To test the system, Smartflow approached
Heuchemer Verpackung, a family-owned packing materials business founded in 1920. Based in Bad Ems, Germany, Heuchemer manufactures cardboard boxes and plastic packing materials, along with wooden pallets. Heuchemer suited Smartflow's purposes well, both because CEO Christoph Heuchemer was interested in a more environmentally friendly approach, and because of how the company's supply chain operated. "They have several suppliers with a closed loop of pallets," Willigens says. "That was an ideal test of the system for us."
For Heuchemer, the Smartflow system was a means to help automate the flow of pallets loaded with raw materials in and out of his company's factory as part of a $150,000 investment in a new warehouse system. "The new facility will be open for deliveries 24 hours a day," he says, "and because of the use of automated loading devices, it demands optimal logistics."
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Christoph Heuchemer displays Smartflow's RFID-equipped plastic pallet.
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The pilot project launched in early 2008, and Heuchemer expects the implementation to last for the remainder of the year. Smartflow is currently helping install the logistics software to process and make use of the RFID information, as well as training the company's handling, production technology and logistics teams. After an initial
phase in which Heuchemer and Smartflow worked together to stabilize the system's software, the firm is employing a mix of fixed and handheld RFID interrogators to track the pallets.
Although Heuchemer claims it's too early to know how much the system is saving his company, for a packing-industry expert such as Heuchemer, the pallets themselves were a major attraction. Two thirds of his customers are in the food industry, and hygiene and safety demands when working with food are particularly high. Smartflow is able to track the pallets from the time they enter Heuchemer's warehouse until they leave—and is billing Heuchemer and its partners accordingly.
According to Heuchemer, Smartflow's plastic pallets were perfect for the businesses his firm supplies with packing materials. "There's no dust, they're easier to clean, and there are no nails that are dangerous for people," he says. "Plus, they're half the weight of a wood pallet—for the women who work for us, they're a lot easier to handle."
The inclusion of RFID tags sealed the deal, Heuchemer says. "This helps us keep things straight in the logistics flow," he states. "The technology has a lot of promise. It's creating a much closer cooperation between us, our shippers and our customers."