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www.eltrun.gr
ΟΙΚΟΝΟΜΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝΤΜΗΜΑ ΔΙΟΙΚΗΤΙΚΗΣ ΕΠΙΣΤΗΜΗΣ ΚΑΙ ΤΕΧΝΟΛΟΓΙΑΣ
Angeliki KaragiannakiSmartRFID Unit of the
ELTRUN E-Business Research Centerhttp://www.eltrun.gr; [email protected]
Empowering Distribution Center operations with RFID
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The Diakinisis Case
•Diakinisis- a 3PL operatorCompany
•DistributionSector
•2008Year
•Passive UHF RFIDFormat•Storage and ShipmentApplication
•Alien TechnologyTag/Reader Supplier
•Business EffectivenessSystem Integrator
•Roll-outStatus
•PalletLabeling
•GreeceCountry
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Inefficiencies before RFID
• Time –consuming and unreliable stock taking • Remarkable variances between accounting and physical
stocks • Overstated or understated inventory levels• Difficulty in locating the pallets on storage racks during order
assembly• Mistakes during loading• Product obsolescence due to overstocked inventory. • No establishment of unforgiving rules for pallet storage
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RFID Solution ComponentsFLOOR TAG
RFID PORTALS
RFID PRINTER
LOCATION TAG
RFID-ENABLED FLTS
RFID TAGGED PALLETS
TRUCK TAG
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RFID-enabled processes
Storage Picking Shipping Inventory Physical Count
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RFID-enabled Storage Process1. Attach RFID
labels on pallets
1
2
2. Link Pallet Barcodes with Pallet RFID Label – Update
WMS
3. Forklift Truck reach Pallet RFID Label
4. The Storage Location is shown on the terminal via WMS
5. Reading of Storage Rack RFID Label – Confirmation
of correct storage location
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RFID-enabled Full Pallets Picking1. FLT Driver reads on the
terminal Pallets & Location to retrieve
3. Pallet pickup
2. Confirmation of correct Pallet
pickup ΕπιβεβαίωσηΕξαγωγήςΠαλέτας
4. Automatic Loading Control (Correct pallet, carrier, order)
ORDER 3 ΟΚ
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RFID-enabled Shipping Process
ORDER 3 ΟΚ
2. Automatic Loading Control (Pallet, carrier, order) – Loading
1. Move assembled orders to the loading area
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RFID-enabled Inventory Physical Count
Stock Taking by moving properly
equipped FLT through the aisles
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Remarkable Benefits
• Achieved near 100% pallet traceability of pallets through the distribution center
• Improved correct storage location of pallets by more than 25%• Expedited stock taking improved by 40%• Faster pallets movement by 30% – The FLT operator completes
pallet storage and retrieval on his driver’s seat – no need to get off for pallet – rack scanning etc
• 80% reduction in shipment errors• Overall process improvement of 20%
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An interesting outcome of the Diakinisis Case
• Alternative RFID implementations– Numerous possible ways of implementing RFID within an warehouse
processes
11
NEW Process(RFID LABELING)
Process C (Picking)
Process D (Shipping)
Process B (Storage)
Process A (Receiving)
…is not supported by RFID…
RFID IMPLEMENTATION of DIAKINISIS CASE
SHIPPINGRECEIVING
AN ALTERNATIVE RFID IMPLEMENTATION
STORAGE ORDER PICKING
…is not supported by RFID…
…is not supported by RFID…
• RFID process redesign problem • Different implementation different value of RFID• no clear cut answer as to which RFID implementation is
the best– IT IS IMPORTANT TO
– design differently configured to-be implementations and– decide on a specific one based on a credible evaluation of
the alternatives
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A generic warehouse simulation model• Video (SIMUL8 software)
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Simulation Results
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pallets cases0.00
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Labor Utilisation
as-istagging inhousetagging by all the supplierstagging by the large supplierstagging inhouse & by the large suppliers
DIAKINISIS CASEImplementation 2
Implementation 3
As-is
Implementation 4
Implementation 5
Implementation 6Implementation7
Implementation 8