Noel SA Successfully Completes RFID Pilot Based on Oracle Solutions

Colombian Cookie Maker Finds Sweet Rewards in RFID Pilot Ahead of Mandates.

REDWOOD SHORES, Calif., 13-FEB-2006 Compañia de Galletas Noel S.A. (Noel SA), one of the largest consumer packaged goods companies in South America, successfully completed a radio frequency identification (RFID) technology pilot using the Oracle(r) E-Business Suite and Oracle Fusion Middleware, Oracle today announced. The century-old company implemented the RFID pilot in anticipation of technology mandates from customers such as Wal-Mart and to understand how RFID data could be used to improve its logistics operations.

“Noel has always embraced technology to stay ahead of the competition,” said Noel SA’s Logistics Manager Pedro Alfonso Blanco. “We sell crackers, cookies and other candies that must be closely managed according to shelf life and customer demand. RFID has the potential to give us a real competitive advantage, help improve order fulfillment and boost customer satisfaction.”

Noel SA outlined three goals for the RFID pilot: prove the technology worked in the company’s facilities; understand how system administrators would acquire RFID data and integrate it into logistical processes; and limit inventory loss by reducing the number of misplaced goods and leakage.

Noel SA used RFID-enabled Oracle Warehouse Management (WMS), part of the Oracle E-Business Suite, as the logistics platform for the pilot, which included tagging 2,000 pallets of Ducales cookies that were sent to the distribution center in Medell�n, Colombia. Noel SA used Oracle Sensor Edge Server, a component of Oracle Fusion Middleware, to connect and manage all the devices on the RFID system, including tag printers and readers. Data captured from the system was processed by Oracle WMS and synchronized with the Oracle enterprise resource planning (ERP) applications.

Each pallet received a passive RFID tag, which included important order information such as the lot number and product expiration date. The RFID-tagged pallets were read throughout the supply chain from the production floor to the final distribution center to ensure proper delivery of orders. Once the pallet arrived at the distribution center of Medell�n, it was read again to reconcile the sales order and fulfillment information held in the Oracle order management system.

At the conclusion of the pilot, Noel SA uncovered that the bar code process prior to the RFID pilot was being executed incorrectly, rendering inventory and shipment data inaccurate. Noel SA gained valuable visibility into its operations such as inventory management and order fulfillment using RFID. The company plans to begin the roll out of a full-scale RFID system in the future.

GS1 Colombia led the implementation and Tyco Fire and Security provided the Sensormatic RFID readers, antennas, site survey and physical design. The reliability and performance of Tyco’s hardware was one of the key factors that enabled the project’s highly successful read rates. Loftware provided the print server. Paxar Corporation, a global leader in providing innovative merchandising systems for the retail and apparel industry, extended Noel SA’s Oracle-based solution by supplying the tags, printer from Monarch and RFID tags from Alien Technology.

About Oracle Sensor-Based Services
Based on Oracle E-Business Suite, Oracle Database 10g, Oracle Application Server 10g and Oracle Enterprise Manager 10g, Oracle Sensor-Based Services enable companies to quickly and easily integrate sensor-based information into their enterprise systems. Oracle’s solution includes a number of flexible deployment options that allow companies to start small and grow by leveraging their investment in Oracle technology, including the EPC Compliance Enabler, an RFID/EPC pilot kit, and integrated support in the Oracle E-Business Suite and Oracle Application Server 10g. Oracle is a member of EPC Global, which is leading the development of industry-driven standards for the Electronic Product Code (EPC) Network to support the use of RFID.

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