Innovation in Supply Chain

Management and Applications

Transport And Logistics Innovation And
Technology Summit 08

November 2008

More Than Just Visibility. Savi

Savi Overview
Market Leadership
• Leader in RFID & wireless-based supply chain solutions
» Real-time tracking
» Asset, Consignment, and Distribution Management
» Inventory & Transportation Network Optimization
» Global Supply Chain visibility and security
» 20+ Key AIT Technology & Process Patents

• World’s largest RFID-based network

» 35,000 conveyances daily
» 3900 fixed Locations in 30 countries; thousands mobile
» Sole-source, 6-year $483M IDIQ Contract

• Prime contractor for Global Transportation Network

» US DoD In-Transit Visibility System of Record
» 13- Year, $432M Program

• Leader in International Defence & Commercial

AIDC enabled ITV solutions

• Hutchison Port Holdings Joint Venture

» World’s largest terminal operator, interests
in 42+ ports
2 Copyright © 2008 Savi Technology
 Savi Overview
Total Asset Management
Savi Logistics Savi Managed
Savi Technology Systems Savi Networks Services
(Initiative)
• FOCUS: Complete • FOCUS: Customized • FOCUS: Real-time • FOCUS: Develop and
products, solutions & decision-support information service that deploy integrated,
services leveraging RFID logistics solutions for automatically tracks, transaction-based
and AIT technologies for situational awareness, manages and secures information service to
end-to-end supply chain in-transit asset visibility intermodal container make supply chain
asset management & and management, assets and inventory information accessible
security. planning, collaboration throughout the global and actionable while
and optimization. supply chain. driving effective
• MARKET: Commercial, decision-making and
defense, defense • MARKET: Large • MARKET: Commercial defined outcomes.
suppliers & governments programs and projects shipper manufacturers,
worldwide. for the U.S. DoD and 3PLs and freight • MARKET: Commercial
other Federal Agencies. forwarders. and government shipper-
• CUSTOMERS: Dow, manufacturers,
Coles, DoD, NATO and • PROGRAMS: Global • CUSTOMERS: J&J, government and logistics
defense forces in the Transportation Network Western Digital, service providers.
UK, Australia, Denmark, and Business Systems Emprevi, PNL Networks.
Spain, Sweden, Poland. Modernization Center.

3 Copyright © 2008 Savi Technology

Innovation in the Supply Chain
Savi Vision
Everything Will be Tracked Wirelessly in 10 Years
Every Conveyance and Mobile Asset Will be
Tracked Using Some Type of AIDC Technology
» Connect People with Things
» Interoperable Networks Leveraging Bar Codes,
Passive and Active RFID, GPS

Networks Will Be Integrated with

Complete Solutions, Services and Apps
» AIDC is the Enabler within the Network

Dynamic Management of Supply Chains

» Tracking Conveyances and Their Contents
» Real Value of AIDC is Tracking and Securing Assets
End-to-End – Not just within the four walls or
point-to-point

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Innovation in the Supply Chain
Market Drivers

Improve Visibility
• Delivers management by exception and management by event.

Improve Utilisation
• Leads to reduced asset pools and fleet sizes.
• Improves return on asset investment

Reduce Inventory & Transportation Costs

• Facilitates a quicker and more reliable supply chain.
• Reduces the need for stockpiling inventory.

Monitor Security and Environmental Factors

• Know an asset’s location relative to where it is supposed to be.
• Value tied to corporate stewardship and risk mitigation.

Increase Competitive Advantage

• Utilize innovative solutions to deliver greater value.
• New technologies enable improvements to operating models.

Copyright © 2008 Savi Technology

Innovation in the Supply Chain
Right AIDC Technology for the Application
Functionality

GPS/SatCom
Layer 5: Movement Vehicle • Line of sight
• Global location
Active RFID
Layer 4: Container • Long range (300+ft)
• High metal environment
• Real Time Assured Data
• Sensor / Security enabled
• Omni directional
Layer 3: Unit Load • Affordable

Passive RFID
• Short range (3-15ft) Layer 2: Transport Unit
• Lower cost tags
• Read/write
• Non line of sight
Layer 1: Packaging
Barcode
Barcode
• Very short range (1ft)
• Ultra Low cost
• Read only Layer 0: Item

6 Copyright © 2008 Savi Technology Cost

Innovation in the Supply Chain
AIDC Technology Innovations
• Hybrid solutions
» Integrating multiple AIDC technologies
into a single business solution

• Hybrid technologies
» Combining multiple AIDC capabilities into a single device

• Smart Assets
» Manufacturing AIDC into the asset

• Expanding from item identification to item condition

monitoring
» Measuring external factors (temp, humidity, etc.)
» Creating self aware systems enabling Autonomic Logistics

7 Copyright © 2008 Savi Technology

Dow Chemical: Rail Car Tracking
Case Summary
Dow Chemical deployed a rail car tracking solution to
enable safe & secure TIH rail transit.

The results:
» Improved asset visibility
• Tracking 100% of Chlorine and Anhydrous HCL fleets
• Provide real-time location and environmental sensor
monitoring of temperature, product release,
shock and dome condition

» Enhanced decision-making capability

• Alerts generated for exception events help prevent
failures and improve critical response times

» Enhanced safety & security monitoring

• Increase device reporting times to once per hour
when a rail car is within any of the High Threat
Urban Areas as designated by DHS

8 Copyright © 2008 Savi Technology

Dow Chemical: Rail Car Tracking
Case Summary
Making TIH rail transit safe & secure through real time
proactive fleet monitoring
Customer Problem Project brief:
» High cost of an “exception” event or critical failure • Initial scope required tracking of
» Impending regulations from DHS to improve safety for 100% of TIH Fleet.
hazardous materials • Adding fleets for Ethylene Oxide
(EO) and Telone (C-17).
• Exceptions generated for: dome
Solution unsecured, excess temperature,
» Continuous real time proactive tracking of the location and wrong product car at loading
station.
condition of the Toxic Inhalation Hazard rail fleet using GPS,
SatCom, and sensor software and hardware • Savi hosted system

Benefits
» Improve Safety and Security through Real-time visibility
to all assets, all the time!
• Reporting on assets in DHS high threat urban areas
• Pro-active alerting improves emergency response and avoids
critical failures
» Increased asset utilization through reducing dwell times
at plants, customer, and 3rd party sites; and through
shortening asset cycle times
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Hazardous Rail Tank Car Tracking System
Solution to Customer Problem

• Railcars with RFID & GPS

» RFID on NA rail cars since 90’s
• Car location supplied to car owners
multiple times per day
• Used to project ETA’s
• Utilized at plants to collect SAP
transactional data

» GPS, SatCom & Sensors

• TIH & Flammable Gases
• Next Generation Railcar
» Sensor needs (liquid level,
pressure, etc)
» Power needs (Rahall Institute power plant)

10 Copyright © 2008 Savi Technology

Hazardous Rail Tank Car Tracking System
Solution to Customer Problem

• Savi SmartChain Asset

Management Software
» Powered By Google Earth
• Defined Geo-Fences for
» High Threat Urban Areas
» Dow Sites
• Load Racks
• Unload Racks
• Maintenance
Tracks
• Maintenance
Shops
» Customer Sites
11 Copyright © 2008 Savi Technology
U.S. Air Forces in Europe Case Study
Case Summary
USAFE deployed a munitions tracking & monitoring solution
to enable better decision-making through improved
logistics data.
The results:
» Improved asset visibility
• Automated monitoring of missile cases increased
the accuracy and timeliness of logistics data

» Enhanced decision-making capability

• Precise, instant knowledge of munitions’
location and status improved USAFE’s ability
to make mission-critical decisions regarding
munitions

» Elimination of unnecessary cost

• Automated tracking of missile cases saved
hundreds of man hours by eliminating
time-consuming manual inventorying of assets

12 Copyright © 2008 Savi Technology

U.S. Air Forces in Europe Case Study
Case Summary
Decision-making precision through more efficient tracking and
monitoring of assets
Project brief:
Customer Problem • Pilot conducted at Spangdahlem
» Decision-making hampered by manpower intensive, Air Base in Germany
untimely, inaccurate logistics information gathering • Tracking of high-value missiles
methods stored in magazines on base
» Requirement to meet DoD-mandated manpower reductions • 324 missile cases and 479 missiles
tracked
without negatively impacting operations
• Improved ability to inventory
munitions & monitor condition
Solution
» Deliver auto-surveillance, auto-inventory and auto-
movement capability using RFID software and hardware

Benefits
» Auto-surveillance eliminated need for visual inspection
to identify small percentage of compromised missiles
» Auto-inventory reduced single magazine inventory from
hours manually to seconds with the click of one button
» Auto-movement abolished need for manual data entry to
update missile location information

13 Copyright © 2008 Savi Technology

Munitions Tracking & Monitoring
Solution to Customer Problem
USAFE deployed a munitions tracking & monitoring solution consisting of
the following elements:
Hardware
» 260 Savi ST-673 active RFID sensor tags (w/ MEMS technology:
Micro-Electronic/Mechanical Systems)
» 7 Fixed Readers and 7 Signposts at 7 earth-covered magazines
» 2 Fixed Readers and 3 Signposts at Precision Guided Munitions
maintenance & inspection facility
» 4 Intermec 751G/A handheld RFID Readers

Software
» Savi SmartChain Site Manager monitors active RFID Fixed
Readers/Signposts to provide auto-surveillance, auto-inventory and
auto-movement capability
» SmartChain for Mobile Devices v4.6.1 to enable MEMS sensors and
timers
» SmartChain Enterprise Platform v4.6 / CMA v1.1 RFID-based
consignment-tracking to forward humidity threshold alerts via e-
mail

Services
» Professional on-site services for training, integration, business logic
development and solution implementation

14 Copyright © 2008 Savi Technology

 Thank you

David L. Shannon Office: (650) 316-4738

SVP of Product Management, Marketing & Strategy Mobile: (814) 883-9293

351 East Evelyn Ave. | Mountain View, CA 94041 | [email protected]

15 Copyright © 2008 Savi Technology