RFID within Global Express & Logistics

ETSI: RFID & Telecommuniations Services Workshop, May 2004

The Group.

MAIL

EXPRESS/LOGISTICS

FINANCIAL SERVICES

72 million mail
items per day

High transit time

quality

Global Mail:
international mail dispatch solutions

1 billion shipments per year

Leading retail
bank

3.64 million trading customers

Largest international express and logistic network A unique range of express and logistics products and services

10 million
customers

Strong business
unit

Financial
logistics solutions

RFID within Global Express and Logistics Q2 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.

Customised logistics solutions from consulting to supply chain design, from warehousing and distribution logistics to order management.

RFID within Global Express and Logistics Q2 2004

Page 2

Introduction to DHL. I
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. 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. 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. Based in Brussels, Belgium, DHL is 100% owned by Deutsche Post World Net.

RFID within Global Express and Logistics Q2 2004

Page 3

Introduction to DHL.

RFID within Global Express and Logistics Q2 2004

Page 4

DHL general requirements/wishes of RFID.

General: World compliant.

Standards based.
Tag thermal printable labels: Write capable.

Low cost.
Simultaneous multiple read capability: Rapid data acquisition.

High reliability and repeatability within proximity of 100%.

Moderate cost/complex antenna systems. Reliable coverage limited to within a maximum of 3 to 4 metres.

RFID within Global Express and Logistics Q2 2004

Page 5

DHL Express Objectives for RFID.

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. Quality - improved service: Improved checkpoint availability: Commercial airlines which accounts for 30 million shipments/yr. Faster/earlier availability. Flexibility - new services.

RFID within Global Express and Logistics Q2 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 and stress test. Assemble multiple proven devices into the real world and Pilot.
Maximize developer access at lowest cost.

Levelled Risk DHL & Others

RFID within Global Express and Logistics Q2 2004

Page 7

DHL Express Regional Pilot Western Europe.

UK Government funded RFID Demonstrator Pilots CHIEFS 1 & 2 Projects:

CHIEFS 1 (2002) based on active tags. CHIEFS 2 (2003) based on passive tags.

CHIEFS 1 was IM2002 Award Winner

DHL (Air) Express and NOKIA CHIEFS 2 Demonstrator Pilot:

NOKIA

Tagged phones identified within closed ULDs. Easyship tag labelled pieces at NOKIA.
DHL HEL GTW Nokia & Non Nokia DHL EMA HUB

Non NOKIA pieces tag labelled at DHL by SHIPMENT application.

Gate / door readers to auto ID all pieces and items automatically. 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)
Page 8

RFID within Global Express and Logistics Q2 2004

DHL CHIEFS 2 Pilot CPG & DHL.

RFID within Global Express and Logistics Q2 2004

Page 9

DHL Express RFID Pilots in 2004.

Americas. 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. Asia.

Work packages 0 to 3 end-to-end ground distribution. SIN customer to KUL via road transport.

. .

. .

RFID within Global Express and Logistics Q2 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 Q2 2004

Page 11

DHL Solutions targets within METROs FSI

Business extension by creating an innovative solution for our existing and potential customers. Close collaboration with Metro and other project partners (multinationals). Industry leadership position with specific competitive advantages. Usage of FSI testing environment and gathering more RFID experience. Evaluating the benefits of the technology in the real environment. Collaboration in setting industry standards. Improvement of operational efficiency.

First Mile Stone: Joint Presentation at the 93th Retail convention in New York Second Mile Stone: FSI Fair in Kln on 14th May: Communication of expectations to suppliers and presentation of pilot-results

RFID within Global Express and Logistics Q2 2004

Page 12

METRO - Future Store Initiative Partners

Platinum

Gold

Silver

AlgoTec

Boston Consulting Group Intermec Online-Software Cittadino OAT System www.future-store.org

RFID within Global Express and Logistics Q2 2004 Page 13

WMS

DHL Solutions Planned Tasks

Dortmund Central Warehouse

Short distance TSP DHL transport Menden

Direct delivery transport

TSP DHL Duisburg

Short distance transport

METRO FUTURE STORE

Pallet
Identifikation Identifikation Identifikation Identifikation Identifikation

Pallet
Identifikation

Case
Identifikation Identifikation Identifikation Identifikation Identifikation

Case
Identifikation

Item
Identifikation Identifikation Identifikation Identifikation Identifikation

Item
Identifikation

RFID within Global Express and Logistics Q2 2004

Page 14

Where we are going with RFID?

Research. Development. Demonstrator pilots. Prepare the DHL Network. RFID leadership for Deutsche Post World Net (DPWN). Planned passive system deployment.

RFID within Global Express and Logistics Q2 2004

Page 15

Recap.
The NEW DHL. DHL objectives for RFID. RFID technology requirements. DHL technology development model. DHL position with RFID today. DHL request of airlines. Where DHL is going next with RFID?

RFID within Global Express and Logistics Q2 2004

Page 16

For further information.

www.dhl.com Trevor Peirce RFID Global Programme Director DHL Global Co-ordination Centre Belgium +32 2 713 4000

RFID within Global Express and Logistics Q2 2004

Page 17