2006-05-04 Japan Pallet Rental Corp. Announces RFID-Related Business Plans

Tokyo-based company, Japan Pallet Rental Corp. (JPR) (President: Kenji Sakai) announced on April 24, 2006 that it worked out the "Innovation Plan" for the purpose of offering high value-added services to customers by combining the RFID technologies with the company's network established by pallet rental services.

JPR established the targets and roadmap-referred to as the "Innovation Plan"-that should be achieved by the combination of the pallet rental system and RFID technologies. JPR will attain the following targets by the Innovation Plan:

1. Upgraded services of the existing pallet rental services.

2. Realization of SCM and traceability beyond the fence among companies, by the coordination between pallets and information on products loaded on pallets.

3. Realization of more precise pallet management by paperless and real-time operations.

4. It is possible to manage information on pallets and products on pallets through the EPCglobal network.

5. ASN (advance shipment notice) becomes unnecessary and there will be more rationalization in work areas such as product inspection.

6. SCM and traceability beyond the fence among companies are realized, with pallets as a key factor.

7. JPR also plans to offer the above services 1 to 6 to customers who do not use rental pallets, as company's distribution container management services.

Major actions by Innovation Plan

The following actions will be carried out by the Innovation Plan:

1. "JPR Innovation Center" will be opened. (See separate paper for details.)

2. The renewed version of "epal," the APS services, will be offered as the information infrastructure.

o The renewed version that cat meet the EPCglobal network.

o The renewed version that cat meet the coordination between RF tags of pallets and information on products on pallets.

3. Efforts will be made to promote to place RF tags on pallets.

Outline of JPR Innovation Center

Location: 3rd fl. Aoumi Ryutsu Center Bldg. 1, 2-31-2, Aoumi, Koto-ku, Tokyo

Function: The Center has the three functions:

# The test center function that studies and develops customers' applications to material distribution containers.

# The technology center function that studies and develops applications to JPR pallets.

# The showroom function that discloses information to greater number of customers, and collets customers' necessities.

Zoning: The Center is composed of two zones:

# Communication zone

This is a space for exchanging information between customers and JPR, and between customers and customers. This space is used for business discussions and meetings too, besides presentation on RFID. The Center also expects to hold seminars from time to time, and transmits the latest information on distribution.

# Laboratory zone

This is the environment that mimics an actual material distribution site where we, together with customers, will study the most suitable RFID application model for presentation.

Facilities: - Communication zone: About 215 square meters

Conference/meeting/office

# Laboratory zone: About 475 square meters

Experiment facilities (Forklift gate/sorting conveyor/pallet rack)

Outline of experiment at the Laboratory zone:

# Visitors can see solution models using RF tags under the environment that mimics an actual distribution site. Further, they can see tag reading accuracy variations depending on tag's mounting position, passing speed, and influence by metal/moisture, etc. The Center is also planning to accept customers' desire to conduct tests by using their distribution containers and products, etc.

o Forklift gate

Reading tests are made for RF tags mounted on pallets and products loaded on pallets. Visitors can also see total reading during forklift conveyance. In addition they can see the coordination with epal, the reading characteristics depending on pallets and products loaded, and the difference in reading accuracy by tag mounting positions.

o Sorting conveyor

By assuming operations such as product identification at picking and sorting for shipment, the RF tag reading is made for containers and cartons. Visitors can see the reading characteristics depending on products inside containers/cartons, and the difference in reading accuracy by tag mounting positions.

o Pallet rack

Location management and stocktaking at warehouses/distribution centers are considered using RFID technologies.

Note: Pallet rack will be RFID-compatible shortly.

Equipment specification:

# Frequency / 952 - 954 MHz (UHF zone)

# Protocol / EPC Gen 2

# Radio wave code / Japan's domestic radio wave code

Visitor reception:

Reservation is necessary in advance to visit this Center. It plans to accept visitors' reservations from Monday, May 15. After this, it plans to establish a tour day about once a week.