Conair Case Study SinglesFNL2

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

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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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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.


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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Conair Case Study SinglesFNL2