RFID Journal Live! 2006 May 1-3, 2006 MGM Grand Conference Center Las Vegas, Nevada

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1 RFID Journal Live! 2006 May 1-3, 2006 MGM Grand Conference Center Las Vegas, Nevada

2 Case Study: Tracking 190,000 Vehicles at Gulf States Toyota Gary Cole Sr. Manager Planning, Logistics & Quality Gulf States Toyota

3 Company Profile Corporate: Houston, Texas Founded: 1969 Employees: 550 (processing) Company Profile - FY 2005: Vehicles processed: 199,500 Accessories installed: 1.6 million Average processing: 2.7 days Average daily output: 798 units Average inventory: 1,050

4 Gulf States Toyota Vehicle Processing Center Operations Inbound vehicle delivery by rail and truck Average inbound volumes for 2006 ~900/day Light assembly of value added content to meet market demand 89-Acre Site (building out additional 100+ acres) 3,600 Parking Slots 1,700 truck-away bays Production Operation: 2 shifts, 5 days a week Receiving Operation: 6 days a week

5 Challenges Manual processes Limited Yard/Truck-away Space Level Of Service Performance At Risk Difficulty Finding Units for Change Orders Difficulty Selecting Next Best Unit for Production Labor Intensive Vehicle Management Current System Could Not Survive Another Peak Season

6 Solution: Automated Production Automated Production to Enhance Vehicle Throughput

7 Why Active RFID Provides Real-time Location System System Range Higher GPS $ Value of Asset RFID WhereNet Active RFID with RTLS Barcodes Lower Consumer Traded Manufacturing Distribution Container Movement Item and Package Cases ULD s, Pallets Vehicles, Trailers Trucks, Planes Containers, Rail Cars and Rail Engines Process Marine Containers and Planes Source: WhereNet Corp.

8 Active RFID Meets our Demanding Environment True Real-Time Location System - Accurate to 10 feet or better Omni-Directional - Tag Perform Same in All Orientations Long Battery Life - 5 to 7 Years Most Applications High Capacity - Thousands of Tags per Acre Co-Existence with Wireless LAN s Watt Output Strong Interference Immunity Chips / Bit Worldwide RF Compliance - 2.4GHz Long Range ft. Indoors / 1,000 ft. Outdoors Indoor/Outdoor Operation - Sealed Tags, All Weather Antennas Industry Standard Protocol - ISO & ANSI 371.1

9 Technology Provides a Multi-Use Infrastructure to Empower our Associates with Real-time Information WiFi RFID Mobile Work Force Communication + with Real-Time Location System IEEE a,b,g ISO 24730, ANSI Internet / Intranet Visibility Software Suite (Middleware) Automotive Manufacturing Aviation Marine Yard Defense Mobile WiFi Devices WhereCall PLC WhereCall II WhereTag HT Source: WhereNet Corp. WhereTag WhereTag HO WhereTag VT

10 Solution: Automated Production Tool: Vehicle Tracking & Management System (VTMS) VTMS Leverages RTLS: Physical Location Vehicle Status Vehicle Dwell Metrics Business Rule Driven Task Assignments Mobile Handheld Integration Real-time Alerting for Deviations

11 What does it look like? If If I I want to to find the the Next vehicles for for shipment

12 What does it look like?

13 How does it work? 1. Upon arrival, we place a Active WhereNet Tag in a vehicle. Real-time Visibility to vehicle location 2. VTMS: Applies Business Rules to determine vehicles next task Task 1: Wash Task 2: Gas Task 3: Add Accessories 3. WiFi communication to associate of business rule generated next task via mobile handheld. 4. Upon Shipment, remove the active tag and reuse for the next vehicle.

14 Return On Investment Able to Handle Peak Volumes More Efficiently Reduction of WIP (pull vs. push) Improved Level Of Service Performance Eliminated Daily Inventory Checks Labor avoidance in vehicle logistics Improved labor data collection

15 Automated Production $ $ $ Proven ROI $ $ $

16 Thank You!

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