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RFID Saves Auto Parts Factory Money on Raw Materials
Thanks to improved production and inventory-management processes, Brazil's R2A has optimized its entire end-to-end supply chain.
Jan 06, 2020—
By deploying a radio frequency identification system provided by iTag, Brazilian automotive parts manufacturer R2A reports that it has achieved high gains in its operations. Acting as a supplier of bumpers for various models and colors of cars manufactured in that country, the company says it achieved a 6 percent savings in raw materials due to better production planning.
Other benefits of the company's use of RFID include increased inventory visibility; better identification of production batches due to unique ID codes provided by RFID tags; greater speed in locating products in stock; 100 percent accuracy in order picking and truck shipping processes; a 95 percent reduction in delivery errors, providing a savings of 85,000 Brazilian real ($20,750) per year; and real-time inventory updates.
The implementation was performed in two parts. In December 2018, all products in stock were tagged with iTag model 7×2 RFID tags, containing Impinj Monza R6 chips. The integration was done by file, bringing all ERP inventory data to iTag iPrint software, which completed the product conversion to GS1's EPC Gen2 standardization, with newly acquired GTIN registration.
In total, 200,000 items were tagged via this process, making the inventory for large companies ready to be checked and invoiced during the second stage of deployment. According to Bruno Izídio, R2A's quality manager, "While it is a huge job moving items to a tagging area and then storing again, we would rather think of a way to leverage this work by organizing our inventory. Thus, the impact of the operation in this first stage was absorbed by the organization's benefits."
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