ProductsGrowthPlatform RFID EPCProgramAccentureRFID EPCPulseSurvey Australia September2004 Copyright 2004Accenture Allrightsreserved Accenture itslogo andHighPerformanceDeliveredaretrademarksofAccenture 2 Contents ResearchApproach ParticipantProfileDrivers DecisionMakingImplementation 3 InvolvementinRFID JobTitle Function Region ResearchApproach100interviewswithmajorretailersandmanufacturersacrossAsia SamplelistoforganisationssuppliedbyAccentureandsupplementedbyKudosResearch20minute structuredinterviewswereconductedbytelephoneAccentureremainedananonymousstudysponsorParticipantsrecruitedwereasaminimumdecisionmakersforRFIDatadivisionorregionallevelAlthoughparticipantswerenotasenthusiastictowardstakingpartinthestudyasthoseinNorthAmericaandEuropeinthepreviousstudy thereisstillgeneralconsensusthatthisisahotissueParticipantswillreceiveanexecutivesummaryoftheresults pluswereofferedacharitabledonationasanincentivefortakingpart ResearchApproach ParticipantProfile OrganisationType 4 ParticipantProfile Australia Australia InvolvementinRFID JobTitle Function OrganisationType 5 Contents ResearchApproach ParticipantProfileDrivers DecisionMakingImplementation 6 Fewcompaniesarestrictlyundermandate howevermanybelieveimplementationinevitable Youneedcriticalmasstoimplementsomethinglikethat Themarkethastobeready Awholebundleofcompanieshavetodoittogether Thechallengeisenoughcompanieshavingthecouragetogoahead MajorPharmaCo Australia We resittingonthefenceatthemoment Unlesswegetatallpushedbymandates weprobablywillwait Cons GoodsManufacturer Australia LowROImorelikelytobeinAustralia 56 andJapan also56 RFIDCompliance Australia RFIDCompliance Overall Respondents 7 Overall potentialbenefitsarerelativelywellanticipatedinmultipleareas particularlyproductionandinventoryvisibility Increasedorderaccuracy Improvedrecallmanagement Reductionininventory workingcapital Improvedlottrackandtrace Betterexpirationdatemanagement Improvementsinshrink Bettershipping receivingproductivity Betterreturnsprocessing Improvedrawmaterialsreceiptsaccuracy Betterassetusethroughtrackingofvehicles Reusablecontainers Visibilityofotherhighvalueassets BetterWIPinventorymgmt Betterreceivinglaborproductivity Improvedrevenuethroughreductioninoutofstocks Reducedexpeditingcosts Supplychainplanning Safe securesupplychain Assetvisibility Productionvisibility Finishedgoodsinventoryvisibility Strengthofdriversbycategory ratingoutof5 NotaBenefit StrongBenefit 4 2 1 Notabenefit 5 Strongbenefit ofRespondents 8 Australia Perceivedbenefitsparticularlyinventoryandproductionvisibilityplussecuresupplychain Increasedorderaccuracy Improvedrecallmanagement Reductionininventory workingcapital Improvedlottrackandtrace Betterexpirationdatemanagement Improvementsinshrink Bettershipping receivingproductivity Betterreturnsprocessing Improvedrawmaterialsreceiptsaccuracy Betterassetusethroughtrackingofvehicles Reusablecontainers Visibilityofotherhighvalueassets BetterWIPinventorymgmt Betterreceivinglaborproductivity Improvedrevenuethroughreductioninoutofstocks Reducedexpeditingcosts Supplychainplanning Safe securesupplychain Assetvisibility Productionvisibility Finishedgoodsinventoryvisibility Strengthofdriversbycategory ratingoutof5 NotaBenefit StrongBenefit 4 2 1 Notabenefit 5 Strongbenefit ofRespondents 9 Commentsonthebenefits Manufacturers It sincreasedunderstandingofthestatusofthestockthatwehaveinthesupplychain Havingthecorrecttypeofgoodsattherightplaceattherighttime greateraccuracyinmatchingrequirements ManufacturerConsumerGoods Australia Thekeyfactoristhetrackabilityofassets reductionininventoryandwriteoffs expiredgoods Betterutilizationofinventoriesofconsignmentsinhospitals Bettermanagementofthereceivingprocess betteraccuracythroughoutthesupplychain Reductionoferrorsinorderprocessingandreductionininventoryintransit Moreaccuracyandefficiency ManufacturerPersonalGrooming PharmaCo Australia Beingabletotrackourinventoryorassetsthroughthesupplychain withanendbenefitofreducedoutofstocks improvedsales betterreturnonassetsandamorecollaborativeapproachtoworkingwithourpartners ManufacturerConsumerGoods Australia Forusthekeybenefitwouldbeseeingthestockwholesalershave Seeingfurtherdownthesupplychainandifextended downtooursuppliers keymaterials Manufacturer PharmaCo Australia Itwillallowfullvisibilityfrommanufacturertoendcustomer Forme it showthecompanythenusesthatvisibility ManufacturerConsumerGoods Australia Retailersareabletoidentifytheoreticalbenefits butcommentslacktheimpetuswhichwouldimplyaction It sprobablyintheinventorymanagement savingalotoftimeintermsofcountingstock trackingtrucksandmakingsuretherightpalletgoesontherighttruck VarietyStore Retailer Australia 10 MostmarketsseethegreatestbenefitsofRFIDintheextendedsupplychain ofRespondents RankedAreasofMostBenefit Overall Australia Withinyourownindividualorganisation Acrossmultipleorganisations i e suppliers customers ownorganisation Storeoperations 11 Overall costissuesandmarketstandardsandstabilityarethekeybarrierstoRFIDimplementation St