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Empowering Distribution Center operations with RFID

Empowering Distribution Center operations with RFID . Angeliki Karagiannaki SmartRFID Unit of the ELTRUN E-Business Research Center http://www.eltrun.gr; akaragianaki@aueb.gr. The Diakinisis Case. Inefficiencies before RFID. Time –consuming and unreliable stock taking

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Empowering Distribution Center operations with RFID

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  1. Empowering Distribution Center operations with RFID AngelikiKaragiannaki SmartRFID Unit of the ELTRUN E-Business Research Centerhttp://www.eltrun.gr; akaragianaki@aueb.gr

  2. The Diakinisis Case

  3. Inefficiencies before RFID Time –consuming and unreliable stock taking Remarkable variances between accounting and physical stocks Overstated or understated inventory levels Difficulty in locating the pallets on storage racks during order assembly Mistakes during loading Product obsolescence due to overstocked inventory. No establishment of unforgiving rules for pallet storage

  4. RFID TAGGED PALLETS RFID Solution Components TRUCK TAG RFID PORTALS RFID-ENABLED FLTS RFID PRINTER LOCATION TAG FLOOR TAG

  5. RFID-enabled processes

  6. 1. Attach RFID labels on pallets 2. Link Pallet Barcodes with Pallet RFID Label – Update WMS 3. Forklift Truck reach Pallet RFID Label 2 1 5. Reading of Storage Rack RFID Label – Confirmation of correct storage location 4. The Storage Location is shown on the terminal via WMS RFID-enabled Storage Process

  7. 1. FLT Driver reads on the terminal Pallets & Location to retrieve 2. Confirmation of correct Pallet pickup Επιβεβαίωση Εξαγωγής Παλέτας ORDER 3ΟΚ 4. Automatic Loading Control (Correct pallet, carrier, order) 3. Pallet pickup RFID-enabled Full Pallets Picking

  8. 1. Move assembled orders to the loading area ORDER 3ΟΚ RFID-enabled Shipping Process 2.Automatic Loading Control (Pallet, carrier, order) – Loading

  9. RFID-enabledInventory Physical Count Stock Taking by moving properly equipped FLT through the aisles

  10. Remarkable Benefits Achieved near 100% pallet traceability of pallets through the distribution center Improved correct storage location of pallets by more than 25% Expedited stock taking improved by 40% Faster pallets movement by 30% – The FLT operator completes pallet storage and retrieval on his driver’s seat – no need to get off for pallet – rack scanning etc 80% reduction in shipment errors Overall process improvement of 20%

  11. An interesting outcome of the Diakinisis Case RFID IMPLEMENTATION of DIAKINISIS CASE Process C (Picking) Process B (Storage) Process D (Shipping) NEW Process (RFID LABELING) • Alternative RFID implementations • Numerous possible ways of implementing RFID within an warehouse processes RECEIVING SHIPPING Process A (Receiving) STORAGE …is not supported by RFID… • RFID process redesign problem • Different implementation  different value of RFID • no clear cut answer as to which RFID implementation is the best • IT IS IMPORTANT TO • design differently configured to-be implementations and • decide on a specific one based on a credible evaluation of the alternatives AN ALTERNATIVE RFID IMPLEMENTATION ORDER PICKING …is not supported by RFID… …is not supported by RFID…

  12. A generic warehouse simulation model Video (SIMUL8 software)

  13. Simulation Results As-is DIAKINISIS CASE Implementation 2 Implementation 5 Implementation7 Implementation 6 Implementation 3 Implementation 8 Implementation 4 13

  14. Thank you for your attention! akaragianaki@aueb.gr www.smart-rfid.eu

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