Land Rover Test-Drives RFID to Track Parts Containers

As empty containers are returned to the supplier, the RFID system transmits data to the server regarding when the containers left one location and arrived at another, thereby ensuring not only that the containers don't get lost, but that the suppliers have the containers available when they need to ship products.

"Everyone is focused on inventory," Cannons says, "and there are great mechanisms for management of inventory, but what people have missed is the movement of these very specific containers." Each container is designed for the product it carries. If, for instance, a supplier of door panels lacks the specific container for such panels, it will not be able to ship them. Moreover, the containers aren't cheap. On average, they cost about £400 ($800) apiece. By tracking both containers and inventory, Cannons says, "you have a crossover of asset management and supply chain management."

The system offers other advantages as well, Foster notes. The RFID reads should help reveal weak links in the logistics operations, such as inefficient delivery routes. "Land Rover is under huge pressure to reduce their carbon footprint," he says. This system could help the manufacturer find ways to reduce the amount of driving (and, hence, fuel) needed to deliver goods from the supplier to the assembly plant.

While more work needs to be done to validate the business case, Foster says, thus far the tags' read rates have been high. Cannons adds that they have had to do very little "tinkering" with the system, other than adjusting the placement and angle of the EchoPoint devices to accommodate the speed at which forklift drivers travel through portals.

The pilot is expected to be completed in March 2008, Foster says, at which time WMG, Land Rover and the suppliers will evaluate its success and determine whether a full deployment would benefit the supply chain. Land Rover is presently in the process of being acquired by Tata Motors, however, and that transition could affect the completion date. Foster predicts the system will be adopted by other types of manufacturers, and sees a specific use for it in the aerospace and appliances industries.