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View Stefan Oldenburg from Consafe Logistics on
“What are the main applications for RFID in warehousing 2010?” |
Easy reader
RFID, Radio Frequency Identification, takes the hard work out of scanning articles. RFID has no line of sight restrictions, can scan up to 200 codes simultaneously, and has an effective working distance of up to 10 meters. People using a barcode reader can only scan one article at a time and the unit needs line of sight to function.
Tag it
RFID works by storing information about goods in tags. Tags can be passive, storing enough information to track goods down to item level. They can also be semi passive with a battery, transmitting information over longer distances, and with built-in intelligence that can store information about the products in transit.
Benefits throughout the supply chain
"You’ll find industries across the board are making great savings and increasing control of goods flows". Explains Stefan Oldenburg, Director of Sales at Consafe Logistics. "One example is in tracking products of all kinds direct to the shelf. RFID tags not only track products down to item level, they can also track temperatures in transit, giving real-time data throughout a product’s lifecycle." Antti Virkkunen, CEO of Vilant Systems agrees. "RFID opens new worlds for warehouse and transport process automation and brings fantastic levels of detail".
An end to errors
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View Antti Virkkunen from Vilant on “What are the main trends of RFID in 2010? |
Eliminating errors, paring back inventories and reducing labour and turnaround times are the mantra for all companies involved with warehouse management. According to Antti Virkkunen, RFID will have a profoundly positive effect throughout the supply chain. "RFID in the supply chain automates and greatly improves material flows, especially in time-critical industries such as food and beverage. It enables real time visibility and prevents errors". Says Antti. "Good examples of what RFID means for WMS are 80% labour savings in goods receiving functions, a 25% decrease of inventory in fast replenishment processes and 500% improvements in replenishment process speeds."
Stefan Oldenburg agrees. "It’s not just about fast processes. By getting rid of most errors we greatly decrease "out of shelf" and increase tracking of perishable goods which improves revenue and customer service in the retail trade."
"Errorless processes are key issues in calculating business cases." Continues Stefan. "People only calculate work/time savings. By calculating the cost of errors – and what we save getting rid of them - we get a true picture of real savings".
Easy to integrate
"Integrating RFID into warehouse management system doesn’t have to be complicated." Comments Antti. "You don’t need to make drastic changes. A standardized RFID portal with an efficient, centralized monitoring system for people and data is simple to install and gives immediate results. Using, "slap and ship" where tags come from one source, companies can easily get around problems of using different vendors with different routines. When companies want to integrate RFID into a full ERP system we would recommend a visit from an expert who can identify the most cost-effective ways of integration to maximize ROI times."
Partnering to maximize warehouse efficiency
The two companies have now entered into a partnership where Consafe Logistics will promote Vilant’s RFID solutions to its customers, and Vilant will recommend Consafe Logistics to companies who need a warehouse management system.
"Consafe Logistics leads the field in WMS". Says Antti.
"They’ve managed millions of smooth transactions for supply chain customers, so they are a natural partner for us." Stefan agrees that the two companies fit each other perfectly.
"Put simply, we are experts in WMS and at what happens within the walls of a warehouse. By partnering with Vilant we help our customers throughout the complete supply chain including in-bound and out-bound transport. Our existing customers have the opportunity to gain more value out of their operations by taking automation to the RFID level – provided by Vilant."
Towards automated systems
Both men agree that current trends show an increased interest in the management of automated outbound shipment verification from warehouses.
"The general trend seems to be the enablement of fully automated end to end visibility from the subcontractors all the way to the point of sale." Says Antti. "System to system information sharing to form the big picture will quickly increase in importance".
The big question. How to calculate Return on Investment
Both men are agreed that no two businesses have the same requirements, and there is no "one size fits all" solution. "Every warehouse has a different layout and there are many ways in which companies can maximize the introduction of an RFID system for quickest return on investment." Says Antti. "People can call both Consafe Logistics and ourselves for a free site survey where a seasoned engineer can analyze your processes and point out how RFID will bring benefits. He can then list the implementation cost. It is relatively simple to run ROI scenarios based on this information." He concludes.
RFID tags are the intelligent way to scan goods. They give warehouses quick and easy control of stock, remove errors, and can even remove queues in supermarkets when the complete contents of a shopping trolley can be scanned in one go. With RFID you don’t just identify items, their whereabouts and their state, you also identify new ways of saving and making money.
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