News | August 24, 2005

Australian Defence Force Selects Savi Technology To Build RFID-Based Consignment Tracking Network

Source: Savi Technology Inc.

Savi Technology Australia Pty Ltd., a wholly owned subsidiary of RFID supply chain solution provider Savi Technology, today announced an initial U.S. $10.1-million contract with the Australian Defence Force (ADF) to provide a consignment management solution enhanced by Radio Frequency Identification (RFID) technologies. ADF selected the Savi solution to improve the real-time visibility and accountability of military supply consignments both in-country and of joint-force operations into international theaters of operations.

The Savi SmartChain® Consignment Management Solution (CMS), a software solution that leverages a family of Savi's RFID products, will enable ADF to enhance its In-Transit Visibility System (ITV) to more effectively and efficiently track the movement of assets throughout the supply chain. This will also enable ADF to become interoperable with ITV networks already deployed by the U.S. Department of Defense, NATO and NATO member nations, including the United Kingdom Ministry of Defence and Denmark Ministry of Defence. Currently, the U.S. DoD's expanding RF-ITV network is the world's largest active RFID cargo tracking system, extending across more than 1,500 locations and 45 countries.

These RFID-based networks, which can function independently or interoperate with each other during collaborative operations, are based on the ISO's 18000-7 standards. In addition, Savi's CMS already complies with the recently agreed NATO Standardization and Agreement 2233, which provides a framework for RFID-based interoperability among NATO countries in tracking consignments and assets.

"This contract with Savi Technology is ADF's initial step in leveraging RFID and other Automatic Identification and Data Collection (AIDC) technologies, thereby enabling us to maximize our materiel visibility and supply accountability in both ADF supply chains and those operated by a coalition partner," said ADF Director-General for Materiels Systems, Brigadier David McGahey. "It is our expectation that this increased visibility will significantly reduce our overall supply costs and make our logistics more efficient and effective. We currently have poor visibility of hundreds of millions of items, and we need greater collaborative visibility with our allies. We expect this system will help us to be more flexible and agile in responding to changing redeployments."

Brigadier McGahey said that initially the ADF would implement Savi's solutions to interoperate more effectively with the United States and United Kingdom defense forces in collaborative operations in Iraq. The full solution includes the Savi SmartChain® Consignment Management Solution (CMS), the company's data-rich, active RFID tags (Savi Tag ST-654), fixed readers (SR-650) and handheld computers (Savi Mobile Readers SMR-650), which will improve real-time visibility of consignments shipped primarily in ISO containers and pallets.

A further advantage to the Savi solution, said Brigadier McGahey, is that it can interoperate with existing RFID-based systems at commercial checkpoints such as at seaports through which defense organizations move their supplies. U.S. DoD's "Radio Frequency Identification Policy," issued on July 30, 2004, states: "In order to take advantage of global RFID infrastructure not already in DoD's control, the DoD Logistics Automatic Identification Technology Office will assess the ability to leverage any compatible active RFID commercial infrastructure that commercial entities may establish."

Brigadier McGahey also emphasized that Savi's solution platform enables the ADF to leverage a larger family of RFID-based security tags and sensor devices to improve the security of container shipments to help counter potential terrorist attacks in their supply chain.

"We greatly appreciate the trust that the Australian Defence Force has placed in Savi Technology," said Bruce Jacquemard, Savi's Executive Vice President of Global Sales and Alliances. "We are fully committed to leveraging our experience and proven technology solutions to ensure that ADF meets its important objectives in getting the right supplies to the right place at the right time while the warfighter is away from home."

"This initial contract begins what will be a growing and strengthening relationship with a critical member of the allied forces combating terrorism in the Middle East," said Daryl Kendrick, Savi Technology Australia Pty Ltd., Director of Business Development for Australia and New Zealand. "When combined with an existing Savi contract for materiel asset handling with the largest retailer in Australia, it's clear that organizations are realizing the benefits and quick returns that these proven RFID-enhanced software systems can provide."

For the ADF in Australia, Savi will initially install its solution at about 30 key checkpoint nodes such as transport, distribution and inventory facilities. These installations include fixed readers, which automatically capture the identification of RFID-tagged consignments as they pass through, and with Savi SmartChain® Site Managers, which provide integrated, location-level software systems to process, manage and integrate the data into the ADF's network platform.

About Savi Technology
With over 15 years experience, Savi Technology is a leading provider of active RFID solutions for the management of supply chain assets, shipments and consignments. Savi's networked active RFID solutions track shipments for government and commercial organizations around the world. Savi Technology's integrated RFID hardware and software solutions drive business value, enabling customers to reduce their supply chain assets, inventory and operational costs. Founded in 1989, Savi Technology is privately held, with headquarters in Sunnyvale, Calif., and offices in Washington D.C., London, Singapore, Johannesburg, and Melbourne. For more information, visit www.savi.com.