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RFID in the Supply Chain - Guide to Sele - Size

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<strong>Supply</strong> Cha<strong>in</strong> Overview � 23<br />

Lesson learned: Solve logistics problems by apply<strong>in</strong>g “lessons learned”<br />

from this and prior operations, <strong>in</strong>clud<strong>in</strong>g asset visibility, spare and repair<br />

parts availability, and physical security.<br />

1.3.9.2 Wal-Mart: Implementation Tra<strong>in</strong><strong>in</strong>g<br />

In late Spr<strong>in</strong>g 2004, Wal-Mart appeared <strong>to</strong> be cutt<strong>in</strong>g back on <strong>the</strong> mandate<br />

that all its suppliers comply with <strong>RFID</strong> track<strong>in</strong>g of cases and pallets by <strong>the</strong><br />

beg<strong>in</strong>n<strong>in</strong>g of 2005. Few suppliers had <strong>the</strong> experience <strong>in</strong> implement<strong>in</strong>g <strong>RFID</strong><br />

technology. Many had just <strong>the</strong> basic understand<strong>in</strong>g of this technology and<br />

had been work<strong>in</strong>g on <strong>the</strong> issues. The rest were just start<strong>in</strong>g out and needed<br />

time <strong>to</strong> learn technologies. Prior <strong>to</strong> its mandate, Wal-Mart apparently did<br />

not send out a survey <strong>to</strong> its suppliers <strong>to</strong> determ<strong>in</strong>e its read<strong>in</strong>ess for <strong>RFID</strong><br />

implementation, and appropriateness of its test<strong>in</strong>g facility and provide<br />

or recommend <strong>RFID</strong> implementation tra<strong>in</strong><strong>in</strong>g for those who needed it.<br />

Wal-Mart just gave <strong>the</strong> mandate without ever provid<strong>in</strong>g <strong>RFID</strong> technologies<br />

<strong>to</strong> <strong>the</strong> suppliers <strong>to</strong> help <strong>the</strong>m get started.<br />

Lesson learned: Consider supplier’s read<strong>in</strong>ess for <strong>RFID</strong> implementation.<br />

1.3.9.3 International Paper: Bus<strong>in</strong>ess Processes<br />

In September 2004, International Paper (www.<strong>in</strong>ternationalpaper.com)<br />

signed an agreement with Globe Ranger’s iMotion Edgeware platform for<br />

<strong>RFID</strong> supply cha<strong>in</strong> solutions. The company has recognized <strong>the</strong> importance<br />

of optimiz<strong>in</strong>g bus<strong>in</strong>ess processes us<strong>in</strong>g process and workflow management<br />

<strong>to</strong> deliver user-def<strong>in</strong>ed bus<strong>in</strong>ess rules for immediate visibility and<br />

exception alerts. International Paper is number one <strong>in</strong> its <strong>in</strong>dustry for <strong>the</strong><br />

second year.<br />

Lesson learned: Consider bus<strong>in</strong>ess processes <strong>in</strong> select<strong>in</strong>g and implement<strong>in</strong>g<br />

<strong>RFID</strong> technologies.<br />

1.3.9.4 Procter & Gamble: Dock<strong>in</strong>g Load<strong>in</strong>g Throughput<br />

In 2001, Procter & Gamble (P&G, www.pg.com) <strong>in</strong> Spa<strong>in</strong> experienced<br />

bottlenecks at <strong>the</strong> load<strong>in</strong>g dock where forklift drivers would run out of<br />

room on <strong>the</strong> dock for stack<strong>in</strong>g pallets <strong>to</strong> be shipped. To make room, pallets<br />

were moved twice or production s<strong>to</strong>pped for <strong>the</strong> load<strong>in</strong>g dock <strong>to</strong> be cleared.<br />

To save time, <strong>the</strong> company moved <strong>the</strong> pallets <strong>to</strong> <strong>the</strong> trucks from <strong>the</strong> dock.<br />

However, <strong>the</strong>se pallets were sometimes sent <strong>to</strong> <strong>the</strong> cus<strong>to</strong>mers by mistake<br />

when <strong>the</strong>y were supposed <strong>to</strong> reload back <strong>to</strong> <strong>the</strong> dock from <strong>the</strong> trucks.<br />

To <strong>in</strong>crease throughput and elim<strong>in</strong>ate costly mistakes, P&G developed<br />

an <strong>RFID</strong>-based system <strong>to</strong> identify <strong>the</strong> pallets. This has allowed <strong>the</strong> plant <strong>to</strong><br />

shift <strong>to</strong> direct load<strong>in</strong>g, <strong>in</strong>crease <strong>the</strong> speed of load<strong>in</strong>g, and reduce <strong>the</strong> number<br />

of forklift truck drivers needed.

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