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Factory Reduces Order-Fulfillment Time by 20 Percent

Leal, which produces and markets personal protective equipment, has adopted an RFID solution from PC Sistemas, along with Totvs' enterprise resource planning system.
By Edson Perin
Mar 31, 2017

Leal Indústria e Comércio, a manufacturer of personal protective equipment (PPE), says it has reduced its customers' ordering times by 20 percent. This result was achieved thanks to the use of a radio frequency identification solution developed by PC Sistemas, a company acquired by Totvs, which also provides the enterprise resource planning (ERP) system used by Leal.

The manufacturer manages a stock of more than 500,000 items at two distribution centers: one in Campo Limpo Paulista (SP) and another in Navegantes (SC). There are 15 thousand active items and a total register of 60 thousand specifications. This large volume of products requires that the company maintain a very high level of control, which is why Leal sought out Totvs' RFID solution to track its merchandise.

"Our portfolio is quite diverse, including clothing, safety equipment such as gloves, and parachute belts, among others. And one line does not necessarily have to do with the other," says Adailton Siqueira, Leal's systems manager. "With a limited physical space, it happened that we lost items inside the warehouse and we ran the risk of making wrong deliveries." Increased inventory control with RFID enabled the company to better meet external audits.

The solution uses two portals with fixed readers (the company has not revealed the manufacturer) within its receiving and shipping sections. "At receipt, we use the imported, manufactured or transfer products that were stored in the stock," Siqueira explains. "In shipping, we have already adopted it for billing."

"With RFID," Siqueira adds, "we achieve a 30 percent optimization in operations, with greater speed of shipment and transformation of products, in addition to accuracy in traceability, thereby guaranteeing accuracy in stock." After the adaptation period, he notes, the company noticed a 15 percent improvement in the separation of orders, as well as a 20 percent decrease in order-fulfillment times.

Previously, the company's process was entirely manual. "We have an inventory of 2,200 pallets with RFID, which was previously impossible to manage," says Alain Levy, Leal's managing partner. Leal's products leave the company's premises already tagged. "Our aim is to help our customers adopt RFID for the control of PPE that will be used by their employees."

Another need of the company that RFID addressed was managing expiration dates. PPE products have a predetermined shelf life and, in some cases, need to undergo routine inspections.

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