The Benefits of RFID for Slab- and Coil-Logistics - Falken Secure ...

3.3 Operational efficiency
Radio-frequency identification technology
can improve the operational efficiency
of a steel company in many
ways. Among the more obvious are
faster product localization and reduced
labor costs.
3.3.1 Improved stock management
From the continuous casting (or purchase)
of slabs, to hot-rolling (or purchase)
of coils, to cold-rolling and / or
one or multiple finishing steps all the
way to packaging and shipment, a significant
number of movement and storage
operations are conducted for slabs
and coils.
The more frequently a half-finished
product needs to be moved to an internal
warehouse or storage yard, the
higher the chance that it may become
„lost.“ This is particularly true if, as is
the case with many operations today,
identifying the object being stored is
conducted manually.
To overcome this risk, some companies
use sophisticated stock-keeping solutions
with GPS-enabled forklifts or
crane-coordinate systems to record
each item’s exact offloading position.
In theory, these systems eliminate misplacement
yet they have a weakness —
the initial identification is still error
prone. Radio-frequency identification
tags limit the chances of human error
and facilitate faster and more accurate
product localization.
The same logic applies to inventory
management in general, where RFID
makes it easier than ever not only to
see in real time individual products and
their qualities that are in stock, but also
to receive detailed information about
product turnaround.
Knowing exactly which products with
what qualities are located at precise
positions, allows logistics managers to
swap equivalent half-products and
reassign them to new orders to avoid
unnecessary handling. So if, for example,
the bottommost slab of a pile is
about to be shipped, and could easily
be replaced with a more accessible slab
with the same qualities, this would
save time and resources. Radio-frequency
identification improves a company’s
ability to capture these opportunities
to drive efficiency and effectiveness.
16
3.3.2 Supply chain visibility and
insight
As with all transportation-related activities
within the supply chain, RFID technology
holds the potential to make a
dramatic impact. In a supply chain
where slabs and coils are tagged, RFIDreaders
on cranes, forklifts—and at critical
points along a company’s rail
tracks—will deliver a detailed, accurate
record of the movement every time a
tagged item passes a reader.
The result of this abundance of information
is unprecedented insight into
the functioning of internal and external
supply chains, in particular the different
transportation processes, use of rental
assets such as railcars or vessels, and
half-product turnover.
Such insight will improve monitoring
and management of transportation
performance over time and help to
uncover problem areas, place service
provider charges under secondary
review and, ultimately, improve the
efficiency of the entire supply chain for
cost savings and improved customer
service.