US

EPCglobal US helps its community members adopt EPC-enabled RFID solutions that solve critical business issues within their organizations and throughout the supply chain

CHALLENGE

Realizing Hidden Business Opportunities

How Conair is revolutionizing its supply chain and import security with EPC-enabled RFID
about container and port security. As one of the fty largest importers to the U.S. and a participant in the Customs Trade Partnership Against Terrorism (CTPAT) program, Conair was a logical partner for the Department of Homeland Security to approach. With a vision to the future, Conair did more than simply respond to these requests. We are always moving forward, always looking for new ways to go to market and streamline our supply chain, says John Mayorek, senior vice president with Conair.

Implement an RFID business strategy that would meet retailer requests while allowing Conair to realize benets along the entire supply chain, as well as provide a response to U.S. Customs security needs.

Conair Corporation A leading global developer, manufacturer and marketer of health and beauty products, kitchen and electronic SOLUTION appliances, Conair boasts some of the Leveraging their investment in the GS1 biggest and best-known brand names in System of Identication and EPCglobal the consumer goods arena. In addition standards, Conair created new, businessto products that carry the corporate beneting EPC-enabled RFID supply chain brand name, Conair also produces the and security applications through Cuisinart, Waring, Rusk, and Scnci a newly formed subsidiary USA ID. lines, to name just a few. The company also operates throughout Europe under RESULTS the well-respected Babyliss name. With its main production facilities in Asia, Conair is Conair now has visibility of products among the largest importers of products along its supply chain as well as with into the United States. more automated business processes. Business benets include reduced labor In a down economy, Conair faces the costs, better inventory management, same challenges as other consumer increased cash ow, improved on-shelf products companies: consumer spending availability, and superior global security declines as operational costs continue measures. While more data is needed to to rise. Despite these factors, especially precisely measure the impact of EPCduring these challenging times, Conair enabled RFID, sales of item-level tagged realizes that now is the time to look for products going into Sams Club have opportunities to invest in operational increased since the initiative began. improvements.

The company took an innovative approach and created an entirely separate entity United Security Applications ID (USA ID) to focus on the development of supply chain and security applications that could be used to improve its own processes as well as meet the requests of the Department of Homeland Security. This business strategy would enable Conair to realize supply chain gains and the associated cost savings they knew were possible with RFID-enabled processes Turning Requests into Opportunities using EPCglobal standards and the help of In 2003, Conair was among the 100 top EPCglobal US a member of EPCglobal, suppliers faced with a request from retail giant Wal-Mart to begin RFID tagging of all Inc. and a subsidiary of GS1 US, a notfor-prot organization dedicated to cases and pallets of products supplied to the company. About the same time, Conair the adoption and implementation of standards-based, global supply chain was also contacted by the Department solutions. of Homeland Security asking for insights

Conair Case Study: Realizing Hidden Business Opportunities

Every Cuisinart and Waring product that Conair is shipping into Sams Club and select items going into Wal-Mart are currently being tagged at the item-level. This is definitely the direction the industry is heading and we are already seeing the benefits on both sides.
Paul Arguin, Director of Technology and Engineering contains complete information about the product, including what is needed by U.S. Customs. Tags are scanned as products are loaded onto a pallet and then pallet tags are scanned as they are loaded into containers for shipment. As tags are scanned, detailed manifests are automatically created, virtually eliminating any errors associated with preparing data for U.S. Customs lings. Arguin says the primary benet is improved visibility of their products along the entire supply chain, driving business process improvements such as automated order fulllment, improved inventory management, reduced shrinkage and faster reconciliation of shipped versus received product. At this point, the item-level tags are giving us tremendous time and labor savings. And, while more data is needed to precisely measure the impact of EPCenabled RFID, early indications are very positive, and the sales of tagged items going into Sams Club have increased, says Arguin. Added Security and Speed through Customs When the Department of Homeland Security approached Conair and asked if the company had any thoughts about container security, Arguin responded, You bet we do. And the answer is based on EPC-enabled RFID. Using EPCglobal standards and insights, USA ID developed a passive Gen2 RFID bolt container seal. The seals look much like other bolt container seals, but contain an RFID chip that has the capacity to store and convey information about the entire contents of the container. The seals are ISO/ PAS 17712-compliant and can integrate with GPS solutions making them not only exceptional security devices, but also ideal for tracking and authentication of cargo. In fact, Conair is currently testing the seals with Customs. Weve run tests with Customs and they were very excited about it, Arguin explains. The contents are scanned as the container is loaded, and from that a manifest is automatically created and valuable information is stored customer and shipping information, manufacturing dates, lot numbers and more. Then, when the door is shut and secured with this seal, the entire bill of lading and manifest are all there in the tag. The Customs ocial just scans the tag and the entire contents of the container appear. Arguin says the seals enable much faster, more ecient passage through Customs, which means products get to store shelves for sale more quickly and with lower labor costs. Mayorek also claries a major security benet: After the container crosses the ocean and its opened up at a port, Customs ocials can scan and see exactly everything that was loaded at its origin, verifying that those units received were in fact the same units loaded. Conair is also using the seals to its own advantage. The automated manifest allows Conair to know where a particular shipment is and where it came from, as well as the ability to keep particular lots together providing visibility from manufacturing all the way to delivery to their distribution centers. At this time, Arguin advises they are incorporating the automated manifests into the companys SAP system via a at le. Future plans include direct integration for even more visibility of individual items from point-of-manufacture to point-of-sale when that becomes available. In the past, Arguin says that occasionally a cargo container would not leave port if there

End-to-end Visibility To start the development process, USA ID began with item level tagging to address Wal-Marts immediate request. This was above and beyond the actual request to begin tagging at the pallet and case level as Conair realized the benets. When dierent retailers primarily Wal-Mart approached us asking for EPC/RFID tagging, we took it very seriously and saw the benet for our own organization, recalls Paul Arguin, Director of Technology and Engineering at Conair/USA ID. Arguin chose EPCglobal standards as the foundation for USA IDs development eorts. He knew the EPCglobal standards were built on a solid underpinning of expertise and experience, and realized the use of these standards would extend USA IDs current investments in the GS1 System of Identication. EPCglobal standards with their Gen2 advantages were logical choices for assuring interoperability with our suppliers and customers. Gen2 has widespread acceptance and the worldwide infrastructure is quickly developing. By using Gen2, importers can share the same infrastructure, making applications extremely cost eective, explains Arguin. The outcome was a UHF Gen2 passive RFID tag, equipped with both a long-range and short-range antenna for inventory and point-of-sale applications. Both Wal-Mart and Sams Club tested the USA ID tags and gave approval for Conair to ship products into their warehouses with the tags. The Conair tags are attached to items at the manufacturing facility in China. Each tag 2

Conair Case Study: Realizing Hidden Business Opportunities

We have tapped into EPCglobal US expertise to get a world of information and advice. There are no other industry organizations I know of that take such a proactive approach. They get us answers we need, connect us with resources and data that have really helped to form our solutions, and just generally provide us with insight into the larger world of RFID we simply wouldnt have without them. The relationship has really been invaluable to us.
John Mayorek, Senior Vice President

was missing information on the Customs paperwork. Because all data regarding the shipment, shipper and receiver is provided in the seal, it has the potential to virtually eliminate this type of delay.

The Importance of Expertise

Real-World Business Impact From the moment a product is born at the production facility through delivery to retailers through returns, warranty expirations and recalls Conair can literally follow its products along the entire supply chain via its comprehensive implementation of EPC-enabled RFID and GPS tracking solutions. Following is a summary of improvements in business processes and the resulting business impact realized by Conair.

EPCglobal US experts have worked with USA ID in various areas of their solutions by providing advisory services and both Arguin and Mayorek have greatly beneted from connecting with The savings associated with time and the EPCglobal community. Through its avoided penalty costs are incredible. The global network of member organizations, penalty for having inaccurate Customs 10+2 lings is $5,000 per ling transmission. EPCglobal US has also provided assistance when navigating the government Any device, process, and automation that eliminates these penalties is not a luxury, its regulations in China to connect with a business necessity, says Arguin. This seal prospective customers for the USA ID oering. Both Arguin and Mayorek allows us to expedite shipments and oer recognize the collaborative relationship a level of security the industry has really they have with EPCglobal US is a vital part never seen before. of their success. Summary of Business Benefits
Business Process Improvements Supply Chain Management Order Fulllment Inventory Management Business Benefits

Reduced labor costs. Item-level tags being read on conveyor belts have automated the sorting process, compressing work that previously took three shifts working around-the-clock to less than one shift. Improved inventory management. Through its EPC-enabled RFID implementation and better visibility, Conair is able to better forecast customer needs, enabling just-in-time production, reduction of inventory and increased inventory turns. Expedited shipments. Customs agents have a clear, complete view inside secure containers without opening them, which facilitates faster movement through U.S. Customs, and ultimately gets products to the store shelf for sale more quickly. Faster cash flow. With improved visibility along the entire supply chain, Conair can quickly reconcile shipped versus received products, leading to fewer invoice disputes and faster cash ow. On-shelf availability. Although more data is needed to precisely measure the impact of EPC-enabled RFID, Conair reports an increase in tagged-product sales into Sams Club since implementing item-level tagging. Arguin aptly notes, You cant sell what isnt on the shelf, and says that Conairs EPC-enabled RFID implementation is already helping the company get products to retailers faster, so they can be sure product is always there when customers are ready to buy. Superior security. With high-security cargo seals and automated manifests, customs agents can scan and see inside containers, verifying that products received are in fact the same products loaded. The seal helps avoid penalty costs associated with inaccurate 10+2 Customs lings.

Customs Clearance

Billing Invoice Reconciliation Planning Product Forecasting

Security Container Security

Conair Case Study: Realizing Hidden Business Opportunities

EPCglobal Standards Used RFID Standards: Gen2 tag protocol (Class 1 Generation 2 UHF Air Interface Protocol), EPCglobal Tag Data Standard (correct formation of EPCs). GS1 Standards: Global Trade Item Number (GTIN); Global Location Number (GLN); Serial Shipping Container Code (SSCC) EPCglobal has ratied eleven standards focused on the identication, capture and exchange of data in the supply chain, including the Gen2 tag protocol (i.e. Class 1 Generation 2 UHF Air Interface Protocol) the most widely accepted standard for identifying data in the supply chain. EPCglobal US ensures that EPC-enabled RFID solutions are implemented based on these standards.

Solution Providers United Security Applications ID (USA ID) USA ID specializes in products and advanced technology in areas related to Radio Frequency Identication (RFID), Global Positioning System (GPS), Electronic Article Surveillance (EAS) / theft prevention, logistics and supply chains, and port security. Products include: Item Level RFID Tags, RFID-enabled Cargo Seals, and GPS Tracking devices. To learn more, visit www.usaidtracking.com About GS1 US GS1 US is a not-for-prot organization dedicated to the adoption and implementation of standards-based, global supply chain solutions. More than 200,000 businesses in 25 industries rely on GS1 US for trading partner collaboration and for maximizing the cost eectiveness, speed, visibility, and traceability of their goods moving around the world. They achieve these benets through GS1 US solutions based on GS1 globally unique numbering and identication systems, bar codes, Electronic Product Code-based RFID, data synchronization, and electronic information exchange. GS1 US operates lines of business and brands 1SYNC; BarCodes and eCom; EPCglobal US; GS1 Healthcare US; and RosettaNet. To learn more, visit www.GS1US.org.

About EPCglobal US EPCglobal US, a member of the GS1 US family, supports the adoption and implementation of Radio Frequency Identication (RFID) and the Electronic Product Code (EPC) in order to provide organizations with real-time, accurate information of internal assets and products in the supply chain. EPCglobal US leverages the GS1 System of standards the most widely used supply chain standards system in the world. For more information, visit www.EPCglobalUS.org. Contact Us EPCglobal US works in partnership with suppliers and retailers to identify the best opportunities to realize tangible business benets through the adoption and implementation of EPC-enabled RFID solutions. EPCglobal US provides access to experts, best practices and an online global community through its comprehensive portfolio of solutions and services. For more information about how your company can benet from EPC-enabled RFID solutions, contact your EPCglobal US representative or EPCglobal US customer service at +1 973.291.3300.

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