Oracle Unveils RFID Capabilities for Warehouse Management

New RFID Platform Facilitates Compliance with Wal-Mart and Department of Defense RFID Mandates

SAN DIEGO, Calif., ORACLE APPSWORLD, Jan. 27, 2004 - The next version of Oracle(r) Warehouse Management software will include new radio frequency identification (RFID) and Electronic Product Code (EPC) capabilities, the company announced today. The capabilities will help suppliers comply with recent mandates from Wal-Mart and the Department of Defense, and enable companies to reduce warehouse and distribution costs through improved inventory control and extended supply chain visibility.

Oracle Warehouse Management will leverage Oracle(r) Database 10g and Oracle(r) Application Server 10g to provide a comprehensive RFID platform that can accommodate large volumes of transactional data and improve order fulfillment operations.

7-Eleven, Inc., an Oracle E-Business Suite customer, has been evaluating RFID technology extensively over the past year. "The potential for improved process efficiency, inventory control and, ultimately, cost savings are substantial," said Keith Morrow, chief information officer and vice president of Information Systems for 7-Eleven, Inc. "We are keenly interested in the new RFID capabilities within Oracle Warehouse Management and, equally important, its ability to leverage the Oracle database for effective management of new order information that will flow from the supply chain. 7-Eleven looks forward to the day when we can have RFID tracking by item, which is how we manage our inventory - item-by-item, store by store."

"Companies are increasingly evaluating RFID technology for its potential to dramatically change the economics of shipping, receiving and inventory management," said Jeff Woods, principal analyst at Gartner. "Enterprises that can leverage RFID to create RFID-centric processes in order fulfillment, manufacturing and warehousing will achieve strategic differentiation from their competitors."

Improving Supply Chain Efficiency
The new version of Oracle Warehouse Management will enable pallet- and case-level tagging for automatic processing of inbound and outbound shipments. With Oracle's new capabilities, companies will be able to easily identify, track and manage pallets and cases as they move through the supply chain.

The improved order visibility will enable organizations to make more informed decisions about production, inventory stock, delivery promise dates, and quickly adapt to fluctuating market demands. Additionally, the automated, real-time tracking capabilities will help improve security and cut costs associated with manual processes.

Oracle Warehouse Management will provide:
* Capabilities allowing for compliance with the requirements of Wal-Mart and the Department of Defense, which mandates their top 100 suppliers incorporate RFID tags in all pallet shipments by 2005, for RFID pallet and case labeling;
* Compatibility with RFID tags, reading and printing devices from leading companies including Alien Technology Corporation, Intermec Technologies Corp., and Zebra Technologies;
* Support for generating and using labeling in RFID initiated transactions within the enterprise; and,
* Built-in integration with the RFID middleware component in Oracle Application Server 10g for connection control and filtering capabilities required when receiving data.

Increasing Supply Chain Intelligence
As RFID technology is adopted, new challenges emerge when ultra large volumes of data enter systems. This data, which can encompass all aspects of the supply chain - including order entry, manufacturing, maintenance, shipping, receiving, and inventory - will push the boundaries of data warehousing scalability, performance and manageability.

To address this, Oracle Warehouse Management will use both Oracle Database 10g and Oracle Application Server 10g to efficiently and securely move and manage RFID data. By taking advantage of Oracle's data management expertise, Oracle Warehouse Management customers will be able to track, store and manipulate RFID in real-time, without compromising security, high availability and performance. Additionally, companies using Oracle 10g products to manage RFID data will be able to identify hidden trends and patterns in order fulfillment, uncover new cost reduction opportunities and reduce business risks.

"Oracle is the only technology vendor that can provide a truly comprehensive RFID platform, encompassing the application, middleware and database layers," said Jon Chorley, senior director of Warehouse Management and Inventory. "Combining Oracle Warehouse Management with Oracle's technology strength provides companies the ability to accommodate the huge volume and increased granularity of transactions, and the flexibility to meet their changing order fulfillment requirements - without requiring them to act as system integrators in this new and rapidly changing area."

About RFID
RFID, technology that includes tags and reader devices that use radio waves to automatically identify items, continues to gain momentum with suppliers, distributors, manufacturers and retailers for its ability to eliminate line-of-site processes - such as manual bar code scanning - and automate critical supply chain transactions.

EPC, a new numbering scheme for identifying products in the supply chain, is gaining widespread acceptance as an emerging standard. In addition to Wal-Mart, the Department of Defense also issued a mandate to its top suppliers to incorporate RFID tags in all pallet shipments by 2005. These industry initiatives are expected to help grow the global RFID market to $3 billion by 2007, according to the Wireless Data Research Group.

The next version of Oracle Warehouse Management is scheduled to be generally available in the Summer 2004. Companies interested in learning more about Oracle Warehouse Management's new RFID capabilities and support for the Wal-Mart and Department of Defense RFID mandates can visit http://www.oracle.com/applications/, or call 1-800-968-4664.

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Oracle Press Release

Contact(s): Dan Race 
Oracle Corp.
(650) 607-5884 
dan.race@oracle.com  

Emily Kao
Oracle Corp.
(650) 506-8599
emily.kao@oracle.com  
 

 
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