and make smart decisions
of where this technology is
applicable.
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