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CHEP Tracks Auto-Part Containers in Europe
CHEP's container-tracking process includes four read points: shipment, receiving, inspection and post-repair. First, tagged containers are identified as they are moved on a forklift through the RFID portal at the dock door en route to CHEP's customers—automotive parts suppliers. The forklift driver pulls up a work order from SAP software on the touch screen of his onboard computer, then selects the dock door through which he plans to drive. The order number identifies the name of the company to which the containers are being shipped, thereby associating the customer with those particular containers. When empty containers are returned to CHEP, the same process happens in reverse.
Upon return, the containers must be inspected to determine if repairs are necessary. An operator spreads the containers out on the floor, using a handheld interrogator with a touch screen to read their tags. If he sees damage, the operator notes it to the system by selecting the type of damage from menus on the screen.
Once a container has been repaired, the operator utilizes the handheld to read the tag and record the work done. Because the system knows which customer the container was shipped to, and since CHEP knows which automakers its clients supply, the company can determine the "trading channel" the container was circulating in and collect damage statistics by channel.
"After analyzing variance in damage statistics, we can talk to our customers about how to avoid damage," says Kleijn, who described the system at RFID Journal LIVE! Europe, held last week in Prague. "This will help remove unnecessary cost from the supply chain."
The project's initial goal was to prove CHEP could gain value from using RFID on returnable assets so it could have a credible conversation about extending benefits to customers. The project, Kleijn says, has indeed confirmed the application offers better accountability for containers, including those that are damaged, and provides better brand recognition for CHEP—something that helps automakers return the proper containers to the company. What's more, the system allows CHEP to easily track inspection and repair data. Before the RFID application was implemented, containers—worth about €150 ($188) apiece—were not uniquely identified.
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Upon return, the containers must be inspected to determine if repairs are necessary. An operator spreads the containers out on the floor, using a handheld interrogator with a touch screen to read their tags. If he sees damage, the operator notes it to the system by selecting the type of damage from menus on the screen.
Once a container has been repaired, the operator utilizes the handheld to read the tag and record the work done. Because the system knows which customer the container was shipped to, and since CHEP knows which automakers its clients supply, the company can determine the "trading channel" the container was circulating in and collect damage statistics by channel.
"After analyzing variance in damage statistics, we can talk to our customers about how to avoid damage," says Kleijn, who described the system at RFID Journal LIVE! Europe, held last week in Prague. "This will help remove unnecessary cost from the supply chain."
The project's initial goal was to prove CHEP could gain value from using RFID on returnable assets so it could have a credible conversation about extending benefits to customers. The project, Kleijn says, has indeed confirmed the application offers better accountability for containers, including those that are damaged, and provides better brand recognition for CHEP—something that helps automakers return the proper containers to the company. What's more, the system allows CHEP to easily track inspection and repair data. Before the RFID application was implemented, containers—worth about €150 ($188) apiece—were not uniquely identified.
