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8/13/2019 Conair Case Study SinglesFNL2
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Realizing Hidden Business OpportunitiesHow Conair is revolutionizing its supply chain and import security
with EPC-enabled RFID
EPCglobal US helps its community members adopt EPC-enabled RFIDsolutions that solve critical business issues within their organizationsand throughout the supply chain
Conair Corporation
A leading global developer, manufacturer
and marketer of health and beauty
products, kitchen and electronic
appliances, Conair boasts some of the
biggest and best-known brand names in
the consumer goods arena. In addition
to products that carry the corporate
brand name, Conair also produces the
Cuisinart, Waring, Rusk, and Scnci
lines, to name just a few. The companyalso operates throughout Europe under
the well-respected Babyliss name. With its
main production facilities in Asia, Conair is
among the largest importers of products
into the United States.
In a down economy, Conair faces the
same challenges as other consumer
products companies: consumer spending
declines as operational costs continue
to rise. Despite these factors, especially
during these challenging times, Conair
realizes that now is the time to look foropportunities to invest in operational
improvements.
Turning Requests into Opportunities
In 2003, Conair was among the 100 top
suppliers faced with a request from retail
giant Wal-Mart to begin RFID tagging of all
cases and pallets of products supplied to
the company. About the same time, Conair
was also contacted by the Department
of Homeland Security asking for insights
about container and port security. As one
of the fifty 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.
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 knewwere
possible with RFID-enabled processes
using EPCglobal standards and the help of
EPCglobal US a member of EPCglobal,
Inc. and a subsidiary of GS1 US, a not-
for-profit organization dedicated to
the adoption and implementation of
standards-based, global supply chain
solutions.
US
Conair now has visibility of products
along its supply chain as well as with
more automated business processes.
Business benefits include reduced labor
costs, better inventory management,
increased cash flow, improved on-shelf
availability, and superior global security
measures. While more data is needed to
precisely measure the impact of EPC-
enabled RFID, sales of item-level taggedproducts going into Sams Club have
increased since the initiative began.
Implement an RFID business strategy
that would meet retailer requests whileallowing Conair to realize benefits
along the entire supply chain, as well
as provide a response to U.S. Customs
security needs.
Leveraging their investment in the GS1
System of Identification and EPCglobal
standards, Conair created new, business-
benefiting EPC-enabled RFID supply chain
and security applications through
a newly formed subsidiary USA ID.
CHALLENGE
SOLUTION
RESULTS
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End-to-end Visibility
To start the development process, USA ID
began with item level tagging to address
Wal-Marts immediate request. This wasabove and beyond the actual request to
begin tagging at the pallet and case level
as Conair realized the benefits. When
different retailers primarily Wal-Mart
approached us asking for EPC/RFID
tagging, we took it very seriously and saw
the benefit 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
efforts. 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 Identification.
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 effective, 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
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 filings.
Arguin says the primary benefit is
improved visibility of their products along
the entire supply chain, driving business
process improvements such as automated
order fulfillment, 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 EPC-
enabled 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 basedon 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
Conair Case Study: Realizing Hidden Business Opportunities
Every Cuisinart and Waring product that Conair is shipping into Sams Cluand select items going into Wal-Mart are currently being tagged at theitem-level. This is definitely the direction the industry is heading andwe are already seeing the benefits on both sides.
Paul Arguin,Director of Technology and Engineering
2
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 official just scans the tag
and the entire contents of the container
appear. Arguin says the seals enable much
faster, more efficient passage through
Customs, which means products get to
store shelves for sale more quickly and
with lower labor costs. Mayorek also
clarifies a major security benefit:
After the container crosses the ocean and
its opened up at a port, Customs officials
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 shipmen
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 flat file
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
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Conair Case Study: Realizing Hidden Business Opportunities
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 savings associated with time and
avoided penalty costs are incredible. The
penalty for having inaccurate Customs
10+2 filings is $5,000 per filing transmission.
Any device, process, and automation that
eliminates these penalties is not a luxury, its
a business necessity, says Arguin. This seal
allows us to expedite shipments and offer
a level of security the industry has really
never seen before.
The Importance of Expertise
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 benefited from connecting with
the EPCglobal community. Through its
global network of member organizations,
EPCglobal US has also provided assistance
when navigating the government
regulations in China to connect with
prospective customers for the USA
ID offering. Both Arguin and Mayorek
recognize the collaborative relationship
they have with EPCglobal US is a vital part
of their success.
Summary of Business Benefits
Business Process Improvements Business Benefits
Supply Chain Management
Order Fulfillment
Reduced labor costs.Item-level tags being read on conveyor belts have automated the sor ting process,
compressing work that previously took three shifts working around-the-clock to less than one shift.
Inventory Management Improved inventory management.Through its EPC-enabled RFID implementation and better visibility,
Conair is able to bet ter forecast customer needs, enabling just-in-time production, reduction of inventory
and increased inventory turns.
Customs Clearance 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.
Billing
Invoice Reconciliation
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 flow.
Planning
Product Forecasting
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 produc
is always there when customers are ready to buy.
Security
Container Security
Superior security.With high-security cargo seals and automated manifests, customs agents can scan and
see inside containers, verifying that products received are in fac t the same products loaded. The seal help
avoid penalty costs associated with inaccurate 10+2 Customs filings.
We have tapped into EPCglobal US expertise to get a world of information andadvice. There are no other industry organizations I know of that take such aproactive approach. They get us answers we need, connect us with resourcesand 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 havewithout them. The relationship has really been invaluable to us.
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.
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Solution Providers
United Security Applications ID (USA ID)
USA ID specializes in products andadvanced technology in areas related
to Radio Frequency Identification
(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-profit organizationdedicated 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 effectiveness,
speed, visibility, and traceability of their
goods moving around the world. They
achieve these benefits through GS1 US
solutions based on GS1 globally unique
numbering and identification 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 andimplementation of Radio Frequency
Identification (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 benefits 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 benefit from
EPC-enabled RFID solutions, contact your
EPCglobal US representative or EPCglobal
US customer service at +1 973.291.3300.
EPCglobal Standards Used
RFID Standards:Gen2 tag protocol
(Class 1 Generation 2 UHF Air InterfaceProtocol), 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 ratified eleven standards
focused on the identification, 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.
Conair Case Study: Realizing Hidden Business Opportunities
2009 GS1 US
Princeton Pike Corporate Center
1009 Lenox Drive, Suite 202
Lawrenceville, New Jersey 08648 USA
T+1 937.291.3300
F+1 609.620.0255
www.EPCglobalUS.org
US
A member of the GS1 US family
www.gs1us.org
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