Improving supply chain efficiency delivers benefits

Friday, 28 July, 2006

The report on the National Demonstrator Project for RFID/EPC technology was presented at July's Impetus GS1 conference.

The pilot project, the first of its type in the world, involved tracing the exchange of ownership and the movement of products through the supply chain from manufacturer to retail.

Its scope was to demonstrate that the EPC Network could deliver efficiencies along the entire supply chain and that improved visibility could be of benefit to all, not just to direct trading partners.

Unlike the implementations undertaken by Wal-Mart and the Department of Defence in the US, the project expanded its scope to examine all elements of the EPCglobal system, not just RFID tags and readers, across seven sites.

The EPCglobal system incorporates:

  • RFID readers and tags.
  • Unique instance numbering through the electronic product code (EPC).
  • EPC Middleware: a software layer that filters RFID tag information and controls RFID readers and local infrastructure.
  • The Object Naming Service (ONS) is an automated networking service that connects each EPC number to the information associated with it on the global network. The ONS registry works like a phone directory, supplying information about where to find information on a specific EPC number.
  • The EPC Information Service is a database that houses individual instance information about products and assists with the communication and dissemination of this information. These are all connected together by the ONS.
  • Discovery services provide visibility, as well as tracking and tracing information, about specific items moving through a supply chain.

The report concluded that:

  • A single set of global standards reduces time and saves money.
  • Cross-functional teams make implementation easier and give participants greater benefits.
  • Internal knowledge is critical to success.
  • The EPC Network's benefits apply to all organisations and increase with greater trading partner participation.

The pilot project was jointly managed by CSIRO and GS1 Australia with a grant from DCITA's Information Technology On Line (ITOL) fund.

A consortium of key stakeholders from Australian industry, in addition to GS1 Australia and CSIRO, was involved. Participants included: Metcash, Gillette, Proctor & Gamble, Nugan Wines, Capilano Honey, Visy Industries, Linfox, CHEP, Verisign, Sun Microsystems and the Australian Food & Grocery Council.

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