RFID system boosts productivity

Related tags Supply chain management

Catalyst International says its supply chain management software
coupled with radio frequency identification (RFID) technology can
help companies increase productivity and decrease costs.

The company software is designed to streamline the physical movement of goods, enable collaboration with customers and suppliers and provide analysis of a company's supply chain.

In a recent implementation of the software at Dopaco, a US packaging company for quick-service restaurants, Catalyst used its SAP WM and data collection software and computer system at a 300,000sq-ft distribution centre and at two, 200,000 sq-ft warehouses. One of the warehouses is also a production plant.

The installations were completed in late spring 2005. Catalyst claims it was able to help the company achieve up to 15 per cent gain in productivity. The company says Dopaco expects will itwill be able to increase productivity by 25 percent by year's end. Once Dopaco covers its initial costs for the system, it expects to achieve ongoing annual savings of $600,000 (€502,000).

"By automating its processes and eliminating time spent searching for materials, Dopaco also has reduced its labour, improved product visibility and tracking, and has begun to consolidatepartial pallets and less-than-truckload shipments,"​ Catalyst said in a statement.

The implementation included 12 wireless devices and RFID hardware from LXE​, which sells wireless computers and data collection software. Thehardware include RFID terminals located on forklifts and hand-held terminals for workers.

The system was tested for two months before going live so material handlers, production personnel, shippers and others could get comfortable using the technology.

Wayne Anderson, director of information technology at Dopaco, said the system helped speed up the company's operations.

"We never thought it was possible to complete that many transactions in such a short time frame,"​ he said.

Dopaco, a subsidiary of Cascades​, plans to convert three more of its facilities to SAP WM over the next year, Catalyst stated. Catalyst​has offices in the UK, Italy, Mexico and South America.

Related topics Processing & Packaging

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