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To: twentyfirstcenturyfox who wrote (139)	11/18/2002 11:49:04 AM
From: Montana Wildhack	Read Replies (1) of 342

Fox, I don't believe Alien trades publicly. If they did I would assume it would have shot up in the excitement. They don't have the volume capability at the moment and I suspect Gillette was making more of a public statement about the level of their committment than about near term shipment of tags. I don't believe they'll be ready to ship any volume at all for some months to come - however at a 1/2 billion tags it is the first RFID order of any serious size and yes this makes Gillette/Alien the bleeding edge of adaptation. I know Gillette third parties its warehousing operations in Canada to Livingston and I believe a similar situation could exist in the US. Additionally these are no doubt read-only, low frequency tags whose value will be strictly within Gillette's own section of the supply chain. I don't know at this point what that is - but I do know that while the chip investment committment is in the $50 million range, the reader installations part of their total investment will be additonal serious money. Those readers could be Alien readers for this application since as I mentioned this investment is without doubt for an early part of the supply chain completely exclusive to Gillette product (no outside entry points for now and no outside RFID passoff's for now). This is what is interesting though in that any downstream benefit to RFID tagging would need to be readable by the handoff recipient. If that recipient does not have either Alien readers or a reader that accepts Alien protocols, the benefit disappears at that point. Business case payback therefore would either be in a closed system process within the manufacturing/packaging/crating cycle and would not replace current existing identification and handling - or it could be the initiation of some limited application of RFID meant to replace exisiting logistics at some point. In that case choosing readers fully capable at this early point would be important. This all becomes a little clearer when you think about the process flows of the physical supply chain. The first entry point from a physical sense would be sub components input for manufacturing both from within Gillette manufacturing plants and from external vendors for assembly purposes. The second would be the tagging and immediate control of manufactured products and their physical groupings (crate of freshly manufactured Synchron shavers for example). The third would be shipping and control of complete palletes to intermediate (for example Braun staging warehouse in Germany) storage locations. The fourth would be physical movement and monitoring of those pallettes to their destination. The fifth would be physical receipt and storage in distributed warehousing locations (owned or third partied). The sixth would be physical shipment and receipt to the distributed warehousing of customers (say Walmart - which is Gillette's largest customer). The seventh would be physical shipment and receipt to that customer's retail outlet and shelving location(s). The eighth would be one of final purchase to end customer, return by the customer, or return by the retailer. This is just a high level example but may be useful for anyone who has limited exposure to physical product logistics. Since sub-component inputs coming at the beginning which are RFID tagged would be deactivated or removed when going into the final assembly (cutter blocks into the Synchron shaver in the above example) without doubt - using Alien readers (or any exclusive readers) within a controlled section of the supply chain would not be limiting to future expansion of Alien's RFID tags. In each case the question is if I hand off RFID'd product to you can you read it if you need to? Wolf

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