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IdeaLab’s Long-range rFID Technology –<br />
FOCuS to Automate Store Management 24 by 7<br />
<strong>Today</strong>, many companies are leveraging technology<br />
to manage costs, boost efficiencies and enhance<br />
customer service. Yet, many also report constraints<br />
in the ability to operate the technologies effectively. Many<br />
technologies require stringent processes and a disciplined<br />
workforce to operate them.<br />
In December 2010, Tan Tock Seng Hospital Rehabilitation<br />
Center in Singapore renewed its contract with <strong>Toll</strong> Global<br />
Logistics to manage its linen store with an average inventory<br />
of 10,000 pieces. IdeaLab, a technology innovation unit<br />
within <strong>Toll</strong> Global Logistics, replaced the existing system<br />
with FOCUS, their newly developed long-range Radio<br />
Frequency Identification (RFID) Inventory Management<br />
Platform.<br />
The FOCUS system has enabled IdeaLab to manage the<br />
hospital’s linen store unmanned, 24 hours a day, seven<br />
days a week, whilst keeping real time inventory visibility<br />
and on-time replenishments in a timely manner.<br />
Sim Teck Meh, Head of the hospital, said, “My nurses can<br />
walk into the linen store anytime, pick up the required linen<br />
and leave very quickly. It’s natural and efficient. Previously,<br />
they had to sign-in to an inventory system to register the<br />
picked linen before leaving the store”.<br />
“We are definitely not going back to the old way,”<br />
added Sim.<br />
Chua Joo Chye, Operations Manager at <strong>Toll</strong> Global<br />
Logistics, explained how FOCUS works at the hospital.<br />
“An RFID reader portal is mounted at the doorway of the<br />
store. Every piece of linen is embedded with a unique RFID<br />
tag, while the nurses are issued with RFID staff badges. As<br />
these pieces of linen are taken out of the store or returned<br />
to the store through the portal, the RFID tags are read and<br />
FOCUS will automatically decrease or increase inventory<br />
counts accurately with detailed transactions recorded. The<br />
transaction record will display real time data such as who<br />
has taken what type of linen, when and where was it taken<br />
and possibly why the linen was taken. This level of data<br />
recording also enables us to automatically invoice for<br />
services as provided.<br />
“Now that the data is accurate, timely and complete, a daily<br />
linen utilisation, inventory and movement report is easily<br />
generated. Through simple data analysis, I can then decide<br />
to keep the correct buffer stock for the correct linen types<br />
on site, resulting in fewer and smarter replenishment runs<br />
which includes more freed up store space. I have also<br />
removed the cost of storekeepers too, plus I have a better<br />
understanding of cycle turns”.<br />
“Furthermore, cycle counting can be done within six<br />
man hours, a 70 percent reduction compared to before,”<br />
added Chua.<br />
Prior to the FOCUS implementation, <strong>Toll</strong> Global Logistics<br />
would occasionally miss service level targets due to stock<br />
shortages in the store. This could occur when the nurses<br />
failed to register out-going linen, especially during the early<br />
hours of the morning. In the past, we had to hire storekeepers<br />
to ensure the inventory system was updated correctly, whilst<br />
cycle counting would take days to complete and reconcile.<br />
With the newly deployed long-range RFID inventory<br />
management solution, we are now able to track and trace<br />
their linen movements more effectively, provide real-time<br />
data on inventory availability and usage as items move from<br />
storage to individual nurses, and ultimately to the patients<br />
who use them. This accurate management of the hospital<br />
supply chain – from scheduling through discharge – is<br />
essential to improving workflow and charge capture.<br />
As in the case of the Tan Tock Seng hospital, RFID<br />
application can provide hospitals with an economical way<br />
to measure a large number of parameters, streamline<br />
workflows and introduce efficiencies and cost savings<br />
across the entire healthcare inventory management chain.<br />
Similarly, the same application can be duplicated in any<br />
environment that requires such needs for example, the<br />
hospitality industry.<br />
IdeaLab will continue to improve FOCUS to be applicable<br />
for any inventory or assets or equipment management,<br />
and is keen for other business units across the <strong>Toll</strong> <strong>Group</strong><br />
to consider FOCUS in their own or their customers’<br />
operations. For more information, contact James Chan<br />
at ideaLab: james.chan@tollgroup.com n<br />
an illustrative Diagram:<br />
a Typical Linen Supply Chain work Flow<br />
Hospital<br />
Wards /<br />
Patients<br />
Replenish<br />
Hospital<br />
Warehouse Linen<br />
Clean Laundry<br />
Repair & Service Room<br />
Clean<br />
Global Logistics<br />
Soiled<br />
<strong>Toll</strong> <strong>Today</strong> <strong>March</strong> – May <strong>2011</strong> 05
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