Xterprise-led team pilots Next Generation" RFID Tote Management Application to benefit electronics industry

AUSTIN, Texas, April 16, 2003 − Xterprise successfully leads a team of industry leaders to develop, integrate and demonstrate a radio frequency identification (RFID) empowered tote management solution for the electronics original equipment manufacturers (OEM) market. Team members include Alien Technology (next generation RFID system components); BEAL Solutions (technology enabled tote management services); and Xterprise (business process consulting, solution architecture, integration services) who spearheaded the team.

Installed at the 3rd Party Logistics (3PL) warehouse in Austin, the pilot demonstrated the value of using RFID and asset management software to manage reusable totes geared towards the electronics industry. These totes carry high value electronic components that are built and shipped from printed circuit board suppliers. The pallets can be loaded with as many as 50 totes per pallet and are often double stacked. By affixing low cost passive RFID labels to the individual totes at the origin of shipment, the solution demonstrated how shipments were automatically received using virtually no hands." The totes were automatically read by wirelessly interrogating the RFID labels that were affixed to the reusable totes that are loaded on traditional pallets and unloaded off of trailers at the 3PLs warehouse dock door.

This solution provides a solid value proposition not only for 3PL to manage their inventory, but also for the tote management firm and the supplier who needs to have accurate data as to what has been received at the facility," said Dean Frew, president of Xterprise. Below are the value propositions that apply across all stakeholders:
•   reduces touch" labor at receiving and staging greatly
•   provides real-time updates of enterprise systems and product visibilities
•   increases accuracy of tote level receiving processes

The RFID tote management solution also includes integration of this automated receiving data into 'Helm, the BEAL Solution supply chain visibility system. A significant breakthrough of the pilot was to overcome the challenge of reading RFID labels placed on electrically conductive" or carbon filled totes prevalent in the electronics industry. The electrical connectivity of the RFID label host, tote in this case, plays an important role in system performance. Strong results were achieved because of thorough analysis of label placement during the pilot definition, and the selection of the most appropriate RFID label design and system for the situation.

Mike Beal, Chairman and CEO of BEAL Solutions LLC, said Most manufacturing companies have optimized the processes inside the factory and are now looking to extract value from the supply chain. Using the Helm, reusable tote management services and our execution experience, we can help companies optimize their supply chains. It is critical that captured data is accurate, process independent, and reliable. With good data, the Helm provides invaluable supply chain management information and can be integrated into legacy systems, making them more effective. We teamed with Xterprise and Alien to help with this solution."

By working closely with Xterprise on the RFID label selection and physical orientation of the label through the tote receiving process, we maximized performance of the RFID system to achieve the desired business objective," said Tom Pounds, vice president, Products, Alien. This application is an excellent example of how versatile RFID standard products can be when integrated into a complete solution. When applied to real supply chain customer problems, they can pay huge dividends," Pounds continued.
Xterprise chose Alien Technologies next generation RFID system components because of their superior performance and product cost advantages. The unique characteristics of Aliens low cost RFID products enable the RFID tags to be read with 100% reliably from over 3 meters on a conductive tote, said Frew. The advancements of Aliens next generation RFID system components enables much higher read reliability. Their extended read ranges allowed our team to effectively automate supply chain processes that previously have required hand scans for data capture." During the pilot, Xterprise was able to demonstrate automated no hands" receiving of totes in less than one second. Operational savings from both the faster receiving process and accuracy increase stand to be significant.

Now that the next generation of passive RFID is available and business cases are becoming more available, customers now want to achieve this level of supply chain process automation by adding this capability to their existing enterprise system," Frew added.

ABOUT XTERPRISE
Xterprise is a seasoned solution integration team, delivering the next generation in real-time supply chain execution solutions. Xterprise is an expert in warehouse management, transportation management, RFID systems and mobile enterprise solutions. Xterprise is headquartered in Richardson, Texas, and is an Incucomm Portfolio Company. For more information, please contact info@xterprise.com or visit our web site at www.xterprise.com.

ALIEN TECHNOLOGY
Alien Technology provides a full array of RFID hardware and capabilities needed to create robust and low cost RFID solutions. The company's unique manufacturing technology, Fluidic Self Assembly, will dramatically reduce the cost of RFID tags, and offers an economic path to assemble the ultra-high volumes of tags that will be demanded for global deployments of RFID in supply chain, logistics, authentication, and other applications. For additional information, visit www.alientechnology.com.

BEAL SOLUTIONS
BEAL Solutions is an Austin-based company that also has operations in Mexico, Malaysia and China. BEAL provides technology enabled services focused on extracting value out of the supply chain. They have over six years of experience managing a global reusable container program for a leading US computer manufacture. BEAL also developed a web-based application called the Helm to solve business problems using RFID technology as the main source of data capture. For more information, contact sales@BEALsolutions.com.