Logistics Providers Move, Slowly, Toward RFID
The business cases for internal and global visibility have been identified, but cost and data interoperability remain roadblocks to widespread adoption.
By Mary Catherine O'Connor
Apr. 25, 2011—Since mid-2010, Kerry Logistics, a Hong Kong-based third-party logistics company, has been using RFID at one of its facilities to track the camera products it packs and ships for Canon. Kerry Logistics makes sure all the correct camera components, accessories and warranties are packed into each product box, and that the right boxes are put in cases, placed on pallets and shipped to retail locations. The RFID system has removed some manual steps, cutting time in the kitting process and ensuring accuracy. It has also sped the process of verifying that each order is complete.
"The speed for capturing serial numbers has been enhanced around 70 percent," says Wilson Lee, Kerry Logistics' director of information technology. "The processing time has been shortened from 18 seconds to five seconds for scanning one carton, in which six items are packed."
The RFID project is only in its first phase. Kerry Logistics has a number of other applications in mind, including extending the RFID system to Canon retail stores in Hong Kong, where the tagged products are shipped. Kerry Logistics drivers could use handheld readers to check the RFID tags on the cases as they disassemble the pallets. This would replace a bar-code system for verifying the order has been shipped and delivered, expediting the process and boosting accuracy.
Apr. 25, 2011—Since mid-2010, Kerry Logistics, a Hong Kong-based third-party logistics company, has been using RFID at one of its facilities to track the camera products it packs and ships for Canon. Kerry Logistics makes sure all the correct camera components, accessories and warranties are packed into each product box, and that the right boxes are put in cases, placed on pallets and shipped to retail locations. The RFID system has removed some manual steps, cutting time in the kitting process and ensuring accuracy. It has also sped the process of verifying that each order is complete.
"The speed for capturing serial numbers has been enhanced around 70 percent," says Wilson Lee, Kerry Logistics' director of information technology. "The processing time has been shortened from 18 seconds to five seconds for scanning one carton, in which six items are packed."
|
| Photo courtesy of Kerry Logistics. |
The RFID project is only in its first phase. Kerry Logistics has a number of other applications in mind, including extending the RFID system to Canon retail stores in Hong Kong, where the tagged products are shipped. Kerry Logistics drivers could use handheld readers to check the RFID tags on the cases as they disassemble the pallets. This would replace a bar-code system for verifying the order has been shipped and delivered, expediting the process and boosting accuracy.
To continue reading this article, please log in or choose a purchase option.
Option 1: Become a Premium Member.
| One-year subscription, unlimited access to Premium Content: $189 |
Option 2: Purchase this article.
| Pages: 5 | Word Count: 2,618 | Purchase Price: $19.99 |
