HONG KONG, November 14, 2006 - GS1 Hong Kong, Cisco ® and Intel Corporation today announced that they have successfully tagged Hong Kong's first shipment of VTech's telecommunication products from Dongguan, China. The effort is an integral part of the Hong Kong EPCnetwork project sponsored by the Hong Kong Special Administrative Region (SAR) government's Innovation and Technology Commission (ITC) under the Guangdong-Hong Kong Technology Cooperation Funding Scheme. The aim of the project is to create end-to-end visibility in the supply chain, which empowers local enterprises to address global customers' needs more effectively via industry-recognized standards.
VTech is one of the world's leading suppliers of corded and cordless telephones and electronic learning products. The company is the first Hong Kong business to ship its telecommunication products from its Dongguan plant in compliance with Wal-Mart's guidelines that its suppliers put radio frequency identification (RFID) tags on their shipping crates and pallets. VTech's shipment data can be exchanged in real-time on the Hong Kong EPCnetwork, and this pilot will demonstrate the benefits of EPC / RFID (Electronic Product CodeTM / RFID) to manufacturers in the Pan Pearl River Delta (PPRD) region.
"The RFID solution delivers integrated and intelligent RFID capabilities that connect the VTech and Wal-Mart RFID systems. This project enables us to take advantage of next generation EPC/RFID technology to track our telecommunication products from the Dongguan manufacturing facility to the Wal-Mart distribution centers in the United States," said Alex Kwan, Senior Supply Chain and Logistics Manager, VTech Telecommunications Ltd. "The RFID solution provides us with better product visibility and improves our capabilities in inventory management, while bringing VTech much closer to its customers throughout an effectively managed supply chain."
Through the successful deployment of the RFID solution from Cisco® and Intel®, VTech is participating in EPCglobal Hong Kong's EPCnetwork initiative. The manufacturer has further enhanced the efficiency of its warehouse management and operations through automation, as well as increasing visibility throughout the entire supply chain.
"VTech's successful implementation of EPC standard RFID systems in its facility in China represents another major stride for GS1 Hong Kong and the Hong Kong EPCnetwork," said Anna Lin, Chief Executive of GS1 Hong Kong and EPCglobal Hong Kong. "With the joint efforts of Cisco and Intel in providing integrated EPC / RFID integrated solutions, the shipment data can be exchanged in real-time on a standard-based infrastructure, and both the supplier and their international buyers will benefit from the efficiency derived from end-to-end supply chain information visibility. The VTech case also provides us with a valuable reference when we help more local enterprises to explore and deploy EPC / RFID solutions in the future."
The RFID solution, comprising Cisco Application Oriented Networking Services for RFID, is based on platforms powered by Intel technologies including Intel Xeon®-based servers, RFID readers and PCs. Cisco also delivered Lifecycle Services such as architecture design and planning, pilot support, and implementation consulting that together created a low-risk, high-return architectural methodology for the RFID deployment. The Cisco Lifecycle Services help ensure the optimum flow of RFID traffic while it is transparent to VTech's existing enterprise network and applications when RFID is at work. As VTech's deployment continues, other Cisco Lifecycle Services are available to help the company operate and optimize its RFID solution.
"VTech and EPCglobal Hong Kong are breaking new ground with this EPCnetwork initiative, and there is tremendous opportunity here to clearly establish the value proposition of EPC-compliant RFID and develop business cases in favor of more rapid adoption," said Mohsen Moazami, Vice President of Retail-Consumer Products Distribution, Internet Business Solutions Group at Cisco, and a member of the board of governors for EPCglobal. "By utilizing Cisco Lifecycle Services for RFID, VTech has been able to deploy a low-risk pilot that demonstrates the benefits of EPC technology. Further, these services helped VTech assess how RFID could best be deployed within their supply-chain and set the intelligent network foundation for a rapid and successful deployment."
Cisco and Intel support the various initiatives of EPCglobal Inc., including those in Hong Kong. The collaboration is one of many programs underpinning the two companies' strategic alliance and shared vision of enabling organizations and consumers to improve the way they do business, interact and stay connected through innovative, standards-based solutions.
"VTech is leading their industry with the successful shipment of products to Wal-Mart through the EPCnetwork-based RFID solution," said Jason Fedder, Managing Director, Intel Customer Solutions Group, Greater China Region. "The results of their participation in the Hong Kong EPCnetwork initiative illustrate how suppliers, retailers and logistics companies can benefit from real-time monitoring provided by easy-to-implement bundled solutions. Intel platforms and products provide the IT infrastructure to help manufacturers in the PPRD modernize their IT systems and leverage on the next generation of RFID-enabled technology. By working with Cisco and GS1 Hong Kong we are accelerating its adoption and maintaining Hong Kong's position as one of the world's busiest ports and an important logistics hub."
Both Cisco and Intel contribute to the EPCglobal Industry Support Program (EISP) announced by EPCglobal Hong Kong in April. The EISP aims to reinforce the PPRD's position as a global manufacturing base and enhance Hong Kong's leading role as a logistics and information hub. By providing both financial and technological support, more companies will have the opportunity to enjoy cost-effective solutions and to realize the many business benefits associated with participation in the Hong Kong EPCnetwork.
About GS1 Hong Kong
Founded in 1989, GS1 Hong Kong (formerly known as The Hong Kong Article Numbering Association) is a not-for-profit industry support organization. It is committed to enhancing Hong Kong enterprises' competitiveness through the provision of global supply chain standards, best practices and enabling technologies. As GS1's local chapter, GS1 Hong Kong is the only organization that is authorized to issue and administer GS1 identification numbers in Hong Kong. Standards and solutions offered include bar coding services, B2B e-commerce services, knowledge transfer training programs, Global Data Synchronization (GDS) and Electronic Product CodeTM / Radio Frequency Identification (EPC / RFID). The GS1 community has over one million corporate members spanning 145 countries and economies and more than 20 industries around the world. For more information about GS1 Hong Kong, please visit www.gs1hk.org.
VTech is one of the world's largest suppliers of corded and cordless telephones and a leading supplier of electronic learning products. It also provides highly sought-after contract manufacturing services. Founded in 1976, the Group's mission is to be the most cost effective designer and manufacturer of innovative, high quality consumer electronics products and to distribute them to markets worldwide in the most efficient manner. For more information about VTech, please visit www.vtech.com.
Intel, the world leader in silicon innovation, develops technologies, products and initiatives to continually advance how people work and live. Additional information about Intel is available at www.intel.com/pressroom.