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Metalcraft, Technologies ROI partner on RFID metal nameplates ••• TECSYS extends RFID kanban replenishment system to broader distribution industries ••• T3 Expo launches app for shipment at trade shows ••• IHL Group research highlights importance of RFID for inventory accuracy, commerce.
By Rich Handley

TECSYS Extends RFID Kanban Replenishment System to Broader Distribution Industries

TECSYS, a supply chain management software company, has announced an RFID-based kanban inventory-replenishment system designed to address the needs of supply chains at point-of-use inventory settings. According to the company, the system provides visibility and accessibility of products throughout a distribution network, automates replenishment based on real-time consumption, captures usage data, and reduces costs and cash tied up in inventory.

"After a decade of proven ROI in the demanding healthcare provider industry, we are extending our latest RFID Kanban System to an underserved and broader distribution operation's market," said Robert Colosino, TECSYS' VP of marketing, in a prepared statement. "These industries are facing significant challenges of volatile and unpredictable demand, lack of inventory visibility and costly supply chain processes. Our RFID Kanban System addresses these challenges head-on, freeing workers from the time-consuming and error-prone manual processes."

TECSYS' RFID Kanban System
TECSYS' RFID Kanban System is built to lower costs, relieve workers from time-consuming inventory-management chores and enable them to access supplies quickly and easily from anywhere within an organization's distribution network. Product and usage information are captured in the TECSYS system, the company reports, enabling purchasing organizations to track usage, re-order goods automatically and plan demand accordingly, and thereby virtually eliminate stock-outs. The solution is designed to address such challenges as maintenance and repairs (MROs), parts distribution, health-care products distribution, utilities, education, municipalities and other general-businesses challenges at the point of use.

The system is set up with a pre-established demand-based quantity of products, divided between two compartments of a storage module on the kanban shelf. When products in the first compartment are consumed, the last person to pick a particular item transfers that product's identification RFID tag to a TECSYS smart panel, located near the storage unit. Placing the tag on the smart panel triggers an automated replenishment request before critical supply levels are reached. Logistics personnel can then begin using items from the second compartment, which holds a level of inventory based on consumption within a pre-defined span of time.

After workers place all product tags on the smart panel, the system transmits the request to the supply management application. The application, in turn, generates a pick list for stock items or a requisition for direct purchase items, so that the company can refill products to their appropriate levels.

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