RFID within Global Express Logistics ETSI RFID

RFID within Global Express & Logistics ETSI: RFID & Telecommuniations Services Workshop, May 2004

The Group. MAIL § 72 million mail items per day § High transit time quality § Global Mail: international mail dispatch solutions FINANCIAL SERVICES EXPRESS/LOGISTICS § § 3. 64 million trading customers § Leading retail bank § 10 million customers § Strong business unit § 1 billion shipments per year Financial logistics solutions Largest international express and logistic network A unique range of express and logistics products and services RFID within Global Express and Logistics · Q 2 2004 Page 1

More services, more benefits for your business. Worldwide express services – ranging from documents to parcels to pallets; network consists of 5, 000 branches and serves more than 120, 000 destinations. Domestic and international transport solutions for groupage, part-and fullloads – by road, rail and intermodal transport. Worldwide logistics solutions for air and ocean freight, supported by a dedicated team of experts for industrial projects and sophisticated IT applications. RFID within Global Express and Logistics · Q 2 2004 Customised logistics solutions from consulting to supply chain design, from warehousing and distribution logistics to order management. Page 2

Introduction to DHL. n DHL is the world's leading express and logistics company offering customers innovative and customised solutions from a single source. With global expertise in: – Solutions. – Express. – Air and ocean freight. – Overland transport. n DHL combines worldwide coverage with an in depth understanding of local markets. DHL's harmonised international network links more than 220 countries and territories worldwide. n DHL continues to be at the forefront of technology and, with more than 150, 000 dedicated employees, guarantees fast and reliable services aimed at exceeding customers' expectations. n Based in Brussels, Belgium, DHL is 100% owned by Deutsche Post World Net. RFID within Global Express and Logistics · Q 2 2004 Page 3

Introduction to DHL. RFID within Global Express and Logistics · Q 2 2004 Page 4

DHL general requirements/wishes of RFID. n General: – World compliant. – Standards based. n Tag thermal printable labels: – Write capable. – Low cost. n Simultaneous multiple read capability: – Rapid data acquisition. – High reliability and repeatability within proximity of 100%. n Moderate cost/complex antenna systems. – Reliable coverage limited to within a maximum of 3 to 4 metres. RFID within Global Express and Logistics · Q 2 2004 Page 5

DHL Express Objectives for RFID. n Performance - lowering operational costs: – Reduce or eliminate the need for bar code scanning. – Remove handicap of handling scanner and shipments. – Automated consolidated/bulk shipment/piece identification. – Reducing costs of Security Services. n Quality - improved service: – Improved checkpoint availability: – Commercial airlines which accounts for 30 million shipments/yr. – Faster/earlier availability. n Flexibility - new services. RFID within Global Express and Logistics · Q 2 2004 Page 6

DHL RFID today development model. Select the most widely used ID capture processes. Focus on developing devices for the toughest challenges first. Develop one device at a time. Simulate real world at the developer and test. Move device into real world Maximize developer access at lowest cost. and stress test. Assemble multiple proven devices into the real world and Pilot. Levelled Risk – DHL & Others RFID within Global Express and Logistics · Q 2 2004 Page 7

DHL Express Regional Pilot – Western Europe. n UK Government funded RFID Demonstrator Pilots – CHIEFS 1 & 2 Projects: – CHIEFS 1 (2002) based on active tags. CHIEFS 1 was IM 2002 Award Winner – CHIEFS 2 (2003) based on passive tags. n DHL (Air) Express and NOKIA – CHIEFS 2 Demonstrator Pilot: NOKIA – Tagged phones identified within closed ULDs. DHL HEL GTW Nokia & Non Nokia – Easyship tag labelled pieces at NOKIA. – Non NOKIA pieces tag labelled at DHL by SHIPMENT application. – Gate / door readers to auto ID all pieces and items automatically. DHL EMA HUB – ULD contents reader in Gateway and on Hub GSE. – Hub GSE recording location and matching to a/c stand through GPS. – Prototype RFID enabled truck. – Web based real time reporting. (NB: CHIEFS 2 basis of DHL RFID Video) RFID within Global Express and Logistics · Q 2 2004 Page 8

DHL CHIEFS 2 Pilot – CPG & DHL. RFID within Global Express and Logistics · Q 2 2004 Page 9

DHL Express RFID Pilots in 2004. n Americas and Asia Pilots – Work package 1 – MIA based customer and gateway, learning and discovery package. Completed. – Work package 2 & 3 – air side focus from and to MIA and GTL Gateway and Hub. Completed. n Asia. – Work packages 0 to 3 – end-to-end ground distribution. SIN customer to KUL via road transport. RFID within Global Express and Logistics · Q 2 2004 Page 10

DHL Express position with RFID today Interesting Deploy Implementation Will do but when? WE ARE HERE PERFORMANCE TAG LABEL COST TIME RFID within Global Express and Logistics · Q 2 2004 Page 11

DHL Solutions targets within METRO’s FSI n Business extension by creating an innovative solution for our existing and potential customers. n Close collaboration with Metro and other project partners (multinationals). n Industry leadership position with specific competitive advantages. n Usage of FSI testing environment and gathering more RFID experience. n Evaluating the benefits of the technology in the real environment. n Collaboration in setting industry standards. n Improvement of operational efficiency. n First Mile Stone: Joint Presentation at the 93 th Retail convention in New York n Second Mile Stone: FSI Fair in Köln on 14 th May: Communication of expectations to suppliers and presentation of pilot-results RFID within Global Express and Logistics · Q 2 2004 Page 12

METRO - Future Store Initiative Partners Platinum Silver Gold Algo. Tec Boston Consulting Group Intermec Online-Software WMS Cittadino OAT System www. future-store. org RFID within Global Express and Logistics · Q 2 2004 Page 13

DHL Solutions – Planned Tasks Dortmund Central Warehouse Short distance TSP DHL transport Menden Direct delivery transport TSP DHL Duisburg Short distance transport Pallet METRO FUTURE STORE Pallet Identifikation Identifikation Case Identifikation Identifikation Item Identifikation Identifikation RFID within Global Express and Logistics · Q 2 2004 Page 14

Where we are going with RFID? n Research. n Development. n Demonstrator pilots. n Prepare the DHL Network. n RFID leadership for Deutsche Post World Net (DPWN). n Planned passive system deployment. RFID within Global Express and Logistics · Q 2 2004 Page 15

Recap. n The ‘NEW’ DHL. n DHL objectives for RFID. n RFID technology requirements. n DHL technology development model. n DHL position with RFID today. n DHL request of airlines. n Where DHL is going next with RFID? RFID within Global Express and Logistics · Q 2 2004 Page 16

For further information. n www. dhl. com n Trevor Peirce RFID Global Programme Director DHL Global Co-ordination Centre Belgium +32 2 713 4000 RFID within Global Express and Logistics · Q 2 2004 Page 17